This legal document, part of the Nebraska Revised Statutes governing banks and banking, outlines the process for handling claims against insolvent banks. After the expiration of the time for presenting claims, the director is required to thoroughly investigate all claims and file a complete list of valid claims, along with a list of invalid claims, with the district court. The director also has the power to allow or reject claims based on their classification.

Upon the allowance of a claim against an insolvent bank, the director shall, upon request of the claimant, issue and deliver to the claimant a certificate of indebtedness showing the amount of the claim, the date of the allowance thereof, and whether such claim is one having priority of payment or is a general claim. Any assignment of a claim or certificate of indebtedness shall be filed with the director and shall not be binding until so filed.

This legal document governs the priority of claims in the event of insolvency of a bank. It states that the claims of depositors for deposits not otherwise secured and claims of holders of exchange have priority over all other claims, except for federal, state, county, and municipal taxes. These claims are considered a first lien on all the assets of the bank. However, claims based on evidence of indebtedness in the hands of or originally issued to any stockholder, officer, or employee of the bank are not allowed priority.

When a bank whose deposits are insured by the Federal Deposit Insurance Corporation becomes insolvent, neither the deposits in the bank nor the exchange of such bank shall be deemed to be otherwise secured by reason of such insurance for purposes of section 8-1,110. Source: Laws 1935, c. 16, 2, p. 91; C.S.Supp.,1941, 8-1,102; R.S.1943, 8-197; Laws 1963, c. 29, 111, p. 181; Laws 2017, LB140, 108.

At any time after the expiration of the date fixed for the presentation of claims, the district court may by order, upon the application of the director, authorize the director to declare out of the funds remaining in his or her hands, after the payment of expenses, one or more distributions, and at the earliest possible date the director shall declare a final distribution as may be directed by the district court of the county in which the main office of such bank is located.

The director shall from time to time allocate to the various banks in liquidation the expenses of the department by reason of such liquidation, other than the compensation and expense of the special deputy or assistant in charge and the fees for legal services directly incident to the bank in liquidation. The director shall certify to the various district courts of the counties in which the banks in process of liquidation are located the amount of the expenses allocated, which shall be taxed and paid as costs in the liquidation.

The director shall from time to time make and file with the clerk of the district court of the county in which the main office of the insolvent bank is located a report of his or her acts of liquidation of each insolvent bank. He or she shall, upon the completion of the liquidation, file a final report, notice of which shall be given as the court may direct, and on hearing thereon and approval thereof by the court such liquidation shall be declared closed and the corporation dissolved.

According to the Nebraska Revised Statutes, after the department has taken possession of a bank under the Nebraska Banking Act, the stockholders of the bank have the opportunity to repair its credit, restore or substitute its reserves, and place it in a safe condition. However, the bank cannot reopen its business until the director, after a careful investigation of its affairs, determines that the stockholders have complied with the law, the bank’s credit and funds are repaired, reserves are restored or sufficiently substituted, and it is suitable to resume business.

This provision, found in the Nebraska Revised Statutes under the section governing banks and banking, pertains to the restoration of impaired capital in a bank. If a bank’s capital becomes impaired, stockholders representing 85% or more of the common capital stock, with the approval of the department, can authorize the board of directors to levy and collect assessments on the common capital stock to restore the impaired capital. The board of directors must notify all common stockholders of the assessments, and if any stockholder fails to pay within three weeks, the pro rata amount of the assessment becomes a lien on their common capital stock.