Neb. Admin. Code tit. 45 — Banking and Trust Laws

Chapter 1 General Provisions for Title 45

Neb. Admin. Code tit. 45, ch. 1 General Provisions for Title 45 {#sec-45-nac-1 omnilex-key=us-ne-regs-official--title-45--45 NAC 1}

001 AUTHORITY .

001.01 The Rules contained in Title 45 of the Nebraska Administrative Code have been promulgated pursuant to authority delegated to the Director of the Department of Banking and Finance in Neb. Rev. Stat. § 8-106.

001.02 The Department has determined that the Rules are in the public interest.

001.03 The Director may, on a case-by-case basis, and with prior written notice to the affected person under a specified Rule, require adherence to additional standards or policies, as deemed necessary in the public interest.

001.04 For purposes of Title 45, “the Department” means the Department of Banking and Finance.

002 ADMINISTRATION . The Nebraska Banking Act and the Nebraska Trust Company Act are administered by the Director of the Department. Department offices are open from the hours of 8 a.m. to 5 p.m., Monday through Friday, legal holidays excepted. The mailing address of the agency is Department of Banking and Finance, P.O. Box 95006, Lincoln, Nebraska 68509-5006.

003 FILING AND FEES . A document is filed when it is received in the Department with the appropriate fee. A document so filed cannot be returned. Documents may be filed electronically or in paper form. All filing fees are payable in U.S. dollars by corporate check, money order, or ACH to the Department. Cash, personal checks, and checks drawn on non-United States banks will not be accepted. Upon withdrawal or denial of an application, request, or notice, the entire fee will be retained by the Department.

History

• Effective 2023-11-25

Chapter 2 Record Keeping Requirements for Business Entity Customers

Neb. Admin. Code tit. 45, ch. 2 Record Keeping Requirements for Business Entity Customers {#sec-45-nac-2 omnilex-key=us-ne-regs-official--title-45--45 NAC 2}

001 Each state bank shall, at a minimum, maintain the records listed below for entities which are customers of the bank.

001.01 Sole Proprietorships.

001.01A Name, address, social security number, and tax identification number, if one has been obtained, of the proprietor.

001.02 Partnerships.

001.02A Name, address, and tax identification number of the partnership.

001.02B Names, addresses, and social security numbers of all partners.

001.01C Resolutions authorizing each borrowing and specifying the names of those whose signatures are needed to obligate the partnership.

001.01D Resolutions authorizing the opening of each deposit account and specifying the names of those whose signatures are needed to deposit and withdraw funds.

001.02E Names, addresses, and social security numbers of the authorized persons.

001.03 Corporations.

001.03A Name, address, and tax identification number of the corporation.

001.03B Resolutions authorizing each borrowing and specifying the names of those whose signatures are needed to obligate the corporation.

001.03C Resolutions authorizing the opening of each account and specifying the names of those whose signatures are needed to deposit and withdraw funds.

001.03D Names, addresses, and social security numbers of the authorized persons.

001.04 Limited Liability Companies.

001.04A Name, address, and tax identification number of the limited liability company.

001.04B Names, addresses, and social security numbers of all members and managers.

001.04C Resolutions authorizing each borrowing and specifying the names of those whose signatures are needed to obligate the company.

001.04D Resolutions authorizing the opening of each deposit account and specifying the names of those whose signatures are needed to deposit and withdraw funds.

001.04E Names, addresses, and social security numbers of the authorized persons.

001.05 Other Organizations.

001.05A This subsection includes, but is not limited to, political subdivisions, religious organizations, and non-profit organizations.

001.05B Name, address, and tax identification number of the organization.

001.05C Resolutions of the governing body of the organization authorizing the opening of each account and specifying the names of those whose signatures are needed to deposit and withdraw funds.

001.05D Names, addresses, and social security numbers of the authorized persons.

History

• Effective 2023-11-25

Chapter 3 Data Center Record Keeping Standards

Neb. Admin. Code tit. 45, ch. 3 Data Center Record Keeping Standards {#sec-45-nac-3 omnilex-key=us-ne-regs-official--title-45--45 NAC 3}

001 DEFINITIONS .

001.01 For purposes of this Rule, “data center” means:

001.01A A data processing department within a bank staffed by direct employees of the bank;

001.01B A data processing service organization that processes the transactions of a bank, including, but not limited to, service organizations wholly or partially owned by the bank, or owned wholly or partially by other banks; or

001.01C Private organizations not affiliated with any bank that provide services by contractual agreement.

002 SCOPE OF RULE .

002.01 This Rule establishes minimum standards for certain aspects of computerized record keeping systems employed in the recording, updating, and maintenance of the financial transactions of banks. Sound record keeping principles are necessary to ascertain the true condition of a bank, and to ensure that examiners can extract, or have extracted, information from data files necessary to the examination.

002.02 Data centers are to record, update, and maintain specific information as set forth in this Rule. The various departments of the bank should submit information in a format specified by the data center.

002.03 Any additional data, not included in this Rule, may be included in the computerized records of the bank.

003 RESTRICTION ON ALTERATIONS .

003.01 Those fields which reflect the original terms, conditions, or provisions entered into by and between the bank and the customer, must not be altered by file maintenance transactions, except to correct a recording or processing error. In the event any of these fields are altered, a paper or electronic copy of the alteration should be created and retained in accordance with Neb. Rev. Stat. § 8-107.

004 REQUIRED DATA – DEPOSIT ACCOUNTS .

004.01 Demand Deposit Accounts.

004.01A Accounts maintained in computer records must be identified by a unique code. A range of account numbers is not an acceptable method.

004.01A1 TYPE CODE. Designates an account that receives special services.

004.01A1a Revolving Credit Account (Overdraft Checking Account). A demand deposit account on which the bank has pre-approved payment of insufficient checks.

004.01A2 IDENTIFICATION CODE. Designates owner of the funds.

004.01A2a Public Funds Account. Deposits may include those:

004.01A2a1 for which the bank is required to pledge securities,

004.01A2a2 belonging to any federal, state, local, or public entity,

004.01A2a3 deposited by an officer of a public entity in an official capacity. A method of differentiation between federal, state, county, and municipal deposits must be maintained.

004.01A2b Credit Bank Account (Commonly Referred to as Correspondent Bank Accounts). Deposits due to any commercial bank, savings bank, or trust company.

004.01A2c Trust Fund Account. For banks with trust powers, funds deposited in the bank by its trust department.

004.01A2d Accounts of Directors, Officers, or Employees of the Bank. A single code may be used to identify all three categories.

004.01A2e Dealer Reserve Account. An account belonging to any retail dealer, the purpose of which is to receive that dealer's portion of finance charges, credit insurance premiums, or other similar type funds.

004.01A2f Bank Control Account. Each account, which represents outstanding cashier's checks, officer's checks, expense checks, or other similar bank checks, or which represent suspense items, unposted items, income, expense, or any other type of account belonging to the bank. Each such item so maintained shall be carried in a separate account.

004.01A3 STATUS CODE. Designates a unique feature of an individual account. These codes are not necessarily mutually exclusive.

004.01A3a Accounts on Which No Statement is to be Printed.

004.01A3b Accounts on Which No Statement is to be Mailed.

004.01A3c Restricted Account. An account on which notification has been given or received by the bank to preclude activity in that account.

004.01A3d Dormant Account. An account belonging to a customer which the bank cannot locate or identify. This must not include an account involved in litigation where the court will determine the rightful owner of the funds nor an account awaiting distribution through estate settlement procedures.

004.01A3e Inactive Account. An account in which no customer-initiated dollar activity has occurred for a period of time as specified by the Board of Directors. Inactive account means an account in which the bank still has contact with the customer, as opposed to a dormant account as defined in Subsection 004.01A3d of this Rule.

004.01B Fields of data that must be recorded in the computer records:

004.01B1 DATE ACCOUNT OPENED. The date the account was opened, or the date the initial deposit was made. If the account was opened prior to the date records were converted from manual to automated system, then the date the records were so converted may be used.

004.01B2 ACCOUNT NUMBER.

004.01B3 NAME OF DEPOSITOR. Short name is acceptable.

004.01B4 ADDRESS OF DEPOSITOR. Address must include the zip code.

004.01B5 CURRENT BALANCE. Actual posted dollar balance of the account, including uncollected funds and funds on which "holds" have been placed.

004.01B6 COLLECTED OR UNCOLLECTED FUNDS. That portion of a deposit balance which has either been collected or uncollected by the depository bank. Either method will be acceptable, as long as it is identified.

004.01B7 DATE AND AMOUNT OF LAST CUSTOMER DEPOSIT. The date and amount of the last deposit activity, initiated by the customer, that was posted to the account.

004.01B8 DATE AND AMOUNT OF LAST CUSTOMER WITHDRAWAL. The date and amount of the last withdrawal activity, initiated by the customer, that was posted to the account.

004.01B9 DATE OF LAST CUSTOMER INITIATED ACTIVITY IN THE ACCOUNT. The date the last activity, initiated by the customer, was posted to the account.

004.01B10 DATE ACCOUNT WAS OVERDRAWN. The date a currently overdrawn account first became overdrawn and remained in a continuously overdrawn status.

004.01B11 NUMBER OF TIMES AND NUMBER OF DAYS AN ACCOUNT WAS OVERDRAWN. This could be accumulated on a previous twelve month running total, or year-to-date plus total previous year.

004.01B12 DATE OF THE LAST STATEMENT. The date the last statement of the account was printed and activity purged from the file.

004.01B13 BALANCE OF THE LAST STATEMENT. The balance of the last statement of the account, which was printed, or an electronic copy was made, and activity was purged from the file.

004.02 Savings Deposit Accounts.

004.02A If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

004.02A1 TYPE ACCOUNT CODE.

004.02A1a Regular Savings. An interest-bearing account where withdrawal may be made without penalty.

004.02A1b Club Savings. An account which may or may not pay interest where the bank is to make payment at a pre-arranged date (Christmas, vacation, etc.).

004.02A1c Other Savings. Any other account that is not regular savings or club savings.

004.02A2 IDENTIFICATION CODE. Designates the owner of the funds.

004.02A2a Public Funds Savings Account. Savings deposits may include those:

004.02A2a1 for which the bank is required to pledge securities,

004.02A2a2 belonging to any federal, state, or local public entity, or

004.02A2a3 deposited by an officer of a public entity in an official capacity. A method of differentiation between federal, state, county, and municipal deposits should be maintained.

004.02A2b Credit Bank Savings Account. Savings deposits due to any commercial bank, savings bank, or trust company.

004.02A2c Trust Fund Savings Account. For banks with trust powers, funds deposited in a savings account in the bank by its trust department.

004.02A2d Savings Accounts of Directors, Officers, or Employees of the Bank. A single code may be used to identify all three categories.

004.02A2e Bank Control Account. Any savings account belonging to the bank, such as suspense items and unposted items recorded as separate accounts.

004.02A3 STATUS CODE. Designates a unique feature of an individual account. These codes are not necessarily mutually exclusive.

004.02A3a Savings Account on Which No Statement Is To Be Printed. Account where no statement is to be produced by request of the depositor.

004.02A3b Savings Account on Which No Statement Is To Be Mailed. Account where no statement is to be mailed.

004.02A3c Restricted Savings Account. Account on which notification has been given or received by the bank to preclude activity in that account.

004.02A3d Dormant Savings Account. Account belonging to an entity which the bank cannot locate or identify. This shall not include an account involved in litigation where the court will determine the rightful owner of the funds nor an account awaiting distribution through estate settlement procedure.

004.02A3e Inactive Savings Account. Account in which no customer-initiated dollar activity has occurred for a period of time as specified by the Board of Directors. Inactive savings account means an account in which the bank still has contact with the customer as opposed to a dormant account as defined in Subsection 004.02A3d of this Rule.

004.02B Required Fields of Data:

004.02B1 SAVINGS ACCOUNT NUMBER.

004.02B2 DATE THE SAVINGS ACCOUNT WAS OPENED. Date the account was opened, or the date the initial savings deposit was made which opened the account. If the account was opened prior to the date the records were converted from manual to automated system, then the date the records were so converted may be used.

004.02B3 NAME OF THE DEPOSITOR. Short name is acceptable.

004.02B4 ADDRESS OF THE DEPOSITOR. Must include zip code.

004.02B5 CURRENT BALANCE. Actual posted dollar balance of the savings account, including uncollected funds and funds on which "holds" have been placed.

004.02B6 COLLECTED OR UNCOLLECTED FUNDS. That portion of a deposit balance which has either been collected or uncollected by the depository bank. Either method is acceptable, as long as it is identified.

004.02B7 DATE OF LAST CUSTOMER INITIATED ACTIVITY. Date the last activity was posted to the account which was initiated by the customer.

004.02B8 DATE AND AMOUNT OF LAST CUSTOMER DEPOSIT. Date and amount of the last deposit activity, initiated by the customer, that was posted to the account.

004.02B9 DATE AND AMOUNT OF LAST CUSTOMER WITHDRAWAL. Date and amount of the last withdrawal activity, initiated by the customer, that was posted to the account.

004.02B10 DATE OF LAST STATEMENT. Date the last statement of the savings account was printed, or an electronic copy was made, and the activity purged from the file. This applies only to "Statement Savings Accounts" or other similar savings accounts for which statements reflecting the activities in the account are customarily produced.

004.02B11 BALANCE OF LAST STATEMENT. Balance of the last statement of the account, which was printed, or an electronic copy was made, and activity purged from the file.

004.02B12 INTEREST RATE. Annual rate of simple interest paid on that savings account. This is not the effective rate determined by periodic compounding. A code may be used to specify the annual rate of interest.

004.03 Certificates of Deposit.

004.03A If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

004.03A1 TYPE CODE. Designates a contractual arrangement.

004.03A1a Automatically Renewable Certificate. Certificate where the instrument specifically states the contract will automatically be extended for an additional term equal to that originally agreed upon between the depositor and the bank, unless withdrawn by the customer within a specified time following the maturity.

004.03A1b Single Maturity Certificate. Certificate which is not automatically renewable.

004.03A2 IDENTIFICATION CODE. Designates the owner of the funds.

004.03A2a Public Funds Certificate of Deposit. Certificate may include those:

004.03A2a1 for which the bank is required to pledge securities,

004.03A2a2 belonging to any federal, state, local public entity, or

004.03A2a3 deposited by an officer of a public entity in an official capacity. A method of differentiation between federal, state, county, and municipal deposits should be maintained.

004.03A2b Credit Bank Account. Certificate due to any commercial bank, savings bank, or trust company.

004.03A2c Trust Fund Account. For banks with trust powers, Certificate issued by the bank to its trust department.

004.03A2d Insider Account. Certificate Issued to Directors, Officers, or Employees of the Bank. A single code may be used to identify all three categories.

004.03A3 STATUS CODE. Designates a unique feature of an account. These codes are not necessarily mutually exclusive.

004.03A3a Negotiable Certificate. Certificate which is made payable to the bearer or endorser.

004.03A3b Demand Certificate.

004.03A3c Redeemed Certificate (Closed). Certificate that has been presented to the bank for payment.

004.03A3d Dormant Certificate. Certificate belonging to an entity which the bank cannot locate or identify. This must not include a certificate involved in litigation where the court will determine the rightful owner of the fund or a certificate awaiting distribution through estate settlement procedures.

004.03A3e Pledged Certificate.

004.03B Required Fields of Data:

004.03B1 CERTIFICATE NUMBER. Number assigned to the Certificate for identification purposes. This is not what is usually referred to as a "Customer Identification Number."

004.03B2 NAME OF DEPOSITOR. Short name is acceptable.

004.03B3 ADDRESS OF DEPOSITOR. Address must include zip code.

004.03B4 DATE ISSUED. Date the Certificate was originally issued.

004.03B5 TERM OF CERTIFICATE. Number of months or days which determine the maximum interest to be paid.

004.03B6 INTEREST PAID. Annual rate of simple interest paid on the Certificate.

004.03B7 NEXT MATURITY DATE. Date shown on the Certificate on which the principal amount matures or is due and payable to the depositor. In the case of automatically renewable certificates of deposit, the maturity date is the next date the Certificate is due.

004.03B8 CURRENT BALANCE. Actual posted balance of the Certificate.

004.03B9 DATE LAST INTEREST WAS PAID. Date interest was calculated and paid direct to the holder or added to the current balance.

005 REQUIRED DATA - LOANS .

005.01 Installment Loans.

005.01A If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

005.01A1 TYPE OF LOAN. Designates the classification of the loan according to legal definitions.

005.01A1a Direct Loans to Borrowers. Loans governed by the Personal Loan statutes, Neb. Rev. Stat. §§ 8-815 to 8-829, inclusive. (Installment Loans)

005.01A1b Indirect Loans - Purchased Paper. Loans governed by the Installment Sales Act (Dealer Paper)

005.01A1c Other Loans. Loans not governed by the Personal Loan statutes or the Installment Sales Act.

005.01A1d Direct Lease Paper (If Maintained With Installment Loans).

005.01A1e Indirect Lease Paper (If Maintained With Installment Loans).

005.01A2 LOAN CLASSIFICATIONS. Minimum classifications:

005.01A2a Loans to purchase automobiles on installment basis.

005.01A2b Credit cards and related plans:

005.01A2b1 Retail (charge account) credit card plans.

005.01A2b2 Check credit and revolving credit plans.

005.01A2c Loans to purchase retail consumer goods on installment basis:

005.01A2c1 Mobile homes (exclude travel trailers).

005.01A2c2 Other retail consumer goods (exclude credit cards and related plans).

005.01A2d Loans to repair and modernize residential property.

005.01A2e Other installment loans for household, family, and other personal expenditures.

005.01A3 IDENTIFICATION CODE. Designates the borrower on a loan.

005.01A3a Director, Officer, or Employee of the Bank. A single code may be used to identify all three categories.

005.01A4 STATUS CODE. Designates a unique feature of an account. These codes are not necessarily mutually exclusive.

005.01A4a Recourse Indicator (With or Without).

005.01A4b Repurchase Indicator (Full or Limited).

005.01A4c Repossessed Indicator.

005.01B Required Fields of Data:

005.01B1 BORROWER NUMBER. A number assigned to a particular borrower. This number can be either common for all indebtedness or common for all installment loan indebtedness.

005.01B2 LOAN NUMBER.

005.01B3 NAME OF BORROWER(S). Short name is acceptable.

005.01B4 ADDRESS OF BORROWER. Must include zip code.

005.01B5 LOAN OFFICER

005.01B6 DATE OF LOAN. Date shown on the face of the note.

005.01B7 AMOUNT ADVANCED. Principal amount of the loan; sometimes called proceeds, net amount financed, or amount of loan. It may be disclosed to the borrower in a single amount or disclosed as sale price less any down payment of cash or goods.

005.01B8 TOTAL OF PAYMENTS (TIME BALANCE). The sum of amount advanced, insurance premiums, official fees, and the total finance charge.

005.01B9 AMOUNT FINANCED. The sum of the amount advanced, insurance premiums, and official fees.

005.01B10 FINANCE CHARGE (TIME PRICE DIFFERENTIAL). The total time balance less amount advanced, insurance premiums, and official fees.

005.01B11 ORIGINAL MATURITY DATE. Date the current note was originally contracted to be paid off.

005.01B12 DATE OF THE FIRST PAYMENT. Date the first payment is required from the borrower by disclosure on the contract.

005.01B13 CURRENT MATURITY DATE. Date the current note is presently contracted to be paid off. If this date is the same as the original maturity date, both fields will contain identical data.

005.01B14 NUMBER OF EXTENSIONS. Number of months or days (where 30 days equal one month) that the original maturity date has been extended.

005.01B15 EXTENSION CHARGES ASSESSED. Accumulated additional finance charges assessed when the maturity date of the loan is extended. Extensions may affect the rebate on finance charges.

005.01B16 EXTENSION CHARGES PAID OR UNPAID. Balance of extension charges assessed, either paid or unpaid.

005.01B17 NUMBER OF TIMES LATE (DELINQUENT). Method of determining delinquency is described by applicable law.

005.01B18 LATE (DELINQUENT) CHARGES ASSESSED. Accumulated charges assessed to the obligor for late payment.

005.01B19 LATE (DELINQUENT) CHARGES PAID OR UNPAID. Balance of late charges assessed, either paid or unpaid.

005.01B20 NUMBER OF TIMES REWRITTEN. Number of times a new loan has been written to replace one or more existing loans, regardless of whether any new money was involved. Extension of maturity is not considered a rewritten note.

005.01B21 SCHEDULE OF PAYMENTS. Include number of regular payments, regular payment amount, number(s) of irregular payment(s), and amount(s) of irregular payment(s).

005.01B22 NUMBER OF PAYMENTS MADE OR REMAINING. The total number of scheduled payments made or remaining, including regular and irregular payments.

005.01B23 AMOUNT OF PAYMENTS MADE. The total amount of payments made which has reduced the time balance. This must not include amounts for any unscheduled charges.

005.01B24 DATE OF LAST CUSTOMER PAYMENT MADE. Date the last dollar transaction was posted, not to include any unscheduled charges.

005.01B25 AMOUNT OF LAST PAYMENT. Dollar amount of the last payment that does not include any unscheduled charges.

005.01B26 DATE NEXT PAYMENT IS DUE.

005.01B27 UNPAID BALANCE. The sum of amount advanced, insurance premiums, official fees, and total finance charges minus the amount of payments made.

005.01B28 INTEREST RATE. Annual percentage rate as disclosed in the contract in the form of xx.xxx%. This is the same as the APR described in Regulation Z.

005.01B29 DESCRIPTION OF COLLATERAL/OR COLLATERAL TYPE INDICATOR. A descriptive identification of the collateral pledged, or an indicator code for type of collateral.

005.01B30 DEALER NUMBER

005.01B31 PARTICIPATION INDICATOR (PURCHASED OR SOLD). When a specific loan is a participation, it must have an indicator.

005.01B32 PARTICIPATION IDENTIFICATION NUMBER. An identification of who the participation was purchased from or sold to. A current list of codes assigned must be maintained at the bank. A single code may be used to identify multiple entities.

005.01B33 GUARANTOR, ENDORSER, CO-SIGNERS INDICATOR. An indicator that specifies if the loan has a guarantor, endorser, or co-signer.

005.01B34 MINIMUM CHARGES. The charge allowed by law. Minimum charges are allowed in lieu of interest.

005.01B35 ATTORNEY FEES AND COURT COSTS ACTUALLY EXPENDED. Fees actually expended if allowed by applicable statute and/or a court.

005.01B36 OFFICIAL FEES. Actual fees paid to official agencies for recordation of title or lien.

005.01B37 PAYOFF. Amount necessary to retire the debt, after deducting those fees that are subject to rebate.

005.01B38 INSURANCE PREMIUMS. Insurance premiums must be recorded separately as one of the following:

005.01B38a Credit Life Insurance.

005.01B38b Accident and Health Insurance.

005.01B38c Other Insurance: Any insurance other than Credit Life or A&H.

005.01B39 FLOOR PLAN LOANS:

005.01B39a Name of Dealer.

005.01B39b Address. Must include zip code.

005.01B39c Dealer Number.

005.01B39d Date of Trust Receipt or Chattel Mortgage. Date of either document.

005.01B39e Original Amount of Item.

005.01B39f Serial Numbers.

005.01B39g Description. Year, model, make, etc.

005.01B39h Current Balance.

005.01B39i Date Interest Paid To.

005.01B39j Past Due Interest Indicator.

005.01B39k Amortization Plans or Indicator As To Method Or Percentage.

005.01B39l Date of Last Inspection.

005.02 Real Estate Loans.

005.02A If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

005.02A1 TYPE OF LOAN. Designates the classification of the loan according to legal definitions (FHA, VA, conventional, construction, interim financing, etc.)

005.02A2 IDENTIFICATION CODE. Designates the borrower on a loan.

005.02A2a Director, Officer, or Employee of the Bank. A single code may be used to identify all three categories.

005.02B Required Fields of Data:

005.02B1 BORROWER NUMBER. A number assigned to a particular borrower. This number can be either common for all indebtedness or common for all real estate loan indebtedness.

005.02B2 LOAN NUMBER.

005.02B3 NAME OF BORROWER(S). Short name is acceptable.

005.02B4 ADDRESS OF MORTGAGED PROPERTY. File must contain the address of the mortgaged property, including zip code. This address may not necessarily be the mailing address of the borrower.

005.02B5 LOAN OFFICER CODE.

005.02B6 ORIGINAL DATE. Date on the note and mortgage.

005.02B7 ORIGINAL AMOUNT. Amount on the note and mortgage.

005.02B8 ORIGINAL COMMITMENT. Original amount of the loan approval.

005.02B9 UNADVANCED FUNDS.

005.02B10 DATE OF LAST DISBURSEMENT OF UNADVANCED FUNDS.

005.02B11 AMOUNT OF LAST DISBURSEMENT OF UNADVANCED FUNDS.

005.02B12 SECURITY TYPE. Residential, multifamily, commercial, etc.

005.02B13 APPRAISED VALUATION. The amount of the latest appraisal conducted by an authorized agent of the bank. Any releases of collateral should reduce the appraised valuation.

005.02B14 DATE OF APPRAISAL. Date of the latest valuation conducted by an authorized agent of the bank.

005.02B15 TERMS. Information should be sufficient to identify the re-payment schedule agreed to by the parties.

005.02B16 FIRST PAYMENT DUE. Date indicated by the note which the borrower is to make the first payment on the loan balance, for either interest or principal or any combination thereof.

005.02B17 MATURITY DATE.

005.02B18 INTEREST RATE. Rate of interest currently being charged on the note. There must also be an indicator if the note has a variable interest rate.

005.02B19 CURRENT BALANCE. Balance on which interest is being calculated.

005.02B20 ESCROW BALANCE (IF APPLICABLE).

005.02B21 PARTICIPATION INDICATOR. Indicates whether loan is purchased or sold.

005.02B22 PARTICIPATION BASIS. Either percentage or dollar amount.

005.02B23 PARTICIPANT IDENTIFICATION NUMBER. An identification of whom the participation was purchased from or sold to. A current list of codes assigned should be maintained at the bank. A single code may be used to identify multiple entities.

005.02B24 DATE PRINCIPAL PAID TO.

005.02B25 DATE OF LAST CUSTOMER INITIATED PAYMENT. The date the last dollar transaction was posted, not to include any unscheduled charges.

005.02B26 AMOUNT OF LAST CUSTOMER INITIATED PAYMENT. The dollar amount of the last payment that does not include any unscheduled charges.

005.02B27 DATE NEXT PAYMENT DUE.

005.02B28 STATUS INDICATOR. Open end, closed, real estate in judgment, foreclosure, etc.

005.02B29 NUMBER OF TIMES LATE (DELINQUENT). Delinquent policy is established by the bank.

005.02B30 LATE (DELINQUENT) CHARGES ASSESSED. The accumulated charges assessed for late payments.

005.02B31 LATE (DELINQUENT) CHARGES PAID/UNPAID. The balance of the late charges assessed either paid or unpaid.

005.02B32 LIEN CLASS. First, second, etc.

005.02B33 GUARANTOR, ENDORSER, CO-SIGNER INDICATOR.

005.03 Commercial Loans.

005.03A If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

005.03A1 TYPE OF LOAN. Designates the classification of the loan according to legal definitions (demand, time, term, etc.)

005.03A2 IDENTIFICATION CODE. Designates the borrower on a loan. These codes are not necessarily mutually exclusive.

005.03A3 DIRECTOR, OFFICER, OR EMPLOYEE OF THE BANK. A single code may be used to identify all three categories.

005.03A4 LOAN SECURED BY THE STOCK OF OTHER BANKS.

005.03A5 LOANS TO THIS BANK'S AFFILIATES AND LOANS SECURED BY THE STOCK OR OTHER OBLIGATIONS OF THIS BANK'S AFFILIATES.

005.03B Required Fields of Data:

005.03B1 BORROWER NUMBER. A number assigned to a particular borrower. This number can be either common for all indebtedness or common for all commercial loan indebtedness.

005.03B2 LOAN AND/OR NOTE NUMBER.

005.03B3 NAME OF BORROWER(S). Short name is acceptable.

005.03B4 ADDRESS OF BORROWER. Must include zip code.

005.03B5 COLLATERAL CODE. A descriptive identification of the collateral pledged or a code to indicate same.

005.03B6 GUARANTOR, ENDORSER, OR CO-SIGNER INDICATOR.

005.03B7 LOAN OFFICER CODE.

005.03B8 INTEREST RATE. Actual interest rate, or if interest is tied to prime, an indicator of same plus the interest additive.

005.03B9 TERMS. Information must be sufficient to identify the re-payment schedule agreed to by the parties.

005.03B10 ORIGINAL DATE OF CURRENT LOAN. Date the initial loan proceeds were disbursed and interest began to accrue.

005.03B11 ORIGINAL AMOUNT OF CURRENT LOAN. Amount of initial loan proceeds.

005.03B12 ORIGINAL DATE OF CURRENT NOTE. Date the current note was executed.

005.03B13 ORIGINAL AMOUNT OF CURRENT NOTE. Amount of current note proceeds.

005.03B14 DATE OF LAST RENEWAL. Date of last renewal of the current note.

005.03B15 ORIGINAL MATURITY DATE. The final date on which the principal amount of the note becomes due and payable. If the current maturity date is different, an additional field must be used.

005.03B16 DATE FIRST PAYMENT DUE (IF APPLICABLE).

005.03B17 DATE NEXT PAYMENT DUE (IF APPLICABLE).

005.03B18 AMOUNT OF NEXT PAYMENT DUE (IF APPLICABLE).

005.03B19 DATE INTEREST PAID TO. Date interest on the obligation has been paid through.

005.03B20 DATE PRINCIPAL PAID TO. Date principal on the obligation has been paid through.

005.03B21 CURRENT BALANCE HERE. The remaining outstanding amount of the note after deduction for participations sold.

005.03B22 GROSS LOAN BALANCE. Current balance here plus participations sold.

005.03B23 PAST DUE AMOUNT-INTEREST. Amount of interest currently past due.

005.03B24 PAST DUE AMOUNT-PRINCIPAL. Amount of principal currently past due.

005.03B25 NON-ACCRUAL INDICATOR. An indicator that the interest rate has been lowered or reduced to zero.

005.03B26 PARTICIPANT IDENTIFICATION NUMBER (IF APPLICABLE).

005.03B27 PARTICIPANT CODE-PURCHASED OR SOLD (IF APPLICABLE).

005.03C Required Fields to be Maintained and/or Totaled by Borrower Number:

005.03C1 LINE OR COMMITMENT INDICATOR. Identifies the type of line or commitment (advised, internal guideline, fee-paid, etc.)

005.03C2 TOTAL LINE OR COMMITMENT. Total approved contingent liability.

005.03C3 UNUSED PORTION. Total amount of unused commitment or line or credit.

005.03C4 FEE BASIS INDICATOR. Type of fee (None, percentage, or dollar amount)

005.03C5 DATE FEE PAID TO (IF APPLICABLE).

005.03C6 HIGHEST NUMBER OF CONSECUTIVE DAYS OUT OF DEBT IN THE LAST 12 MONTHS. Accumulated on a previous twelve month running total, or year-to-date plus total previous year.

005.03C7 HIGH AND LOW CREDIT IN LAST 12 MONTHS. Accumulated on a previous twelve month running total, or year-to-date plus total previous year.

005.03C8 RELATED BORROWERS (CONCENTRATION OF CREDIT). Borrower number of related organizations or persons that have commercial loans. An organization or person is defined as: closely allied interests, the repayment of whose obligations is interdependent by reason of affiliated ownership or control. A current list of codes assigned must be maintained at the bank. A single code may be used to identify multiple entities.

005.03C9 CREDIT STATUS INDICATORS. Loan classification by:

005.03C9a Internal loan review, and

005.03C9b Examiner review.

005.03C10 DATE LAST REVIEWED BY BANK OR DATE LAST AUTHORIZED.

005.03C11 DATE OF LAST CUSTOMER FINANCIAL STATEMENT.

005.03D The following information must be available but may be maintained in a manual system.

005.03D1 PARTICIPANT IDENTIFICATION NUMBER.

005.03D2 NAME OF PARTICIPANT.

005.03D3 ADDRESS OF PARTICIPANT.

005.03D4 BORROWER NUMBER AND LOAN NUMBER OF LOAN PURCHASED OR SOLD.

005.03D5 PARTICIPATION CODE (PURCHASED OR SOLD).

005.03D6 PARTICIPATION TYPE (RECOURSE, REPURCHASE, ETC.).

005.03D7 PARTICIPATION BASIS (PERCENT OR DOLLAR AMOUNT).

005.03D8 AMOUNT OF PARTICIPATION.

005.03D9 PARTICIPATION INFORMATION. Maintain for all loan participations, including 100% purchased or sold loans, and for both bank and non-bank participants.

005.03D10 DESCRIPTION OF COLLATERAL.

005.03D11 VALUE OF COLLATERAL.

005.03D12 DATE OF LAST VALUATION.

006 REQUIRED DATA - SECURITIES .

006.01 If any of the following accounts are maintained in the computer records, they must be identified by a unique code. A range of account numbers is not an acceptable method.

006.01A TYPE CODE. Designates the obligor or type of instrument.

006.01A1 U.S. TREASURY.

006.01A2 FEDERAL AGENCIES NOT GUARANTEED.

006.01A3 STATE, COUNTY, AND MUNICIPALS.

006.01A4 OTHER BONDS, NOTES, AND DEBENTURES.

006.01A5 STOCKS.

006.01B Required Fields of Data:

006.01B1 SECURITY OR ACCOUNT NUMBER. Number assigned to the security.

006.01B2 NAME OF ISSUER. Name of the issuer liable for re-payment and nature of the obligation as stated on the face of the instrument.

006.01B3 COUPON DATES. Month and day the interest coupon may be redeemed.

006.01B4 MATURITY DATE. Date the obligation will mature and principal amount of the investment that will be re-paid to the holder. (This is not necessarily the optional call date of the instrument.)

006.01B5 PAR VALUE. Amount of principal which will be paid to the holder by the obligor on maturity date.

006.01B6 CALL DATE. If security provides for a call option, call date must be recorded.

006.01B7 DATE PURCHASED. Date on which the security became an asset of the bank. (This is not necessarily the date on which a bid or offer to buy was made by the bank.)

006.01B8 SOURCE OF PURCHASE CODE. Identification of the source from which the security was purchased.

006.01B9 PURCHASE PRICE. Price paid for the security including broker fees less accrued interest.

006.01B10 BOOK VALUE. Purchase price adjusted for the appropriate accretion or amortization.

006.01B11 MARKET VALUE. Must be updated at least every 90 days.

006.01B12 INTEREST RATE. Rate of interest which the obligor has agreed to pay to the holder of the security.

006.01B13 YIELD. Rate of return on the security.

006.01B14 CUSIP NUMBER (IF USED). Unique identifier number assigned to the security that gives a description of the security.

006.01B15 CREDIT RATING. Current rating assigned to the security by any rating service. It is recommended that this be updated quarterly by using a reliable source.

006.01B16 RATING SOURCE. The source used to obtain the current rating.

006.01B17 REPURCHASE OR RESALE INDICATOR. An indicator which signifies the security has a repurchase or resale agreement.

006.01B18 GUARANTEE OR INSURANCE INDICATOR. An indicator which signifies the security is insured or guaranteed.

006.01B19 PLEDGED CODE. Those securities which are pledged must be identified by the entity or entities to whom the security is pledged. A current list of codes assigned must be maintained at the bank. A single code may be used to identify multiple entities.

006.01B20 PLEDGED AMOUNT. That amount of the security that is pledged. If the security is pledged to more than one entity, this field must contain the aggregate amount pledged.

006.01B21 DISCOUNT ACCRETED. That portion of the discount (face value less price paid) not including accrued interest, which has been accreted since the date of acquisition. Premium amortized and discount accreted may be the same field.

006.01B22 PREMIUM AMORTIZED. That portion of the premium (purchase price less face value) not including accrued interest, which has been amortized since the date of acquisition.

006.01B23 ACCRUED INTEREST PURCHASED. Amount of accrued interest paid to the seller.

006.01B24 SAFEKEEPING NUMBER. Number of the safekeeping receipt, issued by the responsible party for the security.

006.01B25 SAFEKEEPING LOCATION. Name or a code of the physical location where the security is held within the bank or the identity of the institution responsible for safekeeping.

007 TECHNICAL REQUIREMENTS .

007.01 Section 007 applies to all accounts and required data set forth in Sections 004, 005, and 006 of this Rule.

007.01A Record Identification.

007.01A1 IDENTIFICATION OF RECORD TYPES WITHIN A FILE. Various types of records such as account, header, trailer, or control, are normally maintained within a file. Each record type must be identified by a unique code in the same field of each like record. Any method of recording the code is acceptable.

007.01A2 IDENTIFYING RECORDS FOR A GIVEN BANK. Two methods are in general use and either is acceptable:

007.01A2a A separate file for each bank processed by the data center.

007.01A2b Multiple bank records on one file with each identified by a unique code.

It is also acceptable to record more than one account type (demand deposit, savings, etc.) with either of the above methods. However, records for each account type should be identified by a unique code located in the same record.

007.01A3 IDENTIFICATION OF ACCOUNTS. Certain accounts (public funds, trust funds, etc.) must be identified if the accounts are maintained in the file. The following guidelines apply to all account types:

007.01A3a A unique code or codes can be established by the data center, common to all users, or the data center can provide any method for the bank to identify specified types of accounts. In the event a bank establishes its own codes, an up-to-date list must be maintained by the bank. The data center must be able to specify where within the record the codes established by the bank are maintained. It is recommended that banks use the coding structure provided by the data center.

007.01A3b A range of account numbers is not an acceptable method of coding.

007.01A3c The type account code should be maintained in either the master account record or an associated record or file. “Master account record” is defined as that record where financial activity is recorded versus any other associated record or file such as name and address master.

007.01A3d Provision for expansion of type account code should be considered for future use.

007.01A3e For purposes of processing, different types of accounts may be identified on a multi-bank file by a separate bank number. Example: Regular passbook savings versus accounts that receive a periodic statement, or club savings account versus regular savings account.

007.02 Banks and/or data centers may use any other codes to identify accounts not specified herein for their own purposes (such as sub-type of account) provided that the minimum standards set forth in this Rule are satisfied. These standards are not intended to limit or exclude the coding of account types.

007.02A Identifying Status of Account. Codes are needed to identify the status of an account. Standards applicable to identifying status for all applications are:

007.02A1 A unique code (or combination of codes) should be used to identify status.

007.02A2 The status code should be maintained either in the master account record or any associated record or file. (Master account record is defined as that record where the financial activity is recorded as opposed to any associated record or file such as master name and address.)

007.02A3 A range of account numbers is not an acceptable method of coding.

007.02A4 Provide for expansion of status codes.

007.03 Any code or combination of codes may be used to identify the status of an account. Any recording method is acceptable provided that the method is uniform from record to record for a given bank. Banks and/or data centers may establish status classifications other than those specified in this Rule for other purposes. These standards are not intended to limit or exclude the identification of accounts by a status indicator.

007.04 Data Fields Within a Record.

007.04A Record keeping guidelines.

007.04A1 Data may be recorded using any of the standard techniques provided by the manufacturer. Acceptable recording methods include, but are not limited to:

007.04A1a standard alpha numeric (character data).

007.04A1b packed signed; signs may be high or low order.

007.04A1c packed unsigned.

007.04A1d zone decimal signed; may be high or low order.

007.04A1e zone decimal unsigned.

007.04A1f binary.

007.04A2 Any unique space savings recording technique or recording techniques designed for security purposes are acceptable. The data center must be able to clearly describe the technique to the Department.

007.04A3 The recording technique used for any given field should be consistent for all like records within a given file.

007.04A4 The format of data recorded in any given field should be consistent for all like records. Example: If the format for a given date fields is MMDDYY, it should be recorded in that format for the given date field for all like records.

007.04A5 All fields of data handled arithmetically should be initialized. Blanks are normally not considered to be a sound record-keeping technique for an arithmetic field. All amount and date fields should be initialized with numeric zeros in the absence of specific values, except in those instances when, for security or coding purposes, a string of non-numeric characters is recorded in the field. Documentation must clearly describe the reason for non-numeric values.

007.04A6 All the data for a given item of information should be recorded as a single contiguous field.

History

• Effective 2023-11-25

Chapter 4 Schedule for Records Retention by Banks

Neb. Admin. Code tit. 45, ch. 4 Schedule for Records Retention by Banks {#sec-45-nac-4 omnilex-key=us-ne-regs-official--title-45--45 NAC 4}

001 DEFINITIONS .

001.01 For purposes of this Rule:

001.01A “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities; and

001.01B “Electronic record” means information that is stored in an electronic or other medium and is retrievable in paper form through an automated process used in conventional commercial practice.

002 RETENTION FORMAT .

002.01 The Department, pursuant to the provisions of Neb. Rev. Stat. §§ 8-170 and 8-175, authorizes banks to dispose of records in accordance with this Rule.

002.02 Records established through a computer or an electronic process, and information received relative to such records in the form of a computer print-out or electronic record shall be maintained in such a manner so that the accounts reflected thereon can be reconstructed from the date of origin to show all entries and are to be retained in accordance with this Rule.

002.03 Banks which used microfilm or microfiche to maintain records may continue to retain the records in those media, provided that each record is retrievable and readable or legible.

002.04 Any record reflecting unpaid balances in favor of depositors shall not be destroyed without means of reconstruction of each such account.

003 SCOPE .

003.01 This Rule provides only the minimum retention periods prescribed by the Department.

003.02 Longer retention periods may be prescribed by other regulatory agencies in some circumstances or for certain records.

003.03 A bank may elect to maintain certain records for longer periods of time.

003.04 A bank chartered to exercise trust powers within a trust department must retain trust department records in accordance with 45 NAC 5.

003.05 This Rule is not an all-inclusive list of records which the bank may be responsible for retaining.

003.06 All records or files or copies thereof, however maintained, shall be readable or legible.

004 PERMANENT RECORDS .

004.01 A Bank Must Keep the Original of the Following:

004.01A Bank charter.

004.01B Charter amendments.

004.01C Capital stock records.

004.01D Minutes of stockholders’ meetings.

004.01E Minutes of Board of Directors’ meetings.

004.01F All other records that relate to the corporation or to the corporate existence of the bank.

004.02 Customer deposit ledgers showing unpaid balances in favor of depositors are to be retained permanently unless the bank remits such unpaid balances to the State Treasurer in accordance with the Uniform Disposition of Unclaimed Property Act. A record of each remittance shall then be retained by the bank for ten years.

004.03 An inventory of each drilled safe deposit box is to be retained permanently unless the bank remits the contents of the box to the State Treasurer in accordance with the Uniform Disposition of Unclaimed Property Act. A record of each remittance shall then be retained by the bank for ten years.

005 ALL OTHER RECORDS .

Except as provided in Subsections 003.02 and 003.03 of this Rule, a bank must keep records for the time period provided below, which commences on the first of January following the creation of said record.

History

• Effective 2023-11-25

Chapter 5 Schedule for Retention of Records: Banks Exercising Trust Powers and Trust Companies

Neb. Admin. Code tit. 45, ch. 5 Schedule for Retention of Records: Banks Exercising Trust Powers and Trust Companies {#sec-45-nac-5 omnilex-key=us-ne-regs-official--title-45--45 NAC 5}

001 DEFINTIONS .

001.01 For purposes of this Rule:

001.04A “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities; and

001.04B “Electronic record” means information that is stored in an electronic or other medium and is retrievable in paper form through an automated process used in conventional commercial practice.

001.02 A copy of the federal regulations referenced in this Rule is available as an appendix to this Rule at Title-45 chapter-5 APPENDIX.

002 RETENTION FORMAT .

002.01 The Department, pursuant to the provisions of Neb. Rev. Stat. §§ 8-170 and 8-175, authorizes banks exercising trust powers in a trust department of the bank and stand-alone trust companies (collectively, “institutions” or “institution”) organized pursuant to the Nebraska Trust Company Act to dispose of trust department and trust company records in accordance with this Rule.

002.02 Records established through a computer or an electronic process, and information received relative to this record in the form of a computer print-out or electronic record shall be maintained in such a manner that the accounts reflected thereon can be reconstructed from the date of origin to show all entries and are to be retained in accordance with this Rule.

002.03 Institutions which used microfilm or microfiche to maintain such records may continue to retain the records in those media, provided that each record is retrievable and readable or legible.

002.04 Any record reflecting unpaid balances in favor of trustors, grantors, beneficiaries, and/or other interested parties shall not be destroyed without means of reconstruction of each such account.

003 SCOPE .

003.01 This Rule provides only the minimum retention periods prescribed by the Department.

003.02 Longer retention periods may be prescribed by other agencies in some circumstances or for certain records.

003.03 Institutions may elect to maintain certain records for longer periods of time.

003.04 A bank’s non-trust department records must be retained in accordance with 45 NAC 4.

003.05 This Rule is not considered an all-inclusive list of records which the institution may be responsible for retaining.

003.06 All records or files or copies thereof, however maintained, shall be readable or legible.

004 PERMANENT RECORDS .

004.01 Institutions must keep the original of the following:

004.01A Capital stock ledger (trust company).

004.01B Charter; numbered and executed by the Director of the Department.

004.01C Department "Order" granting trust powers.

004.01D Minutes of stockholder meetings (trust company).

004.01E Minutes of the board of directors (trust company).

004.01F Minutes of the trust committee and all other committees appointed by the Board of Directors to oversee fiduciary activity.

004.01G Receipts for final distribution of account assets.

004.01H Registration confirmations regarding "Direct" or "Indirect Inquiry" concerning lost, stolen, or misplaced securities.

004.01I Required records and logs pursuant to FDIC Regulation Part 344 (O.C.C. 12 CFR Part 12 or FRB Regulation "H" Subpart C).

004.01J All other records relating to the corporate existence of a stand-alone trust company or the authorization for a bank to conduct a trust company business in a trust department.

004.02 Records reflecting unpaid balances in favor of trustors, grantors, beneficiaries, and/or other interested parties are to be retained permanently unless the institution remits such unpaid balances to the State Treasurer in accordance with the Uniform Disposition of Unclaimed Property Act. A record of each remittance shall then be retained by the bank for ten years.

004.03 An inventory of each drilled safe deposit box is to be retained permanently unless the institution remits the contents of the box to the State Treasurer in accordance with the Uniform Disposition of Unclaimed Property Act. A record of each remittance shall then be retained by the institution for ten years.

005 OTHER CORPORATE RECORDS .

005.01 Institutions must retain the following original records for ten years following date of issue or expiration, whichever is later. Records may be retained electronically after ten years and the original destroyed, provided that the record, however maintained, is clearly readable or legible.

005.01A Annual call reports of corporate and fiduciary activity, prepared for any supervisory agency.

005.01B Federal, state, and other governmental tax records (trust company).

005.01C Insurance records, Bankers' Blanket Bond, Excess Dishonesty Bonds.

005.01D Receipts for stock certificates issued (trust company).

005.01E Stock certificate stubs (trust company).

005.01F Surrendered stock certificates (trust company).

006 ALL OTHER FIDUCIARY RECORDS .

006.01 Institutions must retain the following original records for six years after fulfillment of duties specified in the governing documents of individual accounts. After six years, the original document may be maintained electronically, provided the record, however maintained, is clearly readable or legible.

006.01A Advice of payments of bequests, gifts, discretionary distributions, income distributions, scheduled payments, or extraordinary payments requested by interested parties.

006.01B Common Investment Fund (CIF) or Common Trust Fund (CTF) records including annual reports, annual fund audits, governing plan documents, and all terminations reports. Retention shall continue six years beyond the date of termination of the CIF or CTF and full payment of all investor share accounts.

006.01C Correspondence relative to the administration of accounts.

006.01D Court orders issued regarding legal appointment, judgments, or other litigation settlement and/or trustee requests for direction.

006.01E Cremation/destruction certificates regarding matured, redeemed, or cancelled corporate bond issue certificates.

006.01F Dividend checks paid on corporate bond issue accounts.

006.01G Escrow account records (including payment schedules).

006.01H Final accounting report for any fiduciary account.

006.01I Legal opinions or other letters of legal counsel pertaining to the administration of trust accounts.

006.01J Real estate records.

006.01K Safekeeping records relating to assets held during course of account administration.

006.01L Trust indentures and other authorizing documents creating fiduciary relationships and/or limiting authority of the named fiduciary.

006.01M Wills of decedents who appointed the bank or trust company as personal representative and/or trustee of subsequent trust accounts created by the will.

006.01N Worthless assets, including documentation regarding determination of worthless status and distribution of such assets in kind, if applicable.

006.02 Institutions must retain the following records within individual account files until six years after accounts have been closed or terminated:

006.02A Accounting records of individual fiduciary accounts.

006.02B Administrative expenses charged to and paid from individual account funds.

006.02C Annual (or other periodic) reports provided grantors/beneficiaries during administration of the account.

006.02D Approvals of administrative action by co-fiduciaries and third parties authorized to provide advice.

006.02E Authorization of transactions by co-fiduciaries and investment advisors.

006.02F Bondholder records regarding corporate bond issues over which the institution exercises trustee or agency authority.

006.02G Bond transfer records for corporate bond issue accounts.

006.02H Broker/dealer statements relating to liquidation of assets for final distribution and/or re-registration of securities for distributions in kind.

006.02I Cash journals or ledgers reflecting receipt and disposition of principal and income cash.

006.02J Corporate bond issue accounting records.

006.02K Corporate bond issue asset ledgers where fiduciary capacity included trustee or escrow agent investment duties.

006.02L Coupon and/or Dividend collection records pertaining to assets held by accounts.

006.02M Employee benefit plan account records (both as agent and trustee).

006.02N Indemnification agreements and surety bonds in regard to lost, stolen, or misplaced certificates of corporate bond issues for which the institution acted as trustee or agent.

006.02O Keogh & IRA account records (custodial accounts).

006.02P Mortgage and loan collection records for individual accounts (when an asset of the account).

006.02Q Mortgage and loan payment records for individual accounts (when a liability of the account).

006.02R Original records and documents pertaining to trust entries at the inception of accounts.

006.02S Receipts for the exchange or substitution of trust assets.

006.02T Rent and lease payment receipts for accounts holding income producing real or personal property.

006.02U Signature files of authorized signatories for direction of accounts.

006.02V Stock transfer ledgers where institution is fiduciary for an equity stock issue.

006.02W Stockholder records specifying current stock ownership where institution is fiduciary for an equity stock issue.

007 TEMPORARY RECORDS .

007.01 During active administration, an institution must retain the originals of the following items for the specified time frames which commence on the first of January following the creation of said record. Any temporary record not included in this Subsection must be retained for three years following the creation of the record.

History

• Effective 2023-11-25

Chapter 6 Articles of Incorporation and Bylaws

Neb. Admin. Code tit. 45, ch. 6 Articles of Incorporation and Bylaws {#sec-45-nac-6 omnilex-key=us-ne-regs-official--title-45--45 NAC 6}

001 FILINGS - ARTICLES OF INCORPORATION.

001.01 A bank must have its current Articles of Incorporation on file with the Department.

001.02 Each time a bank amends its Articles of Incorporation, the proposed amended Articles of Incorporation must be submitted to the Department for review and the examining fee provided in Neb. Rev. Stat. § 8-602 must be paid.

001.03 If the Department has no objection to a proposed amendment, the Department will notify the bank of such. The bank must subsequently file the amendment with the Nebraska Secretary of State and submit a copy that is certified by the Secretary of State to the Department for filing in the records of the Department.

001.04 An amendment proposing to change the name of a bank is subject to Neb. Rev. Stat. §§ 8-1901 to 8-1903, inclusive.

002 FILINGS - BYLAWS.

002.01 A bank must have its current Bylaws on file with the Department.

002.02 Each time a bank amends its Bylaws, the amended Bylaws must be submitted to the Department for review and the examining fee provided in Neb. Rev. Stat. § 8-602 must be paid.

002.03 If the Department has no objection to a proposed amendment, the Department will notify the bank of such and file a copy in the records of the Department.

History

• Effective 2023-11-25

Chapter 7 Electronic Data Processing Rider or Endorsement

Neb. Admin. Code tit. 45, ch. 7 Electronic Data Processing Rider or Endorsement {#sec-45-nac-7 omnilex-key=us-ne-regs-official--title-45--45 NAC 7}

001 BOND PROVISIONS.

001.01 Any bank which has authorized any person or entity to perform electronic data processing services (hereinafter, “processor”) of any accounting records, must include as a part of the blanket bond of such bank, a data processing rider, or endorsement which incorporates therein that:

001.01A The processor shall, while performing such services, be deemed to be an employee as defined in said bond;

001.01B Each processor and the employees, partners, members, managers, and officers of the processor shall, collectively, be deemed to be one employee for the purposes of said bond; and

001.01C The bond does not afford coverage in favor of the processor and upon payment to the bank on account of any loss through acts committed by any of the employees, partners, members, managers, or officers of the processor, an assignment of such rights and causes of action as the bank may have against the processor, to the extent of the payment received, shall be given by the bank to the underwriter of the bond.

001.02 The bank must execute all papers necessary to secure such rights to the underwriter.

History

• Effective 2023-11-25

Chapter 8 Changes in Paid-in Capital Stock

Neb. Admin. Code tit. 45, ch. 8 Changes in Paid-in Capital Stock {#sec-45-nac-8 omnilex-key=us-ne-regs-official--title-45--45 NAC 8}

001 GENERAL.

001.01 This Rule relates only to the capital stock of a bank. It does not relate to other capital accounts of the institution.

002 NOTICES.

002.01 Each time a bank proposes to increase or decrease its paid-in capital stock, notice of such is to be given to the Department as required by Neb. Rev. Stat. § 8-128 on forms prescribed by the Department.

002.02 A notice of a proposed capital stock increase form must be submitted to the Department at least fourteen days prior to the proposed increase.

002.03 A notice of a proposed capital stock decrease must be submitted to the Department at least thirty days prior to the proposed decrease.

003 ARTICLES OF INCORPORATION.

003.01 Prior to submitting a notice of a proposed capital stock increase, a bank must determine if the amount of authorized capital stock set forth in its Articles of Incorporation is sufficient to include the proposed increase. If insufficient, the bank must amend its Articles of Incorporation in accordance with 45 NAC 6.

003.02 Prior to submitting a notice of a proposed capital stock decrease, a bank must determine if an amendment to its Articles of Incorporation is necessary to decrease the number of authorized shares of the bank, which may be appropriate if cancellation or retirement of unissued shares is planned.

003.03 Proposed amendments to the Articles of Incorporation necessary for increasing or decreasing capital stock must be filed with the Department prior to, or simultaneously with, the filing of the notices referenced in this Rule, and in accordance with 45 NAC 5.

004 COMPLETION OF PROPOSAL.

004.01 The Department will provide the bank with a written no-objection response to a notice of a proposed capital stock increase.

004.02 The Department will issue a written approval or denial of a notice of a proposed capital stock decrease pursuant to Neb. Rev. Stat. § 8-128.

004.03 If an amendment to the Articles of Incorporation is necessary to completion of the proposed capital stock increase or capital stock decrease, the amendment process must be completed prior to the bank effecting the proposal.

004.04 The bank shall notify the Department in writing when the proposed increase or decrease of the paid-in capital stock has been consummated.

History

• Effective 2023-11-25

Chapter 9 Active Executive Officers

Neb. Admin. Code tit. 45, ch. 9 Active Executive Officers {#sec-45-nac-9 omnilex-key=us-ne-regs-official--title-45--45 NAC 9}

001 SCOPE AND APPLICATION .

001.01 Neb. Rev. Stat. § 8-139 provides requirements for persons serving as active executive officers of banks.

001.02 Except as specifically provided herein, this Rule applies to all banks and all persons who act or seek to act as an executive officer of a bank.

002 DEFINITIONS .

002.01 For purposes of this Rule:

002.01A "Active Executive Officer” is as defined in Neb. Rev. Stat. § 8-139.

002.01B "Class I Executive Officer's License" means a license granted prior to the effective date of this Rule to any person who performed any functions of an active executive officer with the exception of making loans or investments.

002.01C "Class II Executive Officer's License" means a license granted prior to the effective date of this Rule to any person who directly or indirectly made loans or investments for a bank.

002.01D "Investment" means an outlay or expenditure of institutional funds requiring individual judgment as to the appropriateness of the expenditure, but does not include routine outlays or expenditures requiring little or no judgment, such as investment of excess funds in overnight federal funds.

002.01E “Loan” means any extension of credit.

002.01F “Opt-In Bank” means a bank which utilizes the Department’s licensing process for active executive officers.

002.01G “Opt-Out Bank” means a bank which has elected for its active executive officers to be exempt from the requirement to apply for and obtain a license from the Department.

003 GENERAL QUALIFICATIONS .

003.01 Active executive officers must be persons of good moral character, known integrity, business experience and responsibility, and be capable of conducting the affairs of a bank institution on sound financial principles.

003.02 To determine whether a person meets the requirements of Subsection 003.01 of this Rule, all banks, prior to employing a person who will, or may be expected to, serve as an active executive officer, must verify employment history, check references, obtain a credit report, and obtain a criminal history of such person.

003.03 In the event a bank promotes, or changes the job duties of, a person who was not employed, or not expected, to serve as an active executive officer, the bank must obtain a credit report and obtain a criminal history of such person if such person has been employed by the bank for more than one year prior to the promotion or change in job duties.

003.04 The items obtained in accordance with Subsections 003.02 and 003.03 of this Rule are deemed to be personnel records and are to be retained as provided in 45 NAC 3.

004 LICENSED EXECUTIVE OFFICERS .

004.01 The provisions of Subsection 004 do not apply to active executive officers employed by, or under contract to perform services for, Opt-Out Banks.

004.02 No person employed by, or under contract to perform services for, an Opt-In Bank shall exercise any of the functions of an active executive officer without having first acquired an executive officer’s license from the Department.

004.03 An application shall be submitted by the bank on forms prescribed by the Department along with the fee required by Neb. Rev. Stat. § 8-602.

004.04 As part of the application, the applicant must include a:

004.04A Personal financial statement,

004.04B Current résumé,

004.04C Completed Citizenship Attestation Form,

004.04D Copy of all Criminal History Reports from each state in which the applicant has resided during the past ten years, and

004.04E Letter from the president, chief executive officer, or a member of the Board of Directors of the bank stating:

004.04E1 Reasons why the institution desires an executive officer's license for the applicant,

004.04E2 The applicant’s qualifications for the license,

004.04E3 The applicant’s familiarity with the statutes and rules or regulations of the Department applicable to banks, and

004.04E4 For applicants covered by Subsection 004.04F of this Rule, that the bank has written loan and investment policies.

004.04F An applicant who will be making loans and/or investments must demonstrate to the satisfaction of the Department:

004.04F1 Two years’ experience in the making of loans and/or investments, or

004.04F2 Comparable educational experience, defined as closely related to the experience requirements in such areas as examining and reviewing loans or investments or attending specific schools on loans and investments, and

004.04F3 Successful completion of at least one school or educational program concentrating on both loans and investments.

004.05 An active executive officer may have under his or her direct supervision one or more individuals engaged in making loans or investments, who shall be deemed executive officers in training.

004.06 No loans or investments shall be made by an executive officer in training without having first secured the approval of the holder of an executive officer's license. Written evidence of such approval for each loan or investment transaction must be reflected in the loan file or on the loan documents.

004.07 An executive officer's license must be held for every Opt-In Bank in which such person exercises the functions of an active executive officer.

004.08 An executive officer's license is transferable only if:

004.08A A merger of two Opt-In Banks has occurred, or

004.08B An application to transfer the executive officer license is made to the Department on forms prescribed by the Department no later than thirty days after the applicant has terminated employment with the bank from which the applicant is transferring and the applicant was in good standing with said bank at the time of termination.

004.09 In the event of an emergency declared by the Director of the Department, a temporary executive officer's license may be issued for a period of up to thirty days, and renewed once thereafter, pending receipt of an application for a permanent executive officer's license.

004.10 A holder of an executive officer's license must surrender such license to the Department for cancellation upon termination of employment or contract. If the licensee fails to surrender the license, the bank must do so within ten days after the termination. If the license cannot be located for surrender, the bank must notify the Department in writing of the termination and request cancellation of the license in the records of the Department.

004.11 The Department will cancel surrendered licenses and licenses submitted for cancellation pursuant to Subsection 004.10 of this Rule without prejudice to the holder of such license unless the Director of the Department takes an action in accordance with Subsection 004.15 of this Rule.

004.12 The Department shall take possession of, and cancel, any executive officer's license held by any person in any bank that is in the possession of the Department or has been temporarily or permanently closed by the Department. If any such license cannot be located, the license will be cancelled in the records of the Department.

004.13 Any cancellation made pursuant to Subsection 004.12 of this Rule shall be without prejudice to the holder of such license unless the Director of the Department makes a finding in accordance with Subsection 004.15 of this Rule.

004.14 An executive officer’s license is subject to suspension by the Department pursuant to Section 005 of this Rule.

004.15 An executive officer's license is subject to revocation by the Department pursuant to Neb. Rev. Stat. § 8-139 and Neb. Rev. Stat. §§ 8-1,134 to 8-1,139, inclusive, and any rules or regulations promulgated thereunder.

004.015A The Department may revoke with prejudice an executive officer's license upon entry by the Director of the Department of a finding or findings of fact, conclusions of law, and order based upon an investigation showing evidence that the executive officer is, or has been:

004.015A1 Conducting the business of a financial institution in an unsafe or unauthorized manner;

004.015A2 Endangering the interests of stockholders, shareholders, or depositors;

004.015A3 Violating any of the provisions of Chapter 8 of the Nebraska statutes, any rules or regulations of the Department, or any orders entered by the Department;

004.015A4 Supplying false, misleading, or incomplete information in connection with any application made to the Department; or

004.015A5 The subject of an order of revocation of an executive officer’s license at another bank.

004.16 Any person whose license has been revoked shall immediately terminate employment with the bank and his or her membership on the bank’s Board of Directors, if any.

005 SUSPENSION .

005.01 The Department may suspend the executive officer's license held by any person employed by, or under contract to perform services for, an Opt-In Bank or suspend the ability of an active executive officer employed by, or under contract to perform services for, an Opt-Out Bank to continue to act as an active executive officer upon entry by the Director of the Department of a finding or findings of fact, conclusions of law, and order based upon an investigation showing evidence that the executive officer is, or has been:

005.01A Conducting the business of a bank in an unsafe or unauthorized manner;

005.01B Endangering the interests of stockholders, shareholders, or depositors;

005.01C Violating any of the provisions of Chapter 8 of the Nebraska statutes, any rules or regulations of the Department, or any order entered by the Department;

005.01D Supplying false, misleading, or incomplete information in connection with any application made to the Department; or

005.01E The subject of an order of suspension of an executive officer’s license or from acting as an active executive officer at another bank.

005.02 As part of any order of suspension, the Director may require suspension of:

005.02A Compensation to the active executive officer, and

005.02B The individual from the Board of Directors of any bank where such membership is held.

006 CIVIL MONEY PENALTIES, FINES, AND COSTS .

006.01 As part of any order of revocation or suspension, the Director may levy a civil penalty or fine personally against an active executive officer in an amount not to exceed ten thousand dollars. Such amount shall not be paid out of the assets of any bank in which the active executive officer is employed or otherwise performing services pursuant to contract.

006.02 The Director may levy the costs of investigation and the costs of proceedings incurred in an order of revocation or suspension against an active executive officer. Such costs shall not be paid out of the assets of any bank in which the active executive officer is employed or otherwise performing services pursuant to contract.

007 EFFECT OF ORDER .

007.01 Any holder of an executive officer's license who has had such license revoked with prejudice or suspended shall:

007.01A Surrender any other executive officer’s licenses held in any Opt-In Bank,

007.01B Cease acting as an active executive officer of any Opt-Out Bank where he or she may also be employed, or under contract to serve as, an active executive officer,

007.01C Not be eligible to apply for another executive officer's license or to serve as an active executive officer of an Opt-Out Bank, and

007.01D Not be eligible to serve as a member of the Board of Directors of any bank.

007.02 Any active executive officer of an Opt-Out Bank who has been suspended as an active executive officer shall:

007.02A Cease acting as an active executive officer in any other bank,

007.02B Surrender any executive officer’s licenses held in any bank,

007.02C Not be eligible to serve as an active executive officer of an Opt-Out Bank or to apply for an executive officer's license, and

007.02D Not be eligible to serve as a member of the Board of Directors of any bank.

008 NON-EXCLUSIVE REMEDIES .

008.01 The provisions of this Rule do not constitute the exclusive remedies which the Department may pursue or take against an active executive officer for violations of any state or federal laws, state or federal rules and regulations, or orders of the Department, which apply to the active executive officer.

009 CONDITIONAL LICENSES .

009.01 The Director of the Department may, on a case-by-case basis, and with prior written notice to the applicant and the applicant’s employing bank, issue a conditional Executive Officer’s license in order to:

009.01A Permit an applicant to demonstrate, within a stated period of time, compliance with specified standards; or

009.01B Set limitations or additional standards deemed necessary in the public interest as a result of disclosures in the application and/or the Department’s investigation of the applicant.

010 APPLICATION OF RULE TO EXISTING LICENSE HOLDERS .

010.01 The distinctions between Class I Executive Officer’s licenses and Class II Executive Officer’s licenses are eliminated as of the effective date of this Rule.

010.02 All holders of Class I Executive Officer’s licenses and Class II Executive Officer’s licenses on the effective date of this Rule will be deemed to be licensed executive officers with no action required by the licensed active executive officer or the Opt-In Bank.

010.03 All applications for Class I and Class II Executive Officer’s licenses received and not yet acted upon by the Department as of the effective date of this Rule will be deemed to be applications for an executive officer’s license in accordance with this Rule with no action required by the applicant or the Opt-In Bank.

History

• Effective 2023-11-25

Chapter 10 Insider Loan Guarantees

Neb. Admin. Code tit. 45, ch. 10 Insider Loan Guarantees {#sec-45-nac-10 omnilex-key=us-ne-regs-official--title-45--45 NAC 10}

001 DEFINITIONS .

001.01 “Executive officer” is as defined in Neb. Rev. Stat. § 8-143.01.

001.02 “Insider” means a director, executive officer, principal shareholder of a bank, or any related interest of such persons.

002 GUARANTEES .

002.01 For purposes of Neb. Rev. Stat. § 8-143.01, an extension of credit means that an insider directly or indirectly receives funds in exchange for some consideration returning to the bank.

002.02 Except as provided in Subsection 002.03 of this Rule, an insider may be a guarantor of an extension of credit without falling within the purview of Neb. Rev. Stat. § 8-143.01.

002.03 An insider will fall within the purview of Neb. Rev. Stat. § 8-143.01 even though the insider is only in the capacity of guarantor when:

002.03A the loan is in default, or

002.03B the maker clearly does not have the ability or financial capacity to repay the extension of credit, and reliance is being placed upon the guarantor for repayment.

003 BOARD OF DIRECTORS’ APPROVAL .

003.01 In order to avoid a violation of Neb. Rev. Stat. § 8-143.01 related to an insider guarantee, the approval of the Board of Directors must be obtained for such guarantees prior to the insider giving the guarantee.

History

• Effective 2023-11-25

Chapter 11 Executive Officer Borrowing Reports

Neb. Admin. Code tit. 45, ch. 11 Executive Officer Borrowing Reports {#sec-45-nac-11 omnilex-key=us-ne-regs-official--title-45--45 NAC 11}

001 ANNUAL REPORTS .

001.01 Neb. Rev. Stat. § 8-143.01 provides that, if any executive officer of a bank borrows from any other financial institution, such officer shall annually make a written report of the indebtedness to the Board of Directors of the bank of which the individual is an executive officer, unless the executive officer is excluded by the statute.

001.02 Credit card indebtedness through a financial institution is a reportable borrowing under the statute.

001.02A To fulfill the reporting requirements for credit card indebtedness, the Board of Directors may, in lieu of requiring its executive officers to report each transaction for each credit card held, require its executive officers to submit a signed and dated statement of ownership of a credit card. The statement must include:

001.02A1 the maximum limit,

001.02A2 the issuing institution, and

001.02A3 the date the card was acquired.

001.02B The executive officer is required to annually report to the Board of Directors any future increases or decreases in the credit limit.

History

• Effective 2023-11-25

Chapter 12 Directors' Examinations Performed by Certified Public Accountants or Public Accountants

Neb. Admin. Code tit. 45, ch. 12 Directors' Examinations Performed by Certified Public Accountants or Public Accountants {#sec-45-nac-12 omnilex-key=us-ne-regs-official--title-45--45 NAC 12}

001 GENERAL.

001.01 A copy of the Interagency Policy Statement referenced in this Rule is available as an appendix to this Rule at Title-45_chapter-12_APPENDIX.

002 APPLICATION.

002.01 Neb. Rev. Stat. § 8-124 provides that the Board of Directors of a bank may accept one annual audit by an accountant or accounting firm approved by the Department in lieu of the required annual examination by the Board of Directors.

002.02 The accountant or accounting firm must make application for approval upon forms prescribed by the Department.

002.03 Approval must be obtained for each individual bank audited. Such approval will be perpetual, or until cancelled by the individual bank, accountant, or accounting firm, or revoked by the Department.

003 QUALIFICATIONS.

003.01 The accountant or accounting firm must be a certified public accountant or public accountant. A certified public accountant or public accountant is deemed to be a person who is duly registered and is in good standing under the Nebraska Public Accountancy Act.

004 INDEPENDENCE.

004.01 A certified public accountant or a public accountant will not be considered independent, if the accountant:

004.01A Is connected with the bank or any of its affiliates as an officer, director, attorney, or employee, or is a member of the immediate family of an officer, director, attorney, or employee of the bank or any of its affiliates;

004.01B Is the beneficial owner, directly or indirectly, of any shares of stock of the bank or any of its affiliates;

004.01C Has any proprietary interest in any business or legal entity which, directly or indirectly, controls the bank or any of its affiliates;

004.01D Is a borrower from the bank or any of its affiliates except with respect to:

004.01D1 a loan on the security of his or her residence;

004.01D2 a loan to make alterations, repairs, or improvements to his or her residence; or

004.01D3 a loan secured solely by his or her segregated deposit account in the lending bank.

004.01E Makes entries or postings on the books of account or performs any other operating functions for the bank or any of its affiliates;

004.01F Has any conflict of interest, or the appearance thereof, by reason of business or personal relationships with management or its decisions or functions, or

004.01G Any partner or principal of the accounting firm receives any special consideration in any transaction with the bank or its affiliates or has any interest, directly or indirectly, financial or otherwise, in any real property owned by or securing any loan or otherwise made by the bank or any of its affiliates except as provided in Subsection 004.01D of this Rule, or in any other operating activity or function of the institution or any of its affiliates.

004.02 An accounting firm which has a member who is not considered independent shall exclude such accountant from any personal involvement in the audit.

004.03 The foregoing points are not to be construed as all-inclusive criteria in judging the independence of a certified public accountant, or a public accountant, but rather as setting forth the most common conditions which contribute to a lack of independence.

004.04 The certified public accountant or public accountant must adhere to the American Institute of Certified Public Accountants' rules for independence, unless further restricted by the rules or interpretations of the Department.

004.05 It is the responsibility of the individual or the accounting firm to disclose to the Department any unusual relationships or affiliations which he or she or any member of the accounting firm may have with the bank, any affiliate of the bank, or any persons closely connected with the bank, and to have resolved any question as to his, her, or the firm's independence before proceeding with the engagement.

004.06 The individual or the accounting firm must state specifically in the report of audit or Directors' Examination that he, she, or the accounting firm has met the tests of independence specified in this Rule and that he, she, or the accounting firm is in fact independent.

005 STANDARDS FOR ACCEPTABILITY AND SCOPE OF EXAMINATION FOR DIRECTORS' EXAMINATIONS.

005.01 The Directors' Examination must be conducted in accordance with 45 NAC 13 to be acceptable.

005.02 An opinion audit of a bank holding company is acceptable as a Directors' Examination of a subsidiary bank if:

005.02A the same audit procedures are applied to the subsidiary bank as if the opinion audit was being conducted on the subsidiary bank, and

005.02B such is stated in the opinion audit of the bank holding company.

005.03 The Board of Directors may adopt external auditing programs as outlined in the “Interagency Policy Statement on External Auditing Programs of Banks and Savings Associations [Oct. 15, 1999]” as the minimum requirements for an audit in lieu of provisions outlined in 45 NAC 13. In addition, a financial statement review may be performed if procedures are sufficient to identify misstatements or errors and include verification of accounts as set forth in 45 NAC 13.

006 DIRECTORS' EXAMINATION PERFORMED BY OTHER THAN CERTIFIED PUBLIC ACCOUNTANTS OR PUBLIC ACCOUNTANTS.

006.01 In the event the Board of Directors does not elect to provide for an annual audit by an accountant or an accounting firm, it must of itself, or by appointment of an independent person or persons, make a thorough examination of the books, records, funds, and securities held by the bank.

006.02 The Directors’ Examination must be conducted in accordance with 45 NAC 13. The Board of Directors may assign the performance of such a Directors' Examination to one or more persons who may not necessarily be a member of the board, if the person(s) assigned is independent of the activities being examined, has experience with financial institution accounting and auditing, or similar expertise, and is knowledgeable about relevant laws and regulations.

006.03 The report compiled thereof must be:

006.03A made in accordance with 45 NAC 13,

006.03B verified as to its correctness, and

006.03C signed by a majority of the Board of Directors so attesting.

006.04 The report is to be made a part of the record of the bank.

007 PERIODIC DIRECTORS' EXAMINATION.

007.01 A Directors' Examination which is conducted over the course of a calendar year is acceptable. Such an examination must meet all the requirements of this Rule and 45 NAC 13, and submitted to the Department as provided in 45 NAC 13.

008 ENHANCED PROCEDURES.

008.01 The Director of the Department may require a bank presenting safety and soundness concerns or other supervisory concerns to engage an independent certified public accountant to perform external auditing services or may require a financial statement audit or other specified type of external audit.

008.02 Supervisory concerns are further defined in the “Interagency Policy Statement on External Auditing Programs of Banks and Savings Associations [Oct. 15, 1999]”.

History

• Effective 2023-11-25

Chapter 13 Standards for Acceptability and Scope of Examinations for Directors' Examinations

Neb. Admin. Code tit. 45, ch. 13 Standards for Acceptability and Scope of Examinations for Directors' Examinations {#sec-45-nac-13 omnilex-key=us-ne-regs-official--title-45--45 NAC 13}

001 GENERAL .

001.01 A copy of the Interagency Policy Statement referenced in this Rule is available as an appendix to this Rule at Title-45_chapter-13_APPENDIX.

002 BOARD OF DIRECTORS’ RESPONSIBILITY .

002.01 Neb. Rev. Stat. § 8-124 provides that the Board of Directors of a bank may accept one annual audit by an accountant or accounting firm approved by the Department in lieu of the required annual examination by the Board of Directors.

002.02 The Board of Directors may adopt minimum Standards for Acceptability and Scope of Examination as outlined in this Rule or adopt external auditing programs identified in the “Interagency Policy Statement on External Auditing Programs of Banks and Savings Associations [Oct. 15, 1999].”

003 STANDARDS FOR ACCEPTABILITY .

003.01 An annual examination of a bank, to be acceptable, must be made in accordance with:

003.01A the minimum examination procedures outlined in this Rule, or

003.01B the standards for acceptability of audits of financial statements in accordance with generally accepted auditing standards; and

003.01C 45 NAC 12.

003.02 The Director of the Department has the responsibility to determine whether an examination or an audit is acceptable and the authority to reject any examination or audit which does not conform in all respects with prescribed requirements. If, at any time, it is found that the individual(s) conducting the examination has not followed recognized rules of ethics or conduct or has not met the minimum standards of the Department, the examination will be rejected. Any misstatement of facts or circumstances or any misrepresentation of any kind knowingly made will not only cause an examination to be rejected but will also form a basis for the temporary or permanent disqualification of the individual or firm from conducting similar examinations.

004 SCOPE OF EXAMINATION .

004.01 General

004.01A The examination procedures listed below are minimum procedures to be performed under Section 8-124. They should not be construed as restrictive. Circumstances relating to individual engagements or situations encountered may make it necessary or desirable to expand certain procedures, apply alternate procedures, or extend examination procedures to other areas.

004.01B At each annual audit, the auditor may prescribe a risk-focused review of accounts identified in this Rule; however, all examination procedures described herein shall be performed at least once within a 24-month period.

004.01C The scope of the examination should begin as of the date of the prior examination to avoid gaps.

004.01D The examination should be coordinated with the Department to avoid conflicts with the Department's examination timing.

004.02 Minimum Examination Procedures

004.02A Control:

004.02A1 Commence examination on a surprise basis. Assume control over all irregular items and records to be examined until procedures have been completed.

004.02B Cash, Cash Items, Foreign Currency, Clearings, and Exchange:

004.02B1 Conduct a count of a portion of teller and vault cash on an unannounced basis; timing and scope should avoid recognizable patterns. Reconcile cash counts to general ledger. Examine cash items on a test basis, verifying legitimacy and collectability. Investigate any unusual or stale items and request confirmation of totals of clearings and exchanges. Determine disposition of larger return items.

004.02C Due From Banks:

004.02C1 Examine bank reconciliations with correspondent banks by obtaining statements for several days beginning with the audit date, and on a test basis, compare checks and drafts with the records of instruments issued. Investigate any unusual or stale items. Confirm the balance directly with the related banks.

004.02D Investments:

004.02D1 Reconcile the subsidiary ledger with carrying values and accrued interest recorded in the general ledger accounts. Confirm securities with safekeeping agents. Examine securities on hand and verify safeguarding procedures. Review investment portfolio to determine if all securities were purchased and/or being held in conformity with applicable statutes and regulations.

004.02E Loans:

004.02E1 Reconcile subsidiary loan ledger and accrued interest with applicable general ledger accounts. See Section 006 of this Rule for confirmation requirements.

004.02F Allowance for Losses:

004.02F1 Ensure management’s process for calculating adequacy of the reserve(s). The process is to be based on comprehensive, adequately documented, and consistently applied analysis of the underlying assets. Reconcile subsidiary records for charged-off loans to control records and apply transaction testing to a sample of reconciling items. Test large charged-off items to ensure appropriate prior Board of Directors’ approval.

004.02G Federal Funds Sold:

004.02G1 Confirm all Federal funds sold with the borrowing bank, ascertain that the aggregate of the detail agrees with the general ledger and examine evidence of subsequent settlement.

004.02H Buildings - Furniture and Fixtures:

004.02H1 From the date of the prior examination, review transactions in the accounts, trace approval of major expenditures to the minutes of the Board of Directors' meetings, and test the computation of depreciation.

004.02H2 Review lease accounting for appropriate recognition.

004.02I Demand Deposits:

004.02I1 Total individual ledgers or obtain a trial balance and prove totals on a test basis for the account balance and accrued interest, and reconcile totals with general ledger accounts.

004.02I2 Review overdrafts, trace disposition of selected unposted items.

004.02I3 Review the latest reconciliation for official checks and bank money orders. See Section 006 of this Rule for confirmation requirements.

004.02J Time Deposits:

004.02J1 Reconcile subsidiary ledger totals and accrued interest totals with general ledger accounts. Trace disposition of selected unposted items. See Section 006 of this Rule for confirmation requirements.

004.02K Income and Expense:

004.02K1 Test selected "debits" to both income and expense accounts for possible overstatement. Examine proper documentation for selected items.

004.02K2 Ascertain on a test basis by independent means that all "credits" to the income and expense accounts have been recorded and have not been understated.

004.02K3 Review the related accounts of accrued income, accrued expenses, unearned discounts, and deferred income by testing "debits" and "credits" as above, and ascertain that balances in these accounts are fairly stated.

004.02L U.S. Savings Bond, Travelers Checks, and Other Consigned Items:

004.02L1 Examine bank's most recent reconcilement of items on hand with memo controls and related confirmation from issuing agents, or, if such records are not available, count items on hand.

004.02L2 Reconcile with total on consignment and obtain confirmation from issuers.

004.02M Safekeeping and Custodial Departments:

004.02LM1 Review accounting procedures for recording items held in safekeeping or custody for customers.

004.02M2 Physically or virtually inspect selected items on hand or controlled.

004.02M3 Confirm selected items held in custody by other banks.

004.02M4 Confirm selected safekeeping and control accounts by direct communication with customers.

004.02M5 Inquire of bank if it holds, controls, or brokers digital assets. If yes, the bank may be subject to additional risk-focused examination procedures.

004.02N Trust Department:

004.02N1 Total account activity ledgers for the various trust accounts and reconcile totals with the trust general ledger control accounts where practicable.

004.02N2 Total asset detail cards and reconcile to the amounts shown on the trial of selected trusts as noted on the detailed asset ledgers.

004.02N3 Verify trust assets on a test basis by reference to the bank records or by direct communication with the bank.

004.02O Other Activities:

004.02O1 The auditor, using professional judgment, should review for other financial reporting risks such as digital assets, mortgage lending, insurance activities, loan servicing, or other activities. When prudent, the auditor should expand the scope of the agreed upon procedures to test areas deemed to have a higher degree of risk.

004.02P Internal Controls:

004.02P1 The system of internal controls and operating procedures must be reviewed, and the audit report must include specific comments and recommendations from this review that are directed to the Board of Directors or audit committee.

004.02Q Capital Accounts:

004.02Q1 Capital Notes and Debentures.

004.02Q1a Reconcile subsidiary records to the general ledger.

004.02Q1b Review for compliance with terms of the agreement(s).

004.02Q1c On a sample basis, test to ensure accuracy of interest paid and accrued, as applicable.

004.02Q2 Surplus.

004.02Q2a Review all entries during the audit period for proper authorization from the Board of Directors.

004.02Q3 Undivided Profits.

004.02Q3a Review all entries during the audit period to ensure accuracy.

004.02Q3b Review for proper authorization from the Board of Directors for transfers or dividends.

005 REVIEWS .

005.01 Review accounting procedures for handling nonledger assets, such as charged-off loans and recoveries. Charged-off loans not deemed worthless by the Board of Directors should be formally tracked for inclusion in lending limit considerations.

005.02 Review minutes of Board of Directors' meetings and the most recent regulatory examination report.

006 DIRECT CONFIRMATION WITH BORROWERS AND DEPOSITORS .

006.01 Prepare (or have prepared, under the auditor's supervision) and mail positive and/or negative confirmation requests on a test basis for all loans and deposit categories, including participation loans purchased and sold.

006.02 For participation loans purchased, confirm balances with the selling bank only.

006.03 For participation loans sold, confirm balances sold with the purchasing bank and the total balances with the borrower on a test basis.

006.04 Mail confirmation requests to a selected number of customers whose loans were charged off since the most recent regulatory examination.

006.05 Mail confirmation requests for a selected number of accounts that are dormant and accounts that have zero balances and have been closed since the most recent regulatory examination.

006.06 Any positive confirmation request not acknowledged by a loan customer after two weeks from the date of the original mailing must be followed by a second confirmation request. A list of positive confirmation requests not acknowledged after the mailing of both a first and second request must be included in the report.

007 REPORTING .

007.01 A report shall be prepared and submitted to the Board of Directors or audit committee describing the scope of examination and setting forth the findings and recommendations as a result of the auditing procedures performed and review of operating procedures and system of internal controls. Any open or unreconciled item at the time the report is submitted to the Board of Directors or audit committee must be disclosed and commented upon in the report.

007.02 The report must include the commencement and completion dates of the audit, a statement affirming independence, and a statement that the minimum requirements outlined in this Rule or in another applicable rule or guidance were met.

007.03 For purposes of review by the Department, reports should follow the order of Section 004 of this Rule and include the balance of the general ledger asset and liability accounts examined as of the examination date under the specific account headings. A description of procedures followed is to be a part of this report.

007.04 Verification of accounts may be made on a basis of sampling to achieve a certain percent of reliability. For most examinations, a 95% reliability factor is considered adequate; in lieu thereof, the accountant may verify 10% of the number of accounts determined for confirmation. These two methods will give the accountant some flexibility when examining larger banks. If a shortage is determined to exist, a 100% verification of accounts must be made.

007.05 With respect to the confirmation of loan and deposit accounts, submit a confirmation statistics summary showing the extent and results by type of confirmation and type of account rather than report the extent and results of such procedures under each specific account heading in the body of the report. Any accounts selected for confirmation which have not been or cannot be mailed or delivered to the customer are to be so listed in the final report.

007.06 The Board of Directors must file an electronic copy or two paper copies of the report with the Department within 120 days after the completion of the directors’ examination, or, for a periodic audit, within 120 days after the end of the calendar year. The Board of Directors may authorize the individual or firm performing the directors’ examination or periodic audit to do the same.

007.07 Any defalcation discovered during the examination or periodic audit shall be reported to the Department by the Board of Directors. If the Board of Directors does not report the defalcation immediately, the accountant or firm has the obligation to do so. The accountant or firm should obtain the bank’s advance authorization to notify the Department of discovered defalcations.

History

• Effective 2023-11-25

Chapter 14 Livestock Loans

Neb. Admin. Code tit. 45, ch. 14 Livestock Loans {#sec-45-nac-14 omnilex-key=us-ne-regs-official--title-45--45 NAC 14}

001 EXCEPTION TO LENDING LIMIT .

001.01 Neb. Rev. Stat. § 8-141 provides that a bank may directly or indirectly loan twenty-five percent of the total of its capital, surplus, capital notes, and debentures or fifteen percent of its unimpaired capital and unimpaired surplus, whichever is greater, to any person. When the obligation is secured by livestock, a bank may loan an additional ten percent of such capital, surplus, capital notes, and debentures or of such unimpaired capital and unimpaired surplus.

001.02 To qualify for the additional ten percent advancement, a bank must:

001.02A Have a secured interest in any livestock upon which a loan is to be made, and

001.02B Show the value of livestock securing the additional ten percent advancement equals one hundred fifteen percent of the face value of the note.

001.03 For purposes of this Rule, the term “unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.

002 REPORTS .

002.01 A bank must establish and use an inspection and appraisal report. The report must contain the following minimum information:

002.01A Date of inspection and appraisal.

002.01B Name, address, and signature of the borrower.

002.01C Date and amount of original note secured by the livestock.

002.01D Total obligation of borrower to the bank.

002.01E Date of security agreement and financing statement.

002.01F Inventory of the livestock by actual count.

002.01G Value of livestock per head.

002.01H Total value of livestock.

002.01I Name, title, and signature of individual making the inspection.

002.02 The inspection and appraisal report must be completed within thirty days of origination of the loan and additional inspections completed at least annually thereafter, or more often as prescribed by the Department.

002.03 In the case of livestock feeding operations, the inspections and appraisals should be performed every ninety days or more frequently depending on the turnover of the inventory.

003 INDEPENDENCE .

003.01 The inspection and appraisal must be administered independently from the loan production function whenever possible.

003.02 If absolute lines of independence cannot be achieved, a bank must be able to demonstrate clearly that it has prudent safeguards to isolate its inspection and appraisal program from influence or interference from the loan production process. In such cases, another loan officer, other officer, or a director of the bank may be the only person qualified to perform the inspection and appraisal. To ensure independence, such persons must abstain from any vote or approval process involving loans on which they performed the inspection and appraisal.

History

• Effective 2023-11-25

Chapter 15 Loans Secured by Warehouse Receipts

Neb. Admin. Code tit. 45, ch. 15 Loans Secured by Warehouse Receipts {#sec-45-nac-15 omnilex-key=us-ne-regs-official--title-45--45 NAC 15}

001 EXCEPTION TO LENDING LIMIT .

001.01 Neb. Rev. Stat. § 8-141 provides that a bank may directly or indirectly loan twenty-five percent of the total of its capital, surplus, capital notes, and debentures or fifteen percent of its unimpaired capital and unimpaired surplus, whichever is greater, to any person. When the obligation is secured by negotiable warehouse receipts, a bank may loan an additional ten percent of such capital, surplus, capital notes, and debentures or of such unimpaired capital and unimpaired surplus.

001.02 To qualify for the additional ten percent advancement:

001.02A The warehouse receipts must be in an amount not less than one hundred fifteen percent of the face amount of the note or notes; and

001.02B The note or notes must be secured by a prior financing statement and security agreement on the inventory covered by warehouse receipts, as of the date of the loan.

001.03 For purposes of this Rule, the term “unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.

History

• Effective 2023-11-25

Chapter 16 Loans Secured by Deposit Accounts

Neb. Admin. Code tit. 45, ch. 16 Loans Secured by Deposit Accounts {#sec-45-nac-16 omnilex-key=us-ne-regs-official--title-45--45 NAC 16}

001 SCOPE AND APPLICATION.

001.01 Neb. Rev. Stat. § 8-141 provides that loans or extensions of credit to any person, partnership, limited liability company, association, or corporation which are properly secured by a segregated deposit account in the lending bank shall not be subject to any limitation based on paid-up capital, surplus, and capital notes and debentures, or any limitation based on unimpaired capital and unimpaired surplus.

001.02 For purposes of this Rule, “unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.

002 ELIGIBLE DEPOSIT ACCOUNTS.

002.01 Deposit accounts which qualify for this exception are limited to deposits in the form generally recognized as time certificates of deposit.

003 COLLATERAL REQUIREMENTS.

003.01 The bank must ensure that a security interest has been perfected in the deposit, including the assignment of the specifically identified deposit.

003.02 The bank must obtain possession of the certificates(s) of deposit.

003.03 The bank must establish written internal procedures which will prevent the release of the deposit prior to the release of the security interest.

003.04 Only that amount in excess of the Neb. Rev. Stat. § 8-141 lending limit must be secured.

History

• Effective 2023-11-25

Chapter 17 Pool Participation Approval

Neb. Admin. Code tit. 45, ch. 17 Pool Participation Approval {#sec-45-nac-17 omnilex-key=us-ne-regs-official--title-45--45 NAC 17}

001 APPROVAL PROCESS.

001.01 Neb. Rev. Stat. § 8-141 states that a bank may invest in obligations representing loans to any national banking association or to any banking institution organized under the laws of any state, when such loans are approved by the Director of the Department, by rule and regulation, or otherwise.

001.02 Except as provided in Subsection 001.04 of this Rule, a bank must make application for approval on a form prescribed by the Department.

001.03 The form is to be submitted to the Department either electronically with an approved digital signature or in paper with a signature in ink.

001.04 If a bank’s total investment with any one bank does not exceed its total capital structure or its unimpaired capital and surplus, no formal approval is required from the Director of the Department, providing the bank’s total investments conform to Neb. Rev. Stat. § 8-147.

001.05 For purposes of this Rule:

001.05A “Capital structure” means the total of common stock, preferred stock, capital notes, debentures, surplus, undivided profits, and unrestricted reserves.

001.05B “Unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.

History

• Effective 2023-11-25

Chapter 18 Requirements for Purchases of Shares of Investment Companies

Neb. Admin. Code tit. 45, ch. 18 Requirements for Purchases of Shares of Investment Companies {#sec-45-nac-18 omnilex-key=us-ne-regs-official--title-45--45 NAC 18}

001 SCOPE AND APPLICATION.

001.01 Neb. Rev. Stat. § 8-148 provides that a bank may subscribe to, invest, purchase, and own shares of investment companies.

001.02 Such investments include only the purchase of shares of an investment company registered under the Investment Company Act of 1940.

001.03 This Rule addresses a bank's purchases of investment company shares for its own account.

001.04 For purposes of this Rule:

001.01A "Obligations that are eligible for investment" means those specified in Neb. Rev. Stat. §§ 8-141, 8-147, 8-148, 8-148.01, 8-148.02, 8-148.03, 8-148.05, and 8-148.10.

001.02B “Unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.

002 COMPOSITION.

002.01 The assets of the investment company must consist solely of, and are limited to, obligations that are eligible for investment by a bank.

003 INVESTMENT LIMITS.

003.01 When an investment company's assets consist solely of, and are limited to, obligations that are eligible for unlimited investment by a bank, there is no limit on a bank's investment.

003.02 When an investment company's assets contain obligations which are subject to the bank's investment or lending limitations, investment by the bank must be limited to twenty-five percent of its paid-up capital, surplus, capital notes, and debentures or fifteen percent of its unimpaired capital and unimpaired surplus, whichever is greater.

003.03 When an investment company makes use of repurchase agreements, the bank's investment is limited to twenty-five percent of its paid-up capital, surplus, capital notes, and debentures or fifteen percent of its unimpaired capital and unimpaired surplus, whichever is greater, provided that all of the following conditions are met:

003.03A The repurchase agreements are fully secured by securities of the United States government or any authorized agency thereof.

003.03B Possession of the collateral is obtained by either the bank or a third-party custodian designated by the bank under a written custodial agreement which explicitly recognizes the bank's interest in the securities as superior to that of any other person, or, in the case of book-entry securities, by appropriate entry in an account maintained in the name of the bank by a Federal Reserve Bank.

003.03C The collateral is marked to market on a daily basis.

003.04 When an investment company makes use of repurchase agreements which do not contain the elements set forth in Subsection 003.03 of this Rule, and/or securities lending arrangements, the bank's investment is limited to ten percent of its paid-up capital, surplus, capital notes and debentures or ten percent of its unimpaired capital and unimpaired surplus, whichever is greater.

003.05 When an investment company makes use of futures and options, or has the ability to do so, the fund is not an eligible investment for banks.

003.06 A bank may invest in an investment company which makes use of forward contracts, provided that the investment company maintains, in a segregated account, cash or cash equivalents or other portfolio securities equal in value to commitments to purchase securities, so that no leverage is employed.

004 INVESTMENT COMPANY REQUIREMENTS.

004.01 In addition to the eligibility requirements of the underlying assets of the investment company, the fund must provide that:

004.01A The shareholder must have a proportionate undivided interest in the underlying assets of the investment company.

004.01B The shareholders of the fund must be shielded from personal liability for acts or obligations of the investment company.

005 REVIEW AND DOCUMENTATION.

005.01 The bank's formal investment policy, as adopted and approved by its Board of Directors (“Board”), must specifically provide for the investments addressed by this Rule.

005.02 Specific prior approval of the bank's Board of Directors is required for the initial investment in specific investment companies. Such approval must be noted in the official Board minutes.

005.03 Procedures, standards, and controls for managing such investments shall be implemented prior to the investment being made. Such procedures, standards, and controls shall be in written form and approved by the Board.

005.04 A copy of the prospectus for each such investment shall be maintained in the bank's records for a period of one year after the investment is no longer held in the bank's own portfolio.

005.05 The bank shall conduct a review at least quarterly of its holdings of investment company shares to ensure that such investments are in accordance with its investment policy and statutory and regulatory requirements. Such review must be noted in the official Board minutes.

006 REPORTING AND ACCOUNTING.

006.01 Quarterly Reports of Condition require bank holdings of investment company shares to be reported at the lower of the aggregate cost or market value in RC-B SECURITIES. Reference the glossary entry for "marketable equity securities."

006.01A Market value of "open-end" investment companies should be based on net asset value rather than offering price.

006.01B Shares in "closed-end" investment companies should be marked to the bid price.

006.01C At no time may the carrying value of investment company holdings be increased above their aggregate cost as a result of net unrealized gains.

006.02 Net unrealized losses on marketable equity securities and subsequent recoveries of net unrealized losses must be excluded from RI-INCOME STATEMENT and be reported (reduced by applicable income tax effect) in RI-A CHANGES IN EQUITY CAPITAL as an adjustment to "Undivided Profits and Capital Reserves." A loss on an individual investment which is other than temporary should be charged to noninterest expense on RI-INCOME STATEMENT.

006.03 As part of the market value determination referred to above, mutual fund sales fees, both "front end load" and "deferred contingency," must be deducted in calculating the current value of fund shares. Unless the market value of such shares increases to offset these fees, these fees will be reflected as unrealized losses and effectively charged against "Undivided Profits and Capital Reserves."

History

• Effective 2023-11-25

Chapter 19 Leasing of Personal Property

Neb. Admin. Code tit. 45, ch. 19 Leasing of Personal Property {#sec-45-nac-19 omnilex-key=us-ne-regs-official--title-45--45 NAC 19}

001 GENERAL.

001.01 Federal statutes and regulations referenced herein means those statutes and regulations as amended on or before the effective date of this Rule. A copy of the statutes and regulations referenced in this Rule is available as an Appendix to this rule at Title-45_chapter-19_APPENDIX.

002 MINIMUM COMPLIANCE REQUIREMENTS.

002.01 A bank may, directly or indirectly, engage in the business of leasing personal property if it conforms to the provisions of Title 12, Chapter 1, Part 23 of the Code of Federal Regulations, entitled “Leasing,” unless this Rule provides otherwise.

003 CONSTRUCTION OF RULE.

003.01 Nothing in this Rule shall be construed to be in conflict with the duties, liabilities and standards imposed by the Consumer Leasing Act of 1976, 15 U.S.C. 1667 et. seq.

004 LIMITATIONS.

004.01 Leases permissible under this Rule are subject to the limitations on loans under Neb. Rev. Stat. § 8-141, and the limitations on loans and investments under Neb. Rev. Stat. §§ 8-141 and 8-147.

004.02 The dollar amount of the lease for these purposes will be determined by using the following formulas:

004.02A Bank cost of acquisition of personal property minus investment credit realized minus the balance of any nonrecourse debt; or,

004.02B The sum of the present value of both the lease payments and the residual value of the property.

004.03 The Department reserves the right to determine that leases of personal property are also subject to the limitations of any other law, or rule or regulation, which limits potential financial risks associated with other forms of bank financing.

005 EXCLUSION AND SCOPE OF EXCLUSION.

005.01 Except as provided in this Section, this Rule does not apply to any leases executed prior to May 1, 1982.

005.02 With respect to the applicability of Section 004 of this Rule, when making new extensions of credit, including leases, to a customer, a bank must consider all outstanding leases regardless of the date they were entered into.

005.03 Any lease which was entered into in good faith prior to May 1, 1982, which does not satisfy the requirements of this Rule may be renewed without violation of this Section only if:

005.03A There is a binding agreement in the expiring lease which requires the bank to renew it at the lessee's option, and the bank cannot otherwise reasonably or properly avoid its commitment to do so, or

005.03B The bank, in good faith, determines and demonstrates by full documentation that renewal of the lease is necessary to avoid significant financial loss and recover its total investment plus the cost of financing.

006 POLICIES.

006.01 The Board of Directors must adopt leasing policies, procedures, objectives, and internal controls which adequately protect the bank and provide customer services.

006.02 Leasing policies must recognize that leasing is a form of term debt financing and therefore must include adequate credit standards.

History

• Effective 2023-11-25

Chapter 21 Trust Department Applications

Neb. Admin. Code tit. 45, ch. 21 Trust Department Applications {#sec-45-nac-21 omnilex-key=us-ne-regs-official--title-45--45 NAC 21}

001 Any bank desiring to conduct a trust business after its Articles of Incorporation have been amended to authorize the conduct of a trust business pursuant to section 8-159 and the regulations promulgated thereunder, or if its Articles of Incorporation already authorize the conduct of a trust business, shall apply to the Director of Banking for amendment of its charter for such authorization on forms provided by the Department of Banking and Finance. Each application shall be executed and forwarded in duplicate to the Director of Banking.

002 The director shall conduct a public hearing concerning the application in accordance with the Rules of Procedure of the Department of Banking and Finance, and may require the applicant to submit additional information or comply with such other requests that the director may deem necessary.

003 In granting an amendment to the bank charter to authorize a bank to conduct a trust business, the Director of Banking will give consideration to the following matters and to any other facts and circumstances that may, in the Director's discretion, be deemed necessary:

003.01 Whether the bank has sufficient capital and surplus to conduct the trust business applied for.

003.02 The needs of the community for the services of a trust business.

003.03 The general condition of the bank.

003.04 The general character and ability of the management of the bank.

003.05 The nature of the supervision to be given to trust department activities, including the qualifications, experience and character of the proposed trust department personnel; methods of trust department operations; and, methods of investing trust funds.

003.06 Whether the bank has available legal counsel to advise and pass upon fiduciary matters whenever necessary.

003.07 Whether the stockholders, directors, and officers are parties of integrity and responsibility.

History

• Effective 1983-07-19