NebraskaLB251109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt changes to federal law regarding banking and finance and change provisions regarding loan limits, branch banking, failing financial institutions, credit unions, surety bonds, and interest rates for damages payable to irrigation districts

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 2 benefits, 1 costs, 10 mixed.

State banks and credit unions gain parity

Nebraska banks, savings and loans, and credit unions have the same powers that federal institutions had on January 1, 2025. This can let them offer more services and compete on equal terms. These state-chartered institutions still pay any state taxes that apply.

Higher surety bonds for mortgage bankers

Mortgage bankers must keep a surety bond that matches last year’s Nebraska loan volume. Bond tiers range from $100,000 up to $200,000. The Director can require a new or extra bond, up to $1,000,000 total, if the bond is exhausted or too small.

Digital asset depositories rules and naming

Digital asset depository institutions can run non‑lending digital‑asset services and payments but cannot take U.S. demand deposits or make fiat consumer, mortgage, or commercial loans. They must keep their main and CEO offices in Nebraska, hold any U.S. currency at a qualifying FDIC‑insured bank, follow Bank Secrecy Act rules as of January 1, 2025, and keep a public file on community efforts. Customers must provide ID and ownership documents; entities must be in good standing and do lawful business in Nebraska or the host state. These institutions are exempt from the state money‑transmitter license. Naming rules let Financial Innovation–chartered digital asset depositories use “bank” with “digital asset,” and allow certain non‑institution digital‑asset depositories to use “bank” in their titles.

Stronger powers for failing banks

The Director of Banking and Finance can act quickly to merge, convert, or take possession of a troubled institution and can do so without a hearing during an emergency. Owners, depositors, or creditors can request a hearing within five days and receive one within ten days. Mutual savings associations that operated on July 15, 1998 and convert to state banks must meet federal capital rules as of January 1, 2025. The director can require members to pay to fix a capital shortfall.

Off-site loan closings and student savings

Banks with a Nebraska office can close loans at off‑site locations using authorized officers or agents. Banks can set up student savings account programs at nearby K–12 schools after notifying the department. These programs only open student accounts and take deposits.

Credit union branch and rule updates

If a credit union applies to open a branch and no hearing is needed, it must publish a county newspaper notice and file proof. A good‑standing, regulated credit union or its subsidiary is not treated as a loan broker. The law also uses January 1, 2025 to define employee benefit plans for investment limits; these investments still count toward the single‑issuer and total net‑worth caps unless the Director finds they are safe.

Temporary name use for applicants

While an application is pending, firms can use names with “trust,” “trust company,” “loan and building association,” “savings and loan association,” or “credit union.” They must stop using those words within 30 days if the application is denied or withdrawn. Applicants for listed charters or licenses can also use “bank” during review and must stop within 30 days if denied or withdrawn. The naming ban now applies to any “person,” not just an “individual.”

New interest rate for irrigation takings

When land inside an irrigation district is taken by eminent domain, the lump‑sum payment now uses the annual rate in section 45‑103. This replaces the former use of rate tables from the banking director. It changes how much condemning authorities must pay to cover future operation and maintenance cost increases.

Banking and credit rules start now

The law takes effect immediately upon passage and approval. Its banking and consumer rules now apply, including ATM surcharge notices, branch and lending updates, and protections for seniors against financial exploitation. Banks, credit unions, and lenders must comply right away. Consumers now get the updated disclosures and protections without delay.

ATM fee notices and switch rules

If an ATM will add a surcharge, it must show the fee on the screen or on paper before you finish, using the federal rule as of January 1, 2025. The director can suspend ATMs or switches that discriminate after notice and a hearing. Switch operators must file a contact notice 30 days before starting and then each year by September 1. Switch fees are not regulated by the department under this section.

Branching and mobile bank access changes

Banks can open unlimited branches with director approval. A bank that holds more than 22% of Nebraska deposits cannot open unlimited branches statewide, but it can keep all branches it already opened and add unlimited branches near its main office and in certain county classes. Banks can run mobile branches in their county and neighboring counties with approval. If no hearing is set, an applicant must publish a local notice and file an affidavit; a hearing is held if a substantive objection comes in within 15 days.

Securities rules for LLCs and brokers

LLC membership interests count as securities unless excluded, so more investor‑protection rules apply when they are sold. A broker‑dealer with no Nebraska office must be SEC‑registered and may not trade with more than five Nebraska people in any 12 months to keep the exclusion, aside from certain institutions. Several laws update which statutory definition of “security” they use.

State law aligned to 2025 federal rules

Nebraska law now follows listed federal acts and rules as they existed on January 1, 2025. State UCC funds‑transfer rules defer to the federal Electronic Fund Transfer Act as of that date. Franchise and rental‑purchase rules use the federal definitions and disclosures on that date to meet state law. Several older statutes, including UCC 4A‑108, are repealed.

Sponsors & Cosponsors

Sponsor

Mike Jacobson
Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 88 • No: 1

legislature vote • 3/6/2025

Final Reading

Yes: 47 • No: 1

legislature vote • 2/5/2025

Vote

Yes: 41 • No: 0 • Other: 8

Actions Timeline

Approved by Governor on March 11, 2025
3/11/2025legislature
Presented to Governor on March 6, 2025
3/6/2025legislature
President/Speaker signed
3/6/2025legislature
Passed on Final Reading with Emergency Clause 47-1*-1
3/6/2025legislature
Dispensing of reading at large approved
3/6/2025legislature
Enrollment and Review ST6 recorded
3/3/2025legislature
Enrollment and Review ST6 filed
3/3/2025legislature
Placed on Final Reading with ST6
3/3/2025legislature
Advanced to Enrollment and Review for Engrossment
2/25/2025legislature
Enrollment and Review ER9 adopted
2/25/2025legislature
Enrollment and Review ER9 filed
2/12/2025legislature
Placed on Select File with ER9
2/12/2025legislature
Advanced to Enrollment and Review Initial
2/5/2025legislature
Placed on General File
1/29/2025legislature
Notice of hearing for January 28, 2025
1/16/2025legislature
Referred to Banking, Commerce and Insurance Committee
1/16/2025legislature
Date of introduction
1/14/2025legislature

Bill Text

Introduced
1/14/2025
PDF
Enrolled / Slip Law
PDF
Final / Enacted
PDF

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