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Can you summarize NERS 8-1,141?
BANKS AND BANKING > Controllable electronic record custody; qualified custodian; requirements.
Short Summary
This legal document outlines the provisions and requirements for controllable electronic record custody by financial institutions authorized to provide digital asset services. The document specifies that a financial institution may serve as a qualified custodian and must comply with all applicable state and federal laws and rules for custodial services. The financial institution is required to implement accounting, internal control, and other standards, maintain information technology best practices, and comply with federal anti-money laundering and customer identification requirements. The document also addresses the custody of controllable electronic records, the election of custody relationships by customers, and the necessary agreements between the financial institution and the customer. Additionally, it emphasizes the importance of written agreements regarding source code versions, treatment under the Uniform Commercial Code, and clear notice to customers regarding updates, risk of loss, and the financial institution’s liability. The document prohibits rehypothecation of controllable electronic records and discretionary authority without customer instructions. It also highlights the importance of not impairing the solvency or safety and soundness of the financial institution. Finally, the document mentions the assessment and costs associated with supervision and administration of custodial services under this section.
Whom does it apply to?
Financial institutions authorized to provide digital asset services
What does it govern?
Controllable electronic record custody; qualified custodian; requirements
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
Nebraska