Ask Reggi Your Question Now
Can you summarize NERS 8-143.01?
BANKS AND BANKING > Extension of credit; limits; written report; credit report; violation; penalty; powers of director.
Short Summary
This section of the Nebraska Revised Statutes governs the extension of credit by banks to their executive officers, directors, principal shareholders, and related interests. It sets limits on the amount of credit that can be extended and requires approval by the board of directors for certain extensions. The section also allows for specific exemptions, such as credit for financing education or the purchase of a residence. Executive officers are required to make annual written reports on loans or indebtedness, or the board of directors may obtain credit reports. The section prohibits extensions of credit that do not meet certain terms and conditions. Violations of this section are subject to penalties, including a Class IV felony.
Whom does it apply to?
Banks and their executive officers, directors, principal shareholders, and related interests
What does it govern?
Extension of credit limits to executive officers, directors, principal shareholders, and related interests of a bank
What are exemptions?
Exemptions include extensions of credit for financing education, financing or refinancing the purchase, construction, maintenance, or improvement of a residence, secured by certain types of collateral, or for other purposes within specified limits
What are the Penalties?
Any executive officer, director, principal shareholder, or person who intentionally violates this section or aids, abets, or assists in a violation is guilty of a Class IV felony
Jurisdiction
Nebraska