No treasurer is liable for the loss of public money deposited by him in any bank, savings and loan association or credit union qualified to receive it under the provisions of this article due to the failure of the depository to repay the money except in cases where the loss could have been avoided by the exercise of reasonable care on the part of the treasurer.
Nothing in this section shall be construed as relieving from liability any security given by any bank or savings and loan association under the provisions of this article.