reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-110 - Banks; bonds; filing; approval; requirements; open to inspection.

8-110.
Banks; bonds; filing; approval; requirements; open to inspection.
The department shall require each bank to obtain a fidelity bond, naming the bank as obligee, in an amount to be fixed by the director. The bond shall be issued by an authorized insurer and shall be conditioned to protect and indemnify the bank from loss which it may sustain, of money or other personal property, including that for which the bank is responsible through or by reason of the fraud, dishonesty, forgery, theft, embezzlement, wrongful abstraction, misapplication, misappropriation, or any other dishonest or criminal act of or by any of its officers or employees. Such bond may contain a deductible clause in an amount to be approved by the director. An executed copy of the bond shall be filed with and approved by the director and shall remain a part of the records of the department. The director may provide for such copies to be filed electronically. If the premium of the bond is not paid, the bond shall not be canceled or subject to cancellation unless at least ten days' advance notice, in writing, is filed with the department. No bond which is current with respect to premium payments shall be canceled or subject to cancellation unless at least forty-five days' advance notice, in writing, is filed with the department. The bond shall be open to public inspection during the office hours of the department. In the event a bond is canceled, the director may take whatever action he or she deems appropriate in connection with the continued operation of the bank involved.
Source
C.S.1929, § 8-103;
Laws 1930, Spec. Sess., c. 6, § 13, p. 32;
Laws 1933, c. 18, § 6, p. 137;
C.S.Supp.,1941, § 8-103;
R.S.1943, § 8-106;
Laws 1963, c. 29, § 10, p. 138;
Laws 1973, LB 164, § 2;
Laws 1979, LB 220, § 1;
Laws 1985, LB 653, § 3;
Laws 2017, LB140, § 11.
Annotations
Each executive officer of a state bank is required by this section to give a surety bond to protect it from pecuniary loss sustained by it through forbidden acts committed directly by him or by connivance with others. Luikart v. Flannigan, 130 Neb. 901, 267 N.W. 165 (1936).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-111 - Director; real estate; power to convey; execution of conveyance.

8-111.
Director; real estate; power to convey; execution of conveyance.
The director may convey any real estate title which is vested in the department by operation of law or otherwise. Such conveyance shall be signed by the director, sealed with the seal of the department, and acknowledged by the director.
Source
Laws 1925, c. 30, § 7, p. 127;
Laws 1929, c. 38, § 20, p. 167;
C.S.1929, § 8-112;
Laws 1933, c. 18, § 10, p. 140;
C.S.Supp.,1941, § 8-112;
R.S.1943, § 8-109;
Laws 1963, c. 29, § 11, p. 138;
Laws 2017, LB140, § 12.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-114 - Banks; corporate status required; unlawful banking; penalty.

8-114.
Banks; corporate status required; unlawful banking; penalty.
(1) It is unlawful for any person to conduct a bank within this state except by means of a corporation duly organized for such purpose under the laws of this state. It is unlawful for any corporation to receive money upon deposit or conduct a bank under the laws of this state until such corporation has complied with all the provisions and requirements of the Nebraska Banking Act.
(2) Any violation of this section is a Class V misdemeanor for each day of the continuation of such offense and is cause for the appointment of a receiver as provided in the act to wind up such banking business.
Source
Laws 1909, c. 10, § 2, p. 66;
R.S.1913, § 281;
Laws 1919, c. 190, tit. V, art. XVI, § 3, p. 686;
C.S.1922, § 7984;
C.S.1929, § 8-115;
R.S.1943, § 8-111;
Laws 1963, c. 29, § 14, p. 139;
Laws 1977, LB 40, § 39;
Laws 1987, LB 2, § 3;
Laws 1998, LB 1321, § 3;
Laws 2017, LB140, § 15.
Annotations
Where a federal savings and loan association installs a computer in a store to facilitate electronic transfer of funds between the association and its depositors, the store operator, by manning the computer, is not engaging in a banking or savings and loan business. State ex rel. Meyer v. American Community Stores Corp., 193 Neb. 634, 228 N.W.2d 299 (1975).
It is unlawful to conduct a bank except by means of a corporation. First Nat. Bank & Trust Co. v. Ley, 182 Neb. 164, 153 N.W.2d 743 (1967).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-115 - Banks; digital asset depositories; charter required.

8-115.
Banks; digital asset depositories; charter required.
No corporation shall conduct a bank or digital asset depository in this state without having first obtained a charter in the manner provided in the Nebraska Banking Act or the Nebraska Financial Innovation Act, respectively.
Source
Laws 1909, c. 10, § 11, p. 71;
R.S.1913, § 290;
Laws 1919, c. 190, tit. V, art. XVI, § 9, p. 689;
C.S.1922, § 7990;
C.S.1929, § 8-120;
Laws 1933, c. 18, § 15, p. 143;
C.S.Supp.,1941, § 8-120;
R.S.1943, § 8-117;
Laws 1963, c. 29, § 15, p. 140;
Laws 1987, LB 2, § 4;
Laws 1998, LB 1321, § 4;
Laws 2021, LB649, § 36;
Laws 2023, LB92, § 3.
Operative Date: June 7, 2023
Cross References
Nebraska Financial Innovation Act, see section 8-3001.
Annotations
When application is made for charter, it is the duty of state officials to investigate and determine integrity and responsibility of applicants for charter. Shumway v. Warrick, 108 Neb. 652, 189 N.W. 301 (1922).
State Banking Board did not abuse discretion in refusing charter where evidence of unfitness and unfavorable financial ability was presented. In re Commercial State Bank, 105 Neb. 248, 179 N.W. 1021 (1920).
Refusal to grant charter is not justified where required capital paid in and proposed stockholders show requisite qualifications. State ex rel. Woolridge v. Morehead, 100 Neb. 864, 161 N.W. 569 (1917), L.R.A. 1917D 310 (1917).
Discretionary power given to state officials to refuse charter to savings bank to be conducted in same room and with same directors as national bank. State ex rel. Chamberlin v. Morehead, 99 Neb. 146, 155 N.W. 879 (1915).
Even though issued a charter under state law, state bank which becomes a member of Federal Deposit Insurance Corporation thereby becomes an instrumentality of United States, and federal statute forbidding embezzlement of funds of member bank applies to officer of such bank. United States v. Doherty, 18 F.Supp. 793 (D. Neb. 1937), affirmed 94 F.2d 495 (8th Cir. 1938).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-116 - Banks; capital stock; amount required.

8-116.
Banks; capital stock; amount required.
(1) Except as provided in subsection (2) of this section, a charter for a bank shall not be issued unless the corporation applying therefor has surplus and paid-up capital stock in an amount not less than the amount necessary for compliance with subsection (1) of section 8-702 for the insurance of deposits.
(2) The director has the authority to determine the minimum amount of paid-up capital stock and surplus required for any corporation applying for a bank charter, which amount shall not be less than the amount provided in subsection (1) of this section.
Source
Laws 1909, c. 10, § 13, p. 72;
R.S.1913, § 292;
Laws 1919, c. 190, tit. V, art. XVI, § 11, p. 689;
Laws 1921, c. 297, § 3, p. 950;
C.S.1922, § 7992;
Laws 1923, c. 192, § 1, p. 463;
C.S.1929, § 8-122;
Laws 1935, c. 19, § 1, p. 95;
C.S.Supp.,1941, § 8-122;
Laws 1943, c. 19, § 3(1), p. 102;
R.S.1943, § 8-119;
Laws 1959, c. 15, § 3, p. 132;
Laws 1961, c. 15, § 1, p. 111;
R.R.S.1943, § 8-119;
Laws 1963, c. 29, § 16, p. 140;
Laws 1967, c. 19, § 3, p. 118;
Laws 1973, LB 164, § 4;
Laws 1979, LB 220, § 3;
Laws 1983, LB 252, § 2;
Laws 2002, LB 1094, § 3;
Laws 2008, LB851, § 2;
Laws 2015, LB155, § 1;
Laws 2017, LB140, § 16.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-116.01 - Banks; capital notes and debentures; issuance; conditions.

8-116.01.
Banks; capital notes and debentures; issuance; conditions.
With the approval of the director, any bank may at any time, through action of its board of directors and without requiring any action of its stockholders, issue and sell its capital notes or debentures. Such capital notes or debentures shall be subordinate and subject to the claims of depositors and may be subordinated and subjected to the claims of other creditors. Before any such capital notes or debentures are retired or paid by the bank, any existing deficiency of its capital, disregarding the notes or debentures to be retired, must be paid in, in cash, to the end that the sound capital assets shall at least equal the capital or capital stock of the bank. Such capital notes or debentures shall in no case be subject to any assessment. The holders of such capital notes or debentures shall not be held individually responsible as such holders for any debts, contracts, or engagements of such bank and shall not be held liable for assessments to restore impairments in the capital of such bank.
Source
Laws 1935, c. 8, § 11, p. 76;
C.S.Supp.,1941, § 8-411;
R.S.1943, § 8-710;
Laws 1961, c. 14, § 9, p. 109;
R.R.S.1943, § 8-710;
Laws 1973, LB 164, § 5;
Laws 2003, LB 217, § 3;
Laws 2005, LB 533, § 3;
Laws 2017, LB140, § 17.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-118 - Banks; unlawful promotion; sale of stock prior to issuance of charter; penalty.

8-118.
Banks; unlawful promotion; sale of stock prior to issuance of charter; penalty.
(1) It shall be unlawful for any person for hire (a) to promote or attempt to promote the organization of a corporation to conduct the business of a bank in this state or (b) to sell the capital stock of such a corporation prior to the issuance of a charter to such corporation authorizing its operation as a bank.
(2) Any person violating the provisions of this section is guilty of a Class II misdemeanor.
Source
Laws 1909, c. 10, § 13, p. 72;
R.S.1913, § 292;
Laws 1919, c. 190, tit. V, art. XVI, § 11, p. 689;
Laws 1921, c. 297, § 3, p. 950;
C.S.1922, § 7992;
Laws 1923, c. 192, § 1, p. 463;
C.S.1929, § 8-122;
Laws 1935, c. 19, § 1, p. 96;
C.S.Supp.,1941, § 8-122;
Laws 1943, c. 19, § 3(4), p. 103;
R.S.1943, § 8-122;
Laws 1959, c. 15, § 6, p. 134;
R.R.S.1943, § 8-122;
Laws 1963, c. 29, § 18, p. 141;
Laws 1967, c. 19, § 5, p. 119;
Laws 1973, LB 164, § 6;
Laws 1977, LB 40, § 40;
Laws 2017, LB140, § 19.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-119 - Capital stock; sale; compensation prohibited; false statement; penalties.

8-119.
Capital stock; sale; compensation prohibited; false statement; penalties.
No corporation organized for the purpose of conducting a bank under the laws of this state shall be granted the charter provided in section 8-122 until the corporation has filed with the department a statement, under oath, of the president or cashier of such corporation that no premium, bonus, commission, compensation, reward, salary, or other form of remuneration has been paid, or promised to be paid, to any person for selling the stock of such corporation. The president or cashier of any such corporation who shall be found guilty of filing a false statement under the provisions of this section is guilty of a Class I misdemeanor. If, after such charter has been delivered, the director determines, after a public hearing, that such statement is false, the department shall cancel such charter, and a receiver shall be appointed for such corporation in the manner provided for in case of a corporation which is conducting a bank in an unsafe or unauthorized manner.
Source
Laws 1919, c. 190, tit. V, art. XVI, § 54, p. 708;
C.S.1922, § 8034;
C.S.1929, § 8-128;
R.S.1943, § 8-130;
Laws 1963, c. 29, § 19, p. 141;
Laws 1967, c. 19, § 5, p. 119;
Laws 1973, LB 164, § 7;
Laws 1977, LB 40, § 41;
Laws 2017, LB140, § 20.
Annotations
This section is referred to as providing penalty of fine and imprisonment, in contrasting this section with another section of the banking act which failed to provide a penalty, and holding that the failure to provide a penalty disclosed legislative intent that statute should be directory rather than mandatory. State ex rel. Davis v. Farmers State Bank of Winside, 112 Neb. 597, 200 N.W. 173 (1924).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-120 - Corporation; application to conduct, merge, or transfer bank; contents.

8-120.
Corporation; application to conduct, merge, or transfer bank; contents.
(1) Every corporation organized for and desiring to conduct a bank or to conduct a bank for purposes of a merger with an existing bank shall make under oath and transmit to the department a complete detailed application giving (a) the name of the proposed bank; (b) a copy of the proposed articles of incorporation; (c) the names of the stockholders; (d) the county, city, or village and the exact location therein in which such bank is proposed to be located; (e) the nature of the proposed banking business; (f) the proposed amounts of paid-up capital stock and surplus, and the items of actual cash and property, as reported and approved at a meeting of the stockholders, to be included in such amounts; and (g) a statement that at least twenty percent of the amounts stated in subdivision (f) of this subsection have in fact been paid in to the corporation by its stockholders.
(2) In the case of a merger, the existing bank which is to be merged into shall complete an application and meet the requirements of this section.
(3) This section also applies when application is made for transfer of a bank charter and move of a bank's main office to any location other than (a) within the corporate limits of the city or village of its original charter, (b) within the county in which it is located if such bank charter is not located in a city or village, or (c) as provided in subdivision (6) of section 8-115.01.
Source
Laws 1909, c. 10, § 15, p. 74;
R.S.1913, § 294;
Laws 1919, c. 190, tit. V, art. XVI, § 15, p. 691;
Laws 1921, c. 313, § 1, p. 1001;
C.S.1922, § 7996;
C.S.1929, § 8-126;
Laws 1933, c. 18, § 17, p. 143;
C.S.Supp.,1941, § 8-126;
R.S.1943, § 8-128;
Laws 1959, c. 15, § 9, p. 135;
R.R.S.1943, § 8-128;
Laws 1963, c. 29, § 20, p. 142;
Laws 1967, c. 19, § 7, p. 120;
Laws 1980, LB 916, § 1;
Laws 2002, LB 957, § 2;
Laws 2005, LB 533, § 4;
Laws 2008, LB851, § 3;
Laws 2017, LB140, § 21.
Annotations
Where it appears in an error proceeding that an administrative agency acted within its jurisdiction and there is some competent evidence to sustain its findings and order, the order will be sustained. First Nat. Bank of Bellevue v. Southroads Bank, 189 Neb. 748, 205 N.W.2d 346 (1973).
Preliminary statement, without articles of incorporation, was sufficient. First Nat. Bank & Trust Co. of Beatrice v. Ley, 182 Neb. 164, 153 N.W.2d 743 (1967).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-124 - Banks; board of directors; president; meetings; examination; audit.

8-124.
Banks; board of directors; president; meetings; examination; audit.
(1) The affairs and business of any bank shall be managed or controlled by a board of directors of not less than five and not more than twenty-five members, who shall be selected at such time and in such manner as may be provided by the articles of incorporation of the corporation and in conformity with the Nebraska Banking Act. The board of directors shall select a president. No person shall act as president if he or she is not a member of the board of directors.
(2) The board of directors shall hold at least one regular meeting in each calendar quarter, and at one of such meetings in each year a thorough examination of the books, records, funds, and securities held by the bank shall be made and recorded in detail upon its record book. In lieu of the one annual examination required, the board of directors may accept one annual audit by an accountant or accounting firm approved by the Director of Banking and Finance. The board of directors shall submit such audit to the department within one hundred twenty days after the completion of the audit or, for a periodic audit, within one hundred twenty days after the end of the calendar year.
Source
Laws 1909, c. 10, § 26, p. 78;
Laws 1911, c. 8, § 26, p. 81;
R.S.1913, § 305;
Laws 1919, c. 190, tit. V, art. XVI, § 26, p. 696;
C.S.1922, § 8007;
C.S.1929, § 8-138;
R.S.1943, § 8-140;
Laws 1961, c. 15, § 4, p. 112;
R.R.S.1943, § 8-140;
Laws 1963, c. 29, § 24, p. 143;
Laws 1967, c. 21, § 1, p. 123;
Laws 1973, LB 164, § 9;
Laws 1974, LB 721, § 2;
Laws 1987, LB 2, § 6;
Laws 1998, LB 1321, § 6;
Laws 2005, LB 533, § 5;
Laws 2007, LB124, § 3;
Laws 2017, LB140, § 23;
Laws 2022, LB707, § 8.
Annotations
Terms of office of a bank officer are required to be for one year. Sullivan v. David City Bank, 181 Neb. 395, 148 N.W.2d 844 (1967).
Person who permits himself to be held out as director of bank is estopped to deny that he was owner of sufficient shares in his own right to qualify as director. Kienke v. Kirsch, 121 Neb. 688, 238 N.W. 33 (1931).
Buying capital stock of rival bank not an ordinary banking transaction within the powers of a stockholder, the president, a single director, or all combined. Cooper v. Bane, 110 Neb. 83, 196 N.W. 119 (1923).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-124.01 - Banks; board of directors; vacancy; notice; filling; application for approval.

8-124.01.
Banks; board of directors; vacancy; notice; filling; application for approval.
At any time that a vacancy on the board of directors of a bank occurs, the bank shall, within thirty days, notify the department of the vacancy. Vacancies shall be filled within ninety days by appointment by the remaining directors, and any director so appointed shall serve until the next election of directors, except that if the vacancy created leaves a minimum of five directors, appointment shall be optional. When the vacancy has been filled, the bank shall make application to the department for approval of the director appointed in accordance with section 8-126.
Source
Laws 1973, LB 164, § 10;
Laws 1995, LB 599, § 1;
Laws 2017, LB140, § 24.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-125 - Banks; board of directors; meetings; record; contents; publication.

8-125.
Banks; board of directors; meetings; record; contents; publication.
A full and complete record of the proceedings and business of all meetings of the board of directors shall be recorded in the bank's minutes. Such record of the meetings shall show the gross earnings and disposition thereof by indicating expenses and taxes paid, worthless items charged off, depreciation in assets, amount carried to surplus fund, and amount of dividend, and shall also indicate the amount of undivided profits remaining. Published statements of assets and liabilities shall show for undivided profits only the net amount after deducting all expenses.
Source
Laws 1923, c. 191, § 37, p. 458;
C.S.1929, § 8-139;
R.S.1943, § 8-141;
Laws 1963, c. 29, § 25, p. 144;
Laws 2017, LB140, § 25.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-126 - Bank directors; qualifications; approval by department; revocation of approval; procedure.

8-126.
Bank directors; qualifications; approval by department; revocation of approval; procedure.
(1) A majority of the members of the board of directors of any bank shall have their residences in this state or within twenty-five miles of the main office of the bank. Reasonable efforts shall be made to acquire members of such board of directors from the county in which the main office of such bank is located and from counties in which branches of such bank are located.
(2) Directors of banks shall be persons of good moral character, known integrity, business experience, and responsibility. No person shall act as a member of the board of directors of any bank until such bank applies for and obtains approval from the department.
(3) If the department, upon investigation, determines that any director of a bank is conducting the business of the bank in an unsafe or unauthorized manner or is endangering the interests of the stockholders or depositors, the Director of Banking and Finance has the authority, following notice and opportunity for hearing, to revoke such approval to act as a member of the board of directors.
(4) The Director of Banking and Finance may adopt and promulgate rules and regulations and prescribe forms to carry out this section.
Source
Laws 1909, c. 10, § 12, p. 71;
R.S.1913, § 291;
Laws 1919, c. 190, tit. V, art. XVI, § 10, p. 689;
Laws 1921, c. 313, § 1, p. 1001;
C.S.1922, § 7991;
C.S.1929, § 8-121;
Laws 1935, c. 7, § 1, p. 70;
C.S.Supp.,1941, § 8-121;
R.S.1943, § 8-118;
Laws 1959, c. 15, § 2, p. 132;
R.R.S.1943, § 8-118;
Laws 1963, c. 29, § 26, p. 144;
Laws 1973, LB 164, § 11;
Laws 1986, LB 1035, § 1;
Laws 1987, LB 2, § 7;
Laws 1988, LB 996, § 1;
Laws 1989, LB 322, § 1;
Laws 1993, LB 81, § 2;
Laws 1997, LB 137, § 3;
Laws 1998, LB 1321, § 7;
Laws 2017, LB140, § 26.
Annotations
Under former law a director of commercial state bank must have been the owner of at least four percent of its capital stock in his own name and right, and a person having acted as director was estopped to deny ownership of stock standing in his name. Kienke v. Hudson, 122 Neb. 475, 240 N.W. 562 (1932); Kienke v. Kirsch, 121 Neb. 688, 238 N.W. 33 (1931).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-127 - List of stockholders; open to inspection; violation; penalty.

8-127.
List of stockholders; open to inspection; violation; penalty.
(1) Every bank shall cause to be kept at all times a full and correct list of the names and residences of all its stockholders, the number of shares held by each, and the amount of paid-up capital represented thereby. Such list shall be subject to the inspection of all stockholders of the bank during all business hours, and shall be kept in the business office where all stockholders may have ready access to it.
(2) Any person violating this section is guilty of a Class III misdemeanor.
Source
Laws 1909, c. 10, § 38, p. 85;
R.S.1913, § 317;
Laws 1919, c. 190, tit. V, art. XVI, § 38, p. 701;
C.S.1922, § 8018;
C.S.1929, § 8-157;
R.S.1943, § 8-162;
Laws 1963, c. 29, § 27, p. 145;
Laws 1977, LB 40, § 42;
Laws 2017, LB140, § 27.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-128 - Capital stock; increase; decrease; notice; publication; denial by director, when.

8-128.
Capital stock; increase; decrease; notice; publication; denial by director, when.
The paid-in capital stock of any bank may be increased or decreased in the following manner: The stockholders at any regular meeting or at any special meeting duly called for such purpose shall by vote of those owning two-thirds of the capital stock authorize an officer of the bank to notify the department of the proposed increase or reduction of paid-in capital stock, and a notice containing a statement of the amount of any proposed reduction of paid-in capital stock shall be published for two weeks in some newspaper published and of general circulation in the county where the main office of such bank is located. Reduction of paid-in capital stock shall be discretionary with the director, but shall be denied if granting the same would reduce the paid-in capital stock below the requirements of the Nebraska Banking Act or would impair the security of the depositors. The bank shall notify the department when the proposed increase or decrease of the paid-in capital stock has been consummated.
Source
Laws 1909, c. 10, § 34, p. 82;
R.S.1913, § 313;
Laws 1919, c. 190, tit. V, art. XVI, § 34, p. 699;
C.S.1922, § 8014;
C.S.1929, § 8-153;
Laws 1933, c. 18, § 34, p. 152;
C.S.Supp.,1941, § 8-153;
R.S.1943, § 8-157;
Laws 1961, c. 15, § 7, p. 113;
R.R.S.1943, § 8-157;
Laws 1963, c. 29, § 28, p. 145;
Laws 1987, LB 2, § 8;
Laws 1998, LB 1321, § 8;
Laws 2015, LB155, § 2;
Laws 2017, LB140, § 28.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-129 - Stockholders' meeting; director may call; notice; expense.

8-129.
Stockholders' meeting; director may call; notice; expense.
Whenever the director deems it expedient, he or she may call a meeting of the stockholders of any bank by sending notice of such meeting to each stockholder five days previous thereto. All necessary expenses incurred in the giving of such notice shall be borne by the bank whose stockholders are required to convene.
Source
Laws 1933, c. 18, § 41, p. 157;
C.S.Supp.,1941, § 8-1,126;
R.S.1943, § 8-1,106;
Laws 1963, c. 29, § 29, p. 146;
Laws 2017, LB140, § 29.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-130 - Federal reserve system; membership by state banks and trust companies authorized; examinations.

8-130.
Federal reserve system; membership by state banks and trust companies authorized; examinations.
Any bank or trust company, organized under the laws of this state, may subscribe to the capital stock of the Federal Reserve Bank of Kansas City, Missouri, and become a member of the federal reserve system created and organized under an act of Congress of the United States, approved December 23, 1913, and known as the Federal Reserve Act, and may assume such liabilities and exercise such powers as a member of such system as are prescribed by the provisions of such act, or amendments thereto. So long as such bank or trust company shall remain a member of such system, it shall be subject to examination by the legally constituted authorities, and to all provisions of such Federal Reserve Act and regulations made pursuant thereto by the Federal Reserve Board which are applicable to such bank or trust company as a member of the federal reserve system. The director may, in his or her discretion, accept examinations and audits made under the provisions of the Federal Reserve Act in lieu of examinations required of banks or trust companies organized under the laws of this state.
Source
Laws 1915, c. 175, § 1, p. 359;
Laws 1919, c. 190, tit. V, art. XVI, § 65, p. 711;
C.S.1922, § 8045;
C.S.1929, § 8-163;
R.S.1943, § 8-166;
Laws 1963, c. 29, § 30, p. 146;
Laws 2017, LB140, § 30.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-132 - Banks; available funds; deficient reserve; impairment of capital; duty of bank; powers and duties of department; notice to bank.

8-132.
Banks; available funds; deficient reserve; impairment of capital; duty of bank; powers and duties of department; notice to bank.
(1) The available funds of a bank shall consist of cash on hand and balances due from other solvent banks. Cash shall include lawful money of the United States and exchange for any clearinghouse association. Whenever the available funds or any reserve of any bank are deemed deficient by the director, such bank shall not make any new loans or discount otherwise than by discounting or purchasing bills of exchange payable at sight or make any dividends of its profits until it has on hand available funds and reserve deemed sufficient for operation by the director. The department shall notify any bank, in case its available funds or reserves are deemed deficient or its capital is impaired, to make good such available funds, reserves, or capital within such time as the director may direct, and any failure of such bank to make good any deficiency in the amount of its available funds, reserve, or capital within the time directed shall be cause for the department to take possession of such bank, declare it insolvent, and liquidate it as provided in the Nebraska Banking Act.
(2) The capital of any bank shall be deemed to be unimpaired when the amount of capital notes and debentures as represented by cash or sound assets exceeds an impairment as found by the department.
Source
Laws 1909, c. 10, § 23, p. 77;
R.S.1913, § 302;
Laws 1919, c. 190, tit. V, art. XVI, § 23, p. 695;
C.S.1922, § 8004;
C.S.1929, § 8-135;
Laws 1933, c. 18, § 24, p. 147;
C.S.Supp.,1941, § 8-135;
R.S.1943, § 8-137;
R.R.S.1943, § 8-137;
Laws 1963, c. 29, § 32, p. 147;
Laws 1965, c. 28, § 1, p. 200;
Laws 1987, LB 2, § 9;
Laws 1998, LB 1321, § 9;
Laws 2003, LB 217, § 4;
Laws 2017, LB140, § 31.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-134 - Deposits; repayment only on presentation of pass book, when; notice.

8-134.
Deposits; repayment only on presentation of pass book, when; notice.
Banks may, by agreement, provide that deposits received under agreement shall be repaid only on presentation of pass books and may require notice to be given before such deposits are repaid.
Source
Laws 1963, c. 29, § 34, p. 148.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-135 - Deposits; withdrawal methods authorized; lease of safe deposit box; section; how construed.

8-135.
Deposits; withdrawal methods authorized; lease of safe deposit box; section; how construed.
(1) All persons, regardless of age, may become depositors in any bank and shall be subject to the same duties and liabilities respecting their deposits. Whenever a deposit is accepted by any bank in the name of any person, regardless of age, the deposit may be withdrawn by the depositor by any of the following methods:
(a) Check or other instrument in writing. The check or other instrument in writing constitutes a receipt or acquittance if the check or other instrument in writing is signed by the depositor and constitutes a valid release and discharge to the bank for all payments so made; or
(b) Electronic means through:
(i) Preauthorized direct withdrawal;
(ii) An automatic teller machine;
(iii) A debit card;
(iv) A transfer by telephone;
(v) A network, including the Internet; or
(vi) Any electronic terminal, computer, magnetic tape, or other electronic means.
(2) All persons, individually or with others and regardless of age, may enter into an agreement with a bank for the lease of a safe deposit box and shall be bound by the terms of the agreement.
(3) This section shall not be construed to affect the rights, liabilities, or responsibilities of participants in an electronic fund transfer under the federal Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq., as such act existed on January 1, 2023, and shall not affect the legal relationships between a minor and any person other than the bank.
Source
Laws 1963, c. 27, § 1, p. 132;
Laws 1963, c. 29, § 35, p. 148;
Laws 2005, LB 533, § 6;
Laws 2013, LB213, § 3;
Laws 2016, LB760, § 1;
Laws 2017, LB140, § 33;
Laws 2018, LB812, § 1;
Laws 2019, LB258, § 1;
Laws 2020, LB909, § 2;
Laws 2021, LB363, § 1;
Laws 2022, LB707, § 9;
Laws 2023, LB92, § 4.
Operative Date: June 7, 2023
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-137 - Checks; certification; requirements; effect.

8-137.
Checks; certification; requirements; effect.
No officer or employee of any bank shall certify any check drawn upon such bank unless the person, firm, or corporation drawing the check has on deposit with the bank at the time such check is certified an amount of credit, on the depositors' ledger of such bank, subject to the payment of such check, equal to the amount specified in such check. The amount of such check shall not be recoverable from the payee or holder except in case of fraud. Whenever a check drawn upon any bank is certified by any officer or employee of such bank, the amount of the check shall be immediately charged against the account of the person, firm, or corporation drawing the check.
Source
Laws 1909, c. 10, § 39, p. 85;
R.S.1913, § 318;
Laws 1919, c. 190, tit. V, art. XVI, § 39, p. 701;
C.S.1922, § 8019;
C.S.1929, § 8-158;
R.S.1943, § 8-163;
Laws 1963, c. 29, § 37, p. 149;
Laws 2017, LB140, § 34.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-138 - Deposits; receiving when insolvent; prohibition; penalty.

8-138.
Deposits; receiving when insolvent; prohibition; penalty.
No bank shall accept or receive on deposit for any purpose any money, bank bills, United States treasury notes or currency, or other notes, bills, checks, drafts, credits, or currency, when such bank is insolvent. If any bank receives or accepts on deposit any such deposits when such bank is insolvent, the officer, agent, or employee knowingly receiving or accepting or being accessory to, permitting, or conniving at the receiving or accepting on deposit of such bank any such deposit, is guilty of a Class III felony.
Source
Laws 1909, c. 10, § 30, p. 80;
R.S.1913, § 309;
Laws 1919, c. 190, tit. V, art. XVI, § 30, p. 697;
C.S.1922, § 8010;
C.S.1929, § 8-147;
R.S.1943, § 8-147;
Laws 1963, c. 29, § 38, p. 149;
Laws 1977, LB 40, § 44;
Laws 2017, LB140, § 35.
Annotations
Insolvent bank has no power to receive deposits. Torgeson v. Department of Trade and Commerce, 127 Neb. 38, 254 N.W. 735 (1934).
In prosecution against banker for receiving deposits knowing bank to be insolvent, intentional fraud, deceit, false reports and wrongful entries on bank books are not elements of the offense as defined by statute. Flannigan v. State, 125 Neb. 519, 250 N.W. 908 (1933).
Instruction to jury defining insolvency of bank as being when the actual cash value of its assets was insufficient to pay its liabilities to depositors, or when it was unable to meet the demands of its creditors in the usual and ordinary manner, was not prejudicial to defendant. Gutru v. State, 125 Neb. 506, 250 N.W. 913 (1933).
Conviction under this section sustained upon evidence that deposits were received when real value of assets were less than liabilities of bank, and defendant had knowledge of the deposits and insolvency. Flannigan v. State, 125 Neb. 163, 249 N.W. 609 (1933).
Banking department has no authority to authorize a bank, its officers or employees, to violate this section. State v. Kastle, 120 Neb. 758, 235 N.W. 458 (1931).
Constitutionality of this section sustained. Westbrook v. State, 120 Neb. 625, 234 N.W. 579 (1931).
This section bearing penalty contrasted with section providing no penalty. State ex rel. Davis v. Farmers State Bank of Winside, 112 Neb. 597, 200 N.W. 173 (1924).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-140 - Mortgage loan originator; registration.

8-140.
Mortgage loan originator; registration.
Any financial institution chartered by the department that employs a mortgage loan originator, as defined in section 45-702, shall register such employee with the Nationwide Mortgage Licensing System and Registry, as defined in section 45-702, by furnishing the following information concerning the employee's identity to the Nationwide Mortgage Licensing System and Registry:
(1) Fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive such information, for a state and national criminal history background check; and
(2) Personal history and experience, including authorization for the Nationwide Mortgage Licensing System and Registry to obtain information related to any administrative, civil, or criminal findings by any governmental jurisdiction.
Source
Laws 2017, LB140, § 37.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-142 - Loans; excessive amount; violations; penalty.

8-142.
Loans; excessive amount; violations; penalty.
Any officer, employee, director, or agent of any bank who knowingly violates or knowingly permits a violation of section 8-141 is guilty of:
(1) A Class IV felony when the violation, either separately or as part of one scheme or course of conduct, results in the insolvency of the bank;
(2) A Class I misdemeanor when the violation, either separately or as part of one scheme or course of conduct, (a) results in a monetary loss to the bank of over twenty thousand dollars or (b) exceeds the authorized limit under section 8-141 by forty thousand dollars or more;
(3) A Class II misdemeanor when the violation, either separately or as part of one scheme or course of conduct, (a) results in a monetary loss to the bank of ten thousand dollars or more, but not more than twenty thousand dollars, or (b) exceeds the authorized limit under section 8-141 by twenty thousand dollars or more, but less than forty thousand dollars; or
(4) A Class III misdemeanor when the violation, either separately or as part of one scheme or course of conduct, (a) results in no monetary loss to the bank or a monetary loss to the bank of less than ten thousand dollars, or (b) exceeds the authorized limit under section 8-141 by ten thousand dollars or more, but less than twenty thousand dollars.
Source
Laws 1909, c. 10, § 33, p. 82;
R.S.1913, § 312;
Laws 1919, c. 190, tit. V, art. XVI, § 33, p. 698;
Laws 1921, c. 313, § 1, p. 1002;
C.S.1922, § 8013;
Laws 1923, c. 191, § 45, p. 461;
C.S.1929, § 8-150;
Laws 1933, c. 18, § 33, p. 152;
C.S.Supp.,1941, § 8-150;
Laws 1943, c. 9, § 1(2), p. 68;
R.S.1943, § 8-151;
Laws 1963, c. 29, § 42, p. 152;
Laws 1977, LB 40, § 47;
Laws 2010, LB890, § 2.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-143 - Loans; excessive amount; violations; forfeiture of charter; directors' personal liability.

8-143.
Loans; excessive amount; violations; forfeiture of charter; directors' personal liability.
If the directors of any bank knowingly violate or knowingly permit any of the officers, employees, or agents of the bank to violate section 8-141, all rights, privileges, and franchises of the bank shall be forfeited. Before the charter of the bank is declared forfeited, the violation shall be determined and adjudged by a court of competent jurisdiction in an action brought for that purpose by the Director of Banking and Finance in his or her own name. In case of such violation, every director of the bank who participated in or knowingly assented to the violation or permission to violate section 8-141 shall be liable in his or her personal and individual capacity for all damages which the bank, its shareholders, or any other person has sustained in consequence of such violation.
Source
Laws 1923, c. 191, § 45, p. 461;
C.S.1929, § 8-150;
Laws 1933, c. 18, § 33, p. 152;
C.S.Supp.,1941, § 8-150;
Laws 1943, c. 9, § 1(3), p. 68;
R.S.1943, § 8-152;
Laws 1959, c. 15, § 15, p. 138;
R.R.S.1943, § 8-152;
Laws 1963, c. 29, § 43, p. 152;
Laws 2010, LB890, § 3;
Laws 2017, LB140, § 39.
Annotations
To state a cause of action under this section against bank directors, a plaintiff must factually allege that (1) the loan exceeds the limit imposed by section 8-141; (2) the directors participated in or knowingly assented to the violation of section 8-141; (3) the plaintiff is a person entitled to relief under this section; and (4) the plaintiff has sustained damages as the result of the excessive loan. Schuyler State Bank v. Cech, 228 Neb. 588, 423 N.W.2d 464 (1988).
That part of this section imposing personal liability upon bank directors for damages sustained as the result of knowingly making excessive loans is remedial in character, and a cause of action therefor is complete the moment the excessive loan is made. Department of Banking v. McMullen, 134 Neb. 338, 278 N.W. 551 (1938).
This section bearing penalty contrasted with section 8-147. State ex rel. Davis v. Farmers State Bank of Winside, 112 Neb. 597, 200 N.W. 173 (1924).
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-144 - Loans or extension of credit; improper; willful and knowing violation; liability.

8-144.
Loans or extension of credit; improper; willful and knowing violation; liability.
Any officer or employee of any bank who willfully and knowingly violates any provision of sections 8-141 to 8-143.01 shall be liable under his or her bond for any loss to the bank resulting therefrom.
Source
Laws 1909, c. 10, § 40, p. 86;
R.S.1913, § 319;
Laws 1919, c. 190, tit. V, art. XVI, § 40, p. 701;
C.S.1922, § 8020;
C.S.1929, § 8-159;
R.S.1943, § 8-153;
Laws 1963, c. 29, § 44, p. 152;
Laws 1994, LB 611, § 3;
Laws 2017, LB140, § 41.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-145 - Loans; other improper solicitation or receipt of benefits; unlawful inducement; penalty.

8-145.
Loans; other improper solicitation or receipt of benefits; unlawful inducement; penalty.
Any stockholder or director, officer, agent, or employee of any bank who, for the use or benefit of himself or herself or any person other than the bank, solicits, asks for, or receives or agrees to receive from any person any gift or compensation or reward or inducement of any kind for (1) procuring or endeavoring to procure any loan from such bank to any person, (2) procuring or endeavoring to procure the purchase by such bank from any person of any negotiable or nonnegotiable instrument of any kind by discount or otherwise, (3) procuring or endeavoring to procure the purchase by such bank from any person of any real or personal property of any kind, or (4) procuring or endeavoring to procure such bank to permit any person to overdraw his or her account with such bank, is guilty of a Class I misdemeanor.
Source
Laws 1923, c. 191, § 40, p. 458;
C.S.1929, § 8-151;
R.S.1943, § 8-154;
Laws 1963, c. 29, § 45, p. 152;
Laws 1977, LB 40, § 48;
Laws 2017, LB140, § 42.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.01 - Corporation operating a computer center; investment of funds; limitation.

8-148.01.
Corporation operating a computer center; investment of funds; limitation.
Any bank may invest not more than ten percent of its capital and surplus either in stock of a corporation operating a computer center or directly, alone or with others, in a computer center. With written approval of the director, such additional percentage of its capital and surplus may be so invested as the director shall approve. Such investment is not subject to the provisions of sections 8-148, 8-149, and 8-150.
Source
Laws 1967, c. 18, § 1, p. 116;
Laws 1993, LB 81, § 5;
Laws 2017, LB140, § 45.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.02 - Banks; subscribe, invest, buy, and own stock; agricultural credit corporation; livestock loan company; limitation.

8-148.02.
Banks; subscribe, invest, buy, and own stock; agricultural credit corporation; livestock loan company; limitation.
Any bank may subscribe to, invest, buy, and own stock in any agricultural credit corporation or livestock loan company, or its affiliate, the principal business of which corporation must be the extension of short and intermediate term credit to farmers and ranchers, including partnerships, limited liability companies, and corporations engaged in farming and ranching, for agricultural purposes, including the breeding, raising, fattening, or marketing of livestock. The bank shall not obligate more than thirty-five percent of its paid-up capital, surplus, undivided profits, capital reserves, capital notes, and debentures for such purposes, except that if the bank owns at least eighty percent of the voting stock of such agricultural credit corporation or livestock loan company, the limitation on the amount of obligation for such purposes shall not apply. Such subscription, investment, possession, or ownership is not subject to the provisions of sections 8-148, 8-149, and 8-150.
Source
Laws 1969, c. 30, § 1, p. 235;
Laws 1971, LB 720, § 1;
Laws 1974, LB 845, § 1;
Laws 1982, LB 779, § 2;
Laws 1993, LB 121, § 88;
Laws 2017, LB140, § 46.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.03 - Bonds of the State of Israel; securities; banks; savings and loan associations, insurance companies, credit unions; invest funds.

8-148.03.
Bonds of the State of Israel; securities; banks; savings and loan associations, insurance companies, credit unions; invest funds.
Bonds of the State of Israel are hereby made securities in which banks, savings and loan associations, insurance companies, and credit unions may properly and legally invest funds.
Source
Laws 1974, LB 845, § 3.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.04 - Community development investments; conditions.

8-148.04.
Community development investments; conditions.
(1) Any bank may make a community development investment or investments either directly or through purchasing an equity interest in or an evidence of indebtedness of an entity primarily engaged in making community development investments, if the following conditions are satisfied:
(a) An investment under this subsection does not expose the bank to unlimited liability; and
(b) The bank's aggregate investment under this subsection does not exceed fifteen percent of its capital and surplus. If the bank's investment in any one entity will exceed five percent of its capital and surplus, the prior written approval of the director must be obtained.
(2) Nothing in this section prevents a bank from charging off as a contribution an investment made pursuant to subsection (1) of this section.
(3) The subscription, investment, possession, or ownership is not subject to sections 8-148, 8-149, and 8-150.
(4) For purposes of this section, community development investments means investments of a predominantly civic, community, or public nature and not merely private and entrepreneurial.
Source
Laws 1993, LB 81, § 6;
Laws 1994, LB 979, § 4;
Laws 1996, LB 1184, § 1;
Laws 2006, LB 876, § 9;
Laws 2007, LB124, § 4;
Laws 2017, LB140, § 47.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.05 - Qualified Canadian Government obligations; investment.

8-148.05.
Qualified Canadian Government obligations; investment.
(1) Any bank may deal in, underwrite, and purchase for its own account qualified Canadian Government obligations to the same extent that such bank may deal in, underwrite, and purchase for its own account obligations of the United States Government or general obligations of any state thereof.
(2) For purposes of this section:
(a) Qualified Canadian Government obligation means any debt obligation which is backed by Canada or any Canadian province to a degree which is comparable to the liability of the United States Government or any state thereof for any obligation which is backed by the full faith and credit of the United States Government or any state thereof. Qualified Canadian Government obligations also includes any debt obligation of any agent of Canada or any Canadian province if:
(i) The obligation of the agent is assumed in such agent's capacity as agent for Canada or any Canadian province; and
(ii) Canada or any Canadian province, on whose behalf such agent is acting with respect to such obligation, is ultimately and unconditionally liable for such obligation; and
(b) The term Canadian province means a province of Canada and includes the Yukon Territory and the Northwest Territories and their successors.
Source
Laws 1993, LB 423, § 1;
Laws 2017, LB140, § 48.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.06 - Banks; subscribe, invest, buy, own, and sell stock; bank subsidiaries; limitation.

8-148.06.
Banks; subscribe, invest, buy, own, and sell stock; bank subsidiaries; limitation.
Any bank may subscribe to, invest in, buy, own, and sell the common stock, obligations, and other securities of one or more bank subsidiaries organized under the laws of the State of Nebraska. A bank shall not obligate more than thirty-five percent of its paid-up capital stock, surplus, undivided profits, capital reserves, and capital notes and debentures for such purposes. An additional percentage of its paid-up capital stock, surplus, undivided profits, capital reserves, and capital notes and debentures may be invested with written approval of the director. The subscription, investment, possession, or ownership is not subject to sections 8-148, 8-149, and 8-150.
Source
Laws 1995, LB 384, § 2;
Laws 2022, LB707, § 12.
2023 Nebraska Revised Statutes › Chapter 8 - Banks and Banking › 8-148.07 - Bank subsidiary; authorized activities.

8-148.07.
Bank subsidiary; authorized activities.
A bank subsidiary shall engage in only those activities:
(1) Prescribed under subdivision (6) of section 8-101.03; or
(2) That its bank shareholder, shareholders, member, members, investor, or investors are authorized to perform under the laws of this state and shall engage in those activities only at locations in this state where the bank shareholder, shareholders, member, members, investor, or investors could be authorized to perform activities.
Source
Laws 1995, LB 384, § 3;
Laws 2000, LB 932, § 2;
Laws 2017, LB140, § 49;
Laws 2022, LB707, § 13.