{"id":20394,"date":"2017-01-23T16:19:17","date_gmt":"2017-01-23T22:19:17","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=20394"},"modified":"2017-01-23T16:19:17","modified_gmt":"2017-01-23T22:19:17","slug":"comprehensive-updates-to-banking-laws-proposed","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=20394","title":{"rendered":"Comprehensive updates to banking laws proposed"},"content":{"rendered":"

A comprehensive update of Nebraska\u2019s banking laws was considered Jan. 23 by the Banking, Commerce and Insurance Committee.<\/p>\n

\"\"
Sen. Matt Williams<\/figcaption><\/figure>\n

Gothenburg Sen. Matt Williams, sponsor of LB140, said the bill is the result of a year of work by state senators, banking industry representatives and the state Department of Banking and Finance.<\/p>\n

Stakeholders met monthly, he said, in order to review existing laws and suggest changes that would reduce regulatory complexity while still protecting consumers and preserving public confidence in Nebraska\u2019s banking industry.<\/p>\n

\u201cTo our knowledge, no comprehensive review and update to the current Nebraska Banking Act has occurred since its enactment in 1963,\u201d Williams said, adding that the stakeholders involved had an overriding rule for the working group.<\/p>\n

\u201cWe all came to the table with the idea of working together, and we agreed on the front end that the only provisions that would be included in LB140 would be those that were mutually agreed upon by all [parties],\u201d he said.<\/p>\n

Among other provisions, the bill would:
\n\u2022 allow a minor to open and maintain a safe deposit box;
\n\u2022 allow electronic filing of bank fidelity bonds with the state Department of Banking;
\n\u2022 require banks that employ a mortgage loan originator to register that employee with the Nationwide Mortgage Licensing System;
\n\u2022 allow a bank to acquire the stock of another financial institution if the transaction is part of the merger, consolidation or acquisition of assets of the other institution;
\n\u2022 authorize an increase in the maximum number of a bank board of directors from 15 to 25 and require that a bank president be a member of the board;
\n\u2022 prohibit bank-affiliated individuals from being paid a higher rate of interest on deposits than paid by the bank for similar deposits and provide that a violation is a Class IV felony; and
\n\u2022 allow a bank, in a state of emergency, to open a temporary office to conduct business for up to 30 months, or allow a mobile branch to serve as a temporary emergency branch office.<\/p>\n

The bill also would repeal obsolete sections of the state\u2019s banking laws.<\/p>\n

Mark Quandahl, director of the state Department of Banking and Finance, testified in support of LB140 and addressed specific provisions outlined in the 143-page bill.<\/p>\n

\u201cAs the working group was reviewing the laws relating to emergencies, two of our banks \u2013 Wahoo State Bank and First Central Bank in Cambridge \u2013 had very real emergencies when fires destroyed their main offices,\u201d he said.<\/p>\n

The department discovered that existing laws were inadequate in regard to authorizing the banks to immediately establish temporary locations, he said, and LB140 would address those issues.<\/p>\n

Also testifying in support was Robert Hallstrom of the Nebraska Bankers Association. He said the bill reflects best practices and incorporates many necessary updates.<\/p>\n

\u201cMany of the provisions, as director Quandahl has noted, were technical in nature,\u201d he said, \u201cbut there are substantive provisions that will be beneficial both for the financial institutions and the customers that we serve.\u201d<\/p>\n

No opposition testimony was offered and the committee took no immediate action on the bill.<\/p>\n","protected":false},"excerpt":{"rendered":"

A comprehensive update of Nebraska\u2019s banking laws was considered Jan. 23 by the Banking, Commerce and Insurance Committee.<\/p>\n","protected":false},"author":1,"featured_media":20397,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[157],"class_list":["post-20394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-commerce-and-insurance","tag-sen-matt-williams"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/update.legislature.ne.gov\/wp-content\/uploads\/2017\/01\/LB140Williams1-23-17a.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/20394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20394"}],"version-history":[{"count":4,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/20394\/revisions"}],"predecessor-version":[{"id":20400,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/20394\/revisions\/20400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/media\/20397"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}