All Roll Calls
Yes: 291 • No: 0
NebraskaLB474109th Legislature 1st and 2nd SessionslegislatureWALLET
Change and eliminate provisions relating to installment sales and installment loans and the Nebraska Money Transmitters Act, rename the Nebraska Installment Sales Act, transfer provisions of and eliminate the Nebraska Installment Loan Act, and change provisions of the Medicaid Access and Quality Act
Sponsored By: Banking, Commerce and Insurance Committee
Signed by Governor
Banking, Commerce and Insurance Committee
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Bill Overview
Analyzed Economic Effects
43 provisions identified: 14 benefits, 12 costs, 17 mixed.
Stronger borrower protections and remedies
Lenders cannot deny a loan or charge worse terms because of age, race, religion, sex, marital status, disability, or because you receive public benefits like Social Security. Collectors cannot threaten violence, use obscene language, lie about debts, charge unauthorized fees, send postcards, or call you at work if your employer forbids it. If a seller overcharges beyond what the law allows (not a bona fide error), parts of the contract become void: the excess charges, up to $1,000 of allowed finance charges, and up to $4,000 of principal. For other violations, up to $500 of finance charges and $1,000 of principal are void. You can sue to recover payments within one year after the last installment’s due date.
Stronger protections on reverse mortgages and foreclosures
A reverse mortgage is nonrecourse to you except for fraud or waste, and you do not pay principal or interest until it is due. You can prepay without a penalty. The lender’s one‑time origination fee is capped at 2% of the home’s appraised value, and if the lender fails to make a required advance and does not cure, it forfeits the greater of $200 or 1% of the missed advance. Starting October 1, 2025, vendees under a contract for deed are treated as homeowners for foreclosure protections.
Annual renewals and reporting for transmitters
Each licensee files an audited financial statement within 90 days after its fiscal year ends. You must renew every year and pay either a $750 fee (no more than 60 days before expiration) or, in another section, a $250 fee due by December 31 with a renewal report. Within 45 days after each quarter, you file a condition report and a separate authorized‑delegate list. You must keep key records for five years and make them available within seven business days. You and your delegates must file required Bank Secrecy Act reports. Report events fast: 1 business day for bankruptcy, receivership, dissolution, reorganization, or revocation elsewhere; 3 business days for felony charges or convictions and for security breaches (send resident notices). Also tell the director within 30 days about any material change to your application and within 5 business days about bankruptcy petitions, receivership filings, license actions in other states, or bond cancellations.
Bond and security rules for transmitters
At application, you must file a $100,000 surety bond; the director can raise it to $250,000. On renewal, bond size may track your last four quarters of Nebraska volume: $100,000 (up to $2 million), $150,000 (over $2 million to $4 million), $200,000 (over $4 million to $6 million), or $250,000 (over $6 million). Another section sets the bond at the greater of $100,000 or 100% of your average daily Nebraska liability, capped at $500,000. If your bond is short, you have 30 days to increase it, and the director can require a new or extra bond up to $500,000. A bond must stay on file at least five years after you stop operating. You may pledge approved U.S., state, or local government securities instead of a bond. Bonds need 30 days’ notice to cancel, and past liabilities remain covered.
Higher bonds and fines for lenders
Installment loan and sales companies must show at least $100,000 in audited net worth. They must file a $50,000 surety bond plus $50,000 more for each licensed branch. Application fees are $150 per license, plus $100 per branch, and any processing fee. Licensees pay the department’s exam and investigation costs; nonlicensees investigated must pay within 30 days. Willful violations can bring fines up to $5,000 per violation, plus investigation costs; unpaid amounts can trigger liens on Nebraska assets. Money collected under this act is credited to the state’s Financial Institution Assessment Cash Fund.
Loan rates capped, some exemptions
Installment loans are capped at 24% a year on the first $1,000 and 21% on the rest. Loans over $3,000 and under $25,000 cannot run longer than 145 months unless secured by a mobile home. Retail installment contracts must show an APR and cannot exceed 18% per year (a $10 minimum finance charge is allowed). Separately, some loans and installment contracts made under this Act are exempt from Nebraska’s usual interest limits, and the parties can agree in writing to any interest rate for those contracts.
Caps on loan charges and terms
Finance charges (time‑price differentials) are capped at 18% per year, with a $10 minimum. Origination fees are capped at $10, except for farm or industrial equipment: up to $100 if the cash price is under $25,000, or up to $250 if $25,000 or more. Origination fees must be refunded if you cancel in the first 30 days. For loans of $3,000 or less, payments cannot run past 36 months; if a lender breaks this rule, it cannot collect interest and must refund any interest or charges paid. If overcharges occur, parts of the contract become uncollectible, with void thresholds up to $1,000 of finance charge and $4,000 of principal in some violations.
Damages if a lender discriminates
If a licensee violates the nondiscrimination rule, an individual borrower can recover $500 to $1,000, plus costs and reasonable attorney’s fees. The lender is not liable if it fixes the error before you give written notice or if the violation was an honest, unintentional mistake.
Prepay loans and get a rebate
You can prepay one or more installments during business hours. If you pay off in full after the first due date, you get a rebate of unearned finance charges calculated by the contract’s actuarial method. The lender may apply prepayments first to charges due through the payment date. The lender may deduct unpaid default or deferment charges, and no rebate under $1 is required. Acceleration alone does not trigger a rebate.
Exams, fines, and response deadlines
If the department sends an investigation notice, you must respond within 21 days. Each day late is a separate violation. After a hearing, the director can fine up to $5,000 per violation and charge investigation costs. Unless told otherwise, you must pay all reasonable costs of examinations of you and your delegates.
Money transmitter licensing and background rules
To get a Nebraska money‑transmitter license, you must use the state form and pay a $1,500 nonrefundable fee. You must give detailed company info, bank accounts, planned delegates, sample forms, and recent criminal and litigation history. Control persons and key individuals must provide fingerprints for an FBI check, credit and legal history, or a foreign background report if they lived abroad. You must be organized and in good standing in the U.S., be registered to do business in Nebraska, and keep a U.S. office. The department uses NMLS for licensing and may require NMLS fees or processing fees collected by that system.
Net worth and capital minimums
You must meet net‑worth standards while applying and after you are licensed. Some sections require at least $50,000 in net worth. Another section requires the greater of $100,000 or a tiered share of total assets: 3% of the first $100 million, 2% of $100 million to $1 billion, and 0.5% above $1 billion. You show this with audited financials unless the director allows unaudited statements, and the director may grant exemptions for good cause.
Tighter licensing rules for money transmitters
You must be licensed to provide money transmission in Nebraska; licenses are not transferable. Applications must include detailed business, criminal, and financial records, delegate lists, contracts, and bank information. Licensees must meet ongoing statutory standards at all times. Buying control of a licensee needs the director’s prior approval and a $1,500 fee; silence after 60 days means approval. When you add a key individual, notify the director within 15 days and submit required info within 40 days; a 90‑day window applies for disapproval. Authorized delegates cannot use subdelegates.
Tighter rules for money transmitters
Money transmitters face stricter investment and oversight rules. Receivables from authorized delegates under 7 days old can be only up to 50% of permitted investments, with any one delegate capped at 10%. Short‑term assets each are capped at 20% and at 50% in total; cash at foreign banks is capped at 10% and must meet safety and sanctions checks. The director can examine with or without notice, issue consent orders, and require a 30‑day control‑change notice (with a possible 30‑day extension). Licenses and delegate designations can be suspended or revoked, and cease‑and‑desist orders take effect immediately when harm or insolvency risks exist.
Installment lenders face new licenses and fees
To make, buy, or service consumer loans, you must hold an installment loan license. Sales finance companies must hold an installment sales license. Applicants must show at least $100,000 in net worth and file a surety bond: $50,000 plus $50,000 for each branch, and an extra $100,000–$200,000 if you employ mortgage loan originators. Filing fees are $500 for a loan license and $150 for a sales license; annual renewals cost $250 (loan) and $150 (sales), with branch renewals at $125 and $100. You must file an annual CPA audit, a sworn March 1 report, and any required mortgage report of condition. Moving an office or changing control needs 30 days’ NMLS notice and a $150 fee; name changes need 30 days’ notice. Initial licenses last until the next December 31, incomplete applications can be deemed abandoned after 120 days, and certain general sections (45‑1,105 to 45‑1,110) do not apply to these licensees.
Stronger enforcement for installment lenders
The director can make rules, hold hearings, and suspend or revoke a license for fraud, willful violations, or defrauding buyers. Certain violations are a Class II misdemeanor. If a violation happens in making or collecting a loan, the lender must refund all interest and charges and pay costs and attorney fees, unless it proves a bona fide error. Officers and owners who took part can be fined up to $5,000 per violation plus investigation costs. Appeals and hearings follow the Administrative Procedure Act.
Clearer sales contracts and capped fees
Retail installment contracts must be written, signed, and a copy given to you at signing. They must show the cash price, down payment, finance charges, payment schedule, and key fees. If a payment is 15+ days late, the late fee is capped at 5% of the installment or $25, whichever is less, and returned‑check fees are capped at $15. If you and the seller agree to delay a payment, the seller may charge a reasonable flat service fee plus the contract rate for the extra time.
Rules for preauthorized loans
Licensed lenders may offer preauthorized loans with advances posted to your account. Billing is monthly, and the minimum monthly payment is at least 2% if your average daily balance is $3,000 or less, or 1.5% if over $3,000. Charges are not compounded (except certain insurance). If credit life or disability insurance is sold, it must cover the full balance at death or minimum payments during disability and cannot be canceled until you are 90 days past due. The lender may advance premiums to keep coverage in force and charge your account. The department may approve record systems, and some older sections do not apply to these accounts.
Rules for authorized money transfer delegates
Before using a delegate, you must adopt written policies, sign a contract, and run a risk‑based background check. The contract must cover duties, compliance with the Bank Secrecy Act and USA PATRIOT Act, recordkeeping, remittance, trust status, and inspection by the director. Delegates must follow the Act. Money they collect (net of fees) is held in trust for the licensee, even if commingled. A delegate acting under a qualifying contract does not need its own Nebraska license. If your license status changes, within five business days you must show the director you told all delegates to stop.
Safe investments to protect customer funds
Licensees may back customer funds only with listed safe assets, such as cash, insured deposits, top‑rated securities, U.S. and state debt, and some money‑market funds. You must keep permissible investments worth at least the face amount of all outstanding payment instruments and stored value. If the company goes bankrupt, these investments are held in trust for customers. An irrevocable standby letter of credit that meets strict terms can count as a permissible investment, and the director may draw it if certain distress events occur or before expiration.
New mortgage licensing and branch rules
Starting October 1, 2025, home‑based and third‑party locations used to serve Nebraska residents count as branch offices and must follow branch rules. Mortgage loan originators must be covered by the required surety bond, and their licenses go inactive when their employer’s license or registration ends. Licensed installment loan companies may act as and call themselves mortgage bankers. Sales finance companies that only buy or service mobile‑home or trailer installment sales are exempt from mortgage‑banker licensing.
Sales finance firms face licensing checks
Sales finance companies must be licensed in Nebraska, even without an in‑state office. The department can inspect businesses and records, investigate complaints, and compel documents; licensees must answer investigation requests within 21 calendar days. Banks and licensed installment loan companies do not need a separate sales finance license, and sellers who are not sales finance companies may charge the time‑price differential if they follow the law. Licenses cannot be transferred; since January 1, 2020, separate licenses are not required for each branch, but branches must follow the Act.
Licensing now runs through NMLS
Installment loan and sales licensees must apply and renew through the Nationwide Mortgage Licensing System. The department may require fingerprints, background and credit checks, education, testing, and fees through NMLS. The department may let NMLS collect licensing fees and a processing fee, will report violations to NMLS, and must offer a way to challenge errors. NMLS must have privacy and breach rules, and confidential submissions stay protected. On written request, the director must provide the NMLS contract’s breach terms and the latest audited NMLS report.
Modernized rules for money transmitters
The law updates who needs a money transmitter license and who is exempt. The application fee is $1,000. The director can use the national NMLS system, coordinate with other states, demand records, and require proof for claimed exemptions. The director can issue cease‑and‑desist orders, seek injunctions or receivers, and fine up to $5,000 per act for violating an order; risky takeovers can be blocked, with a right to request a hearing within 15 business days. Exams and records are confidential but may be shared with regulators.
Old finance and loan laws repealed Oct 2025
Effective October 1, 2025, the state repeals many listed finance and installment‑loan statutes. Additional enumerated finance sections are also repealed on that date. The law also repeals sections 44‑502, 44‑4109.01, and section 4 of LB 527. This cleanup restructures market rules for lenders and related businesses under the new framework in this act.
Advance notice before life insurance lapse
For life or endowment policies issued or delivered in Nebraska on or after January 1, 2026, insurers must give at least 15 days’ notice before a lapse for nonpayment. The notice must go to the owner and any assignee by email or mail to the last‑known address.
Associations can lend to members
State‑chartered building and loan or savings associations may make loans to their members under the Installment Loan and Sales Act. The association must give each borrower a loan settlement statement that lists fees paid or owed and keep a copy on file.
Loan insurance limits and payoff steps
Lenders can sell certain insurance with a loan, but they cannot require it to make the loan. Premiums must follow state‑set rates, and unearned premiums must be refunded or credited when required. If the lender arranges insurance, it must give you the policy or certificate within 15 days. Within 30 days after you pay off a loan, the lender must mark documents “Paid” or “Canceled,” release liens, and return notes or copies.
Receipts and fraud holds for transfers
Money transmitters must give senders a receipt with key details, fees, and any taxes. They must forward your money as agreed unless they reasonably suspect fraud or a crime; if they hold funds, they must tell you why unless the law bars it. They must tell the regulator within three business days of a data breach involving a Nebraska resident and share any resident notice at the same time or before.
Stronger protections on wage assignments
Selling or assigning wages is treated as a loan, and the difference counts as interest. You cannot sign a blank security agreement or wage assignment. An assignment seeking more than the loan plus interest and charges is invalid. If you are married, your spouse must give written consent.
Clearer health plan info and provider rights
Insurers must give you clear information on what is covered, key exclusions, prior authorization and reviews, and your costs. You can request customer‑survey results. Providers must be able to apply for networks at least yearly and can appeal decisions. Except for fraud or imminent harm, providers get a chance to complete a corrective plan before termination, and cannot be excluded just for treating many complex or costly patients.
Paystub access and payroll notice rules
A payroll‑processing licensee must send clients reports of payroll obligations before funds are taken. The licensee must also make paystubs or an equivalent statement available to employees. This does not apply when the client names the recipients and is responsible for those disclosures.
Who is exempt from transmitter licensing
The law lists who does not need a Nebraska money‑transmitter license. Exempt groups include the U.S. government and USPS, states and local governments, banks and credit unions (and some related entities), certain government‑benefit contractors, some payment‑system operators, and certain licensed collection, credit‑service, or debt‑management providers. Authorized delegates of listed non‑bank institutions still must meet delegate rules.
Receiver rules for digital asset depositories
The director may place a digital‑asset depository into liquidation or appoint a receiver if it is unsafe, has failed, or endangers customers. This applies when it fails key capital or operating rules or cannot pay customers on demand.
Mortgage originators for installment lenders need licenses
If you work as a mortgage loan originator for an installment loan licensee, you must hold a mortgage loan originator license. You must follow the Residential Mortgage Licensing Act rules.
Fees to open and renew installment branches
To open a branch, a licensee must apply on the director’s form and pay a fee. An installment loan branch costs $250; an installment sales branch costs $100. To renew an installment sales license by December 31, the fee is $150 plus $100 for each branch and any allowed processing fee.
Fast state notice on data breaches
Licensees must tell the Department of Banking and Finance within three business days after learning of a data breach that exposes a Nebraska resident’s personal information. If the law requires notices to residents, the licensee must send the department a copy at or before the same time. Law enforcement can delay these notices if they would hinder a criminal probe, but notices must go out as soon as that risk ends.
How equal‑payment loans charge interest
For loans with equal monthly payments, a lender may precompute charges at the agreed rate, add them to the principal, and then split each payment between principal and those charges as the law requires. This sets clear rules for how your payments are applied.
Loan fee caps and clear disclosures
Origination fees on installment contracts are capped: $10 for most sales, $100 for machinery under $25,000, and $250 for $25,000 or more. If you cancel within 30 days, the origination fee must be refunded. Lenders must give federal credit disclosures in English and provide a copy of any signed loan document with a clear NOTICE TO CONSUMER; you may prepay without penalty. On request, you can get payoff information in 10 business days; the first request is free and later requests within 60 days may cost up to $10. You can get copies of records for up to $0.50 per page. Starting October 1, 2025, credit services organizations cannot charge brokerage or other fees on loans covered by this Act.
Clearer rules for installment sales
The law clarifies key terms, including who counts as a consumer and that installment sales generally run no longer than 145 months. Starting October 1, 2025, a lease that is really an installment sale is not treated as a rental‑purchase deal and must follow installment‑sale rules.
Which loans follow mortgage rules
Some loans are excluded from the Installment Loan and Sales Act. Certain loans made on real property must follow the Residential Mortgage Licensing Act, though an installment lender need not also get a mortgage banker license. The law also says state bank credit card rates are not comparable to small‑loan rates under federal most‑favored‑lender rules.
Oversight assessments and digital‑asset charter fee
The director can hire staff and charge annual assessments to state‑chartered financial institutions and holding companies. Digital‑asset depository assessments must cover supervision costs, and new charters require a one‑time $50,000 fee. Beginning October 1, 2025, license and exam fees collected under the Installment Loan and Sales Act go to the State Treasurer for the Financial Institution Assessment Cash Fund.
New HMO premium tax funds Medicaid
Beginning January 1, 2026, Nebraska taxes up to 6% of non‑Medicare HMO premiums written in the state. All receipts go to the Medicaid Access and Quality Fund. By August 1, 2025, the state health agency must file for federal approval to draw matching funds. HMOs may pass some of this cost into premiums, while Medicaid gains dedicated funding.
Sponsors & Cosponsors
Sponsor
Banking, Commerce and Insurance Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 4/24/2026
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 4/24/2026
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 5/14/2025
Final Reading
Yes: 49 • No: 0
legislature vote • 4/23/2025
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 4/9/2025
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 4/9/2025
Vote
Yes: 36 • No: 0 • Other: 13
legislature vote • 4/9/2025
Vote
Yes: 38 • No: 0 • Other: 11
Actions Timeline
Provisions/portions of LB232 amended into LB474 by AM669
6/6/2025legislatureProvisions/portions of LB278 amended into LB474 by AM669
6/6/2025legislatureProvisions/portions of LB473 amended into LB474 by AM669
6/6/2025legislatureApproved by Governor on May 20, 2025
5/21/2025legislatureDispensing of reading at large approved
5/14/2025legislaturePassed on Final Reading 49-0-0
5/14/2025legislaturePresident/Speaker signed
5/14/2025legislaturePresented to Governor on May 14, 2025
5/14/2025legislaturePlaced on Final Reading with ST27
4/29/2025legislatureEnrollment and Review ST27 filed
4/29/2025legislatureEnrollment and Review ST27 recorded
4/29/2025legislatureEnrollment and Review ER48 adopted
4/23/2025legislatureJacobson AM1041 withdrawn
4/23/2025legislatureJacobson AM1080 filed
4/23/2025legislatureJacobson AM1080 adopted
4/23/2025legislatureAdvanced to Enrollment and Review for Engrossment
4/23/2025legislaturePlaced on Select File with ER48
4/22/2025legislatureEnrollment and Review ER48 filed
4/22/2025legislatureJacobson AM1041 filed
4/15/2025legislatureJacobson AM669 adopted
4/9/2025legislatureBanking, Commerce and Insurance AM307 adopted
4/9/2025legislatureAdvanced to Enrollment and Review Initial
4/9/2025legislatureJacobson AM669 to AM307 filed
3/31/2025legislatureBanking, Commerce and Insurance priority bill
3/13/2025legislaturePlaced on General File with AM307
3/10/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted