(A) In lieu of the bond required herein, any bank making application to become a depository may deposit with the Municipal Clerk, United States government bonds, bonds of the state or of any state whose bonds are purchased by the Board of Educational Lands and Funds of the state for investment of the Permanent School Fund, warrants of the state, county bonds, municipal bonds or school district bonds of any county, city, village or school district in the state issued under the direction of and with the approval of the Auditor of Public Accounts, bonds and debentures issued either singly or collectively by any of the 12 federal land banks, the 12 intermediate credit banks or the 13 banks for cooperatives under the supervision of the Farm Credit Administration, or warrants of the county or any city, village or school district in the county; provided that, the penal sum of said bond or the sum of said pledge of assets shall be of the value equal to or greater than the amount of the deposit in excess of that portion said deposit insured by the Federal Deposit Insurance Corporation.
(B) The depository bank furnishing securities above described shall have the right to substitute other approved securities herein provided for in lieu of securities already pledged if it so desires at any time.
(2005 Code, § 1-918)