77-2363. Public funds; actions to recover; validity of contracts.

364 words·~2 min read·/ne/chapter-77/77-2363

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

In all cases in which public money or funds belonging to the United States, an agency of the United States, the State of Nebraska, or any political subdivision in this state have been deposited or loaned to any person or persons, corporation, bank, capital stock financial institution, qualifying mutual financial institution, partnership, limited liability company, or other firm or association of persons, it shall be lawful for the officer or officers making such deposit or loan or his, her, or their successors in office to maintain an action or actions for the recovery of such money so deposited or loaned.

All contracts made for the security or payment of any such money or public funds shall be held to be good and lawful contracts binding on all parties thereto.

Where village brings suit against sureties who had given a bond to protect deposit, and sureties consent to entry of judgment against them, it is an admission that bank was a legal depository. Shumway v. Department of Banking, 131 Neb. 246, 267 N.W. 469 (1936), withdrawing opinion 130 Neb. 491, 265 N.W. 553 (1936).

County treasurer having loaned or invested public funds without authority, may, in his official capacity, maintain action for their recovery. Woods v. Brown County, 125 Neb. 692, 251 N.W. 839 (1933).

Officer making deposit hereunder, or his successor in office, in his official capacity, may maintain action or actions for recovery of such money. State ex rel. Sorensen v. Nemaha County Bank of Auburn, 124 Neb. 883, 248 N.W. 650 (1933).

Bond given by state bank to secure school district deposits is valid obligation hereunder, and sureties on such bond are bound thereby. Liberty High School District of Sioux County v. Currie, 122 Neb. 173, 240 N.W. 286 (1931).

Section is remedial, and should be given liberal construction. McIntosh v. Johnson, 51 Neb. 33, 70 N.W. 522 (1897).

County funds, wrongfully deposited in bank, cease to be public funds. First Nat. Bank of South Bend Indiana v. Gandy, 11 Neb. 431, 9 N.W. 566 (1881).

Where State Treasurer was not authorized to deposit funds, state had no right of action against bank. State v. Keim and Gamble, 8 Neb. 63 (1878).