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Can you summarize NERS 8-1,116?
BANKS AND BANKING > Insolvent banks; stockholders; restoration of solvency; conditions.
Short Summary
According to the Nebraska Revised Statutes, after the department has taken possession of a bank under the Nebraska Banking Act, the stockholders of the bank have the opportunity to repair its credit, restore or substitute its reserves, and place it in a safe condition. However, the bank cannot reopen its business until the director, after a careful investigation of its affairs, determines that the stockholders have complied with the law, the bank’s credit and funds are repaired, reserves are restored or sufficiently substituted, and it is suitable to resume business. The director may then issue written permission for the bank to reopen under its charter. This provision aims to ensure that insolvent banks can regain solvency before resuming operations.
Whom does it apply to?
Stockholders of a bank
What does it govern?
Restoration of solvency for insolvent banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska