Government bond lien proposal becomes omnibus banking bill

Lawmakers amended a bill April 9 to remove its original provisions and create a banking bill related to the processing of tangible and intangible property.

As originally introduced by Columbus Sen. Paul Schumacher, LB788 would have created a statutory lien and granted a security interest in bond-pledged revenue sources of an issuing governmental unit.

Schumacher offered an amendment during select file debate that would strike the original bill and add provisions of six additional proposals. The amendment was divided into six sections at the request of Omaha Sen. Beau McCoy.

The six components of the amendment added provisions of the following bills.

LB151, introduced by Hastings Sen. Les Seiler, would create an acquired or integrated business records exception to Nebraska’s hearsay rule. The component was adopted 28-0.

LB775, also introduced by Seiler, would provide an exception to the disclosure of confidential information rules to allow banks and other corporations to release information regarding date of death valuation and beneficiary designations for property in their possession. The component was adopted 30-0.

LB810, introduced by Syracuse Sen. Dan Watermeier, would prohibit local ordinances or resolutions from interfering with the enforcement or servicing of any real estate loan agreement or any mortgage, deed of trust or other security instrument by which the loan is secured. The prohibition would not apply to a local ordinance or resolution related to tax increment financing. The component was adopted 28-0.

LB815, introduced by Gretna Sen. John Murante, would bring state law regarding the pledging of securities for trust funds awaiting investment or distribution into conformity with federal law. The component was adopted 31-0.

LB819, introduced by Lexington Sen. John Wightman, would conform provisions regarding the way debts or obligations and future advances may be secured pursuant to a mortgage or trust deed covering an interest in real property. The component was adopted 30-0.

LB988, introduced by Schumacher, would create a process for entry into a decedent’s safe deposit box for the limited purposes of locating a will, deed to a burial plot or burial instructions. The component was adopted 32-0.

Following adoption of all six components of the Schumacher amendment, LB788 advanced to final reading by voice vote.