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Can you summarize NERS 8-148?
BANKS AND BANKING > Banks; own capital stock; loans on, purchase, or use as collateral by bank prohibited; exceptions.
Short Summary
This legal document governs the actions of banks in Nebraska. It prohibits banks from making loans or discounts on the security of their own capital stock or the capital stock of their holding company, purchasing such shares, or purchasing securities convertible into stock, unless it is necessary to prevent loss upon a debt previously contracted in good faith. Banks are required to sell or dispose of any stock purchased or acquired within six months, unless written approval for a longer holding period is obtained from the director. The amount of stock held at any one time should not exceed ten percent of the paid-up capital of the bank. However, there are exceptions to this prohibition. Banks are allowed to subscribe to, invest, purchase, and own shares of investment companies registered under the Investment Company Act of 1940, as well as certain stocks issued by authorized agencies of the United States Government. The director has the authority to adopt rules and regulations governing the amounts, terms, and conditions of such subscriptions, investments, purchases, and ownerships.
Whom does it apply to?
Banks
What does it govern?
Loans on, purchase, or use as collateral by bank prohibited; exceptions
What are exemptions?
Banks are allowed to make loans or discounts on the security of their own capital stock or the capital stock of their holding company, purchase securities convertible into stock, or purchase shares of any corporation if it is necessary to prevent loss upon a debt previously contracted in good faith. Banks are also allowed to subscribe to, invest, purchase, and own shares of investment companies registered under the Investment Company Act of 1940, as well as certain stocks issued by authorized agencies of the United States Government.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska