All Roll Calls
Yes: 88 • No: 1
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
Sponsored By: Mike Jacobson
Signed by Governor
Banking, Commerce and Insurance Committee
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
18 provisions identified: 8 benefits, 2 costs, 8 mixed.
Banks can pause suspected scams
A bank may delay or refuse withdrawals, transfers, or ownership changes if it reasonably believes a senior or vulnerable adult is being exploited. The bank may tell trusted third parties, law enforcement, or the department when safe to do so. Banks and their staff are immune from lawsuits for good‑faith actions under this law.
Clearer rent‑to‑own disclosures
A consumer rental purchase agreement is a household‑use deal with an initial term of four months or less that renews with each payment and leads to ownership after all payments. Before you sign, the lessor must show a description of the item, each payment’s number, amount, and timing, and the total you must pay to own. Ads that mention payments or ownership must say it is a rental‑purchase, show the total of payments to own, and state you get no ownership until the total is paid.
Clearer rights for bank deposits
Any person, at any age, can be a bank depositor. You may withdraw by check, ATM, debit card, phone, or online. Anyone can lease a safe‑deposit box and must follow the lease terms. Nebraska law keeps the federal Electronic Fund Transfer Act rules as of January 1, 2025. State UCC funds‑transfer rules do not apply when the transfer is covered by that federal law.
More loans outside rate caps
The state interest‑rate cap does not apply to many listed loans. Examples include loans of $25,000 or more, certain business and farm loans, loans secured only by securities, reverse mortgages, some real‑property loans, and a $10 minimum charge in place of interest. Some savings and loan association loans are allowed up to 19%. Borrowers in these groups may pay higher rates or different fees.
$100,000 bond for mortgage bankers
Mortgage banker license or registration applicants must file a $100,000 surety bond with the Department of Banking and Finance. The bond covers the company’s mortgage loan originators and protects Nebraska residents with claims. A rider showing the required coverage and beneficiaries satisfies the filing.
Stronger rules for digital asset banks
Digital asset depositories must run Bank Secrecy Act programs under the rules in place on January 1, 2025. They must keep a public file that shows how they serve their community and handle complaints. Any U.S. dollars you place with them must sit at an FDIC‑insured bank with a Nebraska office or branch tie. Customers must give ID and ownership details so the firm can meet anti‑money‑laundering rules. Business customers must be in good standing and doing lawful work.
Tighter lending and insider limits
A bank’s loans to one borrower are capped at the higher of 25% of paid‑up capital plus surplus plus capital notes and debentures or 15% of unimpaired capital plus unimpaired surplus, with limited exceptions. Loans to insiders need advance board approval above the higher of $25,000 or 5% of unimpaired capital and surplus. Most credit to one insider is capped at $500,000 unless specially approved, and interested directors must abstain.
Updated powers for credit unions
State‑chartered credit unions have the same powers as federal credit unions active in Nebraska as of January 1, 2025. They may invest in listed instruments, with employee‑benefit plan investments capped at 15% of net worth per issuer and 25% in total unless the director allows more. New credit unions and many branch moves require public notice and hearings, with set timelines.
Updated rules for bank branches
Banks can open unlimited branches with the director’s approval. Large banks that hold over 22% of statewide deposits face location limits and can open unlimited branches only in the county of their main office. Banks may run mobile branches within their county and adjoining counties. Branch applications can trigger public hearings, set 30 to 90 days from filing, and applicants pay publication costs.
Student savings at local schools
Banks with a Nebraska main office or approved branch may set up savings account programs at local K–12 schools after notifying the department. Each student gets an individual account. The program only opens accounts and receives deposits into those student accounts.
Clear rules for ‘bank’ names and transfers
Only true banks and certain chartered institutions may use the word “bank” in Nebraska. More entities are exempt from Nebraska Money Transmitters Act licensing, including banks, credit unions, qualifying digital asset depositories, certain holding companies, and their authorized delegates. Some contractors that move government benefits are exempt under the federal rule set on January 1, 2025.
Faster action on failing banks
When a regulator reports a bank is unsafe or endangers depositors, the Director can quickly convert or merge its charter, assets, or branches into Nebraska banks. For Nebraska‑chartered institutions, the Director may take possession in emergencies. The Director may act without a hearing to protect depositors and savers.
More ATM access; switch filings
Banks may install any number of ATMs for deposits, withdrawals, transfers, payments, and balance checks. Nonbank ATMs must be sponsored by a bank, and an ATM is not a bank branch. Companies that run a “switch” in Nebraska must file a notice each year by September 1 and file 30 days before starting operations.
State banks get federal‑level powers
Beginning January 1, 2025, Nebraska‑chartered banks have the same powers and immunities as federal banks operating in Nebraska, subject to state taxes. Some older savings associations that convert to a state bank may keep their mutual form. Capital rules for those conversions follow the federal rule as of January 1, 2025.
Removes outdated finance statutes
The act repeals listed older sections of Nebraska banking, finance, and related laws, including some UCC and 2024 supplement sections. These provisions are no longer in force and the code is updated to reflect current rules.
Who counts as a loan broker
The law updates loan‑broker definitions and key terms. It clarifies activities that make someone a loan broker and lists exclusions. Banks, bank holding companies, trust companies, savings and loan associations, and credit unions are not treated as loan brokers under these sections.
Insurance funding agreements oversight
The Director of Insurance has sole authority to regulate funding agreements issued by admitted insurers. These agreements are not treated as life insurance, annuities, or securities for specified purposes. Issuance must use reasonable assumptions and may be placed in separate accounts, and the director may set rules.
Franchise sales: follow federal rule, notice
Franchises sold under the federal rule in place on January 1, 2025 are exempt from the Seller‑Assisted Marketing Plan Act if the seller files a notice before advertising or offering in Nebraska and pays a $100 fee. The Department may request a copy of the franchise disclosure and the seller must provide it within 10 business days. A seller‑assisted marketing plan does not include a security under the listed state definition.
Sponsors & Cosponsors
Sponsor
Mike Jacobson
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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
3/12/2025legislatureDispensing of reading at large approved
3/6/2025legislaturePassed on Final Reading with Emergency Clause 47-1*-1
3/6/2025legislaturePresident/Speaker signed
3/6/2025legislaturePresented to Governor on March 6, 2025
3/6/2025legislaturePlaced on Final Reading with ST6
3/3/2025legislatureEnrollment and Review ST6 filed
3/3/2025legislatureEnrollment and Review ST6 recorded
3/3/2025legislatureEnrollment and Review ER9 adopted
2/25/2025legislatureAdvanced to Enrollment and Review for Engrossment
2/25/2025legislaturePlaced on Select File with ER9
2/12/2025legislatureEnrollment and Review ER9 filed
2/12/2025legislatureAdvanced to Enrollment and Review Initial
2/5/2025legislaturePlaced on General File
1/29/2025legislatureReferred to Banking, Commerce and Insurance Committee
1/16/2025legislatureNotice of hearing for January 28, 2025
1/16/2025legislatureDate of introduction
1/14/2025legislature
Bill Text
Introduced
3/12/2025
Enrolled / Slip Law
Final / Enacted