# Nebraska LB251: 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 Nebraska LB251, 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, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Mike Jacobson; status signed, last action 2025-03-11 (Approved by Governor on March 11, 2025); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB251-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB251 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: 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 - Status: signed - Chamber: legislature - Introduced: 2025-01-14 - Last action: 2025-03-11, Approved by Governor on March 11, 2025 - Sponsor: Mike Jacobson - Cosponsors: 0 - Subjects: Banking, Commerce and Insurance Committee - Touches household money: yes - Roll calls: 2 (88 yes, 1 no in all) - Economic provisions PRIA read: 13 ## Summary No summary available. ## Bill overview: provisions PRIA read - State banks and credit unions gain parity: benefit, medium. 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. - Off-site loan closings and student savings: benefit, low. 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. - Higher surety bonds for mortgage bankers: cost, medium. 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: mixed, medium. 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, f… - Stronger powers for failing banks: mixed, medium. 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 associatio… - Credit union branch and rule updates: mixed, low. 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… - Temporary name use for applicants: mixed, low. 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 licens… - New interest rate for irrigation takings: mixed, low. 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 c… - Banking and credit rules start now: mixed, low. 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… - ATM fee notices and switch rules: mixed, low. 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… - Branching and mobile bank access changes: mixed, low. 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… - Securities rules for LLCs and brokers: mixed, low. 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 i… - State law aligned to 2025 federal rules: mixed, low. 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… ## Sponsors and cosponsors - Sponsor: Mike Jacobson, Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-03-06 | legislature | Final Reading | pass | 47 | 1 | | | 2025-02-05 | legislature | Vote | fail | 41 | 0 | 8 | ## Actions (17) - 2025-03-11: Approved by Governor on March 11, 2025 (legislature) - 2025-03-06: Presented to Governor on March 6, 2025 (legislature) - 2025-03-06: President/Speaker signed (legislature) - 2025-03-06: Passed on Final Reading with Emergency Clause 47-1*-1 (legislature) - 2025-03-06: Dispensing of reading at large approved (legislature) - 2025-03-03: Enrollment and Review ST6 recorded (legislature) - 2025-03-03: Enrollment and Review ST6 filed (legislature) - 2025-03-03: Placed on Final Reading with ST6 (legislature) - 2025-02-25: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-02-25: Enrollment and Review ER9 adopted (legislature) - 2025-02-12: Enrollment and Review ER9 filed (legislature) - 2025-02-12: Placed on Select File with ER9 (legislature) - 2025-02-05: Advanced to Enrollment and Review Initial (legislature) - 2025-01-29: Placed on General File (legislature) - 2025-01-16: Notice of hearing for January 28, 2025 (legislature) - 2025-01-16: Referred to Banking, Commerce and Insurance Committee (legislature) - 2025-01-14: Date of introduction (legislature) ## Bill text - Introduced, 2025-01-14: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB251.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB251.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB251.pdf) ## Related bills - LB468: Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers (failed) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed) - LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed) - LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed) - LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB251.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB251.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB251.pdf) ## Related - [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109) - [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109) - [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109) - [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109) - [Nebraska bills](https://policyrisk.com/states/nebraska/bills) - [Nebraska state hub](https://policyrisk.com/states/nebraska) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/NE-LB251-109 (as of 2026-10-17).