The official site of the Nebraska Unicameral Legislature

LEGISLATIVE BILL 717
Approved by the Governor February 25, 2026

Introduced by Jacobson, 42.

A BILL FOR AN ACT relating to banking and finance; to amend sections 8-1,124,
8-1502, 8-2102, and 45-741, Reissue Revised Statutes of Nebraska, sections
8-3003, 8-3013, 45-735, and 45-737, Revised Statutes Cumulative
Supplement, 2024, sections 8-135, 8-141, 8-143.01, 8-157.01, 8-183.04,
8-1,140, 8-318, 8-355, 8-1101, 8-1101.01, 8-1704, 8-1707, 8-2703, 8-2742,
8-2903, 8-3005, 8-3007, 8-3033, 8-3034, 21-17,102, 21-17,115, 45-101.04,
45-335, 45-345, 45-349, 45-364, 59-1722, and 69-2103, Revised Statutes
Supplement, 2025, and section 4A-108, Uniform Commercial Code, Revised
Statutes Supplement, 2025; to adopt updates to federal law; to define and
redefine terms; to change provisions relating to notice of control of
certain banks and trust companies, the applicability of the Nebraska Money
Transmitters Act, digital asset depository institutions, the maximum
general interest rate on certain loans, installment loans, mortgage loan
originators, and mortgage bankers; to change references to the Nebraska
Money Transmitters Act in the Controllable Electronic Record Fraud
Prevention Act; to harmonize provisions; to provide operative dates; to
repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 8-135, Revised Statutes Supplement, 2025, is amended to
read:
8-135 (1) All persons, regardless of age, may become depositors in any
bank and shall be subject to the same duties and liabilities respecting their
deposits. Whenever a deposit is accepted by any bank in the name of any person,
regardless of age, the deposit may be withdrawn by the depositor by any of the
following methods:
(a) Check or other instrument in writing. The check or other instrument in
writing constitutes a receipt or acquittance if the check or other instrument
in writing is signed by the depositor and constitutes a valid release and
discharge to the bank for all payments so made; or
(b) Electronic means through:
(i) Preauthorized direct withdrawal;
(ii) An automatic teller machine;
(iii) A debit card;
(iv) A transfer by telephone;
(v) A network, including the Internet; or
(vi) Any electronic terminal, computer, magnetic tape, or other electronic
means.
(2) All persons, individually or with others and regardless of age, may
enter into an agreement with a bank for the lease of a safe deposit box and
shall be bound by the terms of the agreement.
(3) This section shall not be construed to affect the rights, liabilities,
or responsibilities of participants in an electronic fund transfer under the
federal Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., as such act
existed on January 1, 2026 2025, and shall not affect the legal relationships
between a minor and any person other than the bank.
Sec. 2. Section 8-141, Revised Statutes Supplement, 2025, is amended to
read:
8-141 (1) No bank shall directly or indirectly loan to any single
corporation, limited liability company, firm, or individual, including in such
loans all loans made to the several members or shareholders of such
corporation, limited liability company, or firm, for the use and benefit of
such corporation, limited liability company, firm, or individual, more than
twenty-five percent of the paid-up capital, surplus, and capital notes and
debentures or fifteen percent of the unimpaired capital and unimpaired surplus
of such bank, whichever is greater. Such limitations shall be subject to the
following exceptions:
(a) Obligations of any person, partnership, limited liability company,
association, or corporation in the form of notes or drafts secured by shipping
documents or instruments transferring or securing title covering livestock or
giving a lien on livestock shall be subject under this section to a limitation
of ten percent of such capital, surplus, and capital notes and debentures or
ten percent of such unimpaired capital and unimpaired surplus, whichever is
greater, in addition to such twenty-five percent of such capital and surplus or
such fifteen percent of such unimpaired capital and unimpaired surplus. To
qualify for the additional ten percent limit, the bank shall perfect a security
interest in the livestock under applicable law and the livestock shall at all
times have a current market value equal to at least one hundred fifteen percent
of the amount of the secured note that exceeds twenty-five percent of the
bank's capital, surplus, and capital notes and debentures or fifteen percent of
the bank's unimpaired capital and unimpaired surplus;
(b) Obligations of any person, partnership, limited liability company,
association, or corporation secured by not less than a like amount of bonds or
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notes of the United States issued since April 24, 1917, or certificates of
indebtedness of the United States, treasury bills of the United States, or
obligations fully guaranteed both as to principal and interest by the United
States shall be subject under this section to a limitation of ten percent of
such capital, surplus, and capital notes and debentures or ten percent of such
unimpaired capital and unimpaired surplus, whichever is greater, in addition to
such twenty-five percent of such capital and surplus or such fifteen percent of
such unimpaired capital and unimpaired surplus;
(c) Obligations of any person, partnership, limited liability company,
association, or corporation which are secured by negotiable warehouse receipts
shall be subject under this section to a limitation of ten percent of such
capital, surplus, and capital notes and debentures or ten percent of such
unimpaired capital and unimpaired surplus, whichever is greater, in addition to
such twenty-five percent of such capital, surplus, and capital notes and
debentures or such fifteen percent of such unimpaired capital and unimpaired
surplus. To qualify for the additional ten percent limit, the receipts securing
the obligations shall at all times have a current market value equal to at
least one hundred fifteen percent of the amount of the obligations that exceeds
twenty-five percent of the bank's capital, surplus, and capital note and
debentures or fifteen percent of the bank's unimpaired capital and unimpaired
surplus; or
(d) Obligations of any person, partnership, limited liability company,
association, or corporation which are secured by readily marketable collateral
having a market value, as determined by reliable and continuously available
price quotations, in an amount at least equal to the face amount of the note or
notes secured by such collateral, shall be subject under this section to a
limitation of ten percent of such capital, surplus, and capital notes and
debentures or ten percent of such unimpaired capital and unimpaired surplus,
whichever is greater, in addition to such twenty-five percent of such capital
and surplus or such fifteen percent of such unimpaired capital and unimpaired
surplus.
(2)(a) For purposes of this section, the discounting of bills of exchange,
drawn in good faith against actually existing values, and the discounting of
commercial paper actually owned by the persons negotiating the bills of
exchange or commercial paper shall not be considered as the lending of money.
(b) Loans or obligations shall not be subject to any limitation under this
section, based upon such capital and surplus or such unimpaired capital and
unimpaired surplus, to the extent that such capital and surplus or such
unimpaired capital and unimpaired surplus are secured or covered by guaranties,
or by commitments or agreements to take over or to purchase such capital and
surplus or such unimpaired capital and unimpaired surplus, made by any federal
reserve bank or by the United States Government or any authorized agency
thereof, including any corporation wholly owned directly or indirectly by the
United States, or general obligations of any state of the United States or any
political subdivision of the state. The phrase general obligation of any state
or any political subdivision of the state means an obligation supported by the
full faith and credit of an obligor possessing general powers of taxation,
including property taxation, but does not include municipal revenue bonds and
sanitary and improvement district warrants which are subject to the limitations
set forth in this section.
(c) Any bank may subscribe to, invest in, purchase, and own single-family
mortgages secured by the Federal Housing Administration or the United States
Department of Veterans Affairs and mortgage-backed certificates of the
Government National Mortgage Association which are guaranteed as to payment of
principal and interest by the Government National Mortgage Association. Such
mortgages and certificates shall not be subject under this section to any
limitation based upon such capital and surplus or such unimpaired capital and
unimpaired surplus.
(d) Obligations representing loans to any national banking association or
to any banking institution organized under the laws of any state, when such
loans are approved by the director by rule and regulation or otherwise, shall
not be subject under this section to any limitation based upon such capital and
surplus or such unimpaired capital and unimpaired surplus.
(e) Loans or extensions of credit secured by a segregated deposit account
in the lending bank shall not be subject under this section to any limitation
based on such capital and surplus or such unimpaired capital and unimpaired
surplus. The director may adopt and promulgate rules and regulations governing
the terms and conditions of such security interest and segregated deposit
account.
(f) For the purpose of determining lending limits, partnerships shall not
be treated as separate entities. Each individual shall be charged with his or
her personal debt plus the debt of every partnership in which he or she is a
partner, except that for purposes of this section (a) an individual shall only
be charged with the debt of any limited partnership in which he or she is a
partner to the extent that the terms of the limited partnership agreement
provide that such individual is to be held liable for the debts or actions of
such limited partnership and (b) no individual shall be charged with the debt
of any general partnership in which he or she is a partner beyond the extent to
which (i) his or her liability for such partnership debt is limited by the
terms of a contract or other written agreement between the bank and such
individual and (ii) any personal debt of such individual is incurred for the
use and benefit of such general partnership.
(3) A loan made within lending limits at the initial time the loan was
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made may be renewed, extended, or serviced without regard to changes in the
lending limit of a bank following the initial extension of the loan if (a) the
renewal, extension, or servicing of the loan does not result in the extension
of funds beyond the initial amount of the loan or (b) the accrued interest on
the loan is not added to the original amount of the loan in the process of
renewal, extension, or servicing.
(4) Any bank may purchase or take an interest in life insurance contracts
for any purpose incidental to the business of banking. A bank's purchase of any
life insurance contract, as measured by its cash surrender value, from any one
life insurance company shall not at any time exceed twenty-five percent of the
paid-up capital, surplus, and capital notes and debentures of such bank or
fifteen percent of the unimpaired capital and unimpaired surplus of such bank,
whichever is greater. A bank's purchase of life insurance contracts, as
measured by their cash surrender values, in the aggregate from all life
insurance companies shall not at any time exceed thirty-five percent of the
paid-up capital, surplus, undivided profits, and capital notes and debentures
of such bank. The limitations under this subsection on a bank's purchase of
life insurance contracts, in the aggregate from all life insurance companies,
shall not apply to any contract purchased prior to April 5, 1994.
(5) On and after January 21, 2013, the director has the authority to
determine the manner and extent to which credit exposure resulting from
derivative transactions, repurchase agreements, reverse repurchase agreements,
securities lending transactions, and securities borrowing transactions shall be
taken into account for purposes of determining compliance with this section. In
making such determinations, the director may, but is not required to, act by
rule and regulation or order.
(6) For purposes of this section:
(a) Derivative transaction means any transaction that is a contract,
agreement, swap, warrant, note, or option that is based, in whole or in part,
on the value of, any interest in, or any quantitative measure or the occurrence
of any event relating to, one or more commodities, securities, currencies,
interest or other rates, indices, or other assets;
(b) Loan includes:
(i) All direct and indirect advances of funds to a person made on the
basis of any obligation of that person to repay the funds or repayable from
specific property pledged by or on behalf of that person;
(ii) To the extent specified by rule and regulation or order of the
director, any liability of a state bank to advance funds to or on behalf of a
person pursuant to a contractual commitment; and
(iii) Any credit exposure to a person arising from a derivative
transaction, repurchase agreement, reverse repurchase agreement, securities
lending transaction, or securities borrowing transaction between the bank and
the person; and
(c) Unimpaired capital and unimpaired surplus means:
(i) For qualifying banks that have elected to use the community bank
leverage ratio framework, as set forth under the Capital Adequacy Standards of
the appropriate federal banking agency:
(A) The bank's tier 1 capital as reported according to the capital
guidelines of the appropriate federal banking agency; and
(B) The bank's allowance for loan and lease losses or allowance for credit
losses, as applicable, as reported in the most recent consolidated report of
condition filed under 12 U.S.C. 1817(a)(3), as such section existed on January
1, 2026 2025; and
(ii) For all other banks:
(A) The bank's tier 1 and tier 2 capital included in the bank's risk-based
capital under the capital guidelines of the appropriate federal banking agency,
based on the bank's most recent consolidated report of condition filed under 12
U.S.C. 1817(a)(3), as such section existed on January 1, 2026 2025; and
(B) The balance of the bank's allowance for loan and lease losses not
included in the bank's tier 2 capital for purposes of the calculation of risk-
based capital by the appropriate federal banking agency, based on the bank's
most recent consolidated report of condition filed under 12 U.S.C. 1817(a)(3),
as such section existed on January 1, 2026 2025.
(7) Notwithstanding the provisions of section 8-1,140, the director may,
by order, deny or limit the inclusion of goodwill in the calculation of a
bank's unimpaired capital and unimpaired surplus or in the calculation of a
bank's paid-up capital and surplus.
Sec. 3. Section 8-143.01, Revised Statutes Supplement, 2025, is amended to
read:
8-143.01 (1) No bank shall extend credit to any of its executive officers,
directors, or principal shareholders or to any related interest of such persons
in an amount that, when aggregated with the amount of all other extensions of
credit by the bank to that person and to all related interests of that person,
exceeds the higher of twenty-five thousand dollars or five percent of the
bank's unimpaired capital and unimpaired surplus unless (a) the extension of
credit has been approved in advance by a majority vote of the entire board of
directors of the bank, a record of which shall be made and kept as a part of
the records of such bank, and (b) the interested party has abstained from
participating directly or indirectly in such vote.
(2) No bank shall extend credit to any of its executive officers,
directors, or principal shareholders or to any related interest of such persons
in an amount that, when aggregated with the amount of all other extensions of
credit by the bank to that person and to all related interests of that person,
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exceeds five hundred thousand dollars except by complying with the requirements
of subdivisions (1)(a) and (b) of this section.
(3) No bank shall extend credit to any of its executive officers, and no
such executive officer shall borrow from or otherwise become indebted to his or
her bank, except in the amounts and for the purposes set forth in subsection
(4) of this section.
(4) A bank shall be authorized to extend credit to any of its executive
officers:
(a) In any amount to finance the education of such executive officer's
children;
(b)(i) In any amount to finance or refinance the purchase, construction,
maintenance, or improvement of a residence of such executive officer if the
extension of credit is secured by a first lien on the residence and the
residence is owned or is expected to be owned after the extension of credit by
the executive officer and (ii) in the case of a refinancing, only the amount of
the refinancing used to repay the original extension of credit, together with
the closing costs of the refinancing, and any additional amount thereof used
for any of the purposes enumerated in this subdivision are included within this
category of credit;
(c) In any amount if the extension of credit is (i) secured by a perfected
security interest in bonds, notes, certificates of indebtedness, or treasury
bills of the United States or in other such obligations fully guaranteed as to
principal and interest by the United States, (ii) secured by unconditional
takeout commitments or guarantees of any department, agency, bureau, board,
commission, or establishment of the United States or any corporation wholly
owned directly or indirectly by the United States, or (iii) secured by a
perfected security interest in a segregated deposit account in the lending
bank; or
(d) For any other purpose not specified in subdivisions (a), (b), and (c)
of this subsection if the aggregate amount of such other extensions of credit
to such executive officer does not exceed, at any one time, the greater of two
and one-half percent of the bank's unimpaired capital and unimpaired surplus or
twenty-five thousand dollars, but in no event greater than one hundred thousand
dollars or the amount of the bank's lending limit as prescribed in section
8-141, whichever is less.
(5)(a) Except as provided in subdivision (b) of this subsection, the board
of directors of a bank may obtain a credit report from a recognized credit
agency, on an annual basis, for any or all of its executive officers.
(b) Subdivision (a) of this subsection does not apply to any executive
officer if such officer is excluded by a resolution of the board of directors
or by the bylaws of the bank from participating in the major policymaking
functions of the bank and does not actually participate in the major
policymaking functions of the bank.
(6) No bank shall extend credit to any of its executive officers,
directors, or principal shareholders or to any related interest of such persons
in an amount that, when aggregated with the amount of all other extensions of
credit by the bank to that person and to all related interests of that person,
exceeds the lending limit of the bank as prescribed in section 8-141.
(7)(a) Except as provided in subdivision (b) of this subsection, no bank
shall extend credit to any of its executive officers, directors, or principal
shareholders or to any related interest of such persons unless the extension of
credit (i) is made on substantially the same terms, including interest rates
and collateral, as, and following credit-underwriting procedures that are not
less stringent than, those prevailing at the time for comparable transactions
by the bank with other persons that are not covered by this section and who are
not employed by the bank and (ii) does not involve more than the normal risk of
repayment or present other unfavorable features.
(b) Nothing in subdivision (a) of this subsection shall prohibit any
extension of credit made by a bank pursuant to a benefit or compensation
program under the provisions of 12 C.F.R. 215.4(a)(2), as such regulation
existed on January 1, 2026 2025.
(8) For purposes of this section:
(a) Executive officer means a person who participates or has authority to
participate, other than in the capacity of director, in the major policymaking
functions of the bank, whether or not the officer has an official title, the
title designates such officer as an assistant, or such officer is serving
without salary or other compensation. Executive officer includes the
chairperson of the board of directors, the president, all vice presidents, the
cashier, the corporate secretary, and the treasurer, unless the executive
officer is excluded by a resolution of the board of directors or by the bylaws
of the bank from participating, other than in the capacity of director, in the
major policymaking functions of the bank, and the executive officer does not
actually participate in such functions. A manager or assistant manager of a
branch of a bank shall not be considered to be an executive officer unless such
individual participates or is authorized to participate in the major
policymaking functions of the bank; and
(b) Unimpaired capital and unimpaired surplus means the sum of:
(i) The total equity capital of the bank reported on its most recent
consolidated report of condition filed under section 8-166;
(ii) Any subordinated notes and debentures approved as an addition to the
bank's capital structure by the appropriate federal banking agency; and
(iii) Any valuation reserves created by charges to the bank's income
reported on its most recent consolidated report of condition filed under
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section 8-166.
(9) Any executive officer, director, or principal shareholder of a bank or
any other person who intentionally violates this section or who aids, abets, or
assists in a violation of this section is guilty of a Class IV felony.
(10) The Director of Banking and Finance may adopt and promulgate rules
and regulations to carry out this section, including rules and regulations
defining or further defining terms used in this section, consistent with the
provisions of 12 U.S.C. 84 and implementing Regulation O as such section and
regulation existed on January 1, 2026 2025.
Sec. 4. Section 8-157.01, Revised Statutes Supplement, 2025, is amended to
read:
8-157.01 (1) Any establishing financial institution may establish and
maintain any number of automatic teller machines at which all banking
transactions, defined as receiving deposits of every kind and nature and
crediting such to customer accounts, cashing checks and cash withdrawals,
transferring funds from checking accounts to savings accounts, transferring
funds from savings accounts to checking accounts, transferring funds from
either checking accounts and savings accounts to accounts of other customers,
transferring payments from customer accounts into accounts maintained by other
customers of the financial institution or the financial institution, including
preauthorized draft authority, preauthorized loans, and credit transactions,
receiving payments payable at the financial institution or otherwise, account
balance inquiry, and any other transaction incidental to the business of the
financial institution or which will provide a benefit to the financial
institution's customers or the general public, may be conducted. Any automatic
teller machine owned by a nonfinancial institution third party shall be
sponsored by an establishing financial institution. Neither such automatic
teller machines nor the transactions conducted thereat shall be construed as
the establishment of a branch or as branch banking.
(2) Any financial institution may become a user financial institution by
agreeing to pay the establishing financial institution the automatic teller
machine usage fee. Such agreement shall be implied by the use of such automatic
teller machines.
(3)(a)(i) All automatic teller machines shall be made available on a
nondiscriminating basis for use by Nebraska customers of a user financial
institution and (ii) all Nebraska automatic teller machine transactions
initiated by Nebraska customers of a user financial institution shall be made
on a nondiscriminating basis.
(b) It shall not be deemed discrimination if (i) an automatic teller
machine does not offer the same transaction services as other automatic teller
machines, (ii) there are no automatic teller machine usage fees charged between
affiliate financial institutions for the use of automatic teller machines,
(iii) the automatic teller machine usage fees of an establishing financial
institution that authorizes and directly or indirectly routes Nebraska
automatic teller machine transactions to multiple switches, all of which comply
with the requirements of subdivision (3)(d) of this section, differ solely
based upon the fees established by the switches, (iv) automatic teller machine
usage fees differ based upon whether the transaction initiated at an automatic
teller machine is subject to a surcharge or provided on a surcharge-free basis,
or (v) the automatic teller machines established or sponsored by an
establishing financial institution are made available for use by Nebraska
customers of any user financial institution which agrees to pay the automatic
teller machine usage fee and which conforms to the operating rules and
technical standards established by the switch to which a Nebraska automatic
teller machine transaction is directly or indirectly routed.
(c) The director, upon notice and after a hearing, may terminate or
suspend the use of any automatic teller machine if he or she determines that
the automatic teller machine is not made available on a nondiscriminating basis
or that Nebraska automatic teller machine transactions initiated at such
automatic teller machine are not made on a nondiscriminating basis.
(d) A switch (i) shall provide to all financial institutions that have a
main office or approved branch located in the State of Nebraska and that
conform to the operating rules and technical standards established by the
switch an equal opportunity to participate in the switch for the use of and
access thereto; (ii) shall be capable of operating to accept and route Nebraska
automatic teller machine transactions, whether receiving data from an automatic
teller machine, an establishing financial institution, or a data processing
center; and (iii) shall be capable of being directly or indirectly connected to
every data processing center for any automatic teller machine.
(e) The director, upon notice and after a hearing, may terminate or
suspend the operation of any switch with respect to all Nebraska automatic
teller machine transactions if he or she determines that the switch is not
being operated in the manner required under subdivision (3)(d) of this section.
(f) Subject to the requirement for a financial institution to comply with
this subsection, no user financial institution or establishing financial
institution shall be required to become a member of any particular switch.
(4) Any consumer initiating an electronic funds transfer at an automatic
teller machine for which an automatic teller machine surcharge will be imposed
shall receive notice in accordance with the provisions of 15 U.S.C. 1693b(d)(3)
(A) and (B), as such section existed on January 1, 2026 2025. Such notice shall
appear on the screen of the automatic teller machine or appear on a paper
notice issued from such machine after the transaction is initiated and before
the consumer is irrevocably committed to completing the transaction.
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(5) A point-of-sale terminal may be established at any point within this
state by a financial institution, a group of two or more financial
institutions, or a combination of a financial institution or financial
institutions and a third party or parties. Such parties may contract with a
seller of goods and services or any other third party for the operation of
point-of-sale terminals.
(6) A seller of goods and services or any other third party on whose
premises one or more point-of-sale terminals are established shall not be,
solely by virtue of such establishment, a financial institution and shall not
be subject to the laws governing, or other requirements imposed on, financial
institutions, except for the requirement that it faithfully perform its
obligations in connection with any transaction originated at any point-of-sale
terminal on its premises.
(7) Nothing in this section shall be construed to prohibit nonbank
employees from assisting in transactions originated at automatic teller
machines or point-of-sale terminals, and such assistance shall not be deemed to
be engaging in the business of banking.
(8)(a) Annually by September 1, any entity operating as a switch in
Nebraska shall file a notice with the department setting forth its name,
address, and contact information for an officer authorized to answer inquiries
related to its operations in Nebraska.
(b) Any entity intending to operate in Nebraska as a switch shall file a
notice with the department setting forth its name, address, and contact
information for an officer authorized to answer inquiries related to its
operations in Nebraska. Such notice shall be filed at least thirty days prior
to the date on which the switch commences operations, and thereafter annually
by September 1.
(9) Nothing in this section prohibits ordinary clearinghouse transactions
between financial institutions.
(10) Nothing in this section shall prevent any financial institution which
has a main chartered office or an approved branch located in the State of
Nebraska from participating in a national automatic teller machine program to
allow its customers to use automatic teller machines located outside of the
State of Nebraska which are established by out-of-state financial institutions
or foreign financial institutions or to allow customers of out-of-state
financial institutions or foreign financial institutions to use its automatic
teller machines. Such participation and any automatic teller machine usage fees
charged or received pursuant to the national automatic teller machine program
or usage fees charged for the use of its automatic teller machines by customers
of out-of-state financial institutions or foreign financial institutions shall
not be considered for purposes of determining (a) if an automatic teller
machine has been made available or Nebraska automatic teller machine
transactions have been made on a nondiscriminating basis for use by Nebraska
customers of a user financial institution or (b) if a switch complies with
subdivision (3)(d) of this section.
(11) An agreement to operate or share an automatic teller machine may not
prohibit, limit, or restrict the right of the operator or owner of the
automatic teller machine to charge a customer conducting a transaction using an
account from a foreign financial institution an access fee or surcharge not
otherwise prohibited under state or federal law.
(12) Switch fees shall not be subject to this section or be regulated by
the department.
(13) Nothing in this section shall prevent a group of two or more credit
unions, each of which has a main chartered office or an approved branch located
in the State of Nebraska, from participating in a credit union service
organization organized on or before January 1, 2015, for the purpose of owning
automatic teller machines, provided that all participating credit unions have
an ownership interest in the credit union service organization and that the
credit union service organization has an ownership interest in each of the
participating credit unions' automatic teller machines. Such participation and
any automatic teller machine usage fees associated with Nebraska automatic
teller machine transactions initiated by customers of participating credit
unions at such automatic teller machines shall not be considered for purposes
of determining if such automatic teller machines have been made available on a
nondiscriminating basis or if Nebraska automatic teller machine transactions
initiated at such automatic teller machines have been made on a
nondiscriminating basis, provided that all Nebraska automatic teller machine
transactions initiated by customers of participating credit unions result in
the same automatic teller machine usage fees for essentially the same service
routed over the same switch.
(14) Nebraska automatic teller machine usage fees and any agreements
relating to Nebraska automatic teller machine usage fees shall comply with
subsection (3) of this section.
(15) For purposes of this section:
(a) Access means the ability to utilize an automatic teller machine or a
point-of-sale terminal to conduct permitted banking transactions or purchase
goods and services electronically;
(b) Account means a checking account, a savings account, a share account,
or any other customer asset account held by a financial institution. Such an
account may also include a line of credit which a financial institution has
agreed to extend to its customer;
(c) Affiliate financial institution means any financial institution which
is a subsidiary of the same bank holding company;
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(d) Automatic teller machine usage fee means any per transaction fee
established by a switch or otherwise established on behalf of an establishing
financial institution and collected from the user financial institution and
paid to the establishing financial institution for the use of the automatic
teller machine. An automatic teller machine usage fee shall not include switch
fees;
(e) Electronic funds transfer means any transfer of funds, other than a
transaction originated by check, draft, or similar paper instrument, that is
initiated through a point-of-sale terminal, an automatic teller machine, or a
personal terminal for the purpose of ordering, instructing, or authorizing a
financial institution to debit or credit an account;
(f) Essentially the same service means the same Nebraska automatic teller
machine transaction offered by an establishing financial institution
irrespective of the user financial institution, the Nebraska customer of which
initiates the Nebraska automatic teller machine transaction. A Nebraska
automatic teller machine transaction that is subject to a surcharge is not
essentially the same service as the same banking transaction for which a
surcharge is not imposed;
(g) Establishing financial institution means any financial institution
which has a main chartered office or approved branch located in the State of
Nebraska that establishes or sponsors an automatic teller machine or any out-
of-state financial institution that establishes or sponsors an automatic teller
machine;
(h) Financial institution means a bank, savings bank, building and loan
association, savings and loan association, or credit union, whether chartered
by the department, the United States, or a foreign state agency; any other
similar organization which is covered by federal deposit insurance; or a
subsidiary of any such entity;
(i) Foreign financial institution means a financial institution located
outside the United States;
(j) Nebraska automatic teller machine transaction means a banking
transaction as defined in subsection (1) of this section which is (i) initiated
at an automatic teller machine established in whole or in part or sponsored by
an establishing financial institution, (ii) for an account of a Nebraska
customer of a user financial institution, and (iii) processed through a switch
regardless of whether it is routed directly or indirectly from an automatic
teller machine;
(k) Personal terminal means a personal computer and telephone, wherever
located, operated by a customer of a financial institution for the purpose of
initiating a transaction affecting an account of the customer;
(l) Sponsoring an automatic teller machine means the acceptance of
responsibility by an establishing financial institution for compliance with all
provisions of law governing automatic teller machines and Nebraska automatic
teller machine transactions in connection with an automatic teller machine
owned by a nonfinancial institution third party;
(m) Switch fee means a fee established by a switch and assessed to a user
financial institution or to an establishing financial institution other than an
automatic teller machine usage fee; and
(n) User financial institution means any financial institution which has a
main chartered office or approved branch located in the State of Nebraska which
avails itself of and provides its customers with automatic teller machine
services.
Sec. 5. Section 8-183.04, Revised Statutes Supplement, 2025, is amended to
read:
8-183.04 (1) Notwithstanding any other provision of the Nebraska Banking
Act or any other Nebraska law, a state or federal savings association which was
formed and in operation as a mutual savings association as of July 15, 1998,
may elect to retain its mutual form of corporate organization upon conversion
to a state bank.
(2) All references to shareholders or stockholders for state banks shall
be deemed to be references to members for such a converted savings association.
(3) The amount and type of capital required for such a converted savings
association shall be as required for federal mutual savings associations in 12
C.F.R. 5.21, as such regulation existed on January 1, 2026 2025, except that if
at any time the department determines that the capital of such a converted
savings association is impaired, the director may require the members to make
up the capital impairment.
(4) The director may adopt and promulgate rules and regulations governing
such converted mutual savings associations. In adopting and promulgating such
rules and regulations, the director may consider the provisions of sections
8-301 to 8-384 governing savings associations in mutual form of corporate
organization.
Sec. 6. Section 8-1,124, Reissue Revised Statutes of Nebraska, is amended
to read:
8-1,124 As used in sections 8-1,124 to 8-1,129, unless the context
otherwise requires:
(1) Emergency means any condition or occurrence, actual or threatened,
which interferes physically with the conduct of normal business operations at
one or more or all of the offices of a financial institution, or which poses an
imminent or existing threat to the safety or security of persons or property,
or both, including, but not limited to, fire, flood, earthquake, hurricane,
wind, rain, snow storm, labor dispute and strike, power failure, cybersecurity
event as defined in section 87-1201, transportation failure, interruption of a
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communication facility, shortage of fuel, housing, food, transportation, or
labor, robbery or attempted robbery, actual or threatened enemy attack,
epidemic or other catastrophe, riot, civil commotion, and any other act of
lawlessness or violence, actual or threatened;
(2) Financial institution means a bank, savings bank, building and loan
association, savings and loan association, credit union, or trust company, or
any office thereof, chartered by the department;
(3) Office means any place at which a financial institution transacts its
business or conducts operations related to its business; and
(4) Officers means the person or persons designated by the board of
directors, supervisory committee, or other governing body of a financial
institution, to act for such financial institution in an emergency or, in the
absence of any such designation or of such officer or officers, the president
or any other officer in charge of such financial institution or of such office
or offices.
Sec. 7. Section 8-1,140, Revised Statutes Supplement, 2025, is amended to
read:
8-1,140 Notwithstanding any of the other provisions of the Nebraska
Banking Act or any other Nebraska statute, any bank incorporated under the laws
of this state and organized under the provisions of the act, or under the laws
of this state as they existed prior to May 9, 1933, shall directly, or
indirectly through a department, a subsidiary, or subsidiaries, have all the
rights, powers, privileges, benefits, and immunities which may be exercised as
of January 1, 2026 2025, by a federally chartered bank doing business in
Nebraska, including the exercise of all powers and activities that are
permitted for a financial subsidiary of a federally chartered bank. Such
rights, powers, privileges, benefits, and immunities shall not relieve such
bank from payment of state taxes assessed under any applicable laws of this
state.
Sec. 8. Section 8-318, Revised Statutes Supplement, 2025, is amended to
read:
8-318 (1)(a) Shares of stock in any association, or in any federal savings
and loan association incorporated under the provisions of the federal Home
Owners' Loan Act, with its principal office and place of business in this
state, may be subscribed for, held, transferred, surrendered, withdrawn, and
forfeited and payments thereon received and receipted for by any person,
regardless of age, in the same manner and with the same binding effect as
though such person were of the age of majority, except that a minor or his or
her estate shall not be bound on his or her subscription to stock except to the
extent of payments actually made thereon.
(b) Whenever a share account is accepted by any building and loan
association in the name of any person, regardless of age, the deposit may be
withdrawn by the shareholder by any of the following methods:
(i) Check or other instrument in writing. The check or other instrument in
writing constitutes a receipt or acquittance if the check or other instrument
in writing is signed by the shareholder and constitutes a valid release in
discharge to the building and loan association for all payments so made; or
(ii) Electronic means through:
(A) Preauthorized direct withdrawal;
(B) An automatic teller machine;
(C) A debit card;
(D) A transfer by telephone;
(E) A network, including the Internet; or
(F) Any electronic terminal, computer, magnetic tape, or other electronic
means.
(c) This section shall not be construed to affect the rights, liabilities,
or responsibilities of participants in an electronic fund transfer under the
federal Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., as it existed on
January 1, 2026 2025, and shall not affect the legal relationships between a
minor and any person other than the building and loan association.
(2) All trustees, guardians, personal representatives, administrators, and
conservators appointed by the courts of this state may invest and reinvest in,
acquire, make withdrawals in whole or in part, hold, transfer, or make new or
additional investments in or transfers of shares of stock in any (a) building
and loan association organized under the laws of the State of Nebraska or (b)
federal savings and loan association incorporated under the provisions of the
federal Home Owners' Loan Act, having its principal office and place of
business in this state, without an order of approval from any court.
(3) Trustees created solely by the terms of a trust instrument may invest
in, acquire, hold, and transfer such shares, and make withdrawals, in whole or
in part, therefrom, without any order of court, unless expressly limited,
restricted, or prohibited therefrom by the terms of such trust instrument.
(4) All building and loan associations referred to in this section are
qualified to act as trustee or custodian within the provisions of the federal
Self-Employed Individuals Tax Retirement Act of 1962, as amended, or under the
terms and provisions of section 408(a) of the Internal Revenue Code, if the
provisions of such retirement plan require the funds of such trust or
custodianship to be invested exclusively in shares or accounts in the
association or in other associations. If any such retirement plan, within the
judgment of the association, constitutes a qualified plan under the federal
Self-Employed Individuals Tax Retirement Act of 1962, or under the terms and
provisions of section 408(a) of the Internal Revenue Code, and the regulations
promulgated thereunder at the time the trust was established and accepted by
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the association, is subsequently determined not to be such a qualified plan or
subsequently ceases to be such a qualified plan, in whole or in part, the
association may continue to act as trustee of any deposits theretofore made
under such plan and to dispose of the same in accordance with the directions of
the member and beneficiaries thereof. No association, in respect to savings
made under this section, shall be required to segregate such savings from other
assets of the association. The association shall keep appropriate records
showing in proper detail all transactions engaged in under the authority of
this section.
Sec. 9. Section 8-355, Revised Statutes Supplement, 2025, is amended to
read:
8-355 Notwithstanding any of the provisions of Chapter 8, article 3, or
any other Nebraska statute, except as provided in section 8-345.02, any
association incorporated under the laws of the State of Nebraska and organized
under the provisions of such article shall have all the rights, powers,
privileges, benefits, and immunities which may be exercised as of January 1,
2026 2025, by a federal savings and loan association doing business in
Nebraska. Such rights, powers, privileges, benefits, and immunities shall not
relieve such association from payment of state taxes assessed under any
applicable laws of this state.
Sec. 10. Section 8-1101, Revised Statutes Supplement, 2025, is amended to
read:
8-1101 For purposes of the Securities Act of Nebraska, unless the context
otherwise requires:
(1) Agent means any individual other than a broker-dealer who represents a
broker-dealer or issuer in effecting or attempting to effect sales of
securities, but agent does not include an individual who represents (a) an
issuer in (i) effecting a transaction in a security exempted by subdivision
(6), (7), or (8) of section 8-1110, (ii) effecting certain transactions
exempted by section 8-1111, (iii) effecting transactions in a federal covered
security as described in section 18(b)(3) of the Securities Act of 1933, or
(iv) effecting transactions with existing employees, limited liability company
members, partners, or directors of the issuer or any of its subsidiaries if no
commission or other remuneration is paid or given directly or indirectly for
soliciting any person in this state or (b) a broker-dealer in effecting
transactions described in section 15(h)(2) of the Securities Exchange Act of
1934. A partner, limited liability company member, officer, or director of a
broker-dealer is an agent only if he or she otherwise comes within this
definition;
(2) Broker-dealer means any person engaged in the business of effecting
transactions in securities for the account of others or for his or her own
account. Broker-dealer does not include (a) an issuer-dealer, agent, bank,
savings institution, or trust company, (b) an issuer effecting a transaction in
its own security exempted by subdivision (5)(a), (b), (c), (d), (e), or (f) of
section 8-1110 or which qualifies as a federal covered security pursuant to
section 18(b)(1) of the Securities Act of 1933, (c) a person who has no place
of business in this state if he or she effects transactions in this state
exclusively with or through the issuers of the securities involved in the
transactions, other broker-dealers, or banks, savings institutions, credit
unions, trust companies, insurance companies, investment companies as defined
in the Investment Company Act of 1940, pension or profit-sharing trusts, or
other financial institutions or institutional buyers, whether acting for
themselves or as trustees, (d) a person who is registered as a broker-dealer
with the Securities and Exchange Commission under the Securities Exchange Act
of 1934 and has no place of business in this state if during any period of
twelve consecutive months he or she does not effect transactions in securities
or offer to effect transactions with more than five people in this state in any
manner to persons other than those specified in subdivision (2)(c) of this
section, or (e) a person who is a resident of Canada and who has no office or
other physical presence in Nebraska if the following conditions are satisfied:
(i) The person must be registered with, or be a member of, a securities self-
regulatory organization in Canada or a stock exchange in Canada; (ii) the
person must maintain, in good standing, its provisional or territorial
registration or membership in a securities self-regulatory organization in
Canada, or stock exchange in Canada; (iii) the person effects, or attempts to
effect, (A) a transaction with or for a Canadian client who is temporarily
present in this state and with whom the Canadian broker-dealer had a bona fide
customer relationship before the client entered this state or (B) a transaction
with or for a Canadian client in a self-directed tax advantaged retirement plan
in Canada of which that client is the holder or contributor; and (iv) the
person complies with all provisions of the Securities Act of Nebraska relating
to the disclosure of material information in connection with the transaction ,
or (f) a person that is exempt from registration as a broker-dealer with the
Securities and Exchange Commission pursuant to Section 15(b)(13) of the
Securities and Exchange Act of 1934;
(3) Department means the Department of Banking and Finance. Director means
the Director of Banking and Finance of the State of Nebraska except as further
provided in section 8-1120;
(4) Federal covered adviser means a person who is registered under section
203 of the Investment Advisers Act of 1940;
(5) Federal covered security means any security described as a covered
security under section 18(b) of the Securities Act of 1933 or rules and
regulations under the act;
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(6) Guaranteed means guaranteed as to payment of principal, interest, or
dividends;
(7) Investment adviser means any person who for compensation engages in
the business of advising others, either directly or through publications or
writings, as to the value of securities or as to the advisability of investing
in, purchasing, or selling securities or who for compensation and as a part of
a regular business issues or promulgates analyses or reports concerning
securities. Investment adviser also includes financial planners and other
persons who, as an integral component of other financially related services,
provide the foregoing investment advisory services to others for compensation
and as part of a business or who hold themselves out as providing the foregoing
investment advisory services to others for compensation. Investment adviser
does not include (a) an investment adviser representative, (b) a bank, savings
institution, or trust company, (c) a lawyer, accountant, engineer, or teacher
whose performance of these services is solely incidental to the practice of his
or her profession, (d) a broker-dealer or its agent whose performance of these
services is solely incidental to its business as a broker-dealer and who
receives no special compensation for them, (e) an issuer-dealer, (f) a
publisher of any bona fide newspaper, news column, newsletter, news magazine,
or business or financial publication or service, whether communicated in hard
copy form, by electronic means, or otherwise which does not consist of the
rendering of advice on the basis of the specific investment situation of each
client, (g) a person who has no place of business in this state if (i) his or
her only clients in this state are other investment advisers, federal covered
advisers, broker-dealers, banks, savings institutions, credit unions, trust
companies, insurance companies, investment companies as defined in the
Investment Company Act of 1940, pension or profit-sharing trusts, or other
financial institutions or institutional buyers, whether acting for themselves
or as trustees, or (ii) during the preceding twelve-month period, he or she has
had five or fewer clients who are residents of this state other than those
persons specified in subdivision (g)(i) of this subdivision, (h) any person
that is a federal covered adviser or is excluded from the definition of
investment adviser under section 202 of the Investment Adviser Act of 1940, or
(i) such other persons not within the intent of this subdivision as the
director may by rule and regulation or order designate;
(8) Investment adviser representative means any partner, limited liability
company member, officer, or director or any person occupying a similar status
or performing similar functions of a partner, limited liability company member,
officer, or director or other individual, except clerical or ministerial
personnel, who is employed by or associated with an investment adviser that is
registered or required to be registered under the Securities Act of Nebraska or
who has a place of business located in this state and is employed by or
associated with a federal covered adviser, and who (a) makes any
recommendations or otherwise renders advice regarding securities, (b) manages
accounts or portfolios of clients, (c) determines which recommendation or
advice regarding securities should be given, (d) solicits, offers, or
negotiates for the sale of or sells investment advisory services, or (e)
supervises employees who perform any of the foregoing;
(9) Issuer means any person who issues or proposes to issue any security,
except that (a) with respect to certificates of deposit, voting-trust
certificates, or collateral-trust certificates or with respect to certificates
of interest or shares in an unincorporated investment trust not having a board
of directors, or persons performing similar functions, or of the fixed,
restricted management, or unit type, the term issuer means the person or
persons performing the acts and assuming the duties of depositor or manager
pursuant to the provisions of the trust or other agreement or instrument under
which the security is issued and (b) with respect to a fractional or pooled
interest in a viatical settlement contract, issuer means the person who
creates, for the purpose of sale, the fractional or pooled interest. In the
case of a viatical settlement contract that is not fractionalized or pooled,
issuer means the person effecting a transaction with a purchaser of such
contract;
(10) Issuer-dealer means (a) any issuer located in the State of Nebraska
or (b) any issuer which registered its securities by qualification who proposes
to sell to the public of the State of Nebraska the securities that it issues
without the benefit of another registered broker-dealer. Such securities shall
have been approved for sale in the State of Nebraska pursuant to section
8-1104;
(11) Nonissuer means not directly or indirectly for the benefit of the
issuer;
(12) Person means an individual, a corporation, a partnership, a limited
liability company, an association, a joint-stock company, a trust in which the
interests of the beneficiaries are evidenced by a security, an unincorporated
organization, a government, or a political subdivision of a government;
(13) Sale or sell includes every contract of sale of, contract to sell, or
disposition of a security or interest in a security for value. Offer or offer
to sell includes every attempt or offer to dispose of, or solicitation of an
offer to buy, a security or interest in a security for value. Any security
given or delivered with or as a bonus on account of any purchase of securities
or any other thing is considered to constitute part of the subject of the
purchase and to have been offered and sold for value. A purported gift of
assessable stock shall be considered to involve an offer and sale. Every sale
or offer of a warrant or right to purchase or subscribe to another security of
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the same or another issuer, as well as every sale or offer of a security which
gives the holder a present or future right or privilege to convert into another
security of the same or another issuer, shall be considered to include an offer
of the other security;
(14) Security means any note, stock, treasury stock, bond, debenture,
units of beneficial interest in a real estate trust, evidence of indebtedness,
certificate of interest or participation in any profit-sharing agreement,
collateral-trust certificate, preorganization certificate or subscription,
transferable share, investment contract, viatical settlement contract or any
fractional or pooled interest in such contract, membership interest in any
limited liability company organized under Nebraska law or any other
jurisdiction unless otherwise excluded from this definition, voting-trust
certificate, certificate of deposit for a security, certificate of interest or
participation in an oil, gas, or mining title or lease or in payments out of
production under such a title or lease, in general any interest or instrument
commonly known as a security, or any certificate of interest or participation
in, temporary or interim certificate for, guarantee of, or warrant or right to
subscribe to or purchase any of the foregoing. Security does not include any
insurance or endowment policy or annuity contract issued by an insurance
company. Security also does not include a membership interest in a limited
liability company when all of the following exist: (a) The member enters into a
written commitment to be engaged actively and directly in the management of the
limited liability company; and (b) all members of the limited liability company
are actively engaged in the management of the limited liability company. For
the limited purposes of determining professional malpractice insurance
premiums, a security issued through a transaction that is exempted pursuant to
subdivision (23) of section 8-1111 shall not be considered a security;
(15) State means any state, territory, or possession of the United States
as well as the District of Columbia and Puerto Rico; and
(16) Viatical settlement contract means an agreement for the purchase,
sale, assignment, transfer, devise, or bequest of all or any portion of the
death benefit or ownership of a life insurance policy or contract for
consideration which is less than the expected death benefit of the life
insurance policy or contract. Viatical settlement contract does not include (a)
the assignment, transfer, sale, devise, or bequest of a death benefit of a life
insurance policy or contract made by the viator to an insurance company or to a
viatical settlement provider or broker licensed pursuant to the Viatical
Settlements Act, (b) the assignment of a life insurance policy or contract to a
bank, savings bank, savings and loan association, credit union, or other
licensed lending institution as collateral for a loan, or (c) the exercise of
accelerated benefits pursuant to the terms of a life insurance policy or
contract and consistent with applicable law.
Sec. 11. Section 8-1101.01, Revised Statutes Supplement, 2025, is amended
to read:
8-1101.01 For purposes of the Securities Act of Nebraska:
(1) Fair practice or ethical rules or standards promulgated by the
Securities and Exchange Commission, the Financial Industry Regulatory
Authority, or a self-regulatory organization approved by the Securities and
Exchange Commission means such practice, rules, or standards as they existed on
January 1, 2026 2025;
(2) Federal rules and regulations adopted under the Investment Advisers
Act of 1940 or the Securities Act of 1933 means such rules and regulations as
they existed on January 1, 2026 2025; and
(3) Securities Act of 1933, Securities Exchange Act of 1934, Investment
Advisers Act of 1940, Investment Company Act of 1940, Commodity Exchange Act,
and the federal Interstate Land Sales Full Disclosure Act means the acts as
they existed on January 1, 2026 2025.
Sec. 12. Section 8-1502, Reissue Revised Statutes of Nebraska, is amended
to read:
8-1502 (1) Except as provided in subsection (2) of this section, no person
acting personally or as agent shall acquire control of any state-chartered bank
or trust company without first giving sixty days' notice to the Department of
Banking and Finance on forms provided by the department of such proposed
acquisition.
The Director of Banking and Finance, upon receipt of a substantially
complete such notice, shall act upon it within thirty days, and, unless he or
she disapproves the proposed acquisition within that period of time, it may
become effective on the sixty-first day after receipt without his or her
approval, except that the director may extend the thirty-day period an
additional thirty days if in his or her judgment any material information
submitted is substantially inaccurate or the acquiring party has not furnished
all the information required by sections 8-1501 to 8-1505 or by the director.
An acquisition may be made prior to the expiration of the disapproval
period if the director issues written notice of his or her intent not to
disapprove the action.
Within three days after his or her decision to disapprove any proposed
acquisition, the director shall notify the acquiring party in writing of the
disapproval. The notice shall provide a statement of the basis for the
disapproval.
(2) The notice requirements of subsection (1) of this section shall not
apply when:
(a) Shares of a state-chartered bank or trust company are acquired by a
person in the regular course of securing or collecting a debt previously
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contracted in good faith or through inheritance or a bona fide gift if notice
of such acquisition is given to the department, on forms provided by the
department, within thirty days after the acquisition;
(b) Shares of a state-chartered bank or trust company are transferred from
an individual or individuals to a trust formed by the individual or individuals
for estate-planning purposes if (i) there is no change in the proportion of
shares held by the trust for such individual or individuals compared to the
ownership of such individual or individuals prior to the formation of the
trust, (ii) the individual or individuals control the trust, and (iii) notice
of the proposed transfer is given to the department, on forms provided by the
department, at least thirty days prior to the proposed transfer and the
department does not disapprove the transfer for the reason that the transfer is
an attempt to subvert the requirements of sections 8-1501 to 8-1505; or
(c) The director, the Governor, and the Secretary of State jointly
determine that an emergency exists which requires expeditious action or that
the department must act immediately to prevent probable failure of the
institution to be acquired.
Sec. 13. Section 8-1704, Revised Statutes Supplement, 2025, is amended to
read:
8-1704 CFTC rule shall mean any rule, regulation, or order of the
Commodity Futures Trading Commission in effect on January 1, 2026 2025.
Sec. 14. Section 8-1707, Revised Statutes Supplement, 2025, is amended to
read:
8-1707 Commodity Exchange Act shall mean the act of Congress known as the
Commodity Exchange Act, 7 U.S.C. 1, as amended on January 1, 2026 2025.
Sec. 15. Section 8-2102, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2102 For purposes of the Interstate Branching and Merger Act, unless the
context otherwise requires:
(1) Bank means a bank as defined in 12 U.S.C. 1813, as such section
existed on January 1, 2026 2012;
(2) Department means the Department of Banking and Finance;
(3) Director means the Director of Banking and Finance;
(4) Home state means (a) with respect to a state chartered bank, the state
in which the bank is chartered and (b) with respect to a national bank, the
state in which the main office of the bank is located;
(5) Home state regulator means, with respect to an out-of-state state
chartered bank, the bank supervisory agency of the state in which such bank is
chartered;
(6) Host state means a state, other than the home state of a bank, in
which the bank maintains, or seeks to establish and maintain, a branch;
(7) Interstate merger transaction means a merger or consolidation of two
or more banks, at least one of which is a Nebraska bank and at least one of
which is an out-of-state bank, and the conversion of the main office and the
branches of any bank involved in such merger or consolidation into branches of
the resulting bank;
(8) Nebraska bank means a bank whose home state is Nebraska;
(9) Nebraska state chartered bank means a corporation which is chartered
to conduct a bank in this state pursuant to the Nebraska Banking Act;
(10) Out-of-state bank means a bank whose home state is a state other than
Nebraska;
(11) Out-of-state state chartered bank means a bank chartered under the
laws of any state other than Nebraska;
(12) Resulting bank means a bank that has resulted from an interstate
merger transaction under the Interstate Branching and Merger Act; and
(13) State means any state of the United States, the District of Columbia,
any territory of the United States, Puerto Rico, Guam, American Samoa, the
Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern
Mariana Islands.
Sec. 16. Section 8-2703, Revised Statutes Supplement, 2025, is amended to
read:
8-2703 The Nebraska Money Transmitters Act does not apply to:
(1) An operator of a payment system to the extent that such operator
provides processing, clearing, or settlement services, between or among persons
exempted from the Nebraska Money Transmitters Act under this section or
licensees, in connection with wire transfers, credit card transactions, debit
card transactions, stored value transactions, automated clearinghouse
transfers, or similar funds transfers;
(2) A person appointed as an agent of a payee to collect and process a
payment from a payor to the payee for goods or services, other than money
transmission, provided to the payor by the payee, provided that:
(a) There exists a written agreement between the payee and the agent
directing the agent to collect and process payments from payors on the behalf
of the payee;
(b) The payee holds the agent out to the public as accepting payments for
goods or services on the behalf of the payee; and
(c) Payment for the goods or services is treated as received by the payee
upon receipt by the agent so that the payor's obligation is extinguished and
there is no risk of loss to the payor if the agent fails to remit the funds to
the payee;
(3) A person that acts as an intermediary by processing payments between
an entity that has directly incurred an outstanding money transmission
obligation to a sender, and the sender's designated recipient, provided that
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the entity:
(a) Is properly licensed or exempt from licensing requirements of the
Nebraska Money Transmitters Act;
(b) Provides a receipt, electronic record, or other written confirmation
to the sender identifying the entity as the provider of money transmission in
the transaction; and
(c) Bears sole responsibility to satisfy the outstanding money
transmission obligation to the sender, including the obligation to make the
sender whole in connection with any failure to transmit the funds to the
designated recipient of the sender;
(4) The United States or any department, agency, or instrumentality
thereof or any agent of the United States or any department, agency, or
instrumentality thereof;
(5) Money transmission by the United States Postal Service or by an agent
of the United States Postal Service;
(6) A state, county, or city or any governmental agency, political
subdivision, or instrumentality of a state, or any agent of a state, county, or
city or any governmental agency, political subdivision, or instrumentality of a
state;
(7) A federally insured depository financial institution, bank holding
company, office of an international banking corporation, foreign bank that
establishes a federal branch pursuant to the International Banking Act of 1978,
corporation organized pursuant to the Bank Service Company Act, or corporation
organized under the Edge Act;
(8) Electronic funds transfer of governmental benefits for a federal,
state, county, or other governmental agency by a contractor on behalf of the
United States or a department, agency, or instrumentality thereof, or on behalf
of a state, county, or other governmental subdivision, agency, or
instrumentality thereof;
(9) A board of trade designated as a contract market under the Commodity
Exchange Act or a person that, in the ordinary course of business, provides
clearance and settlement services for a board of trade to the extent of such
person's operation as or for such a board;
(10) A person registered as a futures commission merchant under the
federal commodities laws to the extent of such person's operation as a
merchant;
(11) A person registered as a securities broker-dealer under federal or
state securities laws to the extent of such person's operation as a broker-
dealer;
(12) An individual employed by a licensee, authorized delegate, or any
person exempted from the licensing requirements of the Nebraska Money
Transmitters Act when acting within the scope of employment, under the
supervision of the licensee, authorized delegate, or exempted person, as an
employee and not as an independent contractor;
(13) A person expressly appointed as a third-party service provider to or
agent of an entity exempt under subdivision (7) of this section, solely to the
extent that:
(a) Such service provider or agent is engaging in money transmission on
behalf of and pursuant to a written agreement with the exempt entity that sets
forth the specific functions that the service provider or agent is to perform;
and
(b) The exempt entity assumes all risk of loss and all legal
responsibility for satisfying the outstanding money transmission obligations
owed to purchasers and holders of the outstanding money transmission
obligations upon receipt of the purchaser's or holder's money or monetary value
by the service provider or agent;
(14) A person, firm, corporation, or association licensed in this state
and acting within this state within the scope of a license:
(a) As a collection agency pursuant to the Collection Agency Act;
(b) As a credit services organization pursuant to the Credit Services
Organization Act; or
(c) To engage in the debt management business pursuant to sections 69-1201
to 69-1217;
(15) A charter issued under the Nebraska Financial Innovation Act; and
(16) A person that provides payroll processing services if such person:
(a)(i) Employs less than twenty full time or full-time equivalent
employees for the provision of such services; or
(ii) Provides payroll processing services for less than fifty employees
residing in Nebraska;
(b) Has not been convicted of or pled guilty or nolo contendere to a
felony in a domestic, foreign, or military court and no key individual or
person in control of the person that provides payroll processing services has
been convicted of or pled guilty or nolo contendere to a felony in a domestic,
foreign, or military court;
(c) Has never had a financial services license or professional license
revoked in any jurisdiction and no key individual or person in control of the
person providing payroll processing services has ever had a financial services
license or professional license revoked in any jurisdiction, except that a
revocation that is formally vacated shall not be deemed a revocation; and
(d) Does not otherwise engage in the business of money transmission in
this state or any other activity requiring a license under the Nebraska Money
Transmitters Act; and
(17) (16) A person exempt by regulation or order if the director finds
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such exemption to be in the public interest and that the regulation of such
person is not necessary for the purposes of the Nebraska Money Transmitters
Act.
Sec. 17. Section 8-2742, Revised Statutes Supplement, 2025, is amended to
read:
8-2742 For purposes of the Nebraska Money Transmitters Act:
(1) 31 C.F.R. 1010.100 means 31 C.F.R. 1010.100, as such regulation
existed on January 1, 2026 2025;
(2) Bank Secrecy Act means the Bank Secrecy Act, 31 U.S.C. 5311 et seq.,
and the implementing regulations of such act, as such act and regulations
existed on January 1, 2026 2025;
(3) Bank Service Company Act means the Bank Service Company Act, 12 U.S.C.
1861 et seq., as such act existed on January 1, 2026 2025;
(4) Commodity Exchange Act means the Commodity Exchange Act, 7 U.S.C. 1 et
seq., as such act existed on January 1, 2026 2025;
(5) Edge Act means the Edge Act, 12 U.S.C. 611 et seq., as such act
existed on January 1, 2026 2025;
(6) Federal Credit Union Act means the Federal Credit Union Act, 12 U.S.C.
1751 et seq., as such act existed on January 1, 2026 2025;
(7) Federal Deposit Insurance Act means the Federal Deposit Insurance Act,
12 U.S.C. 1811 et seq., as such act existed on January 1, 2026 2025;
(8) Federal remittance rule means 12 C.F.R. part 1005, subpart B, as such
regulation existed on January 1, 2026 2025;
(9) Foreign Account Tax Compliance Act means the Foreign Account Tax
Compliance Act, 26 U.S.C. 1471 et seq., as such act existed on January 1, 2026
2025;
(10) International Banking Act of 1978 means the International Banking Act
of 1978, 12 U.S.C. 3101 et seq., as such act existed on January 1, 2026 2025;
(11) Securities Exchange Act of 1934 means the Securities Exchange Act of
1934, 15 U.S.C. 78a et seq., as such act existed on January 1, 2026 2025;
(12) United States Bankruptcy Code means 11 U.S.C. 101 et seq., as such
sections existed on January 1, 2026 2025; and
(13) Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Public Law 107-56, as such act existed on
January 1, 2026 2025.
Sec. 18. Section 8-2903, Revised Statutes Supplement, 2025, is amended to
read:
8-2903 (1) When a financial institution, or an employee of a financial
institution, reasonably believes, or has received information from the
department or a law enforcement agency demonstrating that it is reasonable to
believe, that financial exploitation of a vulnerable adult or senior adult may
have occurred, may have been attempted, is occurring, or is being attempted,
the financial institution may, but is not required to:
(a) Delay or refuse a transaction with or involving the vulnerable adult
or senior adult;
(b) Delay or refuse to permit the withdrawal or disbursement of funds
contained in the vulnerable adult's or senior adult's account;
(c) Prevent a change in ownership of the vulnerable adult's or senior
adult's account;
(d) Prevent a transfer of funds from the vulnerable adult's or senior
adult's account to an account owned wholly or partially by another person;
(e) Refuse to comply with instructions given to the financial institution
by an agent or a person acting for or with an agent under a power of attorney
signed or purported to have been signed by the vulnerable adult or senior
adult; or
(f) Prevent the designation or change the designation of beneficiaries to
receive any property, benefit, or contract rights for a vulnerable adult or
senior adult at death.
(2) A financial institution is not required to act under subsection (1) of
this section when provided with information alleging that financial
exploitation may have occurred, may have been attempted, is occurring, or is
being attempted, but may use the financial institution's discretion to
determine whether or not to act under subsection (1) of this section based on
the information available to the financial institution at the time.
(3)(a)(i) A financial institution may notify any third party reasonably
associated with a vulnerable adult or senior adult if the financial institution
reasonably believes that the financial exploitation of a vulnerable adult or
senior adult may have occurred, may have been attempted, is occurring, or is
being attempted.
(ii) A third party reasonably associated with a vulnerable adult or senior
adult includes, but is not limited to, the following: (A) A parent, spouse,
adult child, sibling, or other known family member or close associate of a
vulnerable adult or senior adult; (B) an authorized contact provided by a
vulnerable adult or senior adult to the financial institution; (C) a co-owner,
additional authorized signatory, or beneficiary on a vulnerable adult's or a
senior adult's account; (D) an attorney in fact, trustee, conservator,
guardian, or other fiduciary who has been selected by a vulnerable adult or
senior adult, a court, or a third party to manage some or all of the financial
affairs of the vulnerable adult or senior adult; and (E) an attorney known to
represent or have represented the vulnerable adult or senior adult.
(b) A financial institution may choose not to notify any third party
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reasonably associated with a vulnerable adult or senior adult of suspected
financial exploitation of the vulnerable adult or senior adult if the financial
institution reasonably believes the third party is, may be, or may have been
engaged in the financial exploitation of the vulnerable adult or senior adult
or if requested to refrain from making a notification by a law enforcement
agency, if such notification could interfere with a law enforcement
investigation.
(c) Nothing in this subsection shall prevent a financial institution from
notifying the department or a law enforcement agency, if the financial
institution reasonably believes that the financial exploitation of a vulnerable
adult or senior adult may have occurred, may have been attempted, is occurring,
or is being attempted.
(4) The authority granted the financial institution under subsection (1)
of this section expires upon the sooner of: (a) Thirty business days after the
date on which the financial institution first acted under subsection (1) of
this section; (b) when the financial institution is satisfied that the
transaction or act will not result in financial exploitation of the vulnerable
adult or senior adult; or (c) upon termination by an order of a court of
competent jurisdiction.
(5) Unless otherwise directed by order of a court of competent
jurisdiction, a financial institution may extend the duration under subsection
(4) of this section based on a reasonable belief that the financial
exploitation of a vulnerable adult or senior adult may continue to occur or
continue to be attempted.
(6) A financial institution and its bank holding company, if any, and any
employees, agents, officers, and directors of the financial institution and its
bank holding company, if any, shall be immune from any civil, criminal, or
administrative liability that may otherwise exist (a) for delaying or refusing
to execute a transaction, withdrawal, or disbursement, or for not delaying or
refusing to execute such transaction, withdrawal, or disbursement under this
section and (b) for actions taken in furtherance of determinations made under
subsections (1) through (5) of this section.
(7)(a) Notwithstanding any other law to the contrary, the refusal by a
financial institution to engage in a transaction as authorized under subsection
(1) of this section shall not constitute the wrongful dishonor of an item under
section 4-402, Uniform Commercial Code.
(b) Notwithstanding any other law to the contrary, a reasonable belief
that payment of a check will facilitate the financial exploitation of a
vulnerable adult or senior adult shall constitute reasonable grounds to doubt
the collectability of the item for purposes of the federal Check Clearing for
the 21st Century Act, 12 U.S.C. 5001 et seq., the federal Expedited Funds
Availability Act, 12 U.S.C. 4001 et seq., and 12 C.F.R. part 229, as such acts
and part existed on January 1, 2026 2025.
Sec. 19. Section 8-3003, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-3003 For purposes of the Nebraska Financial Innovation Act:
(1) Blockchain means a distributed digital record of controllable
electronic record transactions;
(2) Centralized finance means centralized digital asset exchanges,
businesses, or organizations with a valid physical address;
(3) Control has the following meaning:
(a) A person has control of a controllable electronic record if:
(i) The following conditions are met:
(A) The controllable electronic record or the system in which it is
recorded, if any, gives the person:
(I) The power to derive substantially all the benefit from the
controllable electronic record;
(II) Subject to subdivision (b) of this subdivision, the exclusive power
to prevent others from deriving substantially all the benefit from the
controllable electronic record; and
(III) Subject to subdivision (b) of this subdivision, the exclusive power
to transfer control of the controllable electronic record to another person or
cause another person to obtain control of a controllable electronic record that
derives from the controllable electronic record; and
(B) The controllable electronic record, a record attached to or logically
associated with the controllable electronic record, or the system in which the
controllable electronic record is recorded, if any, enables the person to
readily identify itself as having the powers specified in subdivision (a)(i) of
this subdivision; or
(ii) Another person obtains control of the controllable electronic record
on behalf of the person, or having previously obtained control of the
controllable electronic record, acknowledges that it has control on behalf of
the person.
(b) A power specified in subdivisions (3)(a)(i)(A)(II) or (III) of this
section can be exclusive, even if:
(i) The controllable electronic record or the system in which it is
recorded, if any, limits the use to which the controllable electronic record
may be put or has protocols that are programmed to result in a transfer of
control; and
(ii) The person has agreed to share the power with another person.
(c) For the purposes of subdivision (3)(a)(i)(B) of this section, a person
may be identified in any way, including by name, identifying number,
cryptographic key, office, or account number;
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(4) Controllable electronic borrowing means the act of receiving digital
assets or the use of digital assets from a lender in exchange for the payment
to the lender of digital assets, interest, fees, or rewards;
(5) Controllable electronic record means an electronic record that can be
subjected to control. The term has the same meaning as digital asset and does
not include electronic chattel paper, electronic documents, investment
property, and transferable records under the Uniform Electronic Transactions
Act;
(6) Controllable electronic record exchange means a business that allows
customers to purchase, sell, convert, send, receive, or trade digital assets
for other digital assets;
(7) Controllable electronic record lending means the act of providing
digital assets to a borrower in exchange for digital assets, interest, fees, or
rewards;
(8) Controllable electronic records staking means the act of pledging a
digital asset or token with an expectation of gaining digital assets, interest,
fees, or other rewards on such act;
(9) Customer means a digital asset depositor or digital asset account
holder;
(10) Decentralized finance means digital asset exchanges, businesses, or
organizations operating independently on blockchains;
(11) Department means the Department of Banking and Finance;
(12) Digital asset depository means (a) a financial institution that
securely holds liquid assets when such assets are in the form of controllable
electronic records, either as a corporation organized, chartered, and operated
pursuant to the Nebraska Financial Innovation Act as a digital asset depository
institution or (b) a financial institution which has been further chartered by
the director to operate operating a digital asset depository business in as a
digital asset depository department of the financial institution under a
charter granted by the director;
(13) Digital asset depository department means a financial institution
operating a digital asset depository business as a digital asset depository
department under a charter granted by the director;
(14) Digital asset depository institution means a corporation operating a
digital asset depository business organized and chartered pursuant to the
Nebraska Financial Innovation Act;
(15) Director means the Director of Banking and Finance;
(16) Financial institution means a bank, savings bank, building and loan
association, or savings and loan association , or credit union chartered by the
United States, the department, or a foreign state agency; or a trust company;
(17) Fork means a change to the protocol of a blockchain network;
(18) Independent node verification network means a shared electronic
database where copies of the same information are stored on multiple computers;
and
(19) Stablecoin means a controllable electronic record designed to have a
stable value that is backed by a reserve asset.
Sec. 20. Section 8-3005, Revised Statutes Supplement, 2025, is amended to
read:
8-3005 (1)(a) A digital asset depository may:
(i) Make contracts as a corporation under Nebraska law;
(ii) Sue and be sued;
(iii) Receive notes as permitted by federal law;
(iv) Carry on a nonlending digital asset banking business for customers,
consistent with subdivision (2)(b) of this section;
(v) Provide payment services upon the request of a customer; and
(vi) Make an application to become a member bank of the federal reserve
system.
(b) A digital asset depository shall maintain its main office and the
primary office of its chief executive officer in Nebraska.
(c) As otherwise authorized by this section, a digital asset depository
may conduct business with customers outside this state.
(2)(a) A digital asset depository institution, consistent with the
Nebraska Financial Innovation Act, shall be organized as a corporation under
the Nebraska Model Business Corporation Act to exercise the powers set forth in
subsection (1) of this section.
(b) A digital asset depository institution shall not accept demand
deposits of United States currency or United States currency that may be
accessed or withdrawn by check or similar means for payment to third parties
and except as otherwise provided in this subsection, a digital asset depository
institution shall not make any loans to consumers for personal, property or
household purposes, mortgage loans, or commercial loans of any fiat currency
including, but not limited to, United States currency, including the provision
of temporary credit relating to overdrafts. Notwithstanding this prohibition
against fiat currency lending by a digital asset depository institution, a
digital asset depository institution may facilitate the provision of digital
asset business services resulting from the interaction of customers with
centralized finance or decentralized finance platforms including, but not
limited to, controllable electronic record exchange, staking, controllable
electronic record lending, and controllable electronic record borrowing. A
digital asset depository institution may purchase debt obligations specified by
subdivision (2)(c) of section 8-3009.
(c) A digital asset depository institution may open a branch in this state
or in another state in the manner set forth in section 8-157 or 8-2303. A
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branch in another state is subject to the laws of the host state. A digital
asset depository institution, including any branch of the digital asset
depository institution, may only accept digital asset deposits or provide other
digital asset business services under the Nebraska Financial Innovation Act to
individual customers or a customer that is a legal entity other than a natural
person engaged in a bona fide business which is lawful under the laws of
Nebraska, the laws of the host state if the entity is headquartered in another
state, and federal law.
(3) The deposit limitations of subdivision (2)(a)(ii) of section 8-157
shall not apply to a digital asset depository.
(4) Any United States currency coming into an account established by a
customer of a digital asset depository institution shall be held in a financial
institution, the deposits of which are insured by the Federal Deposit Insurance
Corporation , which maintained a main-chartered office in this state, any
branch thereof in this state, or any branch of the financial institution which
maintained the main-chartered office in this state prior to becoming a branch
of such financial institution.
(5) A digital asset depository institution shall establish and maintain
programs for compliance with the federal Bank Secrecy Act, in accordance with
12 C.F.R. 208.63, as the act and rule existed on January 1, 2026 2025.
(6) A digital asset depository shall help meet the digital financial needs
of the communities in which it operates, consistent with safe and sound
operations, and shall maintain and update a public file available to any person
on request and on any Internet website or mobile application it maintains
containing specific information about its efforts to meet community needs,
including:
(a) The collection and reporting of data;
(b) Its policies and procedures for accepting and responding to consumer
complaints; and
(c) Its efforts to assist with financial literacy or personal finance
programs to increase knowledge and skills of Nebraska students in areas such as
digital assets, budgeting, credit, checking and savings accounts, loans,
stocks, and insurance.
Sec. 21. Section 8-3007, Revised Statutes Supplement, 2025, is amended to
read:
8-3007 (1) No customer shall open or maintain an account with a digital
asset depository or otherwise receive any services from the digital asset
depository unless the customer meets the criteria of this subsection. A
customer shall:
(a) Make sufficient evidence available to the digital asset depository to
enable compliance with anti-money laundering, customer identification, and
beneficial ownership requirements, as determined by the federal Bank Secrecy
Act guidance and the policies and practices of the institution; and
(b) If the customer is a legal entity other than a natural person:
(i) Be in good standing with the jurisdiction in the United States in
which it is incorporated or organized; and
(ii) Be engaged in a business that is lawful and bona fide in Nebraska, in
the host state, if applicable, and under federal law consistent with subsection
(3) of this section.
(2) A customer which meets the criteria of subsection (1) of this section
may be issued a digital asset depository account and otherwise receive services
from the digital asset depository, contingent on the digital asset depository
maintaining sufficient insurance under subsection (5) of section 8-3023.
(3) Consistent with subdivisions (1)(a)(iv) and (v) of section 8-3005, and
in addition to any requirements specified by federal law, a digital asset
depository shall require that any potential customer that is a legal entity
other than a natural person provide reasonable evidence that the entity is
engaged in a business that is lawful and bona fide in Nebraska, in the host
state, if applicable, and under federal law or is likely to open a lawful, bona
fide business within a federal Bank Secrecy Act compliant timeframe, as the act
existed on January 1, 2026 2025. For purposes of this subsection, reasonable
evidence includes business entity filings, articles of incorporation or
organization, bylaws, operating agreements, business plans, promotional
materials, financing agreements, or other evidence.
Sec. 22. Section 8-3013, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-3013 (1) The capital stock of each digital asset depository institution
chartered under the Nebraska Financial Innovation Act shall be subscribed for
as paid-up stock. Except as provided in subsection (3) of this section, a No
digital asset depository institution shall not be chartered with capital stock
of less than ten million dollars.
(2) A No digital asset depository institution shall not commence business
until the full amount of its authorized capital is subscribed and all capital
stock is fully paid in. Except as provided in subsection (3) of this section, a
No digital asset depository institution shall not may be chartered without a
paid-up surplus fund of at least three years of estimated operating expenses in
the amount disclosed pursuant to subsection (2) of section 8-3015 or in another
amount required by the director.
(3) Notwithstanding the provisions of subsections (1) and (2) of this
section and at the discretion of the director, a digital asset depository
institution may be chartered and commence business if such institution meets
the capital and surplus requirements for a substantially similar federal
charter, license, or regulatory structure as determined by the director.
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(4) (3) A digital asset depository institution may acquire additional
capital prior to the granting of a charter and shall report this capital as an
amendment to its charter application.
Sec. 23. Section 8-3033, Revised Statutes Supplement, 2025, is amended to
read:
8-3033 For purposes of the Controllable Electronic Record Fraud Prevention
Act:
(1) Blockchain analytics means the analysis of data from blockchains or
public distributed ledgers, including associated transaction information;
(2) Blockchain analytics software means a software service that uses
blockchain analytics data to provide risk-specific information about
controllable electronic record addresses, among other things;
(3) Controllable electronic record has the same meaning as in section
8-3003;
(4) Controllable electronic record address means an alphanumeric
identifier associated with a controllable electronic record wallet identifying
the location to which a controllable electronic record transaction can be sent;
(5) Controllable electronic record kiosk means an electronic terminal
acting as a mechanical agent of the controllable electronic record kiosk
operator to enable the controllable electronic record kiosk operator to
facilitate the exchange of controllable electronic records for money, bank
credit, or other controllable electronic records, including, but not limited
to, by (a) connecting directly to a separate controllable electronic record
exchange that performs the actual controllable electronic record transmission
or (b) drawing upon the controllable electronic record in the possession of the
electronic terminal's operator;
(6) Controllable electronic record kiosk operator means a person, or a
third party acting on behalf of another person, that engages in controllable
electronic record business activity via a controllable electronic record kiosk
located in this state or a person that owns, operates, or manages a money
transmission kiosk located in this state through which controllable electronic
record business activity is offered;
(7) Controllable electronic record kiosk transaction means a transaction
conducted or performed, in whole or in part, by electronic means via a
controllable electronic record kiosk. Controllable electronic record kiosk
transaction includes , but is not limited to, a transaction made at a
controllable electronic record kiosk (a) to purchase controllable electronic
records with United States dollars , (b) or to sell controllable electronic
records for United States dollars , or (c) to fund a stored value account,
which, at the time the stored value account is funded or thereafter, offers the
ability to purchase a controllable electronic record and is utilized to
purchase a controllable electronic record; and
(8) Controllable electronic record wallet means a software application or
other mechanism providing a means to hold the keys necessary to access and
transfer controllable electronic records;
(9) Customer means new customers and existing customers;
(10) Department means the Department of Banking and Finance;
(11) Existing customer means an individual whose first controllable
electronic record kiosk transaction with the controllable electronic record
kiosk operator was more than fourteen days prior;
(12) New customer means an individual during the fourteen-day period after
such individual's first transaction with the controllable electronic record
kiosk operator that the individual has never previously transacted with. The
individual shall remain defined as a new customer during the fourteen-day
period after the first controllable electronic record kiosk transaction with
the controllable electronic record kiosk operator; and
(13) Transaction hash means a unique identifier made up of a string of
characters that acts as a record of and provides proof that the transaction was
verified and added to the blockchain.
Sec. 24. Section 8-3034, Revised Statutes Supplement, 2025, is amended to
read:
8-3034 (1) A controllable electronic record kiosk operator shall not
engage in controllable electronic record kiosk transactions or hold itself out
as being able to engage in such transactions with or on behalf of another
person unless the kiosk operator has a license issued under the Nebraska Money
Transmitters Act pursuant to section 8-2725.
(2) A controllable electronic record kiosk operator shall report each
controllable electronic record kiosk as an authorized delegate under the
Nebraska Money Transmitters Act pursuant to section 8-2730.
(3) In addition to the required reporting of authorized delegates pursuant
to the Nebraska Money Transmitters Act section 8-2730 , each controllable
electronic record kiosk operator shall submit to the department within forty-
five days after the end of each calendar quarter a list of all associated
controllable electronic record addresses utilized by each controllable
electronic record kiosk, on a form as prescribed by the department.
Sec. 25. Section 21-17,102, Revised Statutes Supplement, 2025, is amended
to read:
21-17,102 (1) Funds not used in loans to members may be invested:
(a) In securities, obligations, or other instruments of or issued by or
fully guaranteed as to principal and interest by the United States of America
or any agency or instrumentality thereof or in any trust or trusts established
for investing directly or collectively in the same;
(b) In securities, obligations, or other instruments of any state of the
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United States, the District of Columbia, the Commonwealth of Puerto Rico, and
the several territories organized by Congress or any political subdivision
thereof;
(c) In deposits, obligations, or other accounts of financial institutions
organized under state or federal law;
(d) In loans to or in share accounts of other credit unions or corporate
central credit unions;
(e) In obligations issued by banks for cooperatives, federal land banks,
federal intermediate credit banks, federal home loan banks, the Federal Home
Loan Bank Board, or any corporation designated in 31 U.S.C. 9101 as a wholly
owned government corporation; in obligations, participation certificates, or
other instruments of or insured by or fully guaranteed as to principal and
interest by the Federal National Mortgage Association or the Government
National Mortgage Association; in mortgages, obligations, or other securities
which are or ever have been sold by the Federal Home Loan Mortgage Corporation
pursuant to section 305 or section 306 of the Federal Home Loan Mortgage
Corporation Act, 12 U.S.C. 1454 et seq.; in obligations or other instruments or
securities of the Student Loan Marketing Association; or in obligations,
participation, securities, or other instruments of or issued by or fully
guaranteed as to principal and interest by any other agency of the United
States. A state credit union may issue and sell securities which are guaranteed
pursuant to section 306(g) of the National Housing Act, 12 U.S.C. 1721(g);
(f) In participation certificates evidencing a beneficial interest in
obligations or in a right to receive interest and principal collections
therefrom, which obligations have been subjected by one or more government
agencies to a trust or trusts for which any executive department, agency, or
instrumentality of the United States or administrator thereof has been named to
act as trustee;
(g) In share accounts or deposit accounts of any corporate central credit
union in which such investments are specifically authorized by the board of
directors of the credit union making the investment;
(h) In the shares, stock, or other obligations of any other organization,
not to exceed ten percent of the credit union's capital and not to exceed five
percent of the credit union's capital in any one corporation's stock, bonds, or
other obligations, unless otherwise approved by the director. Such authority
shall not include the power to acquire control, directly or indirectly, of
another financial institution, nor invest in shares, stocks, or obligations of
any insurance company or trade association except as otherwise expressly
provided for or approved by the director;
(i) In the capital stock of the National Credit Union Administration
Central Liquidity Facility;
(j) In obligations of or issued by any state or political subdivision
thereof, including any agency, corporation, or instrumentality of a state or
political subdivision, except that no credit union may invest more than ten
percent of its capital in the obligations of any one issuer, exclusive of
general obligations of the issuer;
(k) In securities issued pursuant to the Nebraska Business Development
Corporation Act;
(l) In participation loans with other credit unions, credit union
organizations, or other organizations; and
(m) In insurance policies and other investment products to fund employee
benefit plans for its employees, not to exceed fifteen percent of the net worth
of a credit union from a single issuer or twenty-five percent of the net worth
of a credit union in aggregate. Employee benefit plan has the same meaning as
in 29 U.S.C. 1002(3), as such section existed on January 1, 2026 2025. If the
employee benefits arrangement does not present a risk to the safety and
soundness of the domestic credit union as determined by the director, the
purchase of those investment products is not subject to the limitations of the
Credit Union Act.
(2) In addition to investments expressly permitted by the Credit Union
Act, a credit union may make any other type of investment approved by the
department by rule, regulation, or order.
Sec. 26. Section 21-17,115, Revised Statutes Supplement, 2025, is amended
to read:
21-17,115 Notwithstanding any of the other provisions of the Credit Union
Act or any other Nebraska statute, any credit union incorporated under the laws
of the State of Nebraska and organized under the provisions of the act shall
have all the rights, powers, privileges, benefits, and immunities which may be
exercised as of January 1, 2026 2025, by a federal credit union doing business
in Nebraska on the condition that such rights, powers, privileges, benefits,
and immunities shall not relieve such credit union from payment of state taxes
assessed under any applicable laws of this state.
Sec. 27. Section 45-101.04, Revised Statutes Supplement, 2025, is amended
to read:
45-101.04 The limitation on the rate of interest provided in section
45-101.03 shall not apply to:
(1) Other rates of interest authorized for loans made by any licensee or
permittee operating under a license or permit duly issued by the Department of
Banking and Finance pursuant to the Credit Union Act, the Nebraska Installment
Loan and Sales Act, subsection (4) of section 8-319, or sections 8-815 to
8-829;
(2) Loans made to any corporation, partnership, limited liability company,
or trust;
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(3) The guarantor or surety of any loan to a corporation, partnership,
limited liability company, or trust;
(4) Loans made when the aggregate principal amount of the indebtedness is
one hundred twenty-five thousand dollars or more of the borrower to any one
financial institution, licensee, or permittee;
(5) Loans insured, guaranteed, sponsored, or participated in, either in
whole or part, by any agency, department, or program of the United States or
state government;
(6) Loans or advances of money, repayable on demand, which are made solely
upon securities, as defined in subdivision (14) of section 8-1101, pledged as
collateral for such repayment and in which such loans or advances are used by
the borrower only for the purchase of securities as so defined. It shall be
lawful to contract for and receive any rate of interest on such transaction as
the parties thereto may expressly agree;
(7) Interest charges made on open credit accounts by a person who sells
goods or services on credit when the interest charges do not exceed one and
one-third percent per month for any charges which remain unpaid for more than
thirty days following rendition of the statement of account;
(8) A minimum charge of ten dollars per loan which may be charged by the
lender in lieu of all interest charges;
(9) Loans described in subsection (4) of section 8-319 made by a state or
federal savings and loan association at a rate not to exceed nineteen percent
per annum;
(10) Loans made primarily for business or agricultural purposes or secured
by real property when such loans are made (a) by a licensee, registrant, or
permittee operating under a license, registration, or permit duly issued by the
Department of Banking and Finance except for licensees operating under the
Nebraska Installment Loan and Sales Act, (b) by any financial institution
insured by the Federal Deposit Insurance Corporation or the National Credit
Union Administration, or (c) by any insurance company organized under the laws
of this state and subject to regulation by the Department of Insurance;
(11) Loans secured solely by real property when such loans are (a) made by
licensees operating under the Nebraska Installment Loan and Sales Act and (b)
made to finance or refinance the purchase of the property or construction on or
improvements to the property, if the Department of Banking and Finance has the
authority to examine such loans for compliance with sections 45-101.02 and
45-101.03. A licensee making a loan pursuant to this subdivision may obtain an
interest in any fixtures attached to such real property and any insurance
proceeds payable in connection with such real property or the loan;
(12) Loans secured by a reverse mortgage pursuant to section 45-702.01;
(13) Interest charges made on any goods or services sold under an
installment contract pursuant to the Nebraska Installment Loan and Sales Act.
Subject to section 45-365, it shall be lawful to contract for and receive any
rate of interest on such contract as the parties may expressly agree to in
writing; or
(14) Fees which may be charged by a licensee for services pursuant to the
Delayed Deposit Services Licensing Act.
Sec. 28. Section 45-335, Revised Statutes Supplement, 2025, is amended to
read:
45-335 For purposes of the Nebraska Installment Loan and Sales Act, unless
the context otherwise requires:
(1) Applicant means a person applying for a license under the Nebraska
Installment Loan and Sales Act;
(2) Basic time price means the cash sale price of the goods or services
which are the subject matter of an installment sales contract plus the amount
included therein, if a separate identified charge is made therefor and stated
in the contract, for insurance, registration, certificate of title, debt
cancellation contract, debt suspension contract, electronic title and lien
services, guaranteed asset protection waiver, and license fees, filing fees, an
origination fee, and fees and charges prescribed by law which actually are or
will be paid to public officials for determining the existence of or for
perfecting, releasing, or satisfying any security related to the credit
transaction or any charge for nonfiling insurance if such charge does not
exceed the amount of fees and charges prescribed by law which would have been
paid to public officials for filing, perfecting, releasing, and satisfying any
security related to the credit transaction and less the amount of the buyer's
downpayment in money or goods or both;
(3) Branch office means any location, other than the main office location,
at which the business of a licensee is to be conducted, including:
(a) Any offices physically located in Nebraska; and
(b) Any offices that, while not physically located in this state, intend
to transact business with Nebraska residents;
(4) Breach of security of the system means unauthorized acquisition of
data that compromises the security, confidentiality, or integrity of
information;
(5) Buyer means a person who buys goods or obtains services from a seller
in an installment sale;
(6) Cash price or cash sale price means the price stated in an installment
sales contract for which the seller would have sold or furnished to the buyer
and the buyer would have bought or acquired from the seller goods or services
which are the subject matter of the contract if such sale had been a sale for
cash instead of an installment sale. It may include the cash price of
accessories or services related to the sale such as delivery, installation,
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alterations, modifications, and improvements and may include taxes to the
extent imposed on the cash sale;
(7) Consumer means an individual who is a resident of Nebraska and who
seeks to obtain, obtains, or has obtained financial products or services that
are to be used primarily for personal, family, or household purposes;
(8)(a) Control in the case of a corporation means (i) direct or indirect
ownership of or the right to control twenty-five percent or more of the voting
shares of the corporation or (ii) the ability of a person or group acting in
concert to elect a majority of the directors or otherwise effect a change in
policy.
(b) Control in the case of any other entity means (i) the power, directly
or indirectly, to direct the management or policies of the entity, (ii) the
contribution of twenty-five percent or more of the capital of the entity, or
(iii) the right to receive, upon dissolution, twenty-five percent or more of
the capital of the entity;
(9) Debt cancellation contract means a loan term or contractual
arrangement modifying loan terms under which a financial institution or
licensee agrees to cancel all or part of a buyer's obligation to repay an
extension of credit from the financial institution or licensee upon the
occurrence of a specified event. The debt cancellation contract may be separate
from or a part of other loan documents. The term debt cancellation contract
does not include loan payment deferral arrangements in which the triggering
event is the buyer's unilateral election to defer repayment or the financial
institution's or licensee's unilateral decision to allow a deferral of
repayment;
(10) Debt suspension contract means a loan term or contractual arrangement
modifying loan terms under which a financial institution or licensee agrees to
suspend all or part of a buyer's obligation to repay an extension of credit
from the financial institution or licensee upon the occurrence of a specified
event. The debt suspension contract may be separate from or a part of other
loan documents. The term debt suspension contract does not include loan payment
deferral arrangements in which the triggering event is the buyer's unilateral
election to defer repayment or the financial institution's or licensee's
unilateral decision to allow a deferral of repayment;
(11) Department means the Department of Banking and Finance;
(12) Director means the Director of Banking and Finance;
(13) Financial institution has the same meaning as in section 8-101.03;
(14) Goods means all personal property, except money or things in action,
and includes goods which, at the time of sale or subsequently, are so affixed
to realty as to become part thereof whether or not severable therefrom;
(15) Guaranteed asset protection waiver means a waiver that is offered,
sold, or provided in accordance with the Guaranteed Asset Protection Waiver
Act;
(16) Installment sale means any transaction, whether or not involving the
creation or retention of a security interest, in which a buyer acquires goods
or services from a seller pursuant to an agreement which provides for a time-
price differential and under which the buyer agrees to pay all or part of the
time-sale price in one or more installments and within one hundred forty-five
months, except that the purchase of mobile homes may exceed such one-hundred-
forty-five-month limitation. Installment sale does not include a consumer
rental purchase agreement defined in and regulated by the Consumer Rental
Purchase Agreement Act;
(17) Installment sales contract means an agreement entered into in this
state evidencing an installment sale except those otherwise provided for in
separate acts;
(18) Licensee means any person who obtains a license under the Nebraska
Installment Loan and Sales Act;
(19) Loan or installment loan means a loan or any extension of credit to a
consumer originated or made with an interest rate greater than the maximum
interest rate allowed under section 45-101.03 and , a minimum loan term of six
months , and a principal balance of less than twenty-five thousand dollars;
(20) Mortgage loan originator has the same meaning as in section 45-702;
(21) Nationwide Mortgage Licensing System and Registry means a licensing
system, also known as the Nationwide Multistate Licensing System and Registry,
developed and maintained by the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators for the licensing and
registration of mortgage loan originators, mortgage bankers, installment loan
companies, and other state-regulated financial services entities and
industries;
(22) Person means individual, partnership, limited liability company,
association, financial institution, trust, corporation, or any other legal
entity;
(23) Real property means an owner-occupied single-family, two-family,
three-family, or four-family dwelling which is located in this state, which is
occupied, used, or intended to be occupied or used for residential purposes,
and which is, or is intended to be, permanently affixed to the land;
(24) Sales finance company means a person purchasing one or more
installment sales contracts from one or more sellers or acquiring any rights of
ownership, servicing, or other forms of participation in or otherwise engaging
with a consumer on behalf of the purchaser of one or more installment sales
contracts from one or more sellers. Sales finance company includes, but is not
limited to, a financial institution or installment loan licensee, if so
engaged;
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(25) Seller means a person who sells goods or furnishes services to a
buyer under an installment sale;
(26) Services means work, labor, and services of any kind performed in
conjunction with an installment sale but does not include services for which
the prices charged are required by law to be established and regulated by the
government of the United States or any state;
(27) Time-price differential, however denominated or expressed, means the
amount, as limited in the Nebraska Installment Loan and Sales Act, to be added
to the basic time price; and
(28) Time-sale price means the total of the basic time price of the goods
or services, the amount of the buyer's downpayment in money or goods or both,
and the time-price differential.
Sec. 29. Section 45-345, Revised Statutes Supplement, 2025, is amended to
read:
45-345 (1) A licensee shall notify the director through the Nationwide
Mortgage Licensing System and Registry at least thirty days prior to the
occurrence of any change of the licensee's name, trade name, or doing business
as designation.
(2)(a) Except as provided in subdivisions (b) and (c) of this subsection,
a licensee shall notify the director in writing or through the Nationwide
Mortgage Licensing System and Registry within three business days from the time
that the licensee becomes aware of any breach of the security of the system of
computerized data owned or licensed by the licensee, which contains personal
information about a Nebraska resident, or the unauthorized access to or use of
such information about a Nebraska resident as a result of the breach.
(b) If a licensee would be required under Nebraska law to provide
notification to a Nebraska resident regarding such incident, then the licensee
shall provide a copy of such notification to the department prior to or
simultaneously with the licensee's notification to the Nebraska resident.
(c) Notice required by this subsection may be delayed if a law enforcement
agency determines that the notice will impede a criminal investigation. Notice
shall be made in good faith, without unreasonable delay, and as soon as
possible after the law enforcement agency determines that notification will no
longer impede the investigation.
(d) For purposes of this subsection, the terms breach of the security of
the system and personal information have the same meaning as in section 87-802.
(3) A licensee shall maintain the minimum net worth required by section
45-337 while a license issued to the licensee under the Nebraska Installment
Loan and Sales Act is in effect. The minimum net worth shall be proven by an
annual audit conducted by a certified public accountant. A licensee shall
submit a copy of the annual audit to the director as required by section 45-337
or upon written request of the director. If a licensee fails to maintain the
required minimum net worth, the department may issue a notice of cancellation
of the license in lieu of revocation proceedings.
(4)(a) Every licensee shall, at the time any loan is made, give to the
borrower, or if there are two or more borrowers, to one of the borrowers, a
statement in the English language disclosing in clear and distinct terms the
information required to be disclosed under the federal Consumer Credit
Protection Act.
(b) The licensee shall also give to the borrower a copy of any writing
evidencing a loan if the writing requires or provides for the signature of the
borrower. The writing evidencing the borrower's obligation to pay a loan shall
contain a clear and conspicuous notice in form and content substantially as
follows:
NOTICE TO CONSUMER: 1. Do not sign this paper before you read it. 2. You
are entitled to a copy of this paper. 3. You may prepay the unpaid balance at
any time without penalty and may be entitled to receive a refund of unearned
charges in accordance with law.
(5)(a) Every licensee shall disclose to the borrower, in connection with
any refinance of an existing installment loan, whether or not the borrower will
receive a net tangible benefit through such refinance. Such disclosure shall be
on a worksheet prescribed by the director or on a form prescribed by the
director substantially similar to such worksheet.
(b) For purposes of this subsection, net tangible benefit means a benefit
of a refinance that will be in the financial interests of the borrower. Net
tangible benefit includes, but is not limited to:
(i) Obtaining a lower interest rate;
(ii) Obtaining a lower monthly payment, including principal, interest,
taxes, and insurance;
(iii) Obtaining a shorter amortization schedule;
(iv) Changing from an adjustable interest rate to a fixed interest rate;
(v) Eliminating a negative amortization feature;
(vi) Eliminating a balloon payment feature;
(vii) Receiving cash out from the new loan in an amount greater than all
closing costs incurred in connection with such loan;
(viii) Avoiding foreclosure;
(ix) Eliminating private insurance; and
(x) Consolidating other existing loans into a new loan.
(6) (5) All licensees under the Nebraska Installment Loan and Sales Act
shall, on or before March 1 of each year, file with the department a report of
the licensee's earnings and operations for the preceding calendar year, the
licensee's assets at the end of the year, and any other relevant information as
the department may reasonably require. The report shall be made under oath and
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shall be in the form and manner prescribed by the department.
(7) (6) All installment loan licensees shall submit a mortgage report of
condition as required by section 45-726 on or before a date or dates
established by rule, regulation, or order of the director.
(8) (7) Upon written request of a borrower, the licensee shall provide a
written statement of the dates and amounts of payments made and the amounts of
any default and deferment charges assessed preceding the month in which the
request is received and the total amount unpaid as of the end of the period
covered by the statement and a copy of the loan agreement and security
agreement, and a facsimile of any insurance certificate issued as part of the
transaction, if applicable. The licensee may charge a reasonable fee for such
copies, not to exceed fifty cents per page.
(9) (8) A licensee shall answer in writing, within ten business days after
receipt, any written request for payoff information from a borrower or a
borrower's representative. This service shall be provided without charge to the
borrower, except that when such information is provided upon request within
sixty days after the fulfillment of a previous request, a processing fee of up
to ten dollars may be charged for the subsequent request.
Sec. 30. Section 45-349, Revised Statutes Supplement, 2025, is amended to
read:
45-349 (1) Except as provided in section 45-350 and subsection (6) of this
section, every installment loan licensee may make loans and may contract for
and receive on such loans charges at a rate not exceeding twenty-four percent
per annum on that part of the unpaid principal balance on any loan not in
excess of one thousand dollars, and twenty-one percent per annum on any
remainder of such unpaid principal balance. Except for loans secured by mobile
homes, an installment loan licensee may not make loans for a period in excess
of one hundred forty-five months if the amount of the loan is greater than
three thousand dollars but less than twenty-five thousand dollars . Unless
otherwise allowed for by law, charges on loans made under the Nebraska
Installment Loan and Sales Act shall not be paid, deducted, or received in
advance. The contracting for, charging of, or receiving of charges as provided
for in subsection (2) of this section shall not be deemed to be the payment,
deduction, or receipt of such charges in advance.
(2) When the loan contract requires repayment in substantially equal and
consecutive monthly installments of principal and charges combined, the
installment loan licensee may, at the time the loan is made, precompute the
charges at the agreed rate on scheduled unpaid principal balances according to
the terms of the contract and add such charges to the principal of the loan.
Every payment may be applied to the combined total of principal and precomputed
charges until the contract is fully paid. All payments made on account of any
loan except for default and deferment charges shall be deemed to be applied to
the unpaid installments in the order in which the unpaid installments are due.
The portion of the precomputed charges applicable to any particular month of
the contract, as originally scheduled or following a deferment, shall be that
proportion of such precomputed charges, excluding any adjustment made for a
first installment period of more than one month and any adjustment made for
deferment, which the balance of the contract scheduled to be outstanding during
such month bears to the sum of all monthly balances originally scheduled to be
outstanding by the contract. This section shall not limit or restrict the
manner of calculating charges, whether by way of add-on, single annual rate, or
otherwise, if the rate of charges does not exceed what is permitted by this
section. Charges may be contracted for and earned at a single annual rate,
except that the total charges from such rate shall not be greater than the
total charges from the several rates otherwise applicable to the different
portions of the unpaid balance according to subsection (1) of this section. All
loan contracts made pursuant to this subsection are subject to the following
adjustments:
(a) Notwithstanding the requirement for substantially equal and
consecutive monthly installments, the first installment period may not exceed
one month by more than twenty-one days and may not fall short of one month by
more than eleven days. The charges for each day exceeding one month shall be
one-thirtieth of the charges which would be applicable to a first installment
period of one month. The charge for extra days in the first installment period
may be added to the first installment and such charges for such extra days
shall be excluded in computing any rebate;
(b) If prepayment in full by cash, a new loan, or otherwise occurs before
the first installment due date, the charges shall be recomputed at the rate of
charges contracted for in accordance with this section upon the actual unpaid
principal balance of the loan for the actual time outstanding by applying the
payment, or payments, first to charges at the agreed rate and the remainder to
the principal. The amount of charges so computed shall be retained in lieu of
all precomputed charges;
(c) If a contract is prepaid in full by cash, a new loan, or otherwise
after the first installment due date, the borrower shall receive a rebate of an
amount which is not less than the amount obtained by applying to the unpaid
principal balances as originally scheduled or, if deferred, as deferred, for
the period following prepayment, according to the actuarial method, the rate of
charge contracted for in accordance with this section. The licensee may round
the rate of charge to the nearest one-half of one percent if such procedure is
not consistently used to obtain a greater yield than would otherwise be
permitted. Any default and deferment charges which are due and unpaid may be
deducted from any rebate. No rebate shall be required for any partial
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prepayment. No rebate of less than one dollar need be made. Acceleration of the
maturity of the contract shall not in itself require a rebate. If judgment is
obtained before the final installment date, the contract balance shall be
reduced by the rebate which would be required for prepayment in full as of the
date judgment is obtained;
(d) If any installment on a precomputed or interest-bearing loan is unpaid
in full for ten or more consecutive days, Sundays and holidays included, after
it is due, the licensee may charge and collect a default charge not exceeding
an amount equal to five percent of such installment. If any installment payment
is made by a check, draft, or similar signed order which is not honored because
of insufficient funds, no account, or any other reason except an error of a
third party to the loan contract, the licensee may charge and collect a
fifteen-dollar bad check charge. Such default or bad check charges may be
collected when due or at any time thereafter;
(e) If, as of an installment due date, the payment date of all wholly
unpaid installments is deferred one or more full months and the maturity of the
contract is extended for a corresponding period, the licensee may charge and
collect a deferment charge not exceeding the charge applicable to the first of
the installments deferred, multiplied by the number of months in the deferment
period. The deferment period is that period during which no payment is made or
required by reason of such deferment. The deferment charge may be collected at
the time of deferment or at any time thereafter. The portion of the precomputed
charges applicable to each deferred balance and installment period following
the deferment period shall remain the same as that applicable to such balance
and periods under the original loan contract. No installment on which a default
charge has been collected, or on account of which any partial payment has been
made, shall be deferred or included in the computation of the deferment charge
unless such default charge or partial payment is refunded to the borrower or
credited to the deferment charge. Any payment received at the time of deferment
may be applied first to the deferment charge and the remainder, if any, applied
to the unpaid balance of the contract, except that if such payment is
sufficient to pay, in addition to the appropriate deferment charge, any
installment which is in default and the applicable default charge, it shall be
first so applied and any such installment shall not be deferred or subject to
the deferment charge. If a loan is prepaid in full during the deferment period,
the borrower shall receive, in addition to the required rebate, a rebate of
that portion of the deferment charge applicable to any unexpired full month or
months of such deferment period; and
(f) If two or more full installments are in default for one full month or
more at any installment date and if the contract so provides, the installment
loan licensee may reduce the contract balance by the rebate which would be
required for prepayment in full as of such installment date and the amount
remaining unpaid shall be deemed to be the unpaid principal balance and
thereafter in lieu of charging, collecting, receiving, and applying charges as
provided in this subsection, charges may be charged, collected, received, and
applied at the agreed rate as otherwise provided by this section until the loan
is fully paid.
(3) The charges, as referred to in subsection (1) of this section, shall
not be compounded. The charging, collecting, and receiving of charges as
provided in subsection (2) of this section shall not be deemed compounding. If
part or all of the consideration for a loan contract is the unpaid principal
balance of a prior loan, then the principal amount payable under such loan
contract may include any unpaid charges on the prior loan which have accrued
within sixty days before the making of such loan contract and may include the
balance remaining after giving the rebate required by subsection (2) of this
section. Except as provided in subsection (2) of this section, charges shall
(a) be computed and paid only as a percentage per month of the unpaid principal
balance or portions thereof and (b) be computed on the basis of the number of
days actually elapsed. For purposes of computing charges, whether at the
maximum rate or less, a month shall be that period of time from any date in a
month to the corresponding date in the next month but if there is no such
corresponding date then to the last day of the next month, and a day shall be
considered one-thirtieth of a month when computation is made for a fraction of
a month.
(4) Except as provided in subsections (5) and (6) of this section, in
addition to that provided for under the Nebraska Installment Loan and Sales
Act, no further or other amount whatsoever shall be directly or indirectly
charged, contracted for, or received. If any amount, in excess of the charges
permitted, is charged, contracted for, or received, the loan contract shall not
on that account be void, but the installment loan licensee shall have no right
to collect or receive any interest or other charges whatsoever. If such
interest or other charges have been collected or contracted for, the licensee
shall refund to the borrower all interest and other charges collected and shall
not collect any interest or other charges contracted for and thereafter due on
the loan involved, as liquidated damages, and the installment loan licensee or
its assignee, if found liable, shall pay the costs of any action relating
thereto, including reasonable attorney's fees. No installment loan licensee
shall be found liable under this subsection if it shows by a preponderance of
the evidence that the violation was not intentional and resulted from a bona
fide error notwithstanding the maintenance of procedures reasonably adopted to
avoid any such error.
(5) A borrower may be required to pay all reasonable expenses incurred in
connection with the making, closing, disbursing, extending, readjusting, or
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renewing of loans. Such expenses may include abstracting, recording, releasing,
and registration fees; premiums paid for nonfiling insurance; premiums paid on
insurance policies covering tangible personal property securing the loan;
amounts charged for a debt cancellation contract or a debt suspension contract,
as agreed upon by the parties, if the debt cancellation contract or debt
suspension contract is a contract of a financial institution or installment
loan licensee and such contract is sold directly by such financial institution
or licensee or by an unaffiliated, nonexclusive agent of such financial
institution or licensee in accordance with 12 C.F.R. part 37, as such part
existed on January 1, 2026 2025, and the financial institution or installment
loan licensee is responsible for the unaffiliated, nonexclusive agent's
compliance with such part; title examinations; credit reports; survey; taxes or
charges imposed upon or in connection with the making and recording or
releasing of any mortgage; amounts charged for a guaranteed asset protection
waiver; and fees and expenses charged for electronic title and lien services.
Except as provided in subsection (6) of this section, a borrower may also be
required to pay a nonrefundable loan origination fee not to exceed the lesser
of five hundred dollars or an amount equal to seven percent of that part of the
original principal balance of any loan not in excess of two thousand dollars
and five percent on that part of the original principal balance in excess of
two thousand dollars, if the installment loan licensee has not made another
loan to the borrower within the previous twelve months. If the licensee has
made another loan to the borrower within the previous twelve months, a
nonrefundable loan origination fee may only be charged on new funds advanced on
each successive loan. Such reasonable initial charges may be collected from the
borrower or included in the principal balance of the loan at the time the loan
is made and shall not be considered interest or a charge for the use of the
money loaned.
(6)(a) Loans secured solely by real property that are not made pursuant to
subdivision (11) of section 45-101.04 on real property shall not be subject to
the limitations on the rate of interest provided in subsection (1) of this
section or the limitations on the nonrefundable loan origination fee under
subsection (5) of this section if (i) the principal amount of the loan is seven
thousand five hundred dollars or more and (ii) the sum of the principal amount
of the loan and the balances of all other liens against the property do not
exceed one hundred percent of the appraised value of the property. Acceptable
methods of determining appraised value shall be made by the department pursuant
to rule, regulation, or order.
(b) An origination fee on such loan shall be computed only on the
principal amount of the loan reduced by any portion of the principal that
consists of the amount required to pay off another loan made under this
subsection by the same licensee.
(c) A prepayment penalty on such loan shall be permitted only if (i) the
maximum amount of the penalty to be assessed is stated in writing at the time
the loan is made, (ii) the loan is prepaid in full within two years from the
date of the loan, and (iii) the loan is prepaid with money other than the
proceeds of another loan made by the same licensee. Such prepayment penalty
shall not exceed six months' interest on eighty percent of the original
principal balance computed at the agreed rate of interest on the loan.
(d) An installment loan licensee making a loan pursuant to this subsection
may obtain an interest in any fixtures attached to such real property and any
insurance proceeds payable in connection with such real property or the loan.
(e) For purposes of this subsection, principal amount of the loan means
the total sum owed by the borrower including, but not limited to, insurance
premiums, loan origination fees, or any other amount that is financed, except
that for purposes of subdivision (6)(b) of this section, loan origination fees
shall not be included in calculating the principal amount of the loan.
Sec. 31. Section 45-364, Revised Statutes Supplement, 2025, is amended to
read:
45-364 (1) Each retail installment sales contract shall be in writing,
shall be signed by both the buyer and the seller, and shall contain the
following items, and a copy thereof shall be delivered to the buyer at the time
the instrument is signed, except for contracts made in conformance with
subdivision (5)(c) of section 45-336:
(a) The cash sale price;
(b) The amount of the buyer's downpayment, and whether made in money or
goods, or partly in money and partly in goods, including a brief description of
any goods traded in;
(c) The difference between subdivisions (a) and (b) of this subsection;
(d) The amount included for insurance if a separate charge is made
therefor, specifying the types of coverages;
(e) The amount included for a debt cancellation contract or a debt
suspension contract if the debt cancellation contract or debt suspension
contract is a contract of a financial institution or licensee, such contract is
sold directly by such financial institution or licensee or by an unaffiliated,
nonexclusive agent of such financial institution or licensee in accordance with
12 C.F.R. part 37, as such part existed on January 1, 2026 2025, and the
financial institution or licensee is responsible for the unaffiliated,
nonexclusive agent's compliance with such part, and a separate charge is made
therefor;
(f) The amount included for electronic title and lien services other than
fees and charges prescribed by law which actually are or will be paid to public
officials for determining the existence of or for perfecting, releasing, or
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satisfying any security related to the credit transaction;
(g) The basic time price, which is the sum of subdivisions (c), (d), (e),
and (f) of this subsection;
(h) The time-price differential;
(i) The amount of the time-price balance, which is the sum of subdivisions
(g) and (h) of this subsection, payable in installments by the buyer to the
seller;
(j) The number, amount, and due date or period of each installment;
(k) The time-sales price; and
(l) The amount included for a guaranteed asset protection waiver.
(2) The contract shall contain substantially the following notice: NOTICE
TO THE BUYER. DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS
BLANK SPACES. YOU ARE ENTITLED TO A COPY OF THE CONTRACT YOU SIGN.
(3) The items listed in subsection (1) of this section need not be stated
in the sequence or order set forth in such subsection. Additional items may be
included to explain the computations made in determining the amount to be paid
by the buyer. No installment sales contract shall be signed by the buyer or
proffered by the seller when it contains blank spaces to be filled in after
execution, except that if delivery of the goods or services is not made at the
time of the execution of the contract, the identifying numbers or marks of the
goods, or similar information, and the due date of the first installment may be
inserted in the contract after its execution.
(4) If a seller proffers an installment sales contract as part of a
transaction which delays or cancels, or promises to delay or cancel, the
payment of the time-price differential on the contract if the buyer pays the
basic time price, cash price, or cash sale price within a certain period of
time, the seller shall, in clear and conspicuous writing, either within the
installment sales contract or in a separate document, inform the buyer of the
exact date by which the buyer must pay the basic time price, cash price, or
cash sale price in order to delay or cancel the payment of the time-price
differential. The seller or any subsequent purchaser of the installment sales
contract, including a sales finance company, shall not be allowed to change
such date.
(5) Upon written request from the buyer, the holder of an installment
sales contract shall give or forward to the buyer a written statement of the
dates and amounts of payments and the total amount unpaid under such contract.
A buyer shall be given a written receipt for any payment when made in cash.
(6) After payment of all sums for which the buyer is obligated under a
contract, the holder shall deliver or mail to the buyer at his or her last-
known address one or more good and sufficient instruments or copies thereof to
acknowledge payment in full and shall release all security in the goods and
mark canceled and return to the buyer the original agreement or copy thereof or
instruments or copies thereof signed by the buyer. For purposes of this
section, a copy shall meet the requirements of section 25-12,112.
Sec. 32. Section 45-735, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
45-735 (1) A mortgage loan originator shall be an employee or independent
agent of a single Nebraska licensed mortgage banker, registrant, or installment
loan company that shall directly supervise, control, and maintain
responsibility for the acts and omissions of the mortgage loan originator.
(2)(a) A mortgage loan originator shall not engage in mortgage loan
origination activities at any location that is not a main office location of a
licensed mortgage banker, registrant, or installment loan company or a branch
office of a licensed mortgage banker or registrant. The licensed mortgage
banker, registrant, or installment loan company shall designate the location or
locations at which each mortgage loan originator is originating residential
mortgage loans.
(b) The department may adopt and promulgate rules, regulations, and orders
to authorize and regulate the use of remote work arrangements conducted outside
of a main office location or branch office by employees or agents, including
mortgage loan originators, of licensed mortgage bankers, registrants, or
installment loan companies.
(3) Any licensed mortgage banker, registrant, or installment loan company
who engages an independent agent as a mortgage loan originator shall maintain a
written agency contract with such mortgage loan originator. Such written agency
contract shall provide that the mortgage loan originator is originating loans
exclusively for the licensed mortgage banker, registrant, or installment loan
company.
(4) A licensed mortgage banker, registrant, or installment loan company
that has hired a licensed mortgage loan originator as an employee or entered
into an independent agent agreement with such licensed mortgage loan originator
shall provide notification to the department as soon as reasonably possible
after entering into such relationship, along with a fee of fifty dollars. The
employing entity shall not allow the mortgage loan originator to conduct such
activity in this state prior to such notification to the department and
confirmation that the department has received notice of the termination of the
mortgage loan originator's prior employment.
(5) A licensed mortgage banker, registrant, or installment loan company
shall notify the department no later than ten days after the termination,
whether voluntary or involuntary, of a mortgage loan originator unless the
mortgage loan originator has previously notified the department of the
termination.
Sec. 33. Section 45-737, Revised Statutes Cumulative Supplement, 2024, is
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amended to read:
45-737 A licensee licensed as a mortgage banker shall:
(1) Disburse required funds paid by the borrower and held in escrow for
the payment of insurance payments no later than the date upon which the premium
is due under the insurance policy;
(2) Disburse funds paid by the borrower and held in escrow for the payment
of real estate taxes prior to the time such real estate taxes become
delinquent;
(3) Pay any penalty incurred by the borrower because of the failure of the
licensee to make the payments required in subdivisions (1) and (2) of this
section unless the licensee establishes that the failure to timely make the
payments was due solely to the fact that the borrower was sent a written notice
of the amount due more than fifteen calendar days before the due date to the
borrower's last-known address and failed to timely remit the amount due to the
licensee;
(4) At least annually perform a complete escrow analysis. If there is a
change in the amount of the periodic payments, the licensee shall mail written
notice of such change to the borrower at least twenty calendar days before the
effective date of the change in payment. The following information shall be
provided to the borrower, without charge, in one or more reports, at least
annually:
(a) The name and address of the licensee;
(b) The name and address of the borrower;
(c) A summary of the escrow account activity during the year which
includes all of the following:
(i) The balance of the escrow account at the beginning of the year;
(ii) The aggregate amount of deposits to the escrow account during the
year; and
(iii) The aggregate amount of withdrawals from the escrow account for each
of the following categories:
(A) Payments applied to loan principal;
(B) Payments applied to interest;
(C) Payments applied to real estate taxes;
(D) Payments for real property insurance premiums; and
(E) All other withdrawals; and
(d) A summary of loan principal for the year as follows:
(i) The amount of principal outstanding at the beginning of the year;
(ii) The aggregate amount of payments applied to principal during the
year; and
(iii) The amount of principal outstanding at the end of the year;
(5) Establish and maintain a toll-free telephone number or accept collect
telephone calls to respond to inquiries from borrowers, if the licensee
services residential mortgage loans. If a licensee ceases to service
residential mortgage loans, it shall continue to maintain a toll-free telephone
number or accept collect telephone calls to respond to inquiries from borrowers
for a period of twelve months after the date the licensee ceased to service
residential mortgage loans. A telephonic messaging service which does not
permit the borrower an option of personal contact with an employee, agent, or
contractor of the licensee shall not satisfy the conditions of this section.
Each day such licensee fails to comply with this subdivision shall constitute a
separate violation of the Residential Mortgage Licensing Act;
(6) Answer in writing, within seven business days after receipt, any
written request for payoff information received from a borrower or a borrower's
designated representative. This service shall be provided without charge to the
borrower, except that when such information is provided upon request within
sixty days after the fulfillment of a previous request, a processing fee of up
to ten dollars may be charged;
(7) Record or cause to be recorded a release of mortgage pursuant to the
provisions of section 76-2803 or, in the case of a trust deed, record or cause
to be recorded a reconveyance pursuant to the provisions of section 76-2803;
(8) Maintain a copy of all documents and records relating to each
residential mortgage loan and application for a residential mortgage loan,
including, but not limited to, loan applications, federal Truth in Lending Act
statements, good faith estimates, appraisals, notes, rights of rescission, and
mortgages or trust deeds for a period of five years after the date the
residential mortgage loan is funded or the loan application is denied or
withdrawn;
(9) Notify the director in writing or through the Nationwide Mortgage
Licensing System and Registry within three business days after the occurrence
of any of the following:
(a) The filing of a voluntary petition in bankruptcy by the licensee or
notice of a filing of an involuntary petition in bankruptcy against the
licensee;
(b) The licensee has lost the ability to fund a loan or loans after it had
made a loan commitment or commitments and approved a loan application or
applications;
(c) Any other state or jurisdiction institutes license denial, cease and
desist, suspension, or revocation procedures against the licensee;
(d) The attorney general of any state, the Consumer Financial Protection
Bureau, or the Federal Trade Commission initiates an action to enforce consumer
protection laws against the licensee or any of the licensee's officers,
directors, shareholders, partners, members, employees, or agents;
(e) The Federal National Mortgage Association, Federal Home Loan Mortgage
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Corporation, Federal Housing Administration, or Government National Mortgage
Association suspends or terminates the licensee's status as an approved seller
or seller and servicer;
(f) The filing of a criminal indictment or information against the
licensee or any of its officers, directors, shareholders, partners, members,
employees, or agents;
(g) The licensee or any of the licensee's officers, directors,
shareholders, partners, members, employees, or agents was convicted of, pleaded
guilty to, or was found guilty after a plea of nolo contendere to (i) a
misdemeanor under state or federal law which involves dishonesty or fraud or
which involves any aspect of the mortgage banking business, depository
institution business, or installment loan company business or (ii) any felony
under state or federal law; or
(h)(i) Except as provided in subdivisions (9)(h)(ii) and (iii) of this
section, a licensee shall notify the director in writing or through the
Nationwide Mortgage Licensing System and Registry within three business days
from the time that the licensee becomes aware of any breach of security of the
system of computerized data owned or licensed by the licensee, which contains
personal information about a Nebraska resident, or the unauthorized access to
or use of such information about a Nebraska resident as a result of the breach.
(ii) If a licensee would be required under Nebraska law to provide
notification to a Nebraska resident regarding such incident, then the licensee
shall provide a copy of such notification to the department prior to or
simultaneously with the licensee's notification to the Nebraska resident.
(iii) Notice required by subdivision (9)(h) of this section may be delayed
if a law enforcement agency determines that the notice will impede a criminal
investigation. Notice shall be made in good faith, without unreasonable delay,
and as soon as possible after the law enforcement agency determines that
notification will no longer impede the investigation.
(iv) For purposes of subdivision (9)(h) of this section, the terms breach
of the security of the system and personal information have the same meaning as
in section 87-802; and
(10) Notify the director in writing or through the Nationwide Mortgage
Licensing System and Registry within thirty days after the occurrence of a
material development other than as described in subdivision (9) of this
section, including, but not limited to, any of the following:
(a) Business reorganization;
(b) A change of name, trade name, doing business as designation, or main
office address;
(c) The establishment of a branch office. Notice of such establishment
shall be on a form prescribed by the department and accompanied by a fee of
seventy-five dollars for each branch office;
(d) The relocation or closing of a branch office; or
(e) The entry of an order against the licensee or any of the licensee's
officers, directors, shareholders, partners, members, employees, or agents,
including orders to which the licensee or other parties consented, by any other
state or federal regulator; and .
(11)(a) Disclose to the borrower, in connection with any refinance of an
existing residential mortgage loan, whether or not the borrower will receive a
net tangible benefit through such refinance. Such disclosure shall be on a
worksheet prescribed by the director or on a form prescribed by the director
substantially similar to such worksheet.
(b) For purposes of this subsection, net tangible benefit means a benefit
of a refinance that will be in the financial interests of the borrower. Net
tangible benefit includes, but is not limited to:
(i) Obtaining a lower interest rate;
(ii) Obtaining a lower monthly payment, including principal, interest,
taxes, and insurance;
(iii) Obtaining a shorter amortization schedule;
(iv) Changing from an adjustable interest rate to a fixed interest rate;
(v) Eliminating a negative amortization feature;
(vi) Eliminating a balloon payment feature;
(vii) Receiving cash out from the new loan in an amount greater than all
closing costs incurred in connection with such loan;
(viii) Avoiding foreclosure;
(ix) Eliminating private mortgage insurance; and
(x) Consolidating other existing loans into a new mortgage loan.
Sec. 34. Section 45-741, Reissue Revised Statutes of Nebraska, is amended
to read:
45-741 (1) The director may examine documents and records maintained by a
licensee, registrant, individual, or person subject to the Residential Mortgage
Licensing Act. The director may investigate complaints about a licensee,
registrant, individual, or person subject to the act. The director may
investigate reports of alleged violations of the act, any federal law governing
residential mortgage loans, or any rule, regulation, or order of the director
under the act. For purposes of investigating violations or complaints arising
under the act or for the purposes of examination, the director may review,
investigate, or examine any licensee, registrant, individual, or person subject
to the act as often as necessary in order to carry out the purposes of the act.
(2) For purposes of any investigation, examination, or proceeding,
including, but not limited to, initial licensing, license renewal, license
suspension, license conditioning, or license revocation, the director shall
have the authority to access, receive, and use any books, accounts, records,
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files, documents, information, or evidence, including, but not limited to:
(a) Criminal, civil, and administrative history information;
(b) Personal history and experience information, including independent
credit reports obtained from a consumer reporting agency described in 15 U.S.C.
1681a(p), as such section existed on January 1, 2026 2010; and
(c) Any other documents, information, or evidence the director deems
relevant to the inquiry or investigation regardless of the location,
possession, control, or custody of such documents, information, or evidence.
(3) Each licensee, registrant, individual, or person subject to the
Residential Mortgage Licensing Act shall make available to the director upon
request the books, accounts, records, files, or documents relating to the
operations of such licensee, registrant, individual, or person subject to the
act. The director shall have access to such books, accounts, records, files,
and documents and may interview the officers, principals, mortgage loan
originators, employees, independent contractors, agents, and customers of the
licensee, registrant, individual, or person subject to the act, concerning the
business of the licensee, registrant, individual, or person subject to the act.
(4) Each licensee, registrant, individual, or person subject to the act
shall make or compile reports or prepare other information as instructed by the
director in order to carry out the purposes of this section, including, but not
limited to:
(a) Accounting compilations;
(b) Information lists and data concerning loan transactions on a form
prescribed by the director; or
(c) Such other information deemed necessary to carry out the purposes of
this section.
(5) The director may send a notice of investigation or inquiry request for
information to a licensee or registrant. Upon receipt by a licensee or
registrant of the director's notice of investigation or inquiry request for
information, the licensee or registrant shall respond within twenty-one
calendar days. Each day beyond that time a licensee or registrant fails to
respond as required by this subsection shall constitute a separate violation of
the act. This subsection shall not be construed to require the director to send
a notice of investigation to a licensee, a registrant, or any person.
(6) For the purpose of any investigation, examination, or proceeding under
the act, the director or any officer designated by him or her may administer
oaths and affirmations, subpoena witnesses and compel their attendance, take
evidence, and require the production of any books, papers, correspondence,
memoranda, agreements, or other documents or records which the director deems
relevant or material to the inquiry. If any person refuses to comply with a
subpoena issued under this section or to testify with respect to any matter
relevant to the proceeding, the district court of Lancaster County may, on
application of the director, issue an order requiring the person to comply with
the subpoena and to testify. Failure to obey an order of the court to comply
with the subpoena may be punished by the court as civil contempt.
(7) In conducting an examination or investigation under this section, the
director may rely on reports made by the licensee or registrant which have been
prepared within the preceding twelve months for the following federal agencies
or federally related entities:
(a) The United States Department of Housing and Urban Development;
(b) The Federal Housing Administration;
(c) The Federal National Mortgage Association;
(d) The Government National Mortgage Association;
(e) The Federal Home Loan Mortgage Corporation;
(f) The United States Department of Veterans Affairs; or
(g) The Consumer Financial Protection Bureau.
(8) In order to carry out the purposes of this section, the director may:
(a) Enter into agreements or relationships with other government officials
or regulatory associations in order to improve efficiencies and reduce the
regulatory burden by sharing resources, standardized or uniform methods or
procedures, and documents, records, information, or evidence obtained under
this section;
(b) Use, hire, contract, or employ publicly or privately available
analytical systems, methods, or software to examine or investigate the
licensee, registrant, individual, or person subject to the act;
(c) Accept and rely on examination or investigation reports made by other
government officials, within or without this state; or
(d) Accept audit reports made by an independent certified public
accountant for the licensee, registrant, individual, or person subject to the
act in the course of that part of the examination covering the same general
subject matter as the audit and incorporate the audit report in the report of
the examination, report of investigation, or other writing of the director.
(9) If the director receives a complaint or other information concerning
noncompliance with the act by an exempt person, the director shall inform the
agency having supervisory authority over the exempt person of the complaint.
(10) No licensee, registrant, individual, or person subject to
investigation or examination under this section shall knowingly withhold,
abstract, remove, mutilate, destroy, or secrete any books, records, computer
records, or other information.
(11) The total charge for an examination or investigation shall be paid by
the licensee or registrant as set forth in sections 8-605 and 8-606.
(12) Examination reports shall not be deemed public records and may be
withheld from the public pursuant to section 84-712.05.
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(13) Complaint files shall be deemed public records.
(14) The authority of this section shall remain in effect, whether such a
licensee, registrant, individual, or person subject to the Residential Mortgage
Licensing Act acts or claims to act under any licensing or registration law of
this state or claims to act without such authority.
Sec. 35. Section 59-1722, Revised Statutes Supplement, 2025, is amended to
read:
59-1722 (1) Any transaction involving the sale of a franchise as defined
in 16 C.F.R. 436.1(h), as such regulation existed on January 1, 2026 2025,
shall be exempt from the Seller-Assisted Marketing Plan Act, except that such
transactions shall be subject to subdivision (1)(d) of section 59-1757, those
provisions regulating or prescribing the use of the phrase buy-back or secured
investment or similar phrases as set forth in sections 59-1726 to 59-1728 and
59-1751, and all sections which provide for their enforcement. The exemption
shall only apply if:
(a) The franchise is offered and sold in compliance with the requirements
of 16 C.F.R. part 436, Disclosure Requirements and Prohibitions Concerning
Franchising, as such part existed on January 1, 2026 2025;
(b) Before placing any advertisement in a Nebraska-based publication,
offering for sale to any prospective purchaser in Nebraska, or making any
representations in connection with such offer or sale to any prospective
purchaser in Nebraska, the seller files a notice with the Department of Banking
and Finance which contains (i) the name, address, and telephone number of the
seller and the name under which the seller intends to do business and (ii) a
brief description of the plan offered by the seller; and
(c) The seller pays a filing fee of one hundred dollars.
(2) The department may request a copy of the disclosure document upon
receipt of a written complaint or inquiry regarding the seller or upon a
reasonable belief that a violation of the Seller-Assisted Marketing Plan Act
has occurred or may occur. The seller shall provide such copy within ten
business days of receipt of the request.
(3) All funds collected by the department under this section shall be
remitted to the State Treasurer for credit to the Securities Act Cash Fund.
(4) The Director of Banking and Finance may by order deny or revoke an
exemption specified in this section with respect to a particular offering of
one or more business opportunities if the director finds that such an order is
in the public interest or is necessary for the protection of purchasers. An
order shall not be entered without appropriate prior notice to all interested
parties, an opportunity for hearing, and written findings of fact and
conclusions of law. If the public interest or the protection of purchasers so
requires, the director may by order summarily deny or revoke an exemption
specified in this section pending final determination of any proceedings under
this section. An order under this section shall not operate retroactively.
Sec. 36. Section 69-2103, Revised Statutes Supplement, 2025, is amended to
read:
69-2103 For purposes of the Consumer Rental Purchase Agreement Act:
(1) Advertisement means a commercial message in any medium that aids,
promotes, or assists directly or indirectly a consumer rental purchase
agreement but does not include in-store merchandising aids such as window signs
and ceiling banners;
(2) Cash price means the price at which the lessor would have sold the
property to the consumer for cash on the date of the consumer rental purchase
agreement for the property;
(3) Consumer means a natural person who rents property under a consumer
rental purchase agreement;
(4) Consumer rental purchase agreement means an agreement which is for the
use of property by a consumer primarily for personal, family, or household
purposes, which is for an initial period of four months or less, whether or not
there is any obligation beyond the initial period, which is automatically
renewable with each payment, and which permits the consumer to become the owner
of the property. A consumer rental purchase agreement in compliance with the
act shall not be construed to be a lease or agreement which constitutes a
credit sale as defined in 12 C.F.R. 1026.2(a)(16), as such regulation existed
on January 1, 2026 2025, and 15 U.S.C. 1602(h), as such section existed on
January 1, 2026 2025, or a lease which constitutes a consumer lease as defined
in 12 C.F.R. 1013.2, as such regulation existed on January 1, 2026 2025.
Consumer rental purchase agreement does not include:
(a) Any lease for agricultural, business, or commercial purposes;
(b) Any lease made to an organization;
(c) A lease or agreement which constitutes an installment sale or
installment sales contract as defined in section 45-335;
(d) A security interest as defined in subdivision (35) of section 1-201,
Uniform Commercial Code; and
(e) A home solicitation sale as defined in section 69-1601;
(5) Consummation means the occurrence of an event which causes a consumer
to become contractually obligated on a consumer rental purchase agreement;
(6) Department means the Department of Banking and Finance;
(7) Lease payment means a payment to be made by the consumer for the right
of possession and use of the property for a specific lease period but does not
include taxes imposed on such payment;
(8) Lease period means a week, month, or other specific period of time,
during which the consumer has the right to possess and use the property after
paying the lease payment and applicable taxes for such period;
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(9) Lessor means a person who in the ordinary course of business operates
a commercial outlet which regularly leases, offers to lease, or arranges for
the leasing of property under a consumer rental purchase agreement;
(10) Property means any property that is not real property under the laws
of this state when made available for a consumer rental purchase agreement; and
(11) Total of payments to acquire ownership means the total of all charges
imposed by the lessor and payable by the consumer as a condition of acquiring
ownership of the property. Total of payments to acquire ownership includes
lease payments and any initial nonrefundable administrative fee or required
delivery charge but does not include taxes, late charges, reinstatement fees,
or charges for optional products or services.
Sec. 37. Section 4A-108, Uniform Commercial Code, Revised Statutes
Supplement, 2025, is amended to read:
4A-108 Relationship to federal Electronic Fund Transfer Act.
(a) Except as provided in subsection (b), this article does not apply to a
funds transfer any part of which is governed by the federal Electronic Fund
Transfer Act, 15 U.S.C. 1693 et seq., as such act existed on January 1, 2026
2025.
(b) This article applies to a funds transfer that is a remittance transfer
as defined in the federal Electronic Fund Transfer Act, 15 U.S.C. 1693o-1, as
such section existed on January 1, 2026 2025, unless the remittance transfer is
an electronic fund transfer as defined in the federal Electronic Fund Transfer
Act, 15 U.S.C. 1693a, as such section existed on January 1, 2026 2025.
(c) In a funds transfer to which this article applies, in the event of an
inconsistency between an applicable provision of this article and an applicable
provision of the federal Electronic Fund Transfer Act, the provision of the
federal Electronic Fund Transfer Act governs to the extent of the
inconsistency.
Sec. 38. Sections 6, 10, 12, 16, 19, 22, 23, 24, 27, 28, 29, 32, 33, and
39 of this act become operative three calendar months after the adjournment of
this legislative session. The other sections of this act become operative on
their effective date.
Sec. 39. Original sections 8-1,124 and 8-1502, Reissue Revised Statutes
of Nebraska, sections 8-3003, 8-3013, 45-735, and 45-737, Revised Statutes
Cumulative Supplement, 2024, and sections 8-1101, 8-2703, 8-3033, 8-3034,
45-101.04, 45-335, and 45-345, Revised Statutes Supplement, 2025, are repealed.
Sec. 40. Original sections 8-2102 and 45-741, Reissue Revised Statutes of
Nebraska, sections 8-135, 8-141, 8-143.01, 8-157.01, 8-183.04, 8-1,140, 8-318,
8-355, 8-1101.01, 8-1704, 8-1707, 8-2742, 8-2903, 8-3005, 8-3007, 21-17,102,
21-17,115, 45-349, 45-364, 59-1722, and 69-2103, Revised Statutes Supplement,
2025, and section 4A-108, Uniform Commercial Code, Revised Statutes Supplement,
2025, are repealed.
Sec. 41. Since an emergency exists, this act takes effect when passed and
approved according to law.
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