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Can you summarize NERS 8-132?
BANKS AND BANKING > Banks; available funds; deficient reserve; impairment of capital; duty of bank; powers and duties of department; notice to bank.
Short Summary
This legal document governs the operations of banks and banking in Nebraska. It specifies that the available funds of a bank should consist of cash on hand and balances due from other solvent banks. The bank is prohibited from making new loans or dividends if its available funds or reserves are deemed deficient by the director. The department has the power to notify a bank if its available funds, reserves, or capital are deemed deficient or impaired, and the bank is required to make good such deficiencies within the directed time. Failure to do so may result in the department taking possession of the bank, declaring it insolvent, and liquidating it as provided in the Nebraska Banking Act. The capital of a bank is considered unimpaired when the amount of capital notes and debentures represented by cash or sound assets exceeds any impairment as determined by the department.
Whom does it apply to?
Banks
What does it govern?
Banks and banking
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The failure of a bank to make good any deficiency in its available funds, reserve, or capital within the directed time may result in the department taking possession of the bank, declaring it insolvent, and liquidating it as provided in the Nebraska Banking Act.
Jurisdiction
Nebraska