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Can you summarize NERS 8-162.02?
BANKS AND BANKING > Bank; fiduciary account controlled by trust department; collateral; public funds exempt.
Short Summary
This legal document governs the handling of fiduciary accounts controlled by a bank’s trust department. It allows banks to deposit or have on deposit funds of a fiduciary account, unless prohibited by applicable law. The bank is required to set aside collateral as security for the funds that are awaiting investment or distribution. The collateral must be under the control of appropriate fiduciary officers and bank employees. The bank may maintain the investments off-premises if consistent with applicable law and if adequate safeguards and controls are in place. The collateral requirements can be satisfied with direct obligations of the United States, readily marketable securities, or surety bonds, unless prohibited by applicable law. The document also allows banks to deposit funds of a fiduciary account with an affiliated insured depository institution, subject to applicable law. However, public funds deposited in and held by a bank are exempt from this document. It is important to note that this document does not apply to fiduciary accounts where full investment authority is retained by the grantor or vested in other entities, and the bank does not have the power to influence investment decisions.
Whom does it apply to?
Banks and their trust departments
What does it govern?
Fiduciary accounts controlled by a bank's trust department
What are exemptions?
Public funds deposited in and held by a bank
What are the Penalties?
No penalties mentioned
Jurisdiction
Nebraska