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Can you summarize NERS 8-197?
BANKS AND BANKING > Insolvent banks; liquidation by Federal Deposit Insurance Corporation or by liquidating trustees.
Short Summary
This legal document, part of the Nebraska Revised Statutes under the section on Banks and Banking, governs the liquidation process of insolvent banks. It outlines two methods of liquidation: (a) The Federal Deposit Insurance Corporation (FDIC) may accept the appointment as receiver or liquidating agent for insolvent banks whose deposits are insured by the FDIC. (b) If the bank is declared insolvent and its deposits are not insured by the FDIC, depositors and other creditors representing at least 51% of the deposits and claims have the right to liquidate the bank through liquidating trustees. The trustees must file articles of trusteeship executed and acknowledged by at least 51% of the depositors and creditors. Once the articles are approved, the director transfers all assets to the liquidating trustees, who assume the responsibilities of the department and the director. The trustees then proceed to liquidate the bank in a manner similar to the department acting as receiver and liquidating agent. If the FDIC or any other party is appointed as receiver and liquidating agent, they assume the responsibilities of the department and the director as outlined in the Nebraska Banking Act. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Insolvent banks and their depositors and other creditors
What does it govern?
Insolvent banks; liquidation by Federal Deposit Insurance Corporation or by liquidating trustees
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Nebraska