(A) The Board of Trustees, at its first meeting in each fiscal year, shall designate some one or more banks, capital stock financial institutions, or qualifying mutual financial institutions of approved and responsible standing in which the Village Treasurer shall keep at all times, subject to payment on his or her demand, all money held by him or her as Village Treasurer. If there is one or more banks, capital stock financial institutions, or qualifying mutual financial institutions located in the village which apply for the privilege of keeping such money and give bond or give security for the repayment of deposits as provided in this section, such banks, capital stock financial institutions, or qualifying mutual financial institutions shall be selected as such depositories. The Village Treasurer shall not give a preference to any one or more of them in the money he or she may so deposit.
(B) (1) The Board of Trustees shall require from all banks, capital stock financial institutions, or qualifying mutual financial institutions:
(a) A bond in such penal sum as may be the maximum amount on deposit at any time less the amount insured by the Federal Deposit Insurance Corporation or, in lieu thereof; and
(b) Security given as provided in the Public Funds Deposit Security Act to secure the payment of all such deposits and accretions.
(2) The Board of Trustees shall approve such bond or giving of security. The Village Treasurer shall not be liable for any loss of any money sustained by reason of the failure of any such depository so designated and approved. The fact that a stockholder, director, or other officer of such bank, capital stock financial institution, or qualifying mutual financial institution is also serving as a member of the Board of Trustees or as any other officer of the village shall not disqualify such bank, capital stock financial institution, or qualifying mutual financial institution from acting as a depository for such municipal funds.
(C) The insurance afforded to depositors in banks, capital stock financial institutions, or qualifying mutual financial institutions through the Federal Deposit Insurance Corporation shall be deemed and construed to be a surety bond to the extent that the deposits are insured by such corporation, and for deposits so insured, no other surety bond or other security shall be required. Neb. Rev. Stat. 77-2366 shall apply to deposits in capital stock financial institutions. Neb. Rev. Stat. 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.
(Prior Code, § 1-819) (Ord. 1998-14, passed 10-7-1998; Ord. 2002-26, passed 10-16-2002; Ord. 2003-12, passed 5-7-2003)
Statutory reference:
Related provisions, see Neb. Rev. Stat. 17-607 and 77-2362