72-1268. Depositories; eligibility for funds; bond or bond alternatives.

342 words·~2 min read·/ne/chapter-72/72-1268

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Notwithstanding any other provision of law, every bank, capital stock financial institution, and qualifying mutual financial institution shall be eligible for the maximum investment provided for in section 72-1263 . The bank, capital stock financial institution, or qualifying mutual financial institution shall give a bond or, in lieu of a bond, may give security for any investment under the Nebraska Capital Expansion Act as provided in sections 72-1268.01 to 72-1268.04 . Any bank, capital stock financial institution, or qualifying mutual financial institution may apply for the privilege of keeping on deposit such funds.

(2)(a) Every bank, capital stock financial institution, and qualifying mutual financial institution shall, as a condition of accepting state funds, agree to cash free of charge state warrants which are presented by payees of the state without regard to whether or not such payee has an account with such bank, capital stock financial institution, or qualifying mutual financial institution, and such bank, capital stock financial institution, or qualifying mutual financial institution shall not require such payee to place his or her fingerprint or thumbprint on the state warrant as a condition to cashing such warrant.

(b)The condition of accepting state funds in subdivision (2)(a) of this section shall not preclude any bank, capital stock financial institution, or qualifying mutual financial institution from refusing to cash a state warrant presented to the bank, capital stock financial institution, or qualifying mutual financial institution if

(i)a stop-payment order has been placed on the state warrant,

(ii)the state warrant has been reported as unregistered, voided, lost, stolen, or destroyed or a duplicate state warrant has been issued in its place,

(iii)the state warrant is incomplete or is forged or altered in any manner,

(iv)the state warrant lacks any necessary indorsement or an indorsement is illegible, unauthorized, or forged,

(v)the state warrant is stale-dated, or

(vi)the bank, capital stock financial institution, or qualifying mutual financial institution has a reasonable belief that the individual presenting the state warrant is not the payee named on the state warrant.