reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1301 - Cooperative corporation; formation; general purposes and powers; exceptions; action by cooperative corporation; vote required.

21-1301.
Cooperative corporation; formation; general purposes and powers; exceptions; action by cooperative corporation; vote required.
Any number of persons, not less than ten, or one or more cooperative companies, may form and organize a cooperative corporation for the transaction of any lawful business by the adoption of articles of incorporation in the same manner and with like powers and duties as is required of other corporations except as provided in sections 21-1301 to 21-1306. Nothing in sections 21-1301 and 21-1303 shall be deemed to apply to electrical cooperatives or electric member associations. If the Nebraska Model Business Corporation Act requires an affirmative vote of a specified percentage of stockholders before action can be taken by a corporation, such percentage for a cooperative corporation shall be of the votes cast on the matter at the stockholders' meeting at which the same shall be voted upon.
Source
Laws 1911, c. 32, § 2, p. 196;
R.S.1913, § 734;
Laws 1919, c. 197, § 3, p. 879;
Laws 1921, c. 28, § 1, p. 161;
C.S.1922, § 642;
Laws 1925, c. 79, § 1, p. 243;
C.S.1929, § 24-1301;
R.S.1943, § 21-1301;
Laws 1963, c. 102, § 1, p. 422;
Laws 1975, LB 156, § 1;
Laws 1995, LB 109, § 203;
Laws 2014, LB749, § 262.
Cross References
Nebraska Model Business Corporation Act, see section 21-201.
Transactions exempt from Securities Act of Nebraska, see section 8-1111.
Annotations
Organization of cooperative association as a corporation is authorized. Schmeckpeper v. Panhandle Coop. Assn., 180 Neb. 352, 143 N.W.2d 113 (1966).
Farmers' cooperative company organized under this article is not necessarily exempt from federal income tax. Farmers Union Co-op. Co. of Guide Rock v. Commissioner of Internal Revenue, 90 F.2d 488 (8th Cir. 1937).
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1302 - Cooperative corporation; articles of incorporation; contents.

21-1302.
Cooperative corporation; articles of incorporation; contents.
Every such cooperative company shall provide in its articles of incorporation:
(1) That the word cooperative shall be included in its corporate name and that it proposes to organize as a cooperative corporation;
(2) That dividends on the capital stock shall be fixed but shall not exceed eight percent per annum of the amount actually paid thereon;
(3) That the net earnings or savings of the company remaining after making the distribution provided in subdivision (2) of this section, if any, shall be distributed on the basis of or in proportion to the amount or value of property bought from or sold to members, or members and other patrons, or of labor performed or other services rendered to the corporation. This subdivision shall not be so interpreted as to prevent a cooperative company from declaring patronage dividends at different rates upon different classes or kinds or varieties of goods handled. This subdivision and subdivision (2) of this section shall not be so interpreted as to prevent a company from appropriating funds for the promotion of cooperation and improvement in agriculture;
(4) That the articles of incorporation or the bylaws of the company shall give a detailed statement of the method followed in distributing earnings or savings;
(5) The registered office and street address of such registered office;
(6) The current registered agent and the name and street address of such registered agent. A post office box number may be provided in addition to the street address; and
(7) The name and street address of each incorporator.
Source
Laws 1921, c. 28, § 2, p. 161;
C.S.1922, § 643;
Laws 1925, c. 79, § 2, p. 243;
C.S.1929, § 24-1302;
R.S.1943, § 21-1302;
Laws 1963, c. 102, § 2, p. 423;
Laws 1967, c. 103, § 1, p. 318;
Laws 2008, LB379, § 5.
Annotations
The requirement of the accumulation of a surplus equal to twenty percent does not restrict the corporation from providing a greater amount. Schmeckpeper v. Panhandle Coop. Assn., 180 Neb. 352, 143 N.W.2d 113 (1966).
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1303 - Cooperative corporation; additional powers; stockholder vote; conditions; adoption of articles and bylaws.

21-1303.
Cooperative corporation; additional powers; stockholder vote; conditions; adoption of articles and bylaws.
Every cooperative company which shall organize under sections 21-1301 and 21-1302 shall have power (1) to regulate and limit the right of stockholders to transfer their stock, (2) to restrict stock ownership to producers of agricultural products and, if such restriction is adopted, to provide an equitable procedure for redeeming the stock of any holder who is determined not to be a producer of agricultural products, (3) to provide that each individual holder of common stock may be limited to one vote per person, regardless of the number of shares of stock which he or she may own, at any stockholders' meeting and that such vote may be cast only in person, or by a signed, written vote if the stockholder has been previously notified in writing of the exact motion or resolution on which the vote is taken, (4) to limit the amount of capital stock that any one person or corporation may own either directly or indirectly, (5) to prohibit or to limit the amount or percentage of the total business which may be transacted with nonmembers, (6) to set aside each year to a surplus fund a portion of the savings of the company over and above all expenses and dividends or interest upon capital stock which surplus may be used for conducting the business of the corporation, and (7) to adopt articles and bylaws for the management and regulation of the affairs of the company which shall set the number of directors, the terms of such directors, including any provisions for the staggering of such terms, the number or percentage of stockholders or shares of stock required to be present, in person or by proxy, in order to constitute a quorum at each stockholders' meeting, which number or percentage shall not be less than ten percent of the stockholders but never more than fifty nor less than five stockholders. Members represented by signed, written vote may be counted in computing a quorum only on those questions as to which the signed, written vote is taken.
Source
Laws 1911, c. 32, § 3, p. 196;
R.S.1913, § 735;
Laws 1919, c. 57, § 1, p. 161;
Laws 1921, c. 28, § 3, p. 162;
C.S.1922, § 644;
Laws 1925, c. 79, § 3, p. 244;
C.S.1929, § 24-1303;
R.S.1943, § 21-1303;
Laws 1961, c. 79, § 1, p. 288;
Laws 1963, c. 102, § 3, p. 423;
Laws 1965, c. 89, § 1, p. 356;
Laws 1975, LB 156, § 2;
Laws 1981, LB 283, § 1.
Annotations
Cooperative associations are given power to engage in enterprises requiring capital. Schmeckpeper v. Panhandle Coop. Assn., 180 Neb. 352, 143 N.W.2d 113 (1966).
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1304 - Cooperative corporation; contracts with members; provisions; damages for breach.

21-1304.
Cooperative corporation; contracts with members; provisions; damages for breach.
The contracts mentioned in section 21-1303 may require the members to sell, for any period of time not over five years, all or a stipulated part of their specifically enumerated products through the association or to buy specifically enumerated supplies exclusively through the association, but in such case a reasonable period during each year after the first two years of the contract shall be specified during which any member, by giving notice in prescribed form, may be released from such obligation thereafter. In order to protect itself in the necessary outlay, which it may make for the maintenance of its services, and likewise to reimburse the association for any loss or damage which it or its members may sustain through a member's failure to deliver his products to, or to procure his supplies from the association, the association may stipulate that some regular charge shall be paid by the members for each unit of goods covered by such contract, whether actually handled by the association or not. In case it is difficult or impracticable to determine the actual amount of damage suffered by the association or its members through such failure to comply with the terms of such contract, the association and the members may agree upon a sum to be paid as liquidated damages for the breach of the contract, the amount to be stated in the contract.
Source
Laws 1925, c. 79, § 3, p. 245;
C.S.1929, § 24-1303;
R.S.1943, § 21-1304.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1305 - Cooperative corporation; fees, filings, and reports.

21-1305.
Cooperative corporation; fees, filings, and reports.
The fees for the incorporation of cooperative companies shall be the same as those required by law of other corporations. Such cooperative corporations shall be required to make the same reports and filings as is required of other corporations.
Source
Laws 1911, c. 32, § 5, p. 197;
R.S.1913, § 737;
Laws 1921, c. 28, § 4, p. 162;
C.S.1922, § 645;
C.S.1929, § 24-1304;
R.S.1943, § 21-1305.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1306 - Cooperative; use of word restricted; penalty for violation.

21-1306.
Cooperative; use of word restricted; penalty for violation.
No corporation, company, firm or association which shall not be incorporated as a cooperative corporation shall adopt or use the words cooperative or any abbreviation thereof as a part of its name. Any person or company violating the provisions of this section shall be guilty of a Class V misdemeanor for each day's continuance of the offense.
Source
Laws 1921, c. 28, § 5, p. 162;
C.S.1922, § 646;
C.S.1929, § 24-1305;
R.S.1943, § 21-1306;
Laws 1977, LB 40, § 78.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1333 - Cooperative farm land company; incorporation; purposes; general powers.

21-1333.
Cooperative farm land company; incorporation; purposes; general powers.
Any number of persons, not less than five, may form and organize a cooperative farm land company, with or without capital stock, for the purpose of facilitating the acquisition of agricultural and grazing lands by farmers and stock raisers, by the adoption of articles of incorporation in the same manner and with like powers and duties as other corporations, except as herein provided.
Source
Laws 1941, c. 38, § 1, p. 153;
C.S.Supp.,1941, § 24-2101;
R.S.1943, § 21-1333.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1334 - Cooperative farm land company; articles of incorporation; contents; new members.

21-1334.
Cooperative farm land company; articles of incorporation; contents; new members.
Every such cooperative farm land company shall provide in its articles of incorporation (1) that the word cooperative shall be included in its corporate name and that it proposes to organize as a cooperative farm land company; (2) if organized with capital stock, that no one person shall own either directly or indirectly more than five percent of the capital stock of the company; (3) if organized without capital stock, whether the property rights and interest of each member shall be equal or unequal; and if unequal, the general rule or rules applicable to all members by which the property rights and interests, respectively, of each member may and shall be determined and fixed; and the association shall have the power to admit new members who shall be entitled to share in the property of the association with the old members, in accordance with such general rule or rules; and (4) that dividends on the capital stock shall be fixed by the company, but shall in no event exceed six percent per annum of the amount actually paid thereon.
Source
Laws 1941, c. 38, § 2, p. 153;
C.S.Supp.,1941, § 24-2102;
R.S.1943, § 21-1334.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1336 - Cooperative farm land company; annual report; contents; fee.

21-1336.
Cooperative farm land company; annual report; contents; fee.
(1) Each cooperative farm land company organized hereunder shall make a report in writing to the Secretary of State annually during the month of November in such form as the secretary may prescribe for the reports of nonprofit corporations. The report shall be signed and sworn to, before an officer authorized to administer oaths, by the president, vice president, secretary or other chief officer of the corporation, and forwarded to the Secretary of State.
(2) Such report shall show (a) the name of the corporation, (b) the location of its principal office, (c) the names of the president, secretary-treasurer, and members of the board of trustees or directors, with post office address of each, (d) the date of the annual election of such corporation, and (e) the object or purpose which such corporation is engaged in carrying out.
(3) Upon the filing of such report as provided in subdivisions (1) and (2) of this section, the Secretary of State shall charge and collect a fee of one dollar on or before the first of January next following, which fee shall be in lieu of occupation tax fees.
Source
Laws 1941, c. 38, § 4, p. 154;
C.S.Supp.,1941, § 24-2104;
R.S.1943, § 21-1336.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1337 - Cooperative farm land company; certificate of compliance; occupation tax laws inapplicable.

21-1337.
Cooperative farm land company; certificate of compliance; occupation tax laws inapplicable.
Upon the filing of the report and the payment of the fee provided for in section 21-1336, the Secretary of State shall make out and deliver to such corporation a certificate witnessing the compliance by such corporation with section 21-1336 and the payment of the annual fee therein provided for. No further compliance with sections 21-301 to 21-325 shall be required of such cooperative farm land companies.
Source
Laws 1941, c. 38, § 5, p. 155;
C.S.Supp.,1941, § 24-2105;
R.S.1943, § 21-1337;
Laws 1988, LB 800, § 6.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1338 - Cooperative farm land company; fees; disposition.

21-1338.
Cooperative farm land company; fees; disposition.
Annual fees collected under section 21-1336 shall be reported by the Secretary of State to the Tax Commissioner, and shall be paid by the secretary into the state treasury and credited to the General Fund.
Source
Laws 1941, c. 38, § 6, p. 155;
C.S.Supp.,1941, § 24-2106;
R.S.1943, § 21-1338.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1339 - Cooperative farm land company; investment in purchase-money mortgages by insurance companies, authorized.

21-1339.
Cooperative farm land company; investment in purchase-money mortgages by insurance companies, authorized.
Obligations of a cooperative farm land company secured by a first mortgage on agricultural lands purchased by a cooperative farm land company shall be a lawful investment for funds of any insurance company which has conveyed real estate to the company to the full extent of the purchase price.
Source
Laws 1941, c. 38, § 7, p. 155;
C.S.Supp.,1941, § 24-2107;
R.S.1943, § 21-1339;
Laws 1991, LB 237, § 55.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1401 - Terms, defined; act, how cited.

21-1401.
Terms, defined; act, how cited.
(1) For purposes of the Nonstock Cooperative Marketing Act, unless the context otherwise requires: (a) The term association means any corporation formed hereunder; (b) the term member means a person who owns a certificate of membership in an association formed without capital stock; (c) the term person means an individual, a partnership, a limited liability company, a corporation, an association, or two or more persons having a joint or common interest; (d) the term agricultural products or products means field crops, horticultural, viticultural, forestry, nut, dairy, livestock, poultry, bee and farm products, and the byproducts derived from any of them; and (e) the words used to import the singular may be applied to the plural as the context may demand.
(2) Associations organized hereunder shall be deemed nonprofit, inasmuch as they are not organized to make profits for themselves as such or for their members as such but only for their members as producers.
(3) Sections 21-1401 to 21-1414 shall be known and may be cited as the Nonstock Cooperative Marketing Act.
Source
Laws 1925, c. 80, § 1, p. 247;
C.S.1929, § 24-1401;
R.S.1943, § 21-1401;
Laws 1993, LB 121, § 150.
Cross References
Transactions exempt from Securities Act of Nebraska, see section 8-1111.
Annotations
A nonstock cooperative corporation formed pursuant to this section is not a "non-profit corporation" as that term is used in Neb. Const. art. XII, section 8(1)(B), because it exists and operates for the economic benefit of its members. Pig Pro Nonstock Co-op v. Moore, 253 Neb. 72, 568 N.W.2d 217 (1997).
Statutory definition of "agricultural products" used herein was adopted by court as applicable to hauling by contract carrier. Rodgers v. Nebraska State Railway Commission, 134 Neb. 832, 279 N.W. 800 (1938).
Common membership in nonstock cooperative association did not authorize injunction against prosecution of suits against individual members on note given for membership. Epp v. Federal Trust Company, 123 Neb. 375, 242 N.W. 922 (1932).
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1402 - Formation; purposes.

21-1402.
Formation; purposes.
Any number of persons, not less than five, engaged in the production of agricultural products or two or more nonprofit cooperative companies, stock or nonstock, may form a cooperative association without capital stock for the transaction of any lawful business by the adoption of articles of incorporation, as set forth in Chapter 21, article 14.
Source
Laws 1925, c. 80, § 2, p. 248;
C.S.1929, § 24-1402;
R.S.1943, § 21-1402;
Laws 1951, c. 40, § 1, p. 146;
Laws 1981, LB 283, § 2.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1403 - Articles of incorporation; contents.

21-1403.
Articles of incorporation; contents.
Every nonstock cooperative association organized under the provisions of Chapter 21, article 14, shall provide in its articles of incorporation: (1) That the words nonstock cooperative shall be included in its corporate name and that it proposes to organize as a cooperative association; (2) the objects or purposes for which it is formed; (3) that the net earnings or savings of the association, if any, shall be distributed on the basis of, or in proportion to, the amount or value of property bought from or sold to members, or members and other patrons, or of labor performed or other services rendered to the corporation, except that this subdivision shall not be so interpreted as to prevent a cooperative company from declaring patronage dividends at different rates upon different classes or kinds or varieties of goods handled; (4) that the articles of incorporation or the bylaws of the company shall give a detailed statement of the method followed in distributing earnings or savings; (5) the registered office and street address of such registered office; (6) the current registered agent and the name and street address of such registered agent. A post office box number may be provided in addition to the street address; and (7) the name and street address of each incorporator.
Source
Laws 1925, c. 80, § 3, p. 248;
C.S.1929, § 24-1403;
R.S.1943, § 21-1403;
Laws 1967, c. 104, § 1, p. 320;
Laws 1981, LB 283, § 3;
Laws 2008, LB379, § 6.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1404 - Articles of incorporation; filing; certified copy as evidence; fees.

21-1404.
Articles of incorporation; filing; certified copy as evidence; fees.
The articles of incorporation and amendments thereof shall be filed in accordance with the general corporation laws of this state and when so filed the said articles of incorporation and amendments thereof or certified copies thereof shall be received in all the courts of this state as prima facie evidence of the facts contained therein and of the due incorporation of such association. The fees for the incorporation of nonstock cooperative associations shall be the same as those required by law of other nonprofit corporations.
Source
Laws 1925, c. 80, § 4, p. 249;
C.S.1929, § 24-1404;
R.S.1943, § 21-1404;
Laws 1981, LB 283, § 4.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1405 - Powers.

21-1405.
Powers.
Each association incorporated hereunder shall have the following powers: (1) To enter into contracts with its members for periods not over five years, requiring them to sell or market all or a specified part of their livestock or other products to or through the association, or to buy all, or a specified part, of their farm supplies from or through the association; (2) to act as agent or representative of any member or members or of nonmembers in carrying out the objects of the association; (3) to set aside each year to a surplus fund a portion of the savings of the company which surplus may be used for conducting the business of the corporation; and (4) to adopt articles and bylaws for the management of the association which shall also set the number or percentage of members required to be present in order to constitute a quorum at each members' meeting, which number or percentage shall not be less than ten percent of the members, but not more than fifty members, nor less than five members, except when the total membership is ten or less.
Source
Laws 1925, c. 80, § 5, p. 249;
C.S.1929, § 24-1405;
R.S.1943, § 21-1405;
Laws 1977, LB 155, § 1;
Laws 1981, LB 283, § 5.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1406 - Members; eligibility; suspension or withdrawal; voting; liability for corporate debts; certificate of membership.

21-1406.
Members; eligibility; suspension or withdrawal; voting; liability for corporate debts; certificate of membership.
Only persons engaged in the production of the agricultural products, including lessees and landlords receiving such products as rent except as otherwise provided herein, or cooperative associations of such producers, shall be eligible to membership therein, subject to the terms and conditions prescribed in its articles of incorporation or bylaws consistent herewith. Only members of an association shall have the right to vote, and no member shall be entitled to more than one vote upon any question or matter affecting the association or relating to its affairs. Articles of incorporation hereunder may provide that no voting by proxy shall be permitted and such articles or bylaws adopted thereunder may further provide that a written vote received by mail from any absent member, and signed by him or her, may be read and counted at any regular or special meeting of the association, provided that the secretary shall notify all members in writing of the exact motion or resolution upon which such vote is to be taken, and a copy of same shall be forwarded with and attached to the vote so mailed by the member, and elections may be carried out in a similar manner. No member of an association shall be liable for its debts or obligations beyond the unpaid amount, if any, due by him or her on his or her membership dues. Every association formed hereunder shall issue a certificate of membership to each member which, unless otherwise provided in its articles of incorporation or bylaws, shall be nontransferable. Following the ascertainment through procedure set forth in its bylaws that a member has ceased to be eligible to membership in an association, his or her rights therein may be suspended. In the event of the death, withdrawal or expulsion of a member, the board of directors shall within a reasonable time thereafter equitably and conclusively ascertain the value of such member's membership, if any, which shall be paid him or her or his or her legal representatives by the association within a reasonable time after such ascertainment.
Source
Laws 1925, c. 80, § 6, p. 250;
C.S.1929, § 24-1406;
R.S.1943, § 21-1406;
Laws 1977, LB 155, § 2;
Laws 1981, LB 283, § 6.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1407 - Bylaws.

21-1407.
Bylaws.
Each association incorporated hereunder shall make such provision as it may desire for the adoption of its board of directors of a code of bylaws for the government and management of its business consistent herewith.
Source
Laws 1925, c. 80, § 7, p. 251;
C.S.1929, § 24-1407;
R.S.1943, § 21-1407.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1408 - Directors; duties and powers; annual and special meetings; notice.

21-1408.
Directors; duties and powers; annual and special meetings; notice.
In its bylaws, each association shall provide for one or more regular meetings annually. The board of directors shall have the right to call a special meeting at any time; and ten percent of the members may file a petition stating the specific business to be brought before the association and demand a special meeting at any time. Such meeting must thereupon be called by the directors. Notice of all meetings, together with a statement of the purposes thereof, shall be mailed to each member at least ten days prior to the meeting;
Provided, however,
that the bylaws may require instead that such notice may be given by publication in a newspaper or newspapers of general circulation, in the territory in which the association has its membership.
Source
Laws 1925, c. 80, § 8, p. 251;
C.S.1929, § 24-1408;
R.S.1943, § 21-1408.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1410 - Marketing contracts; breach; rights of association.

21-1410.
Marketing contracts; breach; rights of association.
The marketing contract of any association formed hereunder may fix as liquidated damages, specific, reasonable sums to be paid by a member to the association upon the breach by him of any of the provisions of the marketing contract regarding the sale or delivery or withholding of products, and may further provide that the member will pay all costs, premium for bonds, expenses and fees in case any action is brought upon the contract by the association, and any such provision shall be valid and enforceable in the courts of this state and shall not be construed as a penalty. In the event of a breach or threatened breach of such marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract, and to a decree for the specific performance hereof. Pending the adjudication of such an action and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.
Source
Laws 1925, c. 80, § 10, p. 252;
C.S.1929, § 24-1410;
R.S.1943, § 21-1410.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1411 - Federation of associations; acquisition of stock or membership; agreements.

21-1411.
Federation of associations; acquisition of stock or membership; agreements.
To effectuate the formation of federations of nonprofit associations of producers, any such association of producers whether formed hereunder or not is hereby authorized to acquire membership or stock in any other such association of producers, and any such association is hereby authorized to grant such membership or sell such stock to such associations, and any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements, and make all necessary and proper stipulations, agreements and contracts with any other cooperative corporation, association, or associations, formed in this or in any other state, for the cooperative and more economical carrying out of its business, or any part thereof. Any two or more associations may, by agreement between them, unite in employing and using or may separately employ and use the same methods, means, and agencies for carrying on and conducting their respective business.
Source
Laws 1925, c. 80, § 11, p. 252;
C.S.1929, § 24-1411;
R.S.1943, § 21-1411.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1412 - Cooperative; use of term restricted.

21-1412.
Cooperative; use of term restricted.
No association, corporation, or organization shall use the term cooperative as a part of its name unless it is in fact operating on a cooperative basis.
Source
Laws 1925, c. 80, § 12, p. 253;
C.S.1929, § 24-1412;
R.S.1943, § 21-1412.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1414 - Application of general corporation laws.

21-1414.
Application of general corporation laws.
The provisions of the general corporation laws of this state, and all powers and rights thereunder, shall apply to the associations organized hereunder, except where such provisions are in conflict with or inconsistent with the express provisions of sections 21-1401 to 21-1414;
Provided,
that wherever such general corporation laws require an affirmative vote of a specified percentage of stockholders to authorize action by the corporation, such percentage for a nonstock cooperative association shall be that percentage of the votes cast on the matter at the members' meeting at which the same shall be voted upon. Any provision of law which is in conflict therewith shall not be construed as applying to any association herein provided for.
Source
Laws 1925, c. 80, § 14, p. 253;
C.S.1929, § 24-1414;
R.S.1943, § 21-1414;
Laws 1977, LB 155, § 3.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1701 - Act, how cited.

21-1701.
Act, how cited.
Sections 21-1701 to 21-17,115 shall be known and may be cited as the Credit Union Act.
Source
Laws 1996, LB 948, § 1;
Laws 2000, LB 932, § 23;
Laws 2002, LB 957, § 15;
Laws 2017, LB375, § 1.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1705 - Credit union, defined.

21-1705.
Credit union, defined.
Credit union shall mean a cooperative, nonprofit corporation organized under the Credit Union Act for purposes of educating and encouraging its members in the concept of thrift, creating a source of credit for provident and productive purposes, and carrying on such collateral activities as are set forth in the act.
Source
Laws 1996, LB 948, § 5.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1708.01 - Financial institution, defined.

21-1708.01.
Financial institution, defined.
Financial institution shall mean a bank, savings bank, building and loan association, savings and loan association, or credit union, whether chartered by the United States, the department, or a foreign state agency; any other similar organization which is covered by federal deposit insurance; or a trust company.
Source
Laws 2017, LB375, § 2.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1712 - Insolvent, defined.

21-1712.
Insolvent, defined.
Insolvent shall mean a condition in which (1) the actual cash market value of the assets of a credit union is insufficient to pay its liabilities to its members, (2) a credit union is unable to meet the demands of its creditors in the usual and customary manner, (3) a credit union, after demand in writing by the director, fails to make good any deficiency in its reserves as required by law, or (4) a credit union, after written demand by the director, fails to make good an impairment of its capital or surplus.
Source
Laws 1996, LB 948, § 12.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1713 - Line of credit, defined.

21-1713.
Line of credit, defined.
Line of credit shall mean a loan in which amounts are advanced to the borrower upon his or her request from time to time, pursuant to a preexisting contract and conditional or unconditional credit approval, and in which principal amounts repaid automatically replenish the funds available under the contract.
Source
Laws 1996, LB 948, § 13.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1715 - Membership officer, defined.

21-1715.
Membership officer, defined.
Membership officer shall mean any member appointed by the board of directors of a credit union whose primary function is to act on applications for membership under the conditions the board and bylaws have prescribed.
Source
Laws 1996, LB 948, § 15.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1716 - Membership shares, defined.

21-1716.
Membership shares, defined.
Membership shares shall mean a balance held by a credit union and established by a member in accordance with standards specified by the credit union. Each member may own only one membership share. Ownership of a membership share shall represent an interest in the capital of the credit union upon dissolution or conversion to another type of institution.
Source
Laws 1996, LB 948, § 16.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1717 - Official, defined.

21-1717.
Official, defined.
Official shall mean a member of the board of directors of a credit union, an officer of a credit union, a member of the credit committee of a credit union, if any, or a member of the supervisory committee of a credit union.
Source
Laws 1996, LB 948, § 17.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1722 - Share account, defined.

21-1722.
Share account, defined.
Share account shall mean a balance held by a credit union and established by a member in accordance with standards specified by the credit union, including balances designated as shares, share certificates, share draft accounts, or other names. Share account shall not include membership shares.
Source
Laws 1996, LB 948, § 22.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1723 - Ownership of a share account; rights.

21-1723.
Ownership of a share account; rights.
Ownership of a share account shall confer membership and voting rights and shall represent an interest in the capital of the credit union upon dissolution or conversion to another type of institution.
Source
Laws 1996, LB 948, § 23.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1725.01 - New credit union; branch credit union; application; procedure; hearing.

21-1725.01.
New credit union; branch credit union; application; procedure; hearing.
(1) Upon receiving an application to establish a new credit union, a public hearing shall be held on each application. Notice of the filing of the application shall be published by the department for three weeks in a legal newspaper published in or of general circulation in the county where the applicant proposes to operate the credit union. The date for hearing the application shall be not less than thirty days after the last publication of notice of hearing and not more than ninety days after filing the application unless the applicant agrees to a later date. Notice of the filing of the application shall be sent by the department to all financial institutions located in the county where the applicant proposes to operate.
(2) When application is made to establish a branch of a credit union, the director shall hold a hearing on the matter if he or she determines, in his or her discretion, that the condition of the applicant credit union warrants a hearing. If the director determines that the condition of the credit union does not warrant a hearing, the director shall publish a notice of the filing of the application in a newspaper of general circulation in the county where the proposed branch would be located. If the director receives any substantive objection to the proposed credit union branch within fifteen days after publication of such notice, he or she shall hold a hearing on the application. Notice of a hearing held pursuant to this subsection shall be published for two consecutive weeks in a newspaper of general circulation in the county where the proposed branch would be located. The date for hearing the application shall be not less than thirty days after the last publication of notice of hearing and not more than ninety days after the filing of the application unless the applicant agrees to a later date.
(3) The director may, in his or her discretion, hold a public hearing on amendments to a credit union's articles of association or bylaws which are brought before the department.
(4) The expense of any publication required by this section shall be paid by the applicant but payment shall not be a condition precedent to approval by the director.
Source
Laws 2002, LB 957, § 17;
Laws 2003, LB 217, § 30;
Laws 2005, LB 533, § 30;
Laws 2010, LB890, § 13;
Laws 2016, LB751, § 7.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1726 - Forms of articles and bylaws.

21-1726.
Forms of articles and bylaws.
In order to simplify the organization of credit unions, the director shall cause to be prepared an approved form of articles of association and a suggested form of bylaws, consistent with the Credit Union Act, which may be used by credit union subscribers as a guide. Upon written application of any nine individuals residing in the state, the director shall supply such individuals, without charge, one approved form of the articles of association and one suggested form of bylaws.
Source
Laws 1996, LB 948, § 26.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1727 - Articles and bylaws; amendments.

21-1727.
Articles and bylaws; amendments.
(1) The articles of association may be amended at any regular or special meeting at which a quorum of the members as provided in the bylaws is present if the notice of the meeting contained a copy of the proposed amendment. An amendment shall not become effective until it has been filed with and approved in writing by the department and the fee prescribed by section 8-602 has been paid. One copy of an amendment or amendments to the articles of association shall be filed in the office of the county clerk of the county where the credit union has its principal place of business, for which a fee of fifty cents shall be charged.
(2) Except as provided in subsection (3) of this section, the bylaws may be amended at any regular or special meeting of the board of directors by a majority of the total directors if the notice of the meeting contained a copy of the proposed amendment. An amendment shall not become effective until it has been filed with and approved in writing by the department and the fee prescribed by section 8-602 has been paid.
(3)(a) The board of directors may adopt by resolution standard bylaw amendments adopted and promulgated by the department from time to time. The standard amendments may include two or more alternatives that the board of directors may elect. The standard bylaw amendments may also include companion amendments which shall be adopted as a unit.
(b) The board of directors may adopt any standard bylaw amendment without prior approval of the department as long as the standard bylaw amendment is adopted without any change in wording and a Certificate of Resolution adopting such amendment is submitted to the department containing the adopted language within ten days after the adoption of such amendment. Certificate of Resolution forms shall be furnished by the department upon request. The fee prescribed by section 8-602 shall not be charged when standard bylaw amendments are adopted.
Source
Laws 1996, LB 948, § 27.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1728 - Use of name exclusive; violation; penalty; injunction.

21-1728.
Use of name exclusive; violation; penalty; injunction.
(1) No person, corporation, limited liability company, partnership, or association other than a credit union organized under the Credit Union Act or the Federal Credit Union Act or the voluntary association of credit unions, shall use a name or title containing the phrase "credit union" or any derivation thereof, represent itself as a credit union, or conduct business as a credit union.
(2) Any violation of this section shall be a Class V misdemeanor.
(3) The director may petition a court of competent jurisdiction to enjoin any violation of this section.
Source
Laws 1996, LB 948, § 28.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1729 - Place of business.

21-1729.
Place of business.
(1) A credit union may change its principal place of business within this state upon written notice to, and approval by, the director.
(2) A credit union may maintain automatic teller machines and point-of-sale terminals at locations other than its principal office pursuant to section 8-157.01.
Source
Laws 1996, LB 948, § 29;
Laws 1999, LB 396, § 20.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1732 - Director; powers and duties.

21-1732.
Director; powers and duties.
(1) The director may adopt and promulgate rules and regulations to carry out the Credit Union Act.
(2) The director may issue a cease and desist order when (a) the director has determined from competent and substantial evidence that a credit union is engaged in or has engaged in an unsafe or unsound practice or is violating or has violated a material provision of any law, rule, regulation, or any condition imposed in writing by the director or any written agreement made with the director or (b) the director has reasonable cause to believe a credit union is about to engage in an unsafe or unsound practice or is violating or has violated a material provision of any law, rule, regulation, or any condition imposed in writing by the director or any written agreement made with the director or the director has reasonable cause to believe a credit union is about to violate a material provision of any law, rule, regulation, or any condition imposed in writing by the director or any written agreement made with the director.
(3) The director may restrict the making of loans by a credit union and the withdrawal from and the deposit to share accounts of a credit union when he or she finds circumstances that make such restriction necessary for the protection of the shareholders.
(4) The director may suspend from office and prohibit from further participation in any manner in the conduct of the affairs of a credit union any official who has committed any violation of a law, rule, regulation, or cease and desist order, who has engaged in or participated in any unsafe or unsound practice in connection with a credit union, or who has committed or engaged in any act, omission, or practice which constitutes a breach of that person's fiduciary duty as an official, when the director has determined that such action or actions have resulted or will result in substantial financial loss or other damage that will seriously prejudice the interest of the credit union members.
(5) The director shall consider applications brought before the department pursuant to section 21-1725.01.
(6) The director may subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any subject relating to a duty upon or a power vested in the director.
Source
Laws 1996, LB 948, § 33;
Laws 2002, LB 957, § 16.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1733 - Order; appeal; procedure.

21-1733.
Order; appeal; procedure.
Any order or decision of the director may be appealed. The appeal shall be in accordance with the Administrative Procedure Act.
Source
Laws 1996, LB 948, § 31.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1734 - Corrective measures; receivership proceedings.

21-1734.
Corrective measures; receivership proceedings.
(1) If it appears that any credit union is bankrupt or insolvent, that it has willfully violated the Credit Union Act, or that it is operating in an unsafe or unsound manner, the director may require such corrective measures in accordance with sections 8-1,134 to 8-1,139 as he or she may deem necessary or take possession of the property and business of such credit union and retain possession thereof until such time as he or she determines either to permit the credit union to resume business or to order its dissolution. In the event the director orders its dissolution, the credit union shall be liquidated in receivership proceedings in the same manner, as nearly as may be possible, as provided by the laws governing the liquidation of state banks.
(2) Pursuant to section 21-1735, the director may appoint the National Credit Union Administration Board as receiver or liquidator of the assets and liabilities of any credit union in the possession of the director. The appointment shall be subject to the approval of the district court of the judicial district in which the credit union has its principal place of business.
Source
Laws 1996, LB 948, § 34.
Cross References
Liquidation of state banks, see sections 8-194 to 8-1,118.
2023 Nebraska Revised Statutes › Chapter 21 - Corporations and Other Companies › 21-1735 - National Credit Union Administration Board; appointment as receiver or liquidator.

21-1735.
National Credit Union Administration Board; appointment as receiver or liquidator.
(1) The National Credit Union Administration Board, as created by 12 U.S.C. 1752(a), shall be authorized to accept the appointment by the director as receiver or liquidator, without bond, of any credit union in the possession of the department and whose shares are to any extent insured by the National Credit Union Administration under section 201 et seq. of the Federal Credit Union Act, 12 U.S.C. 1781 et seq. Any credit union which fails to maintain such insurance may be voluntarily dissolved or liquidated by the board of directors of such credit union or may be taken in possession by the director and involuntarily liquidated as in the case of insolvency.
(2) Whenever the director takes possession of a credit union subject to the jurisdiction of the department, the director may tender to the National Credit Union Administration Board the appointment as receiver or liquidator of such credit union. If the board accepts such appointment, it shall have and possess all the powers and privileges provided by the laws of this state with respect to a receiver or liquidator of a credit union and its shareholders and other creditors and shall be subject to all the duties of such receiver or liquidator, except insofar as such powers, privileges, or duties are in conflict with the Federal Credit Union Act, 12 U.S.C. 1781 et seq.
(3) Whenever the National Credit Union Administration Board has been appointed as receiver or liquidator of a credit union pursuant to this section, it shall be subrogated to all the rights and interests against such credit union of all the shareholders or other creditors of the credit union to the full extent of such rights and interests in the credit union. The rights of shareholders or other creditors of the credit union shall be determined in accordance with the laws of this state.
(4) Upon acceptance by the National Credit Union Administration Board of the appointment as receiver or liquidator of a credit union from the director and subject to the approval of the district court of the judicial district in which the credit union has its principal place of business, the possession of and title to all the assets, business, and property of every kind and nature of the credit union shall pass to and vest in the board without the execution of any instrument of conveyance, assignment, transfer, or endorsement.
(5) In addition to its powers and duties as receiver or liquidator, the National Credit Union Administration Board shall have the right and authority upon the order of any court of record of competent jurisdiction to enforce the individual liability of the members of the board of directors of any credit union.
Source
Laws 1996, LB 948, § 35.