Ask Reggi Your Question Now
Can you summarize NERS 8-148.04?
BANKS AND BANKING > Community development investments; conditions.
Short Summary
This legal document, found in the Nebraska Revised Statutes under the section ‘BANKS AND BANKING’, governs community development investments made by banks. It allows banks to make such investments directly or through purchasing equity interests or evidence of indebtedness of entities primarily engaged in community development investments. However, there are certain conditions that need to be satisfied. Firstly, the investment should not expose the bank to unlimited liability. Secondly, the aggregate investment under this subsection should not exceed fifteen percent of the bank’s capital and surplus. If the bank’s investment in any one entity exceeds five percent of its capital and surplus, prior written approval from the director is required. The document also states that banks can charge off these investments as contributions. It further clarifies that the subscription, investment, possession, or ownership related to community development investments is not subject to certain sections. The document defines community development investments as investments of a predominantly civic, community, or public nature and not merely private and entrepreneurial. No specific penalties are mentioned in this document.
Whom does it apply to?
Banks
What does it govern?
Community development investments
What are exemptions?
The subscription, investment, possession, or ownership is not subject to sections 8-148, 8-149, and 8-150.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Nebraska