45 Neb. Admin. Code, ch. 12, § 004 - INDEPENDENCE

004.01 A certified public accountant or a public accountant will not be considered independent, if the accountant:

004.01A Is connected with the bank or any of its affiliates as an officer, director, attorney, or employee, or is a member of the immediate family of an officer, director, attorney, or employee of the bank or any of its affiliates;

004.01B Is the beneficial owner, directly or indirectly, of any shares of stock of the bank or any of its affiliates;

004.01C Has any proprietary interest in any business or legal entity which, directly or indirectly, controls the bank or any of its affiliates;

004.01D Is a borrower from the bank or any of its affiliates except with respect to:

004.01D1 a loan on the security of his or her residence;

004.01D2 a loan to make alterations, repairs, or improvements to his or her residence; or

004.01D3 a loan secured solely by his or her segregated deposit account in the lending bank.

004.01E Makes entries or postings on the books of account or performs any other operating functions for the bank or any of its affiliates;

004.01F Has any conflict of interest, or the appearance thereof, by reason of business or personal relationships with management or its decisions or functions, or

004.01G Any partner or principal of the accounting firm receives any special consideration in any transaction with the bank or its affiliates or has any interest, directly or indirectly, financial or otherwise, in any real property owned by or securing any loan or otherwise made by the bank or any of its affiliates except as provided in Subsection 004.01D of this Rule, or in any other operating activity or function of the institution or any of its affiliates.

004.02 An accounting firm which has a member who is not considered independent shall exclude such accountant from any personal involvement in the audit.

004.03 The foregoing points are not to be construed as all-inclusive criteria in judging the independence of a certified public accountant, or a public accountant, but rather as setting forth the most common conditions which contribute to a lack of independence.

004.04 The certified public accountant or public accountant must adhere to the American Institute of Certified Public Accountants' rules for independence, unless further restricted by the rules or interpretations of the Department.

004.05 It is the responsibility of the individual or the accounting firm to disclose to the Department any unusual relationships or affiliations which he or she or any member of the accounting firm may have with the bank, any affiliate of the bank, or any persons closely connected with the bank, and to have resolved any question as to his, her, or the firm's independence before proceeding with the engagement.

004.06 The individual or the accounting firm must state specifically in the report of audit or Directors' Examination that he, she, or the accounting firm has met the tests of independence specified in this Rule and that he, she, or the accounting firm is in fact independent.

Notes

45 Neb. Admin. Code, ch. 12, § 004

Adopted effective 11/25/2023