77-2318. County funds; depositories; limitation on deposits; exception.

The county treasurer shall not have on deposit in any bank, capital stock financial institution, or qualifying mutual financial institution at any time more money than the amount insured or guaranteed by the Federal Deposit Insurance Corporation, plus the maximum amount of the bond given by such bank, capital stock financial institution, or qualifying mutual financial institution in cases when the bank, capital stock financial institution, or qualifying mutual financial institution gives a guaranty bond except as provided in section 77-2318.01. The amount on deposit at any time with any bank, capital stock financial institution, or qualifying mutual financial institution shall not exceed fifty percent of the capital and surplus of such bank, capital stock financial institution, or qualifying mutual financial institution except as provided in section 77-2318.01. When the amount of money which the county treasurer desires to deposit in the banks, capital stock financial institutions, and qualifying mutual financial institutions within the county exceeds fifty percent of the capital and surplus of all of the banks, capital stock financial institutions, and qualifying mutual financial institutions in such county, then the county treasurer may, with the consent of the county board, deposit an amount in excess thereof, but not exceeding the capital stock and surplus in any one bank, capital stock financial institution, or qualifying mutual financial institution unless the depository gives security as provided in section 77-2318.01. Bond shall be required of all banks, capital stock financial institutions, and qualifying mutual financial institutions for such excess deposit unless security is given in accordance with section 77-2318.01. The bonds shall be deposited with the county treasurer and approved by the county board. 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.

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Annotations

Deposits of county funds exceeding fifty percent of national bank's paid-up stock are within protection of surety bonds, and surety is liable for attorney fees also. Scotts Bluff County v. First Nat. Bank of Gering, 115 Neb. 273, 212 N.W. 617 (1927); People of Sioux County v. National Surety Company, 276 U.S. 238 (1928), overruling National Surety Co. v. Lyons, 16 F.2d 688 (8th Cir. 1926).

Surety, after paying county treasurer amount of liability, is entitled to have amount paid allowed as preferred claim payable out of guaranty fund. State ex rel. Davis v. State Bank of Gering, 114 Neb. 213, 206 N.W. 758 (1925).

Entire deposit by county treasurer, although in excess of legal limit, is within protection of guaranty fund. State ex rel. Davis v. People's State Bank of Anselmo, 111 Neb. 126, 196 N.W. 912 (1923).

Under facts herein, sureties may share ratably dividends declared by bank's receiver upon county's claim for entire deposit, under this section. Cole v. Myers, 100 Neb. 480, 160 N.W. 894 (1916).

In absence of neglect, treasurer is not liable for interest on excess deposits where he deposits money in bank in excess of amount for which it has qualified. Custer County v. Cavenee, 99 Neb. 101, 155 N.W. 605 (1915).