NE Code § 77-2312 (2021)
2021 Nebraska Revised Statutes|Chapter 77 - Revenue and Taxation|77-2312 - County funds; deposit required; conditions.

77-2312.  County funds; deposit required; conditions.The county treasurer of each and every county in the State of Nebraska shall deposit, and at all times keep on deposit for safekeeping in the state or national banks, capital stock financial institutions, or qualifying mutual financial institutions doing business in the county of approved and responsible standing, the amount of money in his or her hands collected and held by him or her as county treasurer. Any check, draft, order, or other negotiable instrument deposited by the county treasurer, except when drawn upon the bank, capital stock financial institution, or qualifying mutual financial institution in which the deposit is made, shall be received by the bank, capital stock financial institution, or qualifying mutual financial institution for collection only and shall be subject to final payment thereof to the bank, capital stock financial institution, or qualifying mutual financial institution. Collection of such items shall be in the usual course of business and except for its own negligence, the bank, capital stock financial institution, or qualifying mutual financial institution shall not be liable thereon until and unless payment is actually received. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.Source   Laws 1891, c. 50, § 6, p. 351;   Laws 1897, c. 23, § 3, p. 190;   Laws 1903, c. 110, § 1, p. 584;   R.S.1913, § 6660;   C.S.1922, § 6191;   C.S.1929, § 77-2506;   Laws 1930, Spec. Sess., c. 7, § 1, p. 35;   Laws 1935, c. 153, § 3, p. 562;   Laws 1937, c. 174, § 1, p. 687;   C.S.Supp.,1941, § 77-2506;   R.S.1943, § 77-2312;   Laws 1989, LB 33, § 32;  Laws 2001, LB 362, § 34.  Annotations  1. Authorization of deposit 2. Liability of county treasurer 3. Miscellaneous 1. Authorization of deposit Deposit of county tax funds, secured by pledge of bank's assets and depository bond, is not trust fund so as to entitle surety as county's assignee to preferred claim on bank's insolvency. State ex rel. Sorensen v. First State Bank of Alliance, 122 Neb. 502, 240 N.W. 747 (1932), 79 A.L.R. 576 (1932). General deposits alone are authorized to be made in county depositories by county treasurers. Shambaugh v. City Bank of Elm Creek, 118 Neb. 817, 226 N.W. 460 (1929). Entire deposit by county treasurer although in excess of legal limit, was within protection of guaranty fund. State ex rel. Davis v. People's State Bank of Anselmo, 111 Neb. 126, 196 N.W. 912 (1923). A bank is liable on depository bond signed by cashier. Johnson County v. Chamberlain Bkg. House, 80 Neb. 96, 113 N.W. 1055 (1907). 2. Liability of county treasurer No defense that the funds have been lost without fault or negligence of the county treasurer. Garfield County v. Pearl, 138 Neb. 810, 295 N.W. 820 (1941). County treasurer cannot authorize deposit of county funds in bank unless it has been duly designated as depository and given bond, and county treasurer and surety are liable for loss of county funds deposited in excess of bank's bond. Massachusetts Bonding & Ins. Co. v. Steele, 125 Neb. 7, 248 N.W. 648 (1933). County treasurer is not liable for safekeeping of funds where he has deposited money in depository bank which has given bond hereunder. Lancaster County v. State, 97 Neb. 95, 149 N.W. 331 (1914). If not negligent, county treasurer is not liable for uncollected interest. Hamilton County v. Aurora Nat. Bank, 88 Neb. 280, 129 N.W. 267 (1911). County treasurer is not liable when not negligent. Hamilton County v. Cunningham, 87 Neb. 650, 127 N.W. 1060 (1910). 3. Miscellaneous Interest received by county treasurer from depository banks on sinking funds in his custody for paying bonds of school district must be credited to general fund of county. School District No. 22 of Harlan County v. Harlan County, 127 Neb. 4, 254 N.W. 701 (1934). Interest received from depository bank, by a county treasurer, upon funds in his custody as ex officio treasurer of a drainage district, is the money of such district. Nemaha Valley Drainage Dist. No. 2 v. Nemaha County, 100 Neb. 64, 158 N.W. 438 (1916). Demand certificates are treated as cash, and no interest charged thereon. Hamilton County v. Aurora Nat. Bank, 88 Neb. 280, 129 N.W. 267 (1911). Municipality may maintain action to recover money unlawfully deposited by treasurer. Farmers & Merchants Banking Co. v. City of Red Cloud, 62 Neb. 442, 87 N.W. 175 (1901). County cannot lawfully relieve bank of paying full legal rate. Commercial State Bank of Neligh v. Antelope County, 48 Neb. 496, 67 N.W. 465 (1896).