State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter8 > 8-162_02

8-162.02. State-chartered bank; fiduciaryaccount controlled by trust department; collateral; public funds exempt.(1) A state-charteredbank may deposit or have on deposit funds of a fiduciary account controlledby the bank's trust department unless prohibited by applicable law.(2) To theextent that the funds are not insured or guaranteed by the Federal DepositInsurance Corporation, a state-chartered bank shall set aside collateral assecurity under the control of appropriate fiduciary officers and bank employees.The bank shall place pledged assets of fiduciary accounts in the joint custodyor control of not fewer than two of the fiduciary officers or employees ofthe bank designated for that purpose by the board of directors. The bank maymaintain the investments of a fiduciary account off-premises if consistentwith applicable law and if the bank maintains adequate safeguards and controls.The market value of the collateral shall at all times equal or exceed theamount of the uninsured or unguaranteed fiduciary funds.(3) A state-charteredbank may satisfy the collateral requirements of this section with any of thefollowing: (a) Direct obligations of the United States or other obligationsfully guaranteed by the United States as to principal and interest; (b) readilymarketable securities of the classes in which banks, trust companies, or othercorporations exercising fiduciary powers are permitted to invest fiduciaryfunds under applicable state law; and (c) surety bonds, to the extent thesurety bonds provide adequate security, unless prohibited by applicable law.(4) A state-charteredbank, acting in its fiduciary capacity, may deposit funds of a fiduciary accountthat are awaiting investment or distribution with an affiliated insured depositoryinstitution unless prohibited by applicable law. The bank may set aside collateralas security for a deposit by or with an affiliate of fiduciary funds awaitinginvestment or distribution, as it would if the deposit was made at the bank,unless such action is prohibited by applicable law.(5) Public funds depositedin and held by a state-chartered bank are not subject to this section. SourceLaws 2009, LB327, § 2.