State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter8 > 8-209

8-209. Pledge of securitieswith Department of Banking and Finance; amount required.(1) Anycorporation organized to do business as a trust company under the NebraskaTrust Company Act shall make a pledge with the Department of Banking and Financeof approved securities.(2) The amount of securities requiredto be pledged shall be based on the market value of trust assets held by thetrust company as follows:(a) Trust companieswith trust assets with a market value of less than twenty-five million dollarsshall pledge securities in the amount of one hundred thousand dollars in parvalue;(b) Trust companies with trust assets with a market value of atleast twenty-five million dollars but less than two hundred fifty milliondollars shall pledge securities in the amount of two hundred thousand dollarsin par value;(c) Trust companies with trust assets with a market value of atleast two hundred fifty million dollars but less than two billion five hundredmillion dollars shall pledge securities in the amount of three hundred thousanddollars in par value;(d) Trust companies with trust assets with a market value of atleast two billion five hundred million dollars but less than five billiondollars shall pledge securities in the amount of four hundred thousand dollarsin par value; and(e) Trust companies with trust assets with a market value of fivebillion dollars or more shall pledge securities in the amount of five hundredthousand dollars in par value.(3) A trust company shall determine themarket value of its trust assets at the end of each calendar year. If suchvaluation shows that the pledge of securities is less than is required bysubsection (2) of this section, the trust company shall increase the amountof the securities pledged with the department within sixty days followingthe end of the calendar year.(4) If at any time the market value of pledgedassets is determined to have depreciated to less than ninety percent of parvalue or the trust company has trust funds deposited with itself or its supportingcommercial bank in excess of those deposits referred to by section 8-212,the Director of Banking and Finance may require additional pledges in amountsdeemed necessary to fully secure pledging requirements or excessive trustfund depository balances.(5) Anynational bank authorized by the Office of the Comptroller of the Currencyor the Board of Governors of the Federal Reserve System to act in a fiduciarycapacity in this state, any federal savings association authorized by theDirector of the Office of Thrift Supervision to act in a fiduciary capacityin this state, any federally chartered trust company, and any out-of-statetrust company authorized under the Interstate Trust Company Office Act shallmake similar pledges with the department, and all such deposits of nationalbanks held by the department shall be considered as having been lawfully sopledged and subject to the Nebraska Trust Company Act. SourceLaws 1911, c. 31, § 9, p. 192; R.S.1913, § 746; Laws 1919, c. 190, tit. V, art. XVIII, § 9, p. 721; C.S.1922, § 8071; C.S.1929, § 8-209; Laws 1933, c. 18, § 75, p. 174; Laws 1939, c. 3, § 1, p. 59; C.S.Supp.,1941, § 8-209; R.S.1943, § 8-209; Laws 1993, LB 81, § 23; Laws 1998, LB 1321, § 39; Laws 2009, LB327, § 7. Cross ReferencesInterstate Trust Company Office Act, see section 8-2301.