State-charted banks are affected by a new law that was enacted in the state of Nebraska. The new law is titled LB 327 and authorizes state-charted banks to deposit, or have on deposit, funds from a fiduciary account that are managed by the bank’s trust department. Regarding any funds not insured or guaranteed by the Federal Deposit Insurance Corporation, LB 327 requires the bank to set to the side collateral as security under the management of suitable fiduciary officers and bank staff. Surety bonds will be authorized as alternative collateral, among other alternative financial instruments. LB 327 became active upon enactment.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.