2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-3022 - Surety bond; pledge of assets; requirements; treatment.

8-3022.
Surety bond; pledge of assets; requirements; treatment.
(1) Except as otherwise provided by subsection (2) of this section, a digital asset depository shall, before transacting any business, pledge or furnish a surety bond to the director to cover costs likely to be incurred by the director in a liquidation or conservatorship of the digital asset depository. The amount of the surety bond or pledge of assets under subsection (2) of this section shall be determined by the director in an amount sufficient to defray the costs of a liquidation or conservatorship.
(2) In lieu of a bond, a digital asset depository may irrevocably pledge specified assets equivalent to a bond under subsection (1) of this section. Any assets pledged to the director under this subsection shall be held in a state or nationally chartered bank, trust company, federal reserve bank, or savings and loan association having a principal or branch office in this state, excluding affiliated institutions. All costs associated with pledging and holding such assets are the responsibility of the digital asset depository.
(3) Assets pledged to the director shall not include money and shall be of the same nature and quality as those required under section 8-210.
(4) The digital asset depository shall have the right, with the approval of the director, to substitute other securities for those deposited and shall be required to do so on written order of the director made for good cause shown. The digital asset depository shall pay the fees prescribed in section 8-602 for pledging and substitution of securities. So long as the digital asset depository so depositing shall continue to be solvent and is not in violation of the Nebraska Financial Innovation Act, such digital asset depository shall be permitted to receive the interest or dividends on such deposit.
(5) Surety bonds shall run to the State of Nebraska and shall be approved under the terms and conditions required under section 8-110.
(6) The director may by order or rules and regulations establish additional investment guidelines or investment options for purposes of the pledge or surety bond required by this section.
(7) In the event of a liquidation or conservatorship of a digital asset depository pursuant to section 8-3027, the director may, without regard to priorities, preferences, or adverse claims, reduce the surety bond or assets pledged under this section to cash as soon as practicable and utilize the cash to defray the costs associated with the liquidation or conservatorship.
(8) Income from assets pledged under subsection (2) of this section shall be paid to the digital asset depository no less than annually, unless a liquidation or conservatorship takes place.
(9) Upon evidence that the amount of the current surety bond or pledged assets is insufficient, the director may require a digital asset depository to increase its surety bond or pledged assets by providing not less than thirty days' written notice to the digital asset depository.
Source
Laws 2021, LB649, § 22;
Laws 2023, LB92, § 36.
Operative Date: June 7, 2023