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Can you summarize NERS 8-1,102?
BANKS AND BANKING > Insolvent banks; department as receiver and liquidating agent; liens dissolved; assets; transfers to defraud creditors; preferences.
Short Summary
This provision, found in the Nebraska Revised Statutes under the section on Banks and Banking, governs the process of handling insolvent banks. When a bank is declared insolvent by the director, the department becomes the receiver and liquidating agent responsible for winding up the bank’s business. The department is granted title to all the assets of the bank, regardless of their location or type. Any levies, judgment liens, attachments, or other liens obtained through legal proceedings against the bank or its property within sixty days prior to the declaration of insolvency are deemed void, and the affected property is released from such liens. Additionally, any transfers of the bank’s assets made within sixty days prior to the director taking over the bank, with the intent to prevent liquidation and distribution to creditors or to create a preference for one creditor over another, are considered void. The director is entitled to recover such assets for the benefit of the trust. This provision aims to protect the interests of the bank’s creditors and ensure a fair and orderly liquidation process.
Whom does it apply to?
Banks declared insolvent
What does it govern?
Insolvent banks; department as receiver and liquidating agent; liens dissolved; assets; transfers to defraud creditors; preferences
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Nebraska