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Can you summarize NERS 8-1,118?
BANKS AND BANKING > Insolvent banks; restoration of solvency; reopening for limited business; conditions; costs; new deposits treated as a trust fund; expenses.
Short Summary
This legal document, found in the Nebraska Revised Statutes under the section for Banks and Banking, pertains to the restoration of solvency for insolvent banks. It outlines the conditions under which a bank can reopen for limited business, including the approval of a contract or plan between the unsecured depositors and unsecured creditors representing at least 85% of the total amount of deposits and unsecured claims. All other depositors and unsecured creditors are bound by this agreement. Any new deposits received after the adoption of the plan and before the bank’s restoration to solvency are treated as a trust fund for the security and repayment of those deposits. The document also mentions that the bank must pay all costs incurred by the department in approving the plan, including examiners’ expenses, attorneys’ fees, and clerk hire. It further states that Section 8-138 does not apply to banks operating under this section. Additionally, it allows county, city, village, township, school district, and the state through the Governor to enter into such contracts, except when their funds are adequately secured. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Banks operating under this section, unsecured depositors, unsecured creditors, all other depositors, unsecured creditors, county, city, village, township, school district, the state through the Governor.
What does it govern?
Insolvent banks; restoration of solvency; reopening for limited business; conditions; costs; new deposits treated as a trust fund; expenses.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska