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Can you summarize NERS 8-147?
BANKS AND BANKING > Direct borrowing of bank; loans and investments; limitation on amounts; illegal transfer of assets; violation; penalty.
Short Summary
This legal document, part of the Nebraska Revised Statutes governing banks and banking, sets forth regulations regarding the direct borrowing of banks, limitation on amounts of loans and investments, and the illegal transfer of assets. According to the document, the aggregate amount of direct borrowing of any bank should not exceed the amount of its paid-up capital, surplus, undivided profits, capital reserves, capital notes, and debentures, unless prior written permission is obtained from the director. The document also specifies exemptions for direct borrowing, such as borrowing secured by obligations of the United States Government or obligations guaranteed by government agencies. Additionally, the aggregate amount of loans and investments of any bank should not exceed fifteen times the amount of its paid-up capital, surplus, undivided profits, capital reserves, capital notes, and debentures. The document further states that any transfer of assets of a bank in violation of these regulations is void against the creditors of the bank. Violation of these regulations can result in penalties, with any officer, director, or employee of a bank and any other person who assists in the violation being guilty of a Class IV felony.
Whom does it apply to?
Banks
What does it govern?
Direct borrowing of bank; loans and investments; limitation on amounts; illegal transfer of assets; violation; penalty
What are exemptions?
Direct borrowing does not include money borrowed on the bank's bills payable secured by direct or indirect obligations of the United States Government or obligations guaranteed by agencies of the United States Government; Rediscounts, bills payable, borrowings, or other liabilities with or to the federal reserve system or the federal reserve banks, if the bank is a member of the federal reserve system; Rediscounts, bills payable, borrowings, or other liabilities with or to the Federal Home Loan Bank System or the Federal Home Loan Banks, if the bank is a member of the Federal Home Loan Bank System; or Rediscounts, bills payable, borrowings, or other liabilities with or to the federal intermediate credit banks. Loans and investments do not include a bank's cash reserves, real estate and buildings at which the bank is authorized to conduct its business, furniture and fixtures, and obligations set forth in subdivisions (1)(a), (b), and (c) of this section.
What are the Penalties?
Any officer, director, or employee of a bank who does, or permits to be done, any act in violation of this section and any other person who knowingly assists in the violation of this section is guilty of a Class IV felony.
Jurisdiction
Nebraska