Omnibus banking bill passed

A bill that updates Nebraska banking law passed July 21.

Among other provisions, LB909, introduced by Sen. Matt Williams of Gothenburg, will:
• allow minors to establish deposit accounts;
• repeal obsolete language in the Nebraska Banking Act related to report publication;
• allow the director of the state Department of Banking and Finance to examine licensees at his or her discretion;
• allow a financial institution to notify a caretaker or other third-party reasonably associated with a vulnerable adult or senior of suspected financial exploitation and allow a financial institution to place up to a 30-day hold on suspicious transactions. A financial institution’s employees, officers and directors would be indemnified from civil, criminal or administrative liability for any transaction delayed based on a good faith belief that the transaction may have been exploitive;
• grant state-chartered banks, savings associations and credit unions the same rights, powers, privileges and immunities as federally chartered entities doing business in the state as of Jan. 1, 2020; and
• allow certain employees of the state Department of Banking to borrow from a financial institution chartered by the department. The department director, deputy director, counsel, attorney or financial institution examiner still will be prohibited from such borrowing.

LB909 passed 48-0 and takes effect immediately.