Neb. Rev. Stat. § 45-338 — NE Code / Chapter 45 / Section 45-338
View Statute 45-338
Status: in_force

(1) An applicant for a license to be issued pursuant to the Nebraska Installment Loan and Sales Act shall file with the department a surety bond in the amount of fifty thousand dollars, furnished by a surety company authorized to do business in this state. Such bond shall be increased by an additional fifty thousand dollars for each branch location of the applicant that is licensed under the Nebraska Installment Loan and Sales Act. The bond shall be for the use of the State of Nebraska and any Nebraska resident who may have claims or causes of action against the applicant. The surety may cancel the bond only upon thirty days' prior written notice to the director.

(2)(a) Except as provided in subsection (3) of this section, an installment loan licensee who employs or enters into an independent agent agreement with an individual required to obtain a mortgage loan originator license pursuant to the Residential Mortgage Licensing Act shall maintain the surety bond required by subsection (1) of this section and a supplemental surety bond. The supplemental surety bond posted by such installment loan licensee shall cover all mortgage loan originators who are employees or independent agents of such licensee. The supplemental surety bond shall be for the use of the State of Nebraska and any Nebraska resident who may have claims or causes of action against such licensee arising from a transaction involving a residential mortgage loan, as defined in section 45-702 , or against an individual who is a mortgage loan originator employed by, or in an independent agent relationship with, the licensee. The initial amount of the supplemental surety bond shall be one hundred thousand dollars.

(b) Upon filing of the mortgage report of condition required by section 45-345 , a licensee shall maintain or increase its supplemental surety bond to reflect the total dollar amount of the closed residential mortgage loans originated or serviced in this state in the preceding year in accordance with the table in this subsection. A licensee may decrease its supplemental surety bond in accordance with the table in this subsection if the supplemental surety bond required is less than the amount of the supplemental surety bond on file with the department.

Dollar Amount of Closed or Serviced Surety Bond Required Residential Mortgage Loans $0.00 through $5,000,000.00 $100,000 $5,000,000.01 through $10,000,000.00 $125,000 $10,000,000.01 through $25,000,000.00 $150,000 $25,000,000.01 and over $200,000

(3)(a) A person who employs or enters into an independent agent agreement with an individual required to obtain a mortgage loan originator license pursuant to the Residential Mortgage Licensing Act shall maintain a surety bond for each license that he, she, or it holds as required in subsection (1) of this section and shall also post one supplemental surety bond which shall cover all licenses held by such person. The supplemental surety bond posted by such person shall cover all mortgage loan originators who are employees or independent agents of such person. The supplemental surety bond shall be for the use of the State of Nebraska and any Nebraska resident who may have claims or causes of action against such person arising from a transaction involving a residential mortgage loan or against an individual who is a mortgage loan originator employed by, or in an independent agent relationship with, the person. The amount of such supplemental surety bond shall be as follows:

(i) The initial supplemental surety bond shall be in the amount of one hundred thousand dollars; and

(ii) Upon filing of the mortgage report of condition required by section 45-345 , the person's supplemental surety bond shall be maintained in accordance with subdivision (2)(b) of this section. For purposes of calculating the amount of the bond that is required, the total dollar amount of the closed loans shall include all residential mortgage loans in this state closed by the person.

(b) A person who holds one or more installment loan licenses pursuant to the Nebraska Installment Loan and Sales Act and a mortgage banker license pursuant to the Residential Mortgage Licensing Act shall not be required to post and maintain a supplemental surety bond if such person meets the following conditions:

(i) The person maintains a surety bond as provided in subsection (1) of this section for each installment loan license the person holds;

(ii) The person maintains a mortgage banker surety bond as provided in section 45-724 ; and

(iii) The mortgage banker surety bond covers all transactions involving residential mortgage loans, including such transactions done pursuant to the person's installment loan license or licenses.

(4) Should the department determine that an installment loan licensee does not maintain a supplemental surety bond in the amount required by subsection (2) or (3) of this section, the department shall give written notification to the licensee requiring the licensee to increase the surety bond within thirty days to the amount required by subsection (2) or (3) of this section.

(5) The bond or a substitute bond required by subsection (1) of this section, applicable to all licensees under the Nebraska Installment Loan and Sales Act, shall remain in effect or the licensee shall immediately cease conducting licensable activity. If a licensee fails to maintain a surety bond as required under this section, the department may issue a notice of cancellation of the license in lieu of revocation proceedings.

Laws 1965, c. 268, § 5, p. 760;

Laws 1969, c. 379, § 2, p. 1342;

Laws 1975, LB 163, § 1;

Laws 1979, LB 478, § 1;

Laws 1979, LB 492, § 1;

Laws 1980, LB 276, § 9;

Laws 1986, LB 143, § 2;

Laws 1992, LB 269, § 2;

Laws 2001, LB 146, § 1;

Laws 2003, LB 71, § 1;

Laws 2025, LB474, § 59.

Residential Mortgage Licensing Act, see section 45-701 .