8-2732. Permissible investments; requirements.
391 words·~2 min read·
/ne/chapter-8/8-2732A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.
(2)Except for permissible investments described in subsection
(1)of section 8-2733 , the director, with respect to any licensee, may, by order, limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of the investment.
(3)Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the United States Bankruptcy Code for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for dissolution or reorganization, or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust.
(4)No permissible investments held in trust pursuant to subsection
(3)of this section shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.
(5)Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis for permissible investments required to be held in this state, and other states, as applicable. Any statutory trust established under this subsection shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.
(6)The director, by rule or order, may allow any other type of investment, that the director determines is of sufficient liquidity and quality, to be a permissible investment. The director is authorized to participate in efforts with other state regulators to determine whether other types of investments are of sufficient liquidity and quality to be a permissible investment.