Overview
In March 2019, the Nebraska Legislature passed LB622 which amended the Public Funds Deposit Security Act to provide an additional method whereby financial institutions could secure public deposits held with the institution that exceed the insurance limits provided by the Federal Deposit Insurance Corporation (FDIC). In additional to the direct method, financial institutions may now pledge a pool of eligible collateral to secure the aggregate balance of uninsured public deposits held with the institution.
The amendments provided authorization for the Director of the Department of Banking & Finance to appoint an administrator to carry out its rights and responsibilities in respect to the pooled method.
In May of 2020, the Director appointed the Nebraska Bankers Insurance and Services Company (NBISCO) as the Administrator of the Single Bank Pooled Collateral program for the State of Nebraska.
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