(A) The Governing Body, at its first meeting in each fiscal year, shall designate some one or more banks or capital stock financial institutions of approved and responsible standing in which the Municipal Treasurer shall keep at all times, subject to payment on his or her demand, all money held by him or her as Municipal Treasurer. If there is one or more banks or capital stock financial institutions located in the municipality which apply for the privilege of keeping the money and give bond or give security for the repayment of deposits as provided in this section, such banks or capital stock financial institutions shall be selected as such depositories. The Municipal Treasurer shall not give a preference to any one or more of them in the money he or she may so deposit.
(B) The Governing Body shall require from all banks or capital stock financial institutions either 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, security given as provided in the Public Funds Deposit Security Act to secure the payment of all such deposits and accretions. The Governing Body shall approve the bond or giving of security. The Municipal 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 the bank or capital stock financial institution is also serving as Mayor, as a member of the Governing Body, or as any other officer of the municipality shall not disqualify the bank or capital stock financial institution from acting as a depository for the municipal funds.
(C) The insurance afforded to depositors in banks or capital stock 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 the Corporation. For deposits so insured, no other surety bond or other security shall be required. The provisions of Neb. RS 77-2366 shall apply to deposits in capital stock financial institutions.
(D) The Municipal Treasurer may deposit the funds received and held by him or her, by virtue of that office, with a cooperative credit association situated within the boundaries of the county, or a county adjoining thereto, where the municipality is situated, if the municipality is the depositor, as well as in a commercial state or national bank if the cooperative credit association performs all the conditions precedent required by the laws of this state of commercial state and national banks to qualify them to receive deposits of such public funds. It shall not be necessary for the municipality, in making such a deposit of public funds, to purchase shares in the cooperative credit association or become a member thereof, and such a cooperative credit association is hereby authorized and empowered to receive the money under these conditions.
(1990 Code, § 1-820) (Ord. 484, passed 9-15-1998)
Statutory reference:
Related state law provisions, see Neb. RS 17-607, 77-2362 through 77-2364, 77-2386 through 77-2397