State Codes and Statutes

Statutes > Nebraska > Chapter14 > 14-556

14-556. City treasurer; authorized depositories;securities; conflict of interest.(1) The city treasurershall place all funds of the city, as the same accrue, on deposit in suchbanks, capital stock financial institutions, or qualifying mutual financialinstitutions within the city as shall agree to pay the highest rate of interestfor the use of such funds so deposited. The city council is hereby directedto advertise for bids for rates for the deposit of such funds as is herebycontemplated.(2) The banks, capital stock financial institutions, or qualifying mutualfinancial institutions referred to in subsection (1) of this section, so selected,shall:(a) Give bond to the city for the safekeeping of such funds, and suchcity shall not have on deposit in any bank, capital stock financial institution,or qualifying mutual financial institution giving a guaranty bond more thanthe amount insured or guaranteed bythe Federal Deposit Insurance Corporation plus the maximum amount of the bondgiven by the bank, capital stock financial institution, or qualifying mutualfinancial institution or in any bank, capital stock financial institution,or qualifying mutual financial institution giving a personal bond more thanthe amount insured or guaranteed bythe Federal Deposit Insurance Corporation plus one-half of the amount of thebond of the bank, capital stock financial institution, or qualifying mutualfinancial institution. All bonds of such banks, capital stock financial institutions,or qualifying mutual financial institutions shall be deposited with and heldby the city treasurer; or(b) Give security as provided in the Public Funds Deposit Security Act.(3) The fact that a stockholder, director, or other officer of suchbank, capital stock financial institution, or qualifying mutual financialinstitution is also serving as mayor, as a member of the city council, asa member of a board of public works, or as any other officer of such municipalityshall not disqualify such bank, capital stock financial institution, or qualifyingmutual financial institution from acting as a depository for such municipalfunds.(4) Section 77-2366 shall apply to deposits in capital stock financialinstitutions.(5) Section 77-2365.01 shall apply to deposits in qualifying mutualfinancial institutions. SourceLaws 1921, c. 116, art. IV, § 44, p. 491; C.S.1922, § 3670; C.S.1929, § 14-547; R.S.1943, § 14-556; Laws 1957, c. 54, § 1, p. 263; Laws 1959, c. 35, § 2, p. 193; Laws 1989, LB 33, § 9; Laws 1993, LB 157, § 1; Laws 1996, LB 1274, § 13; Laws 2001, LB 362, § 10; Laws 2009, LB259, § 4. Cross ReferencesPublic Funds Deposit Security Act, see section 77-2386. AnnotationsCity of metropolitan class can make no deposit in bank unless the deposit is protected by bond, and while it may be implied, it is not expressly required, that the bank must pay the premium on the bond. State ex rel. Sorensen v. South Omaha State Bank, 128 Neb. 733, 260 N.W. 278 (1935).