Ask Reggi Your Question Now
Can you summarize 213 NEAC Chapter 1?
PROCEDURES FOR DISTRIBUTION OF FUNDS TO BANKS
Short Summary
The provided legal document outlines the procedures for the distribution of funds to banks in the state of Nebraska. According to the Nebraska Capital Expansion Act, the state investment officer is responsible for offering a time deposit open account to all eligible financial institutions. The deposit date is set as the last day of the month, with deposits made on the next working day if the last day is not a working day. All deposits have a maturity period of one year and are automatically renewable. Both the state investment officer and the financial institutions have the ability to change or terminate the principal amount with thirty days written notice. When requesting a new deposit, the financial institutions are required to give fifteen business days written notice. The interest rates for the deposits are fixed by the state investment officer on the first working day of each month and are based on the average yields of Treasury Note or Bond issues and authorized federal agency issues maturing in the same month one year hence. The quoted yields are taken from a reputable financial quote system and are the prior month end yield. Interest is computed and charged on a 360-day basis and is payable on the last day of each month, or the next working day if the last day is not a working day. All deposits are made by the state investment officer in a correspondent bank, and interest and redeemed/matured deposits are paid by the correspondent bank by charging the accounts of the financial institutions and crediting the Treasurer, State of Nebraska. Deposits over the amount insured or guaranteed by the Federal Deposit Insurance Corporation are secured by collateral as required by the Public Funds Deposit Security Act. The state investment officer may choose to restrict the types and classes of investments accepted as collateral. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Banks, capital stock financial institutions, and qualifying mutual financial institutions in the state of Nebraska
What does it govern?
Procedures for distribution of funds to banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska