The Nebraska Legislature is half-way through its ninety-day legislative session and several of the first bills 
passed were supported by the Nebraska Credit Union League. The bills passed have also been signed into law by Governor Jim Pillen.
LB 241 was introduced by State Senator Bob Hallstrom of Syracuse (LD 1). The law defines a cybersecurity event and requires that in order to maintain a class action lawsuit against a private entity in the case of a cybersecurity event, a person would need to demonstrate the event was a result of willful, wanton, or gross negligence on the part of the private entity. The law will take effect three months after the Legislature adjourns.
LB 251 was introduced by State Senator Mike Jacobson of North Platte (LD 42) on behalf of the Nebraska Department of Banking and Finance. The law updates the annual “wild card” or parity provisions for state chartered financial institutions to ensure that they have the same rights, powers, and privileges of federal chartered counterparts. It prohibits charter applicants from using the terms bank or credit union in their name thirty days after their charter application has been withdrawn or denied. It makes changes to credit union and bank branch applications by requiring the financial institution to publish notification in circulated newspapers, pay for the notification, and provide receipt to such publication to the Department of Banking. It provides the Director powers in cases of emergency mergers of federal or out-of-state chartered financial institutions. The bill included the emergency clause and therefore took effect on March 11, 2025 when Governor Pillen signed the bill.
LB 231 was introduced by State Senator Bob Hallstrom of Syracuse (LD 1). The law creates the Uniform Special Deposits Act and establishes a framework for financial institutions and their members/customers to utilize special deposits with greater certainty about how such deposits will be treated under various circumstances. The Act is an “opt-in” statute that only applies if financial institutions and their members/customers specify in their account agreement that they intend to be covered by it. It remedies four key uncertainties under current law: 1) clarifies what a special deposit is; 2) clarifies the treatment of a special deposit in the event of the bankruptcy of the depositor; 3) clarifies the applicability of creditor processes on a special deposit; and 4) clarifies the ability of a financial institution to exercise a set off or right of recoupment against a special deposit that is unrelated to a payment to a beneficiary or the special deposit itself. A special deposit creates an assignable and pledge able interest for a beneficiary – a definite and clear right to payment upon the occurrence of a contingency and notice to the financial institution where one may not otherwise exist. It creates a mechanism for parties to a commercial transaction to obtain a low cost and safe return on earnest money. It is narrowly tailored to cure the four legal uncertainties and eliminate doubt so that parties can utilize special deposits with greater confidence. The law will take effect three months after the Legislature adjourns.
