As defined in state law, authorized financial institutions are eligible to hold funds of the State of Nebraska and its political subdivisions. The NBA Office often fields questions regarding (1) the permissible types of investments authorized by Nebraska law for various state and local government subdivisions; and (2) the types of security required for government deposits in excess of federally insured amounts. This section of the NBA Compliance Handbook discusses investments authorized for political subdivisions, the types of security that may be pledged to protect government deposits in excess of the amount insured by the Federal Deposit Insurance Corporation (FDIC) and the single pool of collateral alternative to pledging.