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Can you summarize NERS 8-1,117?
BANKS AND BANKING > Banks; impaired capital; assessments on stock to restore; preferred stock excepted.
Short Summary
This provision, found in the Nebraska Revised Statutes under the section governing banks and banking, pertains to the restoration of impaired capital in a bank. If a bank’s capital becomes impaired, stockholders representing 85% or more of the common capital stock, with the approval of the department, can authorize the board of directors to levy and collect assessments on the common capital stock to restore the impaired capital. The board of directors must notify all common stockholders of the assessments, and if any stockholder fails to pay within three weeks, the pro rata amount of the assessment becomes a lien on their common capital stock. The board of directors can then sell the shares of common capital stock to recover the assessment amount. However, this provision does not authorize the levy and collection of assessments on the preferred capital stock of the bank.
Whom does it apply to?
Banks
What does it govern?
Impaired capital; assessments on stock to restore; preferred stock excepted
What are exemptions?
The levy and collection of assessments on the preferred capital stock of the bank are not authorized.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Nebraska