I. DOES NEBRASKA REQUIRE BANKS TO CASH STATE WARRANTS?
Enacted in 1982 (See, LB 961, § 1), Neb.Rev.Stat. § 72-1268 of the Nebraska Capital Expansion Act states, in pertinent part, that:
Every bank, capital stock financial institution, and qualifying mutual financial instiuttion shall, as a condition of accepting state funds, agree to cash free of charge state warrants which are presented by payees of the state without regard to whether or not such payee has an account with such bank, capital stock financial institution, and qualifying mutual financial instiuttion . . .
Effective August 28, 1999, LB 217 amended Neb.Rev.Stat. § 77-2301 relating to the Deposit and Investment of Public Funds to require that every bank, capital stock financial institution, and qualifying mutual financial instiuttion, as a condition of keeping on deposit state funds, agree to cash free of charge state warrants that are presented by payees of the State without regard to whether or not such payee has an account with the bank or building and loan association.
If your institution accepts State Funds under either Act or plans to do so in the future, this provision becomes relevant to your operations and in the training of tellers.
II. DOES NEBRASKA PROHIBIT THE USE OF A THUMBPRINT SIGNATURE ON STATE WARRANTS AS A CONDITION TO ACCEPTING STATE FUNDS?
Effective August 28, 1999, LB 217 amended Neb.Rev.Stat. § 72-1268 of the Nebraska Capital Expansion Act and Neb.Rev.Stat. § 77-2301 relating to the Deposit and Investment of Public Funds to require that every bank, capital stock financial institution, and qualifying mutual financial instiuttion,as a condition of accepting state funds, refrain from requiring a payee under a state warrant to place his or her fingerprint or thumbprint on a state warrant as a condition to cashing such warrant, without regard to whether or not such payee has an account with the bank, capital stock financial institution, and qualifying mutual financial instiuttion.
A bank or thrift may refuse to cash a state warrant without risking its eligibility to accept state funds for reasons specified by statute. The condition of keeping on deposit state funds will not preclude a bank to refuse to cash a state warrant presented to the bank if: (a) a stop payment order has been placed on the warrant; (b) the warrant has been reported as unregistered, voided, lost, stolen, destroyed or that a duplicate warrant has been issued in its place; (c) the warrant is incomplete or is forged or altered in any manner; (d) the warrant lacks any necessary endorsement or an endorsement is illegible, unauthorized or forged; (e) the warrant is stale-dated; or (f) the bank has a reasonable belief that the individual presenting the warrant is not the payee named on the warrant.