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Can you summarize NERS 8-116.01?
BANKS AND BANKING > Banks; capital notes and debentures; issuance; conditions.
Short Summary
This provision, found in the Nebraska Revised Statutes under the section on Banks and Banking, allows banks to issue and sell capital notes or debentures with the approval of the director. The issuance of these notes or debentures does not require any action from the bank’s stockholders. However, they are subordinate to the claims of depositors and may also be subordinated to the claims of other creditors. Before retiring or paying these notes or debentures, the bank must ensure that its sound capital assets are sufficient to at least equal its capital or capital stock, disregarding the notes or debentures to be retired. The holders of these capital notes or debentures are not individually responsible for the bank’s debts, contracts, or engagements, and they are not liable for assessments to restore impairments in the bank’s capital.
Whom does it apply to?
Banks
What does it govern?
Issuance of capital notes and debentures by banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska