LB 474 (2025) — Nebraska Money Transmitters Act rewritten as MTMA, slip law (Part 1 of 3)
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LB474 LB474
2025 2025
LEGISLATIVE BILL 474
Approved by the Governor May 20, 2025
Introduced by Banking, Commerce and Insurance Committee: Jacobson, 42,
Chairperson; Bostar, 29; Hallstrom, 1; Hardin, 48; Riepe, 12; von
Gillern, 4; Wordekemper, 15; Sorrentino, 39.
A BILL FOR AN ACT relating to law; to amend sections 8-319, 8-330, 8-601,
8-820.01, 8-2701, 8-2702, 8-2703, 8-2704, 8-2705, 8-2706, 8-2707, 8-2708,
8-2709, 8-2710, 8-2711, 8-2712, 8-2713, 8-2714, 8-2715, 8-2716, 8-2717,
8-2718, 8-2719, 8-2720, 8-2721, 8-2722, 8-2723, 8-2725, 8-2726, 8-2727,
8-2728, 8-2731, 8-2732, 8-2733, 8-2734, 8-2736, 8-2737, 8-2738, 8-2739,
8-2740, 8-2741, 8-2742, 8-3027, 44-502, 44-1703, 44-4109.01, 45-101.04,
45-1,110, 45-334, 45-335, 45-336, 45-337, 45-338, 45-339, 45-340, 45-341,
45-342, 45-343, 45-344, 45-345, 45-347, 45-348, 45-350, 45-351, 45-352,
45-353, 45-355, 45-356, 45-702, 45-703, 45-705, 45-729, 45-734, 45-804,
and 76-2711, Reissue Revised Statutes of Nebraska, sections 8-602, 8-2729,
8-2730, 8-2735, 8-3025, 45-346, 45-354, and 69-2103, Revised Statutes
Cumulative Supplement, 2024, section 8-2724, Revised Statutes Cumulative
Supplement, 2024, as amended by section 18, Legislative Bill 251, One
Hundred Ninth Legislature, First Session, 2025, and section 4, Legislative
Bill 527, One Hundred Ninth Legislature, First Session, 2025; to define,
redefine, and eliminate terms under the Nebraska Money Transmitters Act;
to change provisions of such act relating to applicability, licensure,
powers and duties of the Director of Banking and Finance, confidentiality,
enforcement, required reports, audits, disclosures, and records,
authorized delegates, prohibited activities, money transmission
procedures, refunds, receipts, solvency requirements, surety bonds,
permissible investments, discipline of a license or designation, orders to
cease and desist, consent orders, violations, fees, charges, and costs; to
provide penalties and fines; to prohibit certain insurance policy or
contract exclusions of certain providers; to change the name of the
Nebraska Installment Sales Act to the Nebraska Installment Loan and Sales
Act; to change, transfer, and eliminate provisions of the Nebraska
Installment Loan Act and to eliminate such named act; to change provisions
relating to certain taxes under the Medicaid Access and Quality Act; to
harmonize provisions; to provide operative dates; to repeal the original
sections; and to outright repeal sections 8-2743, 8-2744, 8-2745, 8-2746,
8-2747, 45-351.01, 45-1001, 45-1004, 45-1007, 45-1008, 45-1009, 45-1010,
45-1011, 45-1012, 45-1013, 45-1014, 45-1015, 45-1016, 45-1017, 45-1019,
45-1020, 45-1021, 45-1022, 45-1023, 45-1024, 45-1025, 45-1026, 45-1027,
45-1028, 45-1029, 45-1030, 45-1031, 45-1032, 45-1033, 45-1033.02, 45-1034,
45-1035, 45-1036, 45-1037, 45-1038, 45-1039, 45-1040, 45-1041, 45-1042,
45-1043, 45-1044, 45-1045, 45-1046, 45-1047, 45-1048, 45-1049, 45-1050,
45-1051, 45-1052, 45-1053, 45-1054, 45-1055, 45-1056, 45-1057, 45-1058,
45-1059, 45-1060, 45-1061, 45-1062, 45-1063, 45-1064, 45-1065, 45-1066,
45-1067, 45-1068, 45-1069, and 45-1070, Reissue Revised Statutes of
Nebraska, and sections 45-346.01, 45-1002, 45-1003, 45-1005, 45-1006,
45-1018, and 45-1033.01, Revised Statutes Cumulative Supplement, 2024.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 8-319, Reissue Revised Statutes of Nebraska, is amended
to read:
8-319 (1) No loan shall be made by such association except to its own
members, and no loan shall be made to any member for any sum in excess of the
par value of his or her stock. The borrower shall pledge to the association, as
security for the loan, shares of a maturity value equal to the principal of the
loan and, except as otherwise provided in this section, ample security by
mortgage or deeds of trust on real estate. For purposes of this section, real
property and real estate shall include a leasehold or subleasehold estate in
real property under a lease or sublease the term of which does not expire, or
which is renewable automatically or at the option of the holder or of the
association so as not to expire for at least five years beyond the maturity of
the debt. Loans made upon improved real estate, except as otherwise provided in
this section, shall not exceed ninety-five percent of the reasonable normal
cash value thereof, and all loans made on any other real estate shall not
exceed three-fourths of the reasonable normal cash value thereof.
(2) An association may make a loan or loans in an amount exceeding ninety-
five percent of the reasonable normal cash value of the real estate security
(a) if such loan or loans are made to a veteran in accord with the provisions
of 38 U.S.C., as now existing or as hereafter amended, (b) if the proceeds of
the loan or loans are to be used in purchasing residential property or in
constructing a dwelling on unimproved property owned by such veteran to be
occupied as his or her home, used for the purpose of making repairs,
alterations, or improvements in or paying delinquent indebtedness, taxes, or
special assessments on residential property owned by the veteran and used by
him or her as his or her home, or used in purchasing any land and buildings to
be used by the applicant in pursuing a gainful occupation other than farming,
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and (c) if the Secretary of Veterans Affairs guarantees that portion of such
loan or loans in excess of ninety-five percent of the reasonable normal cash
value of the real estate security.
(3) An association is authorized to obtain insurance of its loans by the
Federal Housing Administrator under Title II of the National Housing Act, as
amended, and such loans so made upon improved real estate and so insured shall
not be subject to the restrictions set forth in this section with reference to
the maximum authorized amount of a loan.
(4) An association may make unsecured loans to its members if such loans
(a) are insured under Title I and Title II of the National Housing Act, as
amended, or (b) are for property alterations, repair, or improvements. The
aggregate amount of loans made under subdivisions (a) and (b) of this
subsection shall not at any time exceed twenty percent of the association's
assets. Each loan made under subdivision (b) of this subsection shall be
repayable in regular monthly installments within a period of twenty years and
shall be supported by a written property statement on forms to be prescribed by
the Department of Banking and Finance. An association may make secured loans to
its members and may make loans under 38 U.S.C., as amended, under Chapter V,
subchapter C of the Home Owners' Loan Act of 1933, as amended (12 U.S.C.), and
on the security of mobile homes.
(5) The stock of such association may be accepted as security for a loan
of the amount of the withdrawal value of such stock without other security.
(6) An association when so licensed may make loans to its own members upon
the terms and security set forth in the Nebraska Installment Loan and Sales
Act.
(7) Any provisions of this section to the contrary notwithstanding, an
association may make any loan that a federal savings and loan association doing
business in this state is or may be authorized to make.
(8) An association may invest in loans, obligations, and advances of
credit, all of which are referred to in this subsection as loans, made for the
payment of expenses of business school, technical training school, college, or
university education, but no association shall make any investment in loans
under this subsection if the principal amount of its investment in such loans,
exclusive of any investment which is or which at the time of its making was
otherwise authorized, would thereupon exceed five percent of its assets. Such
loans may be secured, partly secured, or unsecured, and the association may
require a comaker or comakers, insurance, guaranty under a governmental student
loan guarantee plan, or other protection against contingencies. The borrower
shall certify to the association that the proceeds of the loan are to be used
by a full-time student solely for the payment of expenses of business,
technical training school, college, or university education.
(9) An association may participate with other lenders in making loans of
any type that an association may otherwise make if (a) each of the lenders is
either an instrumentality of the United States Government or is insured by the
Federal Deposit Insurance Corporation or, in the case of another lender, the
interest of the association in such loan is superior to the participating
interests of the other participants and (b) an association whose accounts are
insured by the Federal Deposit Insurance Corporation which may be a federal
association or an association chartered by this state, or another association
chartered by this state which is not so insured, has otherwise complied with
subsection (1) of this section with respect to loans to members.
(10) An association may sell to or purchase from any institution which is
a savings association chartered by this state or the accounts of which are
insured by the Federal Deposit Insurance Corporation a participating interest
in any loan, whether or not, in the case of a purchase, the security is located
within the association's regular lending area.
Sec. 2. Section 8-330, Reissue Revised Statutes of Nebraska, is amended to
read:
8-330 Every association may require borrowing members to pay all
reasonable expenses incurred in connection with the making, closing,
disbursing, extending, readjusting, or renewing of real estate loans. Such
expenses may include abstract, recording, and registration fees, title
examinations, survey, escrow services, and taxes or charges imposed upon or in
connection with the making and recording of any mortgage. Such reasonable
charges may be collected by the association from the borrower and shall not be
considered interest or a charge for the use of the money loaned. A charge not
exceeding one percent or that allowed a federally chartered association for the
premature prepayment may be made. The rate of interest on any loan of money
shall be determined and computed upon the assumption that the debt will be paid
according to the agreed terms and in the event the loan is paid or collected by
court action prior to the term of the loan, any payment charged, received, or
taken as an advance or forbearance which is in the nature of and taken into
account in the calculation of interest, shall be spread over the stated term of
the loan for the purpose of determining the rate of interest. Any amounts paid
or contracted to be paid by persons other than the borrower shall not be
considered interest and shall not be taken into account in the calculation of
interest. Interest may be paid on escrow accounts held for the payment of
taxes, insurance, and similar payments, if agreed to in writing by the borrower
and association. Loans may be made by an association under a license granted it
pursuant to the Nebraska Installment Loan and Sales Act, to borrowing members
whose loans are secured by real estate, to the same extent and in the same
amount as such loans may lawfully be made to nonborrowing members. The
association shall furnish a loan settlement statement to each borrower,
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indicating in detail the charges and fees such borrower has paid or obligated
himself or herself to pay to the association or to any other person in
connection with such loan. A copy of such statement shall be retained in the
records of the association.
An association may charge and receive interest, on property improvement
loans including loans made under Title I of the National Housing Act, as
amended, and unsecured loans authorized in section 5(c) of the Home Owners'
Loan Act, as amended.
Sec. 3. Section 8-601, Reissue Revised Statutes of Nebraska, is amended to
read:
8-601 The Director of Banking and Finance may employ deputies, examiners,
attorneys, and other assistants as may be necessary for the administration of
the provisions and purposes of the Credit Union Act, Delayed Deposit Services
Licensing Act, Interstate Branching and Merger Act, Interstate Trust Company
Office Act, Nebraska Bank Holding Company Act of 1995, Nebraska Banking Act,
Nebraska Financial Innovation Act, Nebraska Installment Loan and Sales Act,
Nebraska Installment Sales Act, Nebraska Money Transmitters Act, Nebraska Trust
Company Act, and Residential Mortgage Licensing Act; Chapter 8, articles 3, 5,
6, 7, 8, 13, 14, 15, 16, 19, 20, 24, and 25; and Chapter 45, articles 1 and 2.
The director may levy upon financial institutions, namely, the banks, trust
companies, building and loan associations, savings and loan associations,
savings banks, digital asset depositories, and credit unions, organized under
the laws of this state, and holding companies, if any, of such financial
institutions, an assessment each year based upon the asset size of the
financial institution, except that in determining the asset size of a holding
company or digital asset depository, the assets of any financial institution or
holding company otherwise assessed pursuant to this section and the assets of
any nationally chartered financial institution shall be excluded. The
assessment for digital asset depositories under the Nebraska Financial
Innovation Act shall be in an amount to offset the costs of supervision and
administration of the Nebraska Financial Innovation Act. The assessment shall
be a sum determined by the director in accordance with section 8-606 and
approved by the Governor.
Sec. 4. Section 8-602, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-602 The Director of Banking and Finance shall charge and collect fees
for certain services rendered by the Department of Banking and Finance
according to the following schedule:
(1) For filing and examining articles of incorporation, articles of
association, and bylaws, except credit unions, one hundred dollars, and for
credit unions, fifty dollars;
(2) For filing and examining an amendment to articles of incorporation,
articles of association, and bylaws, except credit unions, fifty dollars, and
for credit unions, fifteen dollars;
(3) For issuing to banks, credit card banks, trust companies, and building
and loan associations a charter, authority, or license to do business in this
state, a sum which shall be determined on the basis of one dollar and fifty
cents for each one thousand dollars of authorized capital, except that the
minimum fee in each case shall be two hundred twenty-five dollars;
(4) For issuing to digital asset depositories under the Nebraska Financial
Innovation Act a charter to do business in this state, the sum of fifty
thousand dollars;
(5) For issuing an executive officer's or loan officer's license, fifty
dollars at the time of the initial license, except credit unions for which the
fee shall be twenty-five dollars at the time of the initial license;
(6) For affixing certificate and seal, five dollars;
(7) For making substitution of securities held by it and issuing a
receipt, fifteen dollars;
(8) For issuing a certificate of approval to a credit union, ten dollars;
(9) For investigating the applications required by sections 8-117, 8-120,
8-331, and 8-2402 and the documents required by section 8-201, the cost of such
examination, investigation, and inspection, including all legal expenses and
the cost of any hearing transcript, with a minimum fee under (a) sections
8-117, 8-120, and 8-2402 of two thousand five hundred dollars, (b) section
8-331 of two thousand dollars, and (c) section 8-201 of one thousand dollars.
The department may require the applicant to procure and give a surety bond in
such principal amount as the department may determine and conditioned for the
payment of the fees provided in this subdivision;
(10) For the handling of pledged securities as provided in sections
8-210 , 8-2727, and 8-3022 at the time of the initial deposit of such
securities, one dollar and fifty cents for each thousand dollars of securities
deposited and a like amount on or before January 15 each year thereafter. The
fees shall be paid by the entity pledging the securities;
(11) For investigating an application to move its location within the city
or village limits of its original license or charter for banks, trust
companies, and building and loan associations, two hundred fifty dollars;
(12) For investigating an application under subdivision (6) of section
8-115.01, five hundred dollars;
(13) For investigating an application for approval to establish or acquire
a branch pursuant to section 8-157 or 8-2103 or to establish a mobile branch
pursuant to section 8-157, two hundred fifty dollars;
(14) For investigating a notice of acquisition of control under subsection
(1) of section 8-1502, five hundred dollars;
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(15) For investigating an application for a cross-industry merger under
section 8-1510, five hundred dollars;
(16) For investigating an application for a merger of two state banks, a
merger of a state bank and a national bank in which the state bank is the
surviving entity, or an interstate merger application in which the Nebraska
state chartered bank is the resulting bank, five hundred dollars;
(17) For investigating an application or a notice to establish a branch
trust office, five hundred dollars;
(18) For investigating an application or a notice to establish a
representative trust office, five hundred dollars;
(19) For investigating an application to establish a credit union branch
under section 21-1725.01, two hundred fifty dollars;
(20) For investigating an applicant under section 8-1513, five thousand
dollars;
(21) For investigating a request to extend a conditional bank charter
under section 8-117, one thousand dollars; and
(22) For investigating an application to establish a branch office, for a
merger or an acquisition of control, or for a request to extend a conditional
charter for a digital asset depository, five hundred dollars.
Sec. 5. Section 8-820.01, Reissue Revised Statutes of Nebraska, is amended
to read:
8-820.01 It is hereby declared to be the public policy of the State of
Nebraska that for purposes of applying the federal most-favored-lender
doctrine, the bank credit card rate contained in section 8-820 is not
comparable or analogous to the small loan rate found in section 70 of this act
sections 45-1024 and section 45-350 45-1025. The Legislature finds that the
institutions making small loans and the institutions administering a bank
credit card are categorically different. The transactions carried on by these
institutions are categorically different. The Legislature finds that small loan
borrowers and bank credit card users are not synonymous or comparable. In
establishing a small loan rate, the Legislature has recognized a risk factor
that is different and greater than other financial transactions and therefor
justifies the charging of a higher interest rate than installment loans,
personal loans, retail revolving credit plans, or bank credit card interest
rates.
Sec. 6. Section 8-2701, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2701 Sections 8-2701 to 8-2742 8-2747 shall be known and may be cited as
the Nebraska Money Transmitters Act.
Sec. 7. Section 8-2702, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2702 For purposes of the Nebraska Money Transmitters Act: , the
definitions found in sections 8-2703 to 8-2723 shall be used.
(1) Acting in concert means persons knowingly acting together with a
common goal of jointly acquiring control of a licensee whether or not pursuant
to an express agreement;
(2) Applicant means a person filing an application for a license under the
Nebraska Money Transmitters Act;
(3) Authorized delegate means a person designated by the licensee to
engage in money transmission on behalf of the licensee;
(4) Average daily money transmission liability means the amount of the
licensee's outstanding money transmission obligations in this state at the end
of each day in a given period of time, added together, and divided by the total
number of days in the given period of time. For purposes of calculating average
daily money transmission liability under the Nebraska Money Transmitters Act
for any licensee required to do so, the given period of time shall be each
calendar quarter;
(5) Closed loop stored value means stored value that is redeemable by the
issuer of such stored value only for goods or services provided by the issuer
or affiliates of such issuer or franchisees of the issuer or affiliates of such
franchisees, except to the extent the stored value is required by applicable
law to be redeemable in cash for the cash value of the stored value;
(6)(a) Control means:
(i) Direct or indirect power over the vote of at least twenty-five percent
of the outstanding voting shares or voting interests of a licensee or person in
control of a licensee;
(ii) The power to elect or appoint a majority of key individuals,
executive officers, managers, directors, trustees, or other persons that have
managerial authority of a person in control of a licensee; or
(iii) The power to exercise, directly or indirectly, a controlling
influence over the management or policies of a licensee or person in control of
a licensee.
(b) For purposes of determining the percentage of a person controlled by
any other person, the person's interest shall be aggregated with the interest
of any other immediate family member, including the person's spouse, parents,
children, siblings, mothers-in-law, fathers-in law, sons-in-law, daughters-in-
law, brothers-in-law, and sisters-in-law, and any other person who shares such
person's residence;
(7) Department means the Department of Banking and Finance;
(8) Director means the Director of Banking and Finance;
(9) Eligible rating means a credit rating of any of the three highest
rating categories provided by an eligible rating service, whereby each category
may include rating category modifiers such as plus or minus for Standard and
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Poor's Corporation or the equivalent for any other eligible rating service.
Long-term credit ratings are deemed eligible if the rating is equal to A- or
higher by Standard and Poor's Corporation, or the equivalent from any other
eligible rating service. Short-term credit ratings are deemed eligible if the
rating is equal to or higher than A-2 or SP-2 by Standard and Poor's
Corporation or the equivalent from any other eligible rating service. In the
event that ratings differ among eligible rating services, the highest rating
shall apply when determining whether a security bears an eligible rating.
(10) Eligible rating service means any nationally recognized statistical
rating organization approved by the Securities and Exchange Commission and any
other organization designated by the director by rule or order;
(11) Federally insured depository financial institution means a bank,
credit union, savings and loan association, trust company, savings association,
savings bank, industrial bank, or industrial loan company organized under the
laws of the United States or any state of the United States, when such bank,
credit union, savings and loan association, trust company, savings association,
savings bank, industrial bank, or industrial loan company has federally insured
deposits;
(12) In this state means at a physical location within this state for a
transaction requested in person. For a transaction requested electronically or
by telephone, the provider of money transmission may determine if the person
requesting the transaction is in this state by relying on other information
provided by such person regarding the location of the individual's residential
address or the entity's principal place of business or other physical address
location and any records associated with such person that the provider of money
transmission may have that indicate the location of the individual's
residential address or the entity's principal place of business or other
physical address location, including, but not limited to, an address associated
with an account;
(13) Individual means a natural person;
(14) Key individual means any individual ultimately responsible for
establishing or directing policies and procedures of the licensee, such as an
executive officer, manager, director, or trustee;
(15) Licensee means a person licensed under the Nebraska Money
Transmitters Act;
(16) Material litigation means litigation, that according to United States
generally accepted accounting principles, is significant to a person's
financial health and would be required to be disclosed in the person's annual
audited financial statements, report to shareholders, or similar records;
(17) Model Money Transmission Modernization Act means the Model Money
Transmission Modernization Act approved for state adoption by the Conference of
State Bank Supervisors Board of Directors that sets nationwide standards,
including net worth, surety bond, and permissible investments requirements, to
modernize the supervision and regulation of money transmitters;
(18) Monetary value means a medium of exchange, whether or not redeemable
in money;
(19) Money means a medium of exchange that is authorized or adopted by the
United States or a foreign government. Money includes a monetary unit of
account established by an intergovernmental organization or by agreement
between two or more governments;
(20)(a) Money transmission means any of the following:
(i) Selling or issuing payment instruments to a person located in this
state;
(ii) Selling or issuing stored value to a person located in this state;
and
(iii) Receiving money for transmission from a person located in this
state.
(b) Money transmission includes payroll processing services. Money
transmission does not include the provision solely of online or
telecommunications services or network access;
(21) Multistate licensing process means any agreement entered into by and
among state regulators relating to coordinated processing of applications for
money transmission licenses, applications for the acquisition of control of a
licensee, control determinations, or notice and information requirements for a
change of key individuals;
(22) Nationwide Mortgage Licensing System and Registry means the
Nationwide Mortgage Licensing System and Registry, also known as the Nationwide
Multistate Licensing System and Registry, developed by the Conference of State
Bank Supervisors and the American Association of Residential Mortgage
Regulators and owned and operated by the State Regulatory Registry LLC, or any
successor or affiliated entity, for the licensing and registration of persons
in financial services industries;
(23)(a) Outstanding money transmission obligation means:
(i) Any payment instrument or stored value issued or sold by the licensee
to a person located in the United States or reported as sold by an authorized
delegate of the licensee to a person that is located in the United States that
has not yet been paid or refunded by or for the licensee or has been escheated
in accordance with applicable abandoned property laws; or
(ii) Any money received for transmission by the licensee or an authorized
delegate in the United States from a person located in the United States that
has not been received by the payee or refunded to the sender or has been
escheated in accordance with applicable abandoned property laws.
(b) For purposes of subdivision (23) of this section, in the United States
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includes, to the extent applicable, a person in any state, territory, or
possession of the United States; the District of Columbia; the Commonwealth of
Puerto Rico; or a United States military installation that is located in a
foreign country;
(24) Payment instrument means a written or electronic check, draft, money
order, traveler's check, or other written or electronic instrument for the
transmission or payment of money or monetary value, whether or not negotiable.
Payment instrument does not include stored value or any instrument that:
(a) Is redeemable by the issuer only for goods or services provided by the
issuer or affiliates of such issuer or franchisees of the issuer or affiliates
of such franchisees except to the extent the instrument is required by
applicable law to be redeemable in cash for the cash value of the instrument;
or
(b) Is not sold publicly but issued and distributed as part of a loyalty,
rewards, or promotional program;
(25) Payroll processing services means receiving money for transmission
pursuant to a contract with a person to deliver wages or salaries, make payment
of payroll taxes to state and federal agencies, make payments relating to
employee benefit plans, or make distributions of other authorized deductions
from wages or salaries. Payroll processing services does not include an
employer performing payroll processing services on the employer's own behalf or
on behalf of an affiliate of the employer;
(26) Person means any individual, general partnership, limited
partnership, limited liability company, corporation, trust, association, joint
stock corporation, or other corporate entity identified by the director;
(27) Receipt means a paper receipt, electronic record, or other written
confirmation;
(28) Receiving money for transmission or money received for transmission
means receiving money or monetary value in the United States for transmission
within or outside the United States by electronic or other means;
(29) Remit means to make direct payments of money to a licensee or a
representative of a licensee authorized to receive money or to deposit money in
a bank in an account specified by the licensee; and
(30) Stored value means monetary value representing a claim against the
issuer of the stored value evidenced by an electronic or digital record, and
that is intended and accepted for use as a means of redemption for money or
monetary value, or payment for goods or services. Stored value includes, but is
not limited to, prepaid access as defined by 31 C.F.R. 1010.100.
Notwithstanding the foregoing, stored value does not include a payment
instrument or closed loop stored value, or stored value not sold publicly but
issued and distributed as part of a loyalty, rewards, or promotional program.
Sec. 8. Section 8-2703, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2703 The Nebraska Money Transmitters Act does not apply to:
(1) An operator of a payment system to the extent that such operator
provides processing, clearing, or settlement services, between or among persons
exempted from the Nebraska Money Transmitters Act under this section or
licensees, in connection with wire transfers, credit card transactions, debit
card transactions, stored value transactions, automated clearinghouse
transfers, or similar funds transfers;
(2) A person appointed as an agent of a payee to collect and process a
payment from a payor to the payee for goods or services, other than money
transmission, provided to the payor by the payee, provided that:
(a) There exists a written agreement between the payee and the agent
directing the agent to collect and process payments from payors on the behalf
of the payee;
(b) The payee holds the agent out to the public as accepting payments for
goods or services on the behalf of the payee; and
(c) Payment for the goods or services is treated as received by the payee
upon receipt by the agent so that the payor's obligation is extinguished and
there is no risk of loss to the payor if the agent fails to remit the funds to
the payee;
(3) A person that acts as an intermediary by processing payments between
an entity that has directly incurred an outstanding money transmission
obligation to a sender, and the sender's designated recipient, provided that
the entity:
(a) Is properly licensed or exempt from licensing requirements of the
Nebraska Money Transmitters Act;
(b) Provides a receipt, electronic record, or other written confirmation
to the sender identifying the entity as the provider of money transmission in
the transaction; and
(c) Bears sole responsibility to satisfy the outstanding money
transmission obligation to the sender, including the obligation to make the
sender whole in connection with any failure to transmit the funds to the
designated recipient of the sender;
(4) The United States or any department, agency, or instrumentality
thereof or any agent of the United States or any department, agency, or
instrumentality thereof;
(5) Money transmission by the United States Postal Service or by an agent
of the United States Postal Service;
(6) A state, county, or city or any governmental agency, political
subdivision, or instrumentality of a state, or any agent of a state, county, or
city or any governmental agency, political subdivision, or instrumentality of a
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state;
(7) A federally insured depository financial institution, bank holding
company, office of an international banking corporation, foreign bank that
establishes a federal branch pursuant to the International Banking Act of 1978,
corporation organized pursuant to the Bank Service Company Act, or corporation
organized under the Edge Act;
(8) Electronic funds transfer of governmental benefits for a federal,
state, county, or other governmental agency by a contractor on behalf of the
United States or a department, agency, or instrumentality thereof, or on behalf
of a state, county, or other governmental subdivision, agency, or
instrumentality thereof;
(9) A board of trade designated as a contract market under the Commodity
Exchange Act or a person that, in the ordinary course of business, provides
clearance and settlement services for a board of trade to the extent of such
person's operation as or for such a board;
(10) A person registered as a futures commission merchant under the
federal commodities laws to the extent of such person's operation as a
merchant;
(11) A person registered as a securities broker-dealer under federal or
state securities laws to the extent of such person's operation as a broker-
dealer;
(12) An individual employed by a licensee, authorized delegate, or any
person exempted from the licensing requirements of the Nebraska Money
Transmitters Act when acting within the scope of employment, under the
supervision of the licensee, authorized delegate, or exempted person, as an
employee and not as an independent contractor;
(13) A person expressly appointed as a third-party service provider to or
agent of an entity exempt under subdivision (7) of this section, solely to the
extent that:
(a) Such service provider or agent is engaging in money transmission on
behalf of and pursuant to a written agreement with the exempt entity that sets
forth the specific functions that the service provider or agent is to perform;
and
(b) The exempt entity assumes all risk of loss and all legal
responsibility for satisfying the outstanding money transmission obligations
owed to purchasers and holders of the outstanding money transmission
obligations upon receipt of the purchaser's or holder's money or monetary value
by the service provider or agent;
(14) A person, firm, corporation, or association licensed in this state
and acting within this state within the scope of a license:
(a) As a collection agency pursuant to the Collection Agency Act;
(b) As a credit services organization pursuant to the Credit Services
Organization Act; or
(c) To engage in the debt management business pursuant to sections 69-1201
to 69-1217;
(15) A charter issued under the Nebraska Financial Innovation Act; and
(16) A person exempt by regulation or order if the director finds such
exemption to be in the public interest and that the regulation of such person
is not necessary for the purposes of the Nebraska Money Transmitters Act.
Applicant means a person filing an application for a license under the
Nebraska Money Transmitters Act.
Sec. 9. Section 8-2704, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2704 The director may require that any person claiming to be exempt from
licensing under the Nebraska Money Transmitters Act pursuant to section 8-2703
provide information and documentation to the director demonstrating that such
person qualifies for exemption. Authorized delegate means an entity designated
by the licensee or an exempt entity under the Nebraska Money Transmitters Act
to engage in the business of money transmission on behalf of the licensee or
exempt entity.
Sec. 10. Section 8-2705, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2705 (1) In order to carry out the purposes of the Nebraska Money
Transmitters Act, the director may, subject to subsections (1) and (2) of
section 8-2706:
(a) Enter into agreements or relationships with other government officials
or federal and state regulatory agencies and regulatory associations in order
to improve efficiencies and reduce regulatory burden by standardizing methods
or procedures and sharing resources, records, or related information obtained
under the Nebraska Money Transmitters Act;
(b) Use, hire, contract, or employ analytical systems, methods, or
software to examine or investigate any person subject to the Nebraska Money
Transmitters Act;
(c) Accept, from other state or federal governmental agencies or
officials, licensing, examination, or investigation reports made by such other
state or federal governmental agencies or officials; and
(d) Accept audit reports made by an independent certified public
accountant or other qualified third-party auditor for an applicant or licensee
and incorporate the audit report in any report of examination or investigation.
(2) The director shall have the broad administrative authority to
administer, interpret, and enforce the Nebraska Money Transmitters Act, to
adopt and promulgate rules or regulations implementing the act, and to recover
the cost of administering and enforcing the act by imposing and collecting
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proportionate and equitable fees and costs associated with applications,
examinations, investigations, and other actions required to achieve the
purposes of the act.
Breach of security of the system means unauthorized acquisition of data
that compromises the security, confidentiality, or integrity of the information
maintained by the Nationwide Mortgage Licensing System and Registry, its
affiliates, or its subsidiaries.
Sec. 11. Section 8-2706, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2706 (1) Except as otherwise provided in subsection (2) of this section,
all information or reports obtained by the director from an applicant,
licensee, or authorized delegate, related to an examination or investigation,
on behalf of, or for the use of the director, are not public record and are not
subject to disclosure pursuant to sections 84-712 to 84-712.09.
(2) The director may disclose information not otherwise subject to
disclosure under subsection (1) of this section to a representative of state or
federal agencies who promises in a record that the representative will maintain
the confidentiality of the information or if the director finds that the
disclosure is reasonably necessary for the protection and interest of the
public pursuant to sections 84-712 to 84-712.09.
(3) This section does not prohibit the director from disclosing to the
public a list of all licensees or the aggregated financial or transactional
data concerning those licensees.
(4) Information contained in the records of the department that is public
record and may be made available to the public either on the department's
website, upon receipt by the department of a written request, or in the
Nationwide Mortgage Licensing System and Registry shall include:
(a) The name, business address, telephone number, and unique identifier of
any licensee;
(b) The business address of any registered agent of a licensee for
service;
(c) The name, business address, and telephone number of all authorized
delegates;
(d) The terms of, or a copy of, any bond filed by a licensee, provided
that confidential information, including, but not limited to, prices and fees
for such bond is redacted;
(e) Copies of any nonconfidential final orders of the department relating
to any violation of the Nebraska Money Transmitters Act or the rules and
regulations implementing the act; and
(f) Imposition of an administrative fine or penalty under the act.
Control means the power, directly or indirectly, to direct the management
or policies of a licensee, whether through ownership of securities, by
contract, or otherwise. Any person who (1) has the power to elect a majority of
executive officers, managers, directors, trustees, or other persons exercising
managerial authority of a licensee or any person in control of a licensee, (2)
directly or indirectly has the right to vote ten percent or more of a class of
stock or directly or indirectly has the power to sell or direct the sale of ten
percent or more of a class of stock, (3) in the case of a limited liability
company, is a managing member, or (4) in the case of a partnership, has the
right to receive, upon dissolution, or has contributed, ten percent or more of
the capital, is presumed to control that licensee.
Sec. 12. Section 8-2707, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2707 (1) The director may conduct an examination or investigation of a
licensee or authorized delegate or otherwise take independent action authorized
by the Nebraska Money Transmitters Act or by a rule or regulation adopted and
promulgated or an order issued under the act as reasonably necessary or
appropriate to administer and enforce the act, rules and regulations
implementing the act, or other applicable law, including the Bank Secrecy Act
and the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001. The director may:
(a) Conduct an examination as the director may reasonably require;
(b) Conduct an examination in conjunction with an examination conducted by
representatives of other state agencies or agencies of another state or of the
federal government;
(c) Accept the examination report of another state agency or an agency of
another state or of the federal government, or a report prepared by an
independent accounting firm, which on being accepted, is considered for all
purposes as an official report of the director; and
(d) Summon and examine under oath a key individual or employee of a
licensee or authorized delegate and require the person to produce records
regarding any matter related to the condition and business of the licensee or
authorized delegate.
(2) A licensee or authorized delegate shall provide, and the director
shall have full and complete access to, all records the director may reasonably
require to conduct a complete examination. The records shall be provided at a
location and in a format specified by the director. The director may utilize
multistate record production standards and examination procedures when such
standards will reasonably achieve the requirements of this subsection.
(3) Upon receipt by a licensee, an authorized delegate, or any other
person of a notice of investigation or inquiry request for information from the
department, the licensee, authorized delegate, or other person shall respond
within twenty-one calendar days after receipt. Failure to respond is a
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violation of the Nebraska Money Transmitters Act. Each day a licensee,
authorized delegate, or other person fails to respond shall constitute a
separate violation of the act.
(4) If the director finds, after notice and opportunity for hearing in
accordance with the Administrative Procedure Act, that any person has violated
the Nebraska Money Transmitters Act pursuant to subsection (3) of this section,
the director may order such person to pay an administrative fine of not more
than five thousand dollars for each separate violation and the costs of
investigation.
(5) Unless otherwise directed by the director, a licensee shall pay all
costs reasonably incurred in connection with an examination of the licensee or
the licensee's authorized delegates.
Controlling person means any person in control of a licensee.
Sec. 13. Section 8-2708, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2708 (1) The director is authorized to participate in multistate
supervisory processes established between states and coordinated through the
Conference of State Bank Supervisors and Money Transmitter Regulators
Association and any affiliates and successors thereof for all licensees that
hold licenses in this state and other states. As a participant in multistate
supervision, the director may:
(a) Cooperate, coordinate, and share information with other state and
federal regulators in accordance with section 8-2706;
(b) Enter into written cooperation, coordination, or information-sharing
contracts or agreements with organizations, the membership of which is made up
of state or federal governmental agencies; and
(c) Cooperate, coordinate, and share information with organizations, the
membership of which is made up of state or federal governmental agencies,
provided that the organizations agree in writing to maintain the
confidentiality and security of the shared information in accordance with
section 8-2706.
(2) Nothing in this section constitutes a waiver of the director's
authority to conduct an examination or investigation or otherwise take
independent action authorized by the Nebraska Money Transmitters Act or a rule
or regulation adopted and promulgated or an order issued under the act to
enforce compliance with applicable state or federal law.
(3) A joint examination or investigation, or acceptance of an examination
or investigation report, does not waive an examination assessment provided for
in the Nebraska Money Transmitters Act.
Department means the Department of Banking and Finance.
Sec. 14. Section 8-2709, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2709 (1) A person may not engage in the business of money transmission
or advertise, solicit, or hold such person out as providing money transmission
unless the person is licensed under the Nebraska Money Transmitters Act.
(2) Subsection (1) of this section does not apply to:
(a) A person that is an authorized delegate of a licensee under the
Nebraska Money Transmitters Act acting within the scope of authority conferred
by a written contract with the licensee; or
(b) A person that is exempt pursuant to section 8-2703 and does not engage
in money transmission outside the scope of such exemption.
(3) A license issued under section 8-2713 is not transferable or
assignable.
Director means the Director of Banking and Finance.
Sec. 15. Section 8-2710, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2710 (1) To establish consistent licensing between Nebraska and other
states, the director is authorized to:
(a) Implement all licensing provisions of the Nebraska Money Transmitters
Act in a manner that is consistent with other states that have adopted a
version of the Model Money Transmission Modernization Act or multistate
licensing processes; and
(b) Participate in nationwide protocols for licensing cooperation and
coordination among state regulators provided that such protocols are consistent
with the Nebraska Money Transmitters Act.
(2) In order to fulfill the purposes of the Nebraska Money Transmitters
Act, the director is authorized to establish relationships or contracts with
the Nationwide Mortgage Licensing System and Registry or other entities
designated by the Nationwide Mortgage Licensing System and Registry to enable
the director to:
(a) Collect and maintain records;
(b) Coordinate multistate licensing processes and supervision processes;
(c) Process fees; and
(d) Facilitate communication between Nebraska and licensees or other
persons subject to the Nebraska Money Transmitters Act.
(3) The director is authorized to utilize the Nationwide Mortgage
Licensing System and Registry for all aspects of licensing in accordance with
the Nebraska Money Transmitters Act, including, but not limited to, license
applications, applications for acquisitions of control, surety bonds,
reporting, criminal history background checks, credit checks, fee processing,
and examinations.
(4) The director is authorized to utilize the Nationwide Mortgage
Licensing System and Registry forms, processes, and functionalities in
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accordance with the Nebraska Money Transmitters Act. In the event the
Nationwide Mortgage Licensing System and Registry does not provide
functionality, forms, or processes for a provision of the act, the director is
authorized to implement the requirements in a manner that facilitates
uniformity with respect to licensing, supervision, reporting, and regulation of
licensees which are licensed in multiple jurisdictions.
(5) The director is authorized to adopt and promulgate rules and
regulations, or issue an order, to establish requirements for participation by
applicants and licensees in the Nationwide Mortgage Licensing System and
Registry upon the department's determination that each requirement is
consistent with law, public interest, and the purposes of this section.
Electronic instrument means a card or other tangible object for the
transmission or payment of money that contains a microprocessor chip, magnetic
strip, or other means for the storage of information, that is prefunded, and
the value of which is decremented upon each use. Electronic instrument does not
include a card or other tangible object that is redeemable by the issuer or its
affiliates in goods or services of the issuer or its affiliates.
Sec. 16. Section 8-2711, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2711 (1) Applicants for a license shall apply in a form and in a medium
as prescribed by the director. Each such form shall contain content as set
forth by rule, regulation, instruction, or procedure of the director and may be
changed or updated by the director in accordance with applicable law in order
to carry out the purposes of the Nebraska Money Transmitters Act and maintain
consistency with Nationwide Mortgage Licensing System and Registry licensing
standards and practices. The application shall state or contain, as applicable:
(a) The legal name and residential and business addresses of the applicant
and any fictitious or trade name used by the applicant in conducting the
applicant's business;
(b) A list of any criminal conviction of the applicant and any material
litigation in which the applicant has been involved in the ten-year period next
preceding the submission of the application;
(c) A description of any money transmission previously provided by the
applicant and the money transmission that the applicant seeks to provide in
this state;
(d) A list of the applicant's proposed authorized delegates and the
locations in this state where the applicant and its authorized delegates
propose to engage in money transmission;
(e) A list of other states in which the applicant is licensed to engage in
money transmission and any license revocation, suspension, or other
disciplinary action taken against the applicant in another state;
(f) Information concerning any bankruptcy or receivership proceeding
affecting the applicant or a person in control of an applicant;
(g) A sample form of contract for authorized delegates, if applicable;
(h) A sample form of payment instrument or stored value, as applicable;
(i) The name and address of any federally insured depository financial
institution through which the applicant plans to conduct money transmission;
and
(j) Any other information the Director or the Nationwide Mortgage
Licensing System and Registry reasonably requires with respect to the
applicant.
(2) If an applicant is a corporation, limited liability company,
partnership, or other legal entity, the applicant shall also provide:
(a) The date of the applicant's incorporation or formation and state or
country of incorporation or formation;
(b) If applicable, a certificate of good standing from the state or
country in which the applicant was incorporated or formed;
(c) A brief description of the structure or organization of the applicant,
including any parents or subsidiaries of the applicant, and whether any such
parents or subsidiaries are publicly traded;
(d) The legal name, any fictitious or trade name, all business and
residential addresses, and the employment, as applicable, of each key
individual and person in control of the applicant in the ten-year period
preceding the submission of the application;
(e) A list of any criminal convictions and material litigation for a
person in control of the applicant that is not an individual that has been
involved with the applicant in the ten-year period preceding the submission of
the application;
(f) A copy of audited financial statements of the applicant for the most
recent fiscal year and for the two-year period preceding the submission of the
application or, if determined to be acceptable to the director, certified
unaudited financial statements for the most recent fiscal year or any other
period acceptable to the director;
(g) A certified copy of unaudited financial statements of the applicant
for the most recent fiscal quarter;
(h) If the applicant is a publicly traded corporation, a copy of the most
recent report filed with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934;
(i) If the applicant is a wholly owned subsidiary of:
(i) A corporation publicly traded in the United States, a copy of audited
financial statements for the parent corporation for the most recent fiscal year
or a copy of the parent corporation's most recent report filed pursuant to the
Securities Exchange Act of 1934; or
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(ii) A corporation publicly traded outside the United States, a copy of
similar documentation filed with the regulator of the parent corporation's
domicile outside the United States;
(j) The name and address of the applicant's registered agent in this
state; and
(k) Any other information the director reasonably requires with respect to
the applicant.
(3) A nonrefundable application fee of one thousand five hundred dollars
must accompany an application for a license under this section.
(4) Other than the nonrefundable application fee, the director may waive
one or more requirements of this section or permit an applicant to submit other
information in lieu of the required information.
Executive officer means the president, chairperson of the executive
committee, senior officer responsible for business decisions, chief financial
officer, and any other person who performs similar functions for a licensee.
Sec. 17. Section 8-2712, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2712 (1) Any individual in control of a licensee or applicant, any
individual that seeks to acquire control of a licensee, and any key individual
shall furnish to the director, through the Nationwide Mortgage Licensing System
and Registry, the following items:
(a) The individual's fingerprints for submission to the Federal Bureau of
Investigation and the director for purposes of a national criminal history
background check unless the individual currently resides outside of the United
States and has resided outside of the United States for the last ten years; and
(b) The individual's personal history and experience in a form and in a
medium prescribed by the director, including the following:
(i) An independent credit report from a consumer reporting agency unless
the individual does not have a social security number, in which case, this
requirement shall be waived;
(ii) Information related to any criminal conviction or pending charges;
and
(iii) Information related to any regulatory or administrative action and
any civil litigation involving any claim of fraud, misrepresentation,
conversion, mismanagement of funds, breach of fiduciary duty, or breach of
contract.
(2) If the individual has resided outside of the United States at any time
in the last ten years, the individual shall also provide an investigative
background report prepared by an independent search firm that meets the
following requirements:
(a) The firm shall, at a minimum:
(i) Demonstrate that the firm has sufficient knowledge and resources and
employs accepted and reasonable methodologies to conduct the research of the
background report; and
(ii) Not be affiliated with, or have an interest with, the individual it
is researching; and
(b) The investigative background report shall be written in the English
language and shall contain the following, at a minimum:
(i) If available in the individual's current jurisdiction of residency, a
comprehensive credit report, or any equivalent information obtained or
generated by the independent search firm to accomplish such report, including a
search of the court data in the countries, provinces, states, cities, towns,
and areas where the individual resided and worked;
(ii) Criminal record information of the individual for the past ten years,
including, but not limited to, felonies, misdemeanors, or similar convictions
for violations of law in the countries, provinces, states, cities, towns, and
areas where the individual resided and worked;
(iii) Employment history of the individual;
(iv) Media history of the individual, including an electronic search of
national and local publications, wire services, and business applications; and
(v) Financial services-related regulatory history of the individual,
including, but not limited to, money transmission, securities, banking,
insurance, and mortgage-related industries.
(3) The director may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting information from and distributing
information to the United States Department of Justice or any other
governmental agency in order to reduce the points of contact which the Federal
Bureau of Investigation may have to maintain for purposes of this section.
Key shareholder means any person or group of persons acting in concert
owning ten percent or more of any voting class of an applicant's stock.
Sec. 18. Section 8-2713, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2713 (1) When the director determines an application for an original
license under the Nebraska Money Transmitters Act appears to include all the
items and addresses all of the matters that are required, the application is
complete. The director shall promptly notify the applicant in a record of the
date on which the application is determined to be complete. The director shall
approve, conditionally approve, or deny the application within one hundred
twenty days after the completion date. The director may for good cause extend
such one-hundred-twenty-day period.
(2) A determination by the director that an application is complete and is
accepted for processing means only that the application, on its face, appears
to include all of the items, including the criminal history background check
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response from the Federal Bureau of Investigation, and address all of the
matters that are required, and is not an assessment of the substance of the
application or of the sufficiency of the information provided.
(3) When an application is filed and considered complete under this
section, the director shall investigate the applicant's financial condition,
financial responsibility, financial and business experience, character, and
general fitness. The director may conduct an investigation of the applicant,
the reasonable cost of which the applicant must pay. The director shall issue a
license to an applicant under this section if the director finds that all of
the following conditions have been fulfilled:
(a) The applicant has complied with sections 8-2711 and 8-2712; and
(b) The financial condition, financial responsibility, financial and
business experience, competence, character, and general fitness of the
applicant and the competence, experience, character, and general fitness of the
key individuals and persons in control of the applicant indicate that it is in
the interest of the public to permit the applicant to engage in money
transmission.
(4) The director shall issue a formal written notice of the denial of a
license application within thirty days after the decision to deny such
application. The director shall set forth in the notice of denial the specific
reasons for the denial of the application. An applicant whose application is
denied by the director under this section may appeal within thirty days after
receipt of the written notice of the denial. The appeal shall be in accordance
with the Administrative Procedure Act.
(5) If an applicant for a license under the Nebraska Money Transmitters
Act does not complete the license application and fails to respond to a notice
or notices from the department to correct a deficiency or deficiencies for a
period of one hundred twenty days or more after the date the department sends
the initial notice to correct the deficiency or deficiencies, the department
may deem the application as abandoned and may issue a notice of abandonment of
the application to the applicant in lieu of proceedings to deny the
application.
(6) The initial license term shall begin on the day the application is
approved. The license shall expire on December 31 of the year in which the
license term began, unless the initial license date is on or after November 1
and on or before December 31, in which instance the initial license term shall
run through December 31 of the following year.
Licensee means a person licensed pursuant to the Nebraska Money
Transmitters Act.
Sec. 19. Section 8-2714, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2714 (1) A license under the Nebraska Money Transmitters Act shall be
renewed annually.
(2) An annual renewal fee of seven hundred fifty dollars shall be paid no
more than sixty days before the license expiration.
(3) The renewal term shall be for a period of one year and shall begin on
January 1 of each year after the initial license term and shall expire on
December 31 of the year the renewal term begins.
(4) A licensee shall submit a renewal report with the renewal fee, in a
form and in a medium prescribed by the director. The renewal report shall state
or contain a description of each material change in information submitted by
the licensee in its original license application which has not been reported to
the director.
(5) The director may, for good cause, grant an extension to when the
submission of the renewal fee and report is due for renewal for a licensee.
(6) The director is authorized to utilize the Nationwide Mortgage
Licensing System and Registry to process license renewals provided that such
functionality is consistent with this section.
Material litigation means any litigation that, according to generally
accepted accounting principles, is deemed significant to an applicant's or
licensee's financial health and would be required to be referenced in an
applicant's or licensee's annual audited financial statements, report to
shareholders, or similar documents.
Sec. 20. Section 8-2715, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2715 (1) If a licensee does not continue to meet the qualifications or
satisfy the requirements that apply to an applicant for a new money
transmission license, the director may suspend or revoke the licensee's license
in accordance with the procedures established by the Nebraska Money
Transmitters Act or other applicable state law for such suspension or
revocation.
(2) An applicant shall demonstrate that the applicant meets or will meet,
and a licensee shall at all times meet, the requirements of sections 8-2730,
8-2731, and 8-2732.
Monetary value means a medium of exchange, whether or not redeemable in
money.
Sec. 21. Section 8-2716, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2716 (1) Any person, or group of persons acting in concert, seeking to
acquire control of a licensee shall obtain the written approval of the director
prior to acquiring control. An individual is not deemed to acquire control of a
licensee and is not subject to this section when that individual becomes a key
individual for a licensee in the ordinary course of business.
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(2) A person, or group of persons acting in concert, seeking to acquire
control of a licensee shall, in cooperation with the licensee:
(a) Submit an application in a form and in a medium prescribed by the
director; and
(b) Submit a nonrefundable fee of one thousand five hundred dollars with
the request for approval.
(3) Upon request, the director may permit a licensee or the person, or
group of persons acting in concert, to submit some or all information required
by the director pursuant to this section without using the Nationwide Mortgage
Licensing System and Registry.
(4) The application required by this section shall include the information
required by section 8-2712 for any new key individuals that have not previously
completed the requirements of section 8-2712 for a licensee.
(5) When the director determines an application for acquisition of control
under this section appears to include all the items and address all of the
matters that are required, the application shall be considered complete and the
director shall promptly notify the applicant in writing of the date on which
the application was determined to be complete.
(6) The director shall approve or deny the application within sixty days
after the completion date and, if the application is not approved or denied by
the director within sixty days after the completion date, the application is
deemed approved and the person, or group of persons acting in concert, are not
prohibited from acquiring control of the licensee. The director may for good
cause extend such sixty-day period.
(7) A determination by the director that an application is complete and is
accepted for processing means only that the application, on its face, appears
to include all of the items and address all of the matters that are required,
and is not an assessment of the substance of the application or of the
sufficiency of the information provided.
(8) When an application is filed and considered complete under this
section, the director shall investigate the financial condition, financial
responsibility, financial and business experience, character, and general
fitness of the person, or group of persons acting in concert, seeking to
acquire control. The director shall approve an acquisition of control pursuant
to this section if the director finds that all of the following conditions have
been fulfilled:
(a) The requirements of subsections (1) and (2) of this section have been
met, as applicable; and
(b) The financial condition, financial responsibility, financial and
business experience, competence, character, and general fitness of the person,
or group of persons acting in concert, seeking to acquire control and the
competence, experience, character, and general fitness of the key individuals
and persons that would be in control of the licensee after the acquisition of
control indicate that it is in the interest of the public to permit the person,
or group of persons acting in concert, to control the licensee.
(9) The director shall issue a formal written notice of the denial of an
application to acquire control within thirty days after the decision to deny
the application. The director shall set forth in the notice of denial the
specific reasons for the denial of the application. An applicant whose
application is denied by the director under this section may appeal within
thirty days after receipt of the written notice of the denial. The appeal shall
be in accordance with the Administrative Procedure Act.
(10) The requirements of this section do not apply to any of the
following:
(a) A person that acts as a proxy for the sole purpose of voting at a
designated meeting of the shareholders or holders of voting shares or voting
interests of a licensee or a person in control of a licensee;
(b) A person that acquires control of a licensee by devise or descent;
(c) A person that acquires control of a licensee as a personal
representative, custodian, guardian, conservator, or trustee, or as an officer
appointed by a court of competent jurisdiction or by operation of law;
(d) A person that is exempt under subdivision (7) of section 8-2703;
(e) A person that the director determines is not subject to this section
based on the public interest;
(f) A public offering of securities of a licensee or a person in control
of a licensee; or
(g) An internal reorganization of a person in control of the licensee
where the ultimate person in control of the licensee remains the same.
(11) Persons described in subdivisions (10)(a), (b), (c), (d), (f), and
(g) of this section, in cooperation with the licensee, shall notify the
director within fifteen days after the acquisition of control.
(12) Before filing an application for approval to acquire control of a
licensee, a person may request in writing a determination from the director as
to whether the person would be considered a person in control of a licensee
upon consummation of a proposed transaction. If the director determines that
the person would not be a person in control of a licensee, the proposed person
and transaction is not subject to the requirements of this section.
Money transmission means the business of the sale or issuance of payment
instruments or stored value or of receiving money or monetary value for
transmission to a location within or outside the United States by any and all
means, including wire, facsimile, or electronic transfer. Notwithstanding any
other provision of law, money transmission also includes bill payment services
not limited to the right to receive payment of any claim for another but does
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not include bill payment services in which an agent of a payee receives money
or monetary value on behalf of such payee.
Sec. 22. Section 8-2717, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2717 (1) A licensee adding or replacing any key individual shall:
(a) Provide notice in a manner prescribed by the director within fifteen
days after the date the key individual's appointment became effective; and
(b) Provide the information required by section 8-2712 within forty-five
days of the date after the key individual's appointment.
(2) Within ninety days after the date on which the notice provided
pursuant to this section was determined to be complete, the director may issue
a notice of disapproval of an added or replacement key individual if the
director determines that, given the competence, experience, character, or
integrity of the individual, permitting the individual to be a key individual
of such licensee would not be in the best interest of the public or the
customers of the licensee.
(3) A notice of disapproval shall contain a statement of the basis for
disapproval and shall be sent to the licensee and the disapproved individual. A
licensee may appeal a notice of disapproval within thirty days after receipt of
such notice of disapproval. The appeal shall be in accordance with the
Administrative Procedure Act.
(4) If the notice provided pursuant to this section is not disapproved
within ninety days after the date on which the notice was determined to be
complete, the key individual is deemed approved.
Nationwide Mortgage Licensing System and Registry means a licensing system
developed and maintained by the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators for the licensing and
registration of mortgage loan originators, mortgage bankers, installment loan
companies, and other state-regulated financial services entities and
industries.
Sec. 23. Section 8-2718, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2718 (1) Each licensee shall submit a report of condition within forty-
five days after the end of a calendar quarter, or within any extended time as
the director may prescribe.
(2) The report of condition shall include:
(a) Financial information at the licensee level;
(b) Nationwide and state-specific money transmission transaction
information in every jurisdiction in the United States where the licensee is
licensed to engage in money transmission;
(c) A permissible investments report of the licensee;
(d) Transaction destination country reporting for money received for
transmission, if applicable; and
(e) Any other information the director reasonably requires with respect to
the licensee.
(3) The director is authorized to utilize the Nationwide Mortgage
Licensing System and Registry for the submission of the report required by this
section and is authorized to update as necessary the requirements of this
section to carry out the purposes of the Nebraska Money Transmitters Act and
maintain consistency with Nationwide Mortgage Licensing System and Registry
reporting.
(4) The information required by subdivision (2)(d) of this section shall
only be included in a report of condition submitted within forty-five days
after the end of the fourth calendar quarter.
Outstanding payment instrument means any payment instrument issued by a
licensee which has been sold in the United States directly by the licensee or
any payment instrument issued by a licensee which has been sold by an
authorized delegate of the licensee in the United States, which has been
reported to the licensee as having been sold, and which has not yet been paid
by or for the licensee.
Sec. 24. Section 8-2719, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2719 (1) Each licensee shall, within ninety days after the end of each
fiscal year or within any time period after the end of the fiscal year as the
director may prescribe, file with the director:
(a) An audited financial statement of the licensee for the fiscal year
prepared in accordance with United States generally accepted accounting
principles; and
(b) Any other information as the director may reasonably require.
(2) Such audited financial statement shall be prepared by an independent
certified public accountant or independent public accountant who is
satisfactory to the director.
(3) Such audited financial statement shall include or be accompanied by a
certificate of opinion of the independent certified public accountant or
independent public accountant that is satisfactory in form and content to the
director. If the certificate or opinion is qualified, the director may order
the licensee to take any action as the director may find necessary to enable
the independent certified public accountant or independent public accountant to
remove the qualification.
Payment instrument means any electronic or written check, draft, money
order, travelers check, or other electronic or written instrument or order for
the transmission or payment of money, sold or issued to one or more persons,
whether or not such instrument is negotiable. Payment instrument does not
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include any credit card, any voucher, any letter of credit, or any instrument
that is redeemable by the issuer or its affiliates in goods or services of the
issuer or its affiliates.
Sec. 25. Section 8-2720, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2720 (1) Each licensee shall submit a report of authorized delegates
within forty-five days after the end of each calendar quarter. The director is
authorized to utilize the Nationwide Mortgage Licensing System and Registry for
the submission of the report required by this section provided that such
functionality is consistent with the requirements of this section.
(2) The authorized delegate report shall include, at a minimum, each
authorized delegate's:
(a) Company legal name;
(b) Taxpayer employer identification number;
(c) Principal provider identifier;
(d) Physical address;
(e) Mailing address;
(f) Business conducted in other states;
(g) Fictitious or trade names;
(h) Contact person name, telephone number, and email;
(i) Start date as the licensee's authorized delegate;
(j) End date acting as the licensee's authorized delegate, if applicable;
and
(k) Any other information the director reasonably requires with respect to
the authorized delegate.
Permissible investments means:
(1) Cash;
(2) Certificates of deposit or other debt obligations of a financial
institution, either domestic or foreign;
(3) Bills of exchange or time drafts drawn on and accepted by a commercial
bank, otherwise known as bankers' acceptances, which are eligible for purchase
by member banks of the federal reserve system;
(4) Any investment bearing a rating of one of the three highest grades as
defined by a nationally recognized organization that rates such securities;
(5) Investment securities that are obligations of the United States or its
agencies or instrumentalities, obligations that are guaranteed fully as to
principal and interest by the United States, or any obligations of any state or
political subdivision thereof;
(6) Shares in a money market mutual fund, interest-bearing bills or notes
or bonds, debentures or stock traded on any national securities exchange or on
a national over-the-counter market, or mutual funds primarily composed of such
securities or a fund composed of one of more permissible investments as set
forth in this section;
(7) Any demand borrowing agreement or agreements made to a corporation or
a subsidiary of a corporation whose capital stock is listed on a national
exchange;
(8) Receivables that are due to a licensee from its authorized delegates
pursuant to a contract described in section 8-2739 which are not past due or
doubtful of collection; or
(9) Any other investment or similar security approved by the director.
Sec. 26. Section 8-2721, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2721 (1) A licensee shall file a report with the director within one
business day after the licensee has reason to know of the occurrence of any of
the following events:
(a) The filing of a petition by or against the licensee under the United
States Bankruptcy Code for bankruptcy or reorganization;
(b) The filing of a petition by or against the licensee for receivership,
the commencement of any other judicial or administrative proceeding for its
dissolution or reorganization, or the making of a general assignment for the
benefit of its creditors; or
(c) The commencement of a proceeding to revoke or suspend the license of a
licensee in a state or country in which the licensee engages in business or is
licensed.
(2) A licensee shall file a report with the director within three business
days after the licensee has reason to know of the occurrence of any of the
following events:
(a) A charge or conviction of the licensee or of a key individual or
person in control of the licensee for a felony; or
(b) A charge or conviction of an authorized delegate for a felony.
(3)(a) Except as provided in subdivisions (b) and (c) of this subsection,
a licensee shall notify the director in writing or through the Nationwide
Mortgage Licensing System and Registry within three business days after the
time that the licensee becomes aware of any breach of security of the system of
computerized data owned or licensed by the licensee, which contains personal
information about a Nebraska resident, or the unauthorized access to or use of
such information about a Nebraska resident as a result of the breach. For
purposes of this subsection, the terms breach of the security of the system and
personal information have the same meaning as in section 87-802.
(b) If a licensee would be required under Nebraska law to provide
notification to a Nebraska resident regarding such breach, then the licensee
shall provide a copy of such notification to the department prior to or
simultaneously with the licensee's notification to the Nebraska resident.
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(c) Notice required by this subsection may be delayed if a law enforcement
agency determines that the notice will impede a criminal investigation. Notice
shall be made in good faith and without unreasonable delay as soon as possible
after the law enforcement agency determines that notification will no longer
impede the investigation.
Person means any individual, partnership, limited liability company,
association, joint-stock association, trust, or corporation. Person does not
include the United States or the State of Nebraska.
Sec. 27. Section 8-2722, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2722 A licensee and an authorized delegate shall file all reports
required by the federal currency reporting, record-keeping, and suspicious
activity reporting requirements set forth in the Bank Secrecy Act and other
federal and state laws pertaining to money laundering. The timely filing of a
complete and accurate report required under this section with the appropriate
federal agency is deemed to be in compliance with the requirements of this
section. Remit, except as used in section 8-2747, means either to make direct
payment of the funds to a licensee or its representatives authorized to receive
those funds or to deposit the funds in a bank, credit union, or savings and
loan association or other similar financial institution in an account specified
by a licensee.
Sec. 28. Section 8-2723, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2723 (1) A licensee shall maintain the following records, for
determining the licensee's compliance with the Nebraska Money Transmitters Act,
for at least five years:
(a) A record of each outstanding money transmission obligation sold;
(b) A general ledger posted at least monthly containing all asset,
liability, capital, income, and expense accounts;
(c) Bank statements and bank reconciliation records;
(d) Records of outstanding money transmission obligations;
(e) Records of each outstanding money transmission obligation paid;
(f) A list of the last-known names and addresses of all of the licensee's
authorized delegates; and
(g) Any other records the director reasonably requires by rule or
regulation.
(2) The items specified in subsection (1) of this section may be
maintained in any form of record.
(3) Records specified in subsection (1) of this section may be maintained
outside this state if they are made accessible to the director within seven
business days after notice.
(4) All records maintained by the licensee as required in subsection (1)
of this section are subject to inspection by the director pursuant to section
8-2707.
Stored value means monetary value that is evidenced by an electronic
record. Stored value does not include any item that is redeemable by the issuer
or its affiliates in goods or services of the issuer or its affiliates.
Sec. 29. Section 8-2724, Revised Statutes Cumulative Supplement, 2024, as
amended by section 18, Legislative Bill 251, One Hundred Ninth Legislature,
First Session, 2025, is amended to read:
8-2724 (1) Before a licensee is authorized to conduct business through an
authorized delegate or allows a person to act as the licensee's authorized
delegate, the licensee shall:
(a) Adopt, and update as necessary, written policies and procedures
reasonably designed to ensure that the licensee's authorized delegates comply
with applicable state and federal law;
(b) Enter into a written contract that complies with subsection (3) of
this section; and
(c) Conduct a reasonable risk-based background investigation sufficient
for the licensee to determine whether the authorized delegate has complied and
will likely comply with applicable state and federal law.
(2) An authorized delegate shall operate in full compliance with the
Nebraska Money Transmitters Act.
(3) The written contract required by subdivision (1)(b) of this section
shall be signed by the licensee and the authorized delegate and, at a minimum,
also shall:
(a) Appoint the person signing the contract as the licensee's authorized
delegate with the authority to conduct money transmission on behalf of the
licensee;
(b) Set forth the nature and scope of the relationship between the
licensee and the authorized delegate and the respective rights and
responsibilities of the parties;
(c) Require the authorized delegate to agree to fully comply with all
applicable state and federal laws, rules, and regulations pertaining to money
transmission, including the Nebraska Money Transmitters Act and the rules and
regulations implementing the act, the Bank Secrecy Act, and the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001;
(d) Require the authorized delegate to remit and handle money and monetary
value in accordance with the terms of the contract between the licensee and the
authorized delegate;
(e) Impose a trust on money and monetary value net of fees received for
money transmission for the benefit of the licensee;
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(f) Require the authorized delegate to prepare and maintain records as
required by the Nebraska Money Transmitters Act or the rules and regulations
implementing the act, or as reasonably requested by the director;
(g) Acknowledge that the authorized delegate consents to examination or
investigation by the director;
(h) State that the licensee is subject to regulation by the director and
that, as part of that regulation, the director may suspend or revoke an
authorized delegate designation or require the licensee to terminate an
authorized delegate designation; and
(i) Acknowledge receipt of the written policies and procedures required
under subdivision (1)(a) of this section.
(4) If the licensee's license is suspended, revoked, canceled,
surrendered, or expired, the licensee shall, within five business days, provide
documentation to the director that the licensee has notified all applicable
authorized delegates of the licensee whose names are in a record filed with the
director of the suspension, revocation, cancellation, surrender, or expiration
of the license. Upon suspension, revocation, cancellation, surrender, or
expiration of the license, applicable authorized delegates shall immediately
cease to provide money transmission as an authorized delegate of the licensee.
(5) An authorized delegate of a licensee holds in trust for the benefit of
the licensee all money net of fees received from money transmission. If any
authorized delegate commingles any funds received from money transmission with
any other funds or property owned or controlled by the authorized delegate, all
commingled funds and other property shall be considered held in trust in favor
of the licensee in an amount equal to the amount of money net of fees received
from money transmission by the authorized delegate on behalf of the licensee.
(6) An authorized delegate may not use a subdelegate to conduct money
transmission on behalf of a licensee.
(1) The requirement for a license under the Nebraska Money Transmitters
Act does not apply to:
(a) The United States or any department, agency, or instrumentality
thereof;
(b) Any post office of the United States Postal Service;
(c) A state or any political subdivision thereof;
(d)(i) Banks, credit unions, digital asset depository institutions as
defined in section 8-3003, building and loan associations, savings and loan
associations, savings banks, or mutual banks organized under the laws of any
state or the United States;
(ii) Subsidiaries of the institutions listed in subdivision (d)(i) of this
subsection;
(iii) Bank holding companies which have a banking subsidiary located in
Nebraska and whose debt securities have an investment grade rating by a
national rating agency; or
(iv) Authorized delegates of the institutions and entities listed in
subdivision (d)(i), (ii), or (iii) of this subsection, except that authorized
delegates that are not banks, credit unions, building and loan associations,
savings and loan associations, savings banks, mutual banks, subsidiaries of any
of the foregoing, or bank holding companies shall comply with all requirements
imposed upon authorized delegates under the act;
(e) The provision of electronic transfer of government benefits for any
federal, state, or county governmental agency, as defined in Consumer Financial
Protection Bureau Regulation E, 12 C.F.R. part 1005, as such regulation existed
on January 1, 2025, by a contractor for and on behalf of the United States or
any department, agency, or instrumentality thereof or any state or any
political subdivision thereof;
(f) An operator of a payment system only to the extent that the payment
system provides processing, clearing, or settlement services between or among
persons who are all exempt under this section in connection with wire
transfers, credit card transactions, debit card transactions, automated
clearinghouse transfers, or similar fund transfers; or
(g) A person, firm, corporation, or association licensed in this state and
acting within this state within the scope of a license:
(i) As a collection agency pursuant to the Collection Agency Act;
(ii) As a credit services organization pursuant to the Credit Services
Organization Act; or
(iii) To engage in the debt management business pursuant to sections
69-1201 to 69-1217.
(2) An authorized delegate of a licensee or of an exempt entity, acting
within the scope of its authority conferred by a written contract as described
in section 8-2739, is not required to obtain a license under the Nebraska Money
Transmitters Act, except that such an authorized delegate shall comply with the
other provisions of the act which apply to money transmission transactions.
Sec. 30. Section 8-2725, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2725 A person shall not engage in the business of money transmission on
behalf of a person not licensed under the Nebraska Money Transmitters Act or
not exempt from the act pursuant to section 8-2703. A person that engages in
such business and provides money transmission to the same extent as if the
unlicensed or nonexempt person were a licensee shall be jointly and severally
liable with the unlicensed or nonexempt person. (1) Except as otherwise
provided in section 8-2724, a person shall not engage in money transmission
without a license issued pursuant to the Nebraska Money Transmitters Act.
(2) A person is engaged in money transmission if the person provides money
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transmission services to any resident of this state even if the person
providing money transmission services has no physical presence in this state or
if the resident is not physically located in this state at the time when the
resident enters into money transmission or otherwise receives money
transmission services.
(3) If a licensee has a physical presence in this state, the licensee may
conduct its business at one or more locations, directly or indirectly owned, or
through one or more authorized delegates, or both, pursuant to the single
license granted to the licensee.
(4) A license issued pursuant to the act is not transferable or
assignable.
Sec. 31. Section 8-2726, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2726 (1) Every licensee shall forward all money received for
transmission in accordance with the terms of the agreement between the licensee
and the sender unless the licensee has a reasonable belief or a reasonable
basis to believe that the sender may be a victim of fraud or that a crime or
violation of any law, rule, or regulation has occurred, is occurring, or may
occur.
(2) If a licensee does not forward money received for transmission in
accordance with this section, the licensee shall respond to inquiries by the
sender with the reason for not forwarding the money unless providing a response
would violate a state or federal law, rule, or regulation.
To qualify for a license under the Nebraska Money Transmitters Act, an
applicant, at the time of filing for a license, and a licensee at all times
after a license is issued, shall satisfy the following requirements:
(1) Each applicant or licensee must have a net worth of not less than
fifty thousand dollars, calculated in accordance with generally accepted
accounting principles;
(2) The financial condition and responsibility, financial and business
experience, and character and general fitness of the applicant or licensee must
reasonably warrant the belief that the applicant's or licensee's business will
be conducted honestly, fairly, and in a manner commanding the confidence and
trust of the community. In determining whether this requirement is met and for
purposes of investigating compliance with the act, the director may review and
consider the relevant business records and capital adequacy of the applicant or
licensee;
(3) Each corporate applicant or licensee must be organized under the laws
of any state of the United States, the District of Columbia, any territory of
the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of
the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands, and
must be in good standing in the place of its incorporation;
(4) Each applicant or licensee must be registered or qualified to do
business in the State of Nebraska; and
(5) Each applicant or licensee must maintain an office in the United
States.
Sec. 32. Section 8-2727, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2727 (1) This section does not apply to:
(a) Money received for transmission subject to the federal remittance
rule; or
(b) Money received for transmission pursuant to a written agreement
between the licensee and payee to process payments for goods or services
provided by the payee.
(2) Every licensee shall refund to the sender within ten days after
receipt of the sender's written request for a refund of any and all money
received for transmission unless any of the following occurs:
(a) The money has been forwarded within ten days after the date on which
the money was received for transmission;
(b) Instructions have been given committing an equivalent amount of money
to the person designated by the sender within ten days after the date on which
the money was received for transmission;
(c) The agreement between the licensee and the sender instructs the
licensee to forward the money at a time that is beyond ten days after the date
on which the money was received for transmission. If funds have not yet been
forwarded in accordance with the terms of the agreement between the licensee
and the sender, the licensee shall issue a refund in accordance with the other
provisions of this section;
(d) The refund is requested for a transaction that the licensee has not
completed based on a reasonable belief or a reasonable basis to believe that a
crime or violation of law, rule, or regulation has occurred, is occurring, or
may occur; or
(e) The refund request does not enable the licensee to:
(i) Identify the sender's name and address or telephone number; or
(ii) Identify the particular transaction to be refunded in the event the
sender has multiple transactions outstanding.
(1)(a) Except as provided in subsection (2) of this section, an applicant
shall submit, with the application, a surety bond issued by a bonding company
or insurance company authorized to do business in this state and acceptable to
the director in the principal sum of one hundred thousand dollars. The director
may increase the amount of the bond to a maximum of two hundred fifty thousand
dollars for good cause.
(b) The bond shall be in a form satisfactory to the director and shall run
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to the state for the benefit of any claimants against the licensee to secure
the faithful performance of the obligations of the licensee with respect to the
receipt, handling, transmission, and payment of money in connection with money
transmission. In the case of a bond, the aggregate liability of the surety
shall not exceed the principal sum of the bond. Any claimant against the
licensee may bring suit directly on the bond or the director may bring suit on
behalf of any claimant, either in one action or in successive actions.
(2) Upon filing of the report required by section 8-2734 and the
information required by subdivision (2)(b) of such section, a licensee shall
maintain or increase its surety bond to reflect the total dollar amount of
money transmitter transactions by the licensee in this state in the most recent
four calendar quarters for which data is available before the date of the
filing of the renewal application in accordance with the following table. A
licensee may decrease its surety bond in accordance with the following table if
the surety bond required is less than the amount of the surety bond on file
with the department:
Dollar Amount of Money Transmitter Transactions Surety Bond Required
$0.00 to $2,000,000.00 $100,000.00
$2,000,000.01 to $4,000,000.00 $150,000.00
$4,000,000.01 to $6,000,000.00 $200,000.00
Over $6,000,000.00 $250,000.00
(3) If the department determines that a licensee does not maintain a
surety bond in the amount required by subsection (2) of this section, the
department shall give written notification to the licensee requiring it to
increase the surety bond within thirty days to the amount required by such
subsection.
(4) The director may at any time require the filing of a new or
supplemental bond in the form as provided in subsection (1) of this section if
he or she determines that the bond filed under this section is exhausted or is
inadequate for any reason, including, but not limited to, the financial
condition of a licensee or an applicant for a license or violations of the
Nebraska Money Transmitters Act, any rule and regulation or order thereunder,
or any state or federal law applicable to a licensee or an applicant for a
license. The new or supplemental bond shall not exceed five hundred thousand
dollars.
(5)(a) In lieu of the corporate surety bond or bonds required by this
section or of any portion of the principal thereof, the applicant or licensee
may deposit, with the director or with such banks or trust companies located in
this state or with any federal reserve bank as the applicant or licensee may
designate and the director may approve, interest-bearing stocks and bonds,
notes, debentures or other obligations of the United States or any agency or
instrumentality thereof, or guaranteed by the United States, or of this state,
or of a city, county, village, school district, or instrumentality of this
state, or guaranteed by this state, to an aggregate amount, based upon
principal amount or market value, whichever is lower, of not less than the
amount of the required corporate surety bond or portion thereof. The securities
shall be deposited and held to secure the same obligations as would the surety
bond.
(b) The licensee shall have the right, with the approval of the director,
to substitute other securities for those deposited and shall be required to do
so on written order of the director made for good cause shown. The licensee
shall pay the fees prescribed in section 8-602 for pledging and substitution of
securities. So long as the licensee so depositing shall continue solvent and is
not in violation of the Nebraska Money Transmitters Act, such licensee shall be
permitted to receive the interest or dividends on such deposit.
(c) The safekeeping of such securities and all other expenses incidental
to the pledging of such securities shall be paid by the licensee. All such
securities shall be subject to sale and transfer and to the disposal of the
proceeds by the director only on the order of a court of competent
jurisdiction.
(6) The surety bond shall remain in effect until cancellation, which may
occur only after thirty days' written notice to the director. Cancellation
shall not affect any liability incurred or accrued during the period the surety
bond was in effect.
(7) The surety bond shall remain in place for at least five years after
the licensee ceases money transmission in this state, except that the director
may permit the surety bond to be reduced or eliminated before that time to the
extent that the amount of the licensee's payment instruments outstanding in
this state are reduced. The director may also permit a licensee to substitute a
letter of credit or such other form of security acceptable to the director for
the surety bond in place at the time the licensee ceases money transmission in
the state.
Sec. 33. Section 8-2728, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2728 (1) This section does not apply to:
(a) Money received for transmission subject to the federal remittance
rule; or
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(b) Money received for transmission that is not primarily for personal,
family, or household purposes;
(c) Money received for transmission pursuant to a written agreement
between the licensee and payee to process payments for goods or services
provided by the payee; or
(d) Payroll processing services.
(2)(a) Every licensee or authorized delegate shall provide the sender a
receipt for money received for transmission.
(b) The receipt shall contain the following information, as applicable:
(i) The name of the sender;
(ii) The name of the designated recipient;
(iii) The date of the transaction;
(iv) The unique transaction or identification number;
(v) The name of the licensee, the Nationwide Mortgage Licensing System and
Registry unique identification, the licensee's business address, and the
licensee's customer service telephone number;
(vi) If not available on the licensee's website or mobile application, the
name and telephone number of the department and a statement that the licensee's
customers can contact the department with questions or complaints about the
licensee's money transmission services;
(vii) The amount of the transaction in United States dollars;
(viii) Any fee charged by the licensee to the sender for the transaction;
and
(ix) Any tax collected by the licensee from the sender for the
transaction.
(c) For a transaction conducted in person, the receipt may be provided
electronically if the sender requests or agrees to receive an electronic
receipt. For a transaction conducted electronically or by telephone, a receipt
may be provided electronically. All electronic receipts shall be provided in a
retainable form.
(d) The receipt required by this subsection shall be in English and in the
language principally used by the licensee or authorized delegate to advertise,
solicit, or negotiate, either orally or in writing, for a transaction conducted
in person, electronically, or by telephone, if other than English.
(1) Each licensee shall at all times possess permissible investments
having an aggregate market value, calculated in accordance with generally
accepted accounting principles, of not less than the aggregate face amount of
all outstanding payment instruments and stored value issued or sold by the
licensee in the United States. This requirement may be waived by the director
if the dollar volume of a licensee's outstanding payment instruments and stored
value does not exceed the bond or other security posted by the licensee
pursuant to section 8-2727.
(2) Permissible investments, even if commingled with other assets of the
licensee, are deemed by operation of law to be held in trust for the benefit of
the purchasers and holders of the licensee's outstanding payment instruments in
the event of the bankruptcy of the licensee.
Sec. 34. Section 8-2729, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-2729 (1) A licensee that provides payroll processing services shall:
(a) Issue reports to clients detailing client payroll obligations in
advance of the payroll funds being deducted from an account; and
(b) Make available employee paystubs or an equivalent statement to
employees.
(2) This section does not apply to a licensee providing payroll processing
services where the licensee's client designates the intended recipients to the
licensee and is responsible for providing the disclosures required by
subdivision (1)(b) of this section.
Each application for a license under the Nebraska Money Transmitters Act
shall be made in writing and in a form prescribed by the director. Each
application shall state or contain:
(1) For all applicants:
(a) The exact name of the applicant, the applicant's principal address,
any fictitious or trade name used by the applicant in the conduct of its
business, and the location of the applicant's business records;
(b) The history of the applicant's criminal convictions and material
litigation for the five-year period before the date of the application;
(c) A description of the activities conducted by the applicant and a
history of operations;
(d) A description of the business activities in which the applicant seeks
to be engaged in this state;
(e) A list identifying the applicant's proposed authorized delegates in
this state, if any, at the time of the filing of the application;
(f) A sample authorized delegate contract, if applicable;
(g) A sample form of payment instrument, if applicable;
(h) The locations at which the applicant and its authorized delegates, if
any, propose to conduct money transmission in this state; and
(i) The name, address, and account information of each clearing bank or
banks, which shall be covered by federal deposit insurance, on which the
applicant's payment instruments and funds received for transmission or
otherwise will be drawn or through which the payment instruments or other funds
will be payable;
(2) If the applicant is a corporation, the applicant shall also provide:
(a) The date of the applicant's incorporation and state of incorporation;
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(b) A certificate of good standing from the state in which the applicant
was incorporated;
(c) A certificate of authority from the Secretary of State to conduct
business in this state;
(d) A description of the corporate structure of the applicant, including
the identity of any parent or subsidiary of the applicant, and a disclosure of
whether any parent or subsidiary is publicly traded on any stock exchange;
(e) The name, business and residence addresses, and employment history for
the five-year period immediately before the date of the application of the
applicant's executive officers and the officers or managers who will be in
charge of the applicant's activities to be licensed under the act;
(f) The name, business and residence addresses, and employment history for
the five-year period immediately before the date of the application and the
most recent personal financial statement of any key shareholder of the
applicant;
(g) The history of material litigation for the five-year period
immediately before the date of the application of every executive officer or
key shareholder of the applicant;
(h) Background checks as provided in section 8-2730;
(i) A copy of the applicant's most recent audited financial statement
including balance sheet, statement of income or loss, statement of changes in
shareholder equity, and statement of changes in financial position and, if
available, the applicant's audited financial statements for the immediately
preceding two-year period. However, if the applicant is a wholly owned
subsidiary of another corporation, the applicant may submit either the parent
corporation's consolidated audited financial statements for the current year
and for the immediately preceding two-year period or the parent corporation's
Form 10-K reports filed with the United States Securities and Exchange
Commission for the prior three years in lieu of the applicant's financial
statements. If the applicant is a wholly owned subsidiary of a corporation
having its principal place of business outside the United States, similar
documentation filed with the parent corporation's non-United States regulator
may be submitted to satisfy this subdivision; and
(j) Copies of all filings, if any, made by the applicant with the United
States Securities and Exchange Commission or with a similar regulator in a
country other than the United States, within the year preceding the date of
filing of the application; and
(3) If the applicant is not a corporation, the applicant shall also
provide:
(a) The name, business and residence addresses, personal financial
statement, and employment history, for the five-year period immediately before
the date of the application, of each principal of the applicant and the name,
business and residence addresses, and employment history for the five-year
period immediately before the date of the application of any other person or
persons who will be in charge of the applicant's money transmission activities;
(b) A copy of the applicant's registration or qualification to do business
in this state;
(c) The history of material litigation for the five-year period
immediately before the date of the application for each individual having any
ownership interest in the applicant and each individual who exercises
supervisory responsibility with respect to the applicant's activities;
(d) Background checks as provided in section 8-2730; and
(e) Copies of the applicant's audited financial statements including
balance sheet, statement of income or loss, and statement of changes in
financial position for the current year and, if available, for the immediately
preceding two-year period.
Sec. 35. Section 8-2730, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-2730 (1) A licensee shall maintain at all times a net worth of the
greater of one hundred thousand dollars or three percent of the licensee's
total assets for the first one hundred million dollars, two percent of
additional assets for over one hundred million dollars to one billion dollars,
and one-half percent of additional assets for over one billion dollars.
(2) Net worth shall be demonstrated at initial application by the
applicant's most recent audited or, if allowed by the director, unaudited
financial statements provided pursuant to subdivision (2)(f) of section 8-2711.
(3) Notwithstanding subsections (1) and (2) of this section, the director
shall have the authority, for good cause shown, to exempt any applicant or
licensee, in part or in whole, from the requirements of subsections (1) and (2)
of this section.
(1) Effective July 1, 2014, the department shall require licensees under
the Nebraska Money Transmitters Act to be licensed and registered through the
Nationwide Mortgage Licensing System and Registry. In order to carry out this
requirement, the department is authorized to participate in the Nationwide
Mortgage Licensing System and Registry. For this purpose, the department may
establish, by adopting and promulgating rules and regulations or by order,
requirements as necessary. The requirements may include, but are not limited
to:
(a) Background checks of applicants and licensees, including, but not
limited to:
(i) Fingerprints of every executive officer, director, partner, member,
sole proprietor, or shareholder submitted to the Federal Bureau of
Investigation and any other governmental agency or entity authorized to receive
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such information for a state, national, and international criminal history
record information check, except that the department shall not require the
submission of fingerprints by (A) an executive officer or director of an
applicant or licensee which is either a publicly traded company or a wholly
owned subsidiary of a publicly traded company or (B) an applicant or licensee
who has previously submitted the fingerprints of an executive officer,
director, partner, member, sole proprietor, or shareholder directly to the
Nationwide Mortgage Licensing System and Registry and the Federal Bureau of
Investigation will accept such fingerprints for a criminal background check;
(ii) Checks of civil or administrative records;
(iii) Checks of an applicant's or a licensee's credit history; or
(iv) Any other information as deemed necessary by the Nationwide Mortgage
Licensing System and Registry;
(b) The payment of fees to apply for or renew a license through the
Nationwide Mortgage Licensing System and Registry;
(c) The setting or resetting, as necessary, of renewal processing or
reporting dates;
(d) Information and reports pertaining to authorized delegates; and
(e) Amending or surrendering a license or any other such activities as the
director deems necessary for participation in the Nationwide Mortgage Licensing
System and Registry.
(2) In order to fulfill the purposes of the act, the department is
authorized to establish relationships or contracts with the Nationwide Mortgage
Licensing System and Registry or other entities designated by the Nationwide
Mortgage Licensing System and Registry to collect and maintain records and
process transaction fees or other fees related to licensees or other persons
subject to the act. The department may allow such system to collect licensing
fees on behalf of the department and allow such system to collect a processing
fee for the services of the system directly from each licensee or applicant for
a license.
(3) The director is required to regularly report enforcement actions and
other relevant information to the Nationwide Mortgage Licensing System and
Registry subject to the provisions contained in section 8-2731.
(4) The director shall establish a process whereby applicants and
licensees may challenge information entered into the Nationwide Mortgage
Licensing System and Registry by the director.
(5) The department shall ensure that the Nationwide Mortgage Licensing
System and Registry adopts a privacy, data security, and breach of security of
the system notification policy. The director shall make available upon written
request a copy of the contract between the department and the Nationwide
Mortgage Licensing System and Registry pertaining to the breach of security of
the system provisions.
(6) The department shall upon written request provide the most recently
available audited financial report of the Nationwide Mortgage Licensing System
and Registry.
(7) The director may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting information from and distributing
information to the United States Department of Justice or any other
governmental agency in order to reduce the points of contact which the Federal
Bureau of Investigation may have to maintain for purposes of subsection (1) of
this section.
Sec. 36. Section 8-2731, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2731 (1) An applicant for a money transmission license shall provide,
and a licensee at all times shall maintain, security consisting of a surety
bond in a form satisfactory to the director.
(2) The amount of the surety bond required by subsection (1) of this
section shall be the greater of one hundred thousand dollars or an amount equal
to one hundred percent of the licensee's average daily money transmission
liability in this state calculated for the most recently completed three-month
period, up to a maximum of five hundred thousand dollars. A licensee that
maintains a bond in the maximum amount provided for in this subsection shall
not be required to calculate its average daily money transmission liability in
this state for purposes of this subsection.
(3) The surety bond required by subsection (1) of this section shall
remain in effect until cancellation, which may occur only after thirty days'
written notice to the director. Cancellation shall not affect any liability
incurred or accrued during the period the surety bond was in effect.
(4) Any claimant against the licensee may file a claim or bring suit
directly on the surety bond required by subsection (1) of this section. The
director may also file a claim or bring suit on behalf of any claimant, either
in one action or in successive actions.
(1) In order to promote more effective regulation and reduce the
regulatory burden through supervisory information sharing:
(a) Except as otherwise provided in this section, the requirements under
any federal or state law regarding the privacy or confidentiality of any
information or material provided to the Nationwide Mortgage Licensing System
and Registry, and any privilege arising under federal or state law, including
the rules of any federal or state court, with respect to such information or
material, shall continue to apply to such information or material after the
information or material has been disclosed to the Nationwide Mortgage Licensing
System and Registry. Such information and material may be shared with all
federal and state regulatory officials with money transmitter industry
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oversight authority without the loss of privilege or the loss of
confidentiality protections provided by federal or state law;
(b) Information or material that is subject to privilege or
confidentiality under subdivision (a) of this subsection shall not be subject
to:
(i) Disclosure under any federal or state law governing the disclosure to
the public of information held by an officer or an agency of the federal
government or the respective state; or
(ii) Subpoena or discovery or admission into evidence in any private civil
action or administrative process unless, with respect to any privilege held by
the Nationwide Mortgage Licensing System and Registry with respect to such
information or material, the person to whom such information or material
pertains waives, in whole or in part, in the discretion of such person, that
privilege;
(c) Any state statute relating to the disclosure of confidential
supervisory information or any information or material described in subdivision
(a) of this subsection that is inconsistent with such subdivision shall be
superseded by the requirements of this section; and
(d) This section shall not apply with respect to the information or
material relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, applicants and licensees that is
included in the Nationwide Mortgage Licensing System and Registry for access by
the public.
(2) For these purposes, the director is authorized to enter into
agreements or sharing arrangements with other governmental agencies, the
Conference of State Bank Supervisors, the American Association of Residential
Mortgage Regulators, the Money Transmitter Regulators Association, or other
associations representing governmental agencies as established by adopting and
promulgating rules and regulations or an order of the director.
Sec. 37. Section 8-2732, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2732 (1) A licensee shall maintain at all times permissible investments
that have a market value computed in accordance with United States generally
accepted accounting principles of not less than the aggregate amount of all of
its outstanding money transmission obligations.
(2) Except for permissible investments described in subsection (1) of
section 8-2733, the director, with respect to any licensee, may, by order,
limit the extent to which a specific investment maintained by a licensee within
a class of permissible investments may be considered a permissible investment,
if the specific investment represents undue risk to customers, not reflected in
the market value of the investment.
(3) Permissible investments, even if commingled with other assets of the
licensee, are held in trust for the benefit of the purchasers and holders of
the licensee's outstanding money transmission obligations in the event of
insolvency, the filing of a petition by or against the licensee under the
United States Bankruptcy Code for bankruptcy or reorganization, the filing of a
petition by or against the licensee for receivership, the commencement of any
other judicial or administrative proceeding for dissolution or reorganization,
or in the event of an action by a creditor against the licensee who is not a
beneficiary of this statutory trust.
(4) No permissible investments held in trust pursuant to subsection (3) of
this section shall be subject to attachment, levy of execution, or
sequestration by order of any court, except for a beneficiary of this statutory
trust.
(5) Funds drawn on a letter of credit, and any other permissible
investments held in trust for the benefit of the purchasers and holders of the
licensee's outstanding money transmission obligations, are deemed held in trust
for the benefit of such purchasers and holders on a pro rata and equitable
basis for permissible investments required to be held in this state, and other
states, as applicable. Any statutory trust established under this subsection
shall be terminated upon extinguishment of all of the licensee's outstanding
money transmission obligations.
(6) The director, by rule or order, may allow any other type of
investment, that the director determines is of sufficient liquidity and
quality, to be a permissible investment. The director is authorized to
participate in efforts with other state regulators to determine whether other
types of investments are of sufficient liquidity and quality to be a
permissible investment.
Each applicant shall submit, with the application, an application fee of
one thousand dollars, and any processing fee allowed under subsection (2) of
section 8-2730 which shall not be subject to refund but which, if the license
is granted, shall constitute the license fee for the first license year or part
thereof.
Sec. 38. Section 8-2733, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2733 (1) The following investments are permissible investments for the
purposes of section 8-2732:
(a) Cash, including demand deposits, savings deposits, and funds in such
accounts held for the benefit of the licensee's customers in a federally
insured depository financial institution;
(b) Cash equivalents, including automated clearinghouse items in transit
to the licensee, automated clearinghouse items or international wires in
transit to a payee, cash in transit via armored car, cash in smart safes, cash
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in licensee-owned locations, debit card-funded or credit card-funded
transmission receivables owed by any financial institution, or money market
mutual funds rated AAA by Standard and Poor's Corporation or the equivalent
from any other eligible rating service;
(c) Certificates of deposit or senior debt obligations of an insured
depository institution as defined in the Federal Deposit Insurance Act or an
insured credit union as defined in the Federal Credit Union Act;
(d) An obligation of the United States or a commission, agency, or
instrumentality thereof;
(e) An obligation that is guaranteed fully as to principal and interest by
the United States;
(f) An obligation of a state or a governmental subdivision, agency, or
instrumentality thereof; and
(g)(i) The full drawable amount of an irrevocable standby letter of
credit, for which the stated beneficiary is the director, that stipulates that
the beneficiary need only draw a sight draft under the letter of credit and
present it to obtain funds up to the letter of credit amount within seven days
after presentation of the items required by this subdivision.
(ii) The letter of credit shall:
(A) Be issued by a federally insured depository financial institution, a
foreign bank that is authorized under federal law to maintain a federal agency
or federal branch office in a state or states, or a foreign bank that is
authorized under state law to maintain a branch in a state and such bank bears
an eligible rating or whose parent company bears an eligible rating and is
regulated, supervised, and examined by United States federal or state
authorities having regulatory authority over banks, credit unions, and trust
companies;
(B) Be irrevocable and unconditional and indicate that such letter of
credit is not subject to any condition or qualifications outside of the letter
of credit;
(C) Not contain reference to any other agreements, documents, or entities,
or otherwise provide for any security interest in the licensee; and
(D) Contain an issue date and expiration date and expressly provide for
automatic extension, without a written amendment, for an additional period of
one year from the present or each future expiration date, unless the issuer of
the letter of credit notifies the director in writing, by certified or
registered mail or courier mail or other receipted means, at least sixty days
prior to any expiration date that the irrevocable letter of credit will not be
extended.
(iii) In the event of any notice of expiration or nonextension of a letter
of credit, the licensee shall be required to demonstrate to the satisfaction of
the director, fifteen days prior to expiration, that the licensee maintains and
will maintain permissible investments in accordance with subsection (1) of
section 8-2732 upon the expiration of the letter of credit. If the licensee is
not able to do so, the director may draw on the letter of credit in an amount
up to the amount necessary to meet the licensee's requirements to maintain
permissible investments in accordance with subsection (1) of section 8-2732.
Any such draw shall be offset against the licensee's outstanding money
transmission obligations. The drawn funds shall be held in trust by the
director or the director's designated agent, to the extent authorized by law,
as agent for the benefit of the purchasers and holders of the licensee's
outstanding money transmission obligations.
(iv) The letter of credit shall provide that the issuer of the letter of
credit will honor, at sight, a presentation made by the beneficiary to the
issuer of the following documents on or prior to the expiration date of the
letter of credit:
(A) The original letter of credit, including any amendments; and
(B) A written statement from the beneficiary stating that any of the
following events have occurred:
(I) The filing of a petition by or against the licensee under the United
States Bankruptcy Code for bankruptcy or reorganization;
(II) The filing of a petition by or against the licensee for receivership
or the commencement of any other judicial or administrative proceeding for
dissolution or reorganization;
(III) The seizure of assets of a licensee by a director pursuant to an
emergency order issued in accordance with applicable law, on the basis of an
action, violation, or condition that has caused or is likely to cause the
insolvency of the licensee; or
(IV) The beneficiary has received notice of expiration or nonextension of
a letter of credit and the licensee failed to demonstrate to the satisfaction
of the beneficiary that the licensee will maintain permissible investments in
accordance with subsection (1) of section 8-2732 upon the expiration or
nonextension of the letter of credit.
(v) The director may designate an agent to serve on the director's behalf
as beneficiary to a letter of credit so long as the agent and letter of credit
meet requirements established by the director. The director's agent may serve
as agent for multiple licensing authorities for a single irrevocable letter of
credit if the proceeds of the drawable amount for the purposes of this section
are assigned to the director.
(vi) The director is authorized to participate in multistate processes
designed to facilitate the issuance and administration of letters of credit,
including, but not limited to, services provided by the Nationwide Mortgage
Licensing System and Registry and State Regulatory Registry LLC.
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(2) Unless permitted by the director, by rule or order, to exceed the
limit as set forth in this section, the following investments are permissible
investments for the purposes of section 8-2732 to the extent specified:
(a) Receivables that are payable to a licensee from authorized delegates
in the ordinary course of business, received by the authorized delegates less
than seven days old, and combined not exceeding fifty percent of the aggregate
value of the licensee's total permissible investments, and receivables that are
payable to a licensee from a single authorized delegate in the ordinary course
of business, received by the authorized delegate less than seven days before,
and combined not exceeding ten percent of the aggregate value of the licensee's
total permissible investments;
(b) The following investment categories are permissible up to twenty
percent of the aggregate value of the licensee's total permissible investments
for each investment category and up to fifty percent of the aggregate value of
the licensee's total permissible investments for all of the investment
categories combined:
(i) A short-term, up to six months, investment bearing an eligible rating;
(ii) Commercial paper bearing an eligible rating;
(iii) A bill, note, bond, or debenture bearing an eligible rating;
(iv) A United States tri-party repurchase agreement collateralized at one
hundred percent or more with United States Government or agency securities,
municipal bonds, or other securities bearing an eligible rating;
(v) A money market mutual fund rated less than AAA and equal to or higher
than A- by Standard and Poor's Corporation, or the equivalent from any other
eligible rating service; and
(vi) A mutual fund or other investment fund composed solely and
exclusively of one or more permissible investments described in subdivisions
(1)(a) through (c) of this section; and
(c) Cash, including demand deposits, savings deposits, and funds in such
accounts held for the benefit of the licensee's customers, at foreign
depository institutions are permissible up to ten percent of the aggregate
value of the licensee's total permissible investments if the licensee has
received a satisfactory rating in the licensee's most recent examination and
the foreign depository institution:
(i) Has an eligible rating;
(ii) Is registered under the Foreign Account Tax Compliance Act;
(iii) Is not located in any country subject to sanctions from the Office
of Foreign Assets Control; and
(iv) Is not located in a high-risk or noncooperative jurisdiction as
designated by the Financial Action Task Force.
(1) Upon the filing of a complete application under the Nebraska Money
Transmitters Act, the director shall investigate the financial condition and
responsibility, financial and business experience, character, and general
fitness of the applicant. The director may conduct an onsite investigation of
the applicant, the reasonable cost of which shall be borne by the applicant. If
the director finds that the applicant's business will be conducted honestly,
fairly, and in a manner commanding the confidence and trust of the community
and that the applicant has fulfilled the requirements imposed by the act and
has paid the required application or license fee, the director shall issue a
license to the applicant authorizing the applicant to engage in money
transmission in this state. If these requirements have not been met, the
director shall deny the application in writing, setting forth the reasons for
the denial.
(2) The director shall approve or deny every application for an original
license within one hundred twenty days after the date a complete application is
submitted, which period may be extended by the written consent of the
applicant. The director shall notify the applicant of the date when the
application is deemed complete.
(3) Any applicant aggrieved by a denial issued by the director under the
act may, at any time within fifteen business days after the date of the denial,
request a hearing before the director. The hearing shall be held in accordance
with the Administrative Procedure Act and rules and regulations of the
department.
(4) If an applicant for a license under the Nebraska Money Transmitters
Act does not complete the license application and fails to respond to a notice
or notices from the department to correct the deficiency or deficiencies for a
period of one hundred twenty days or more after the date the department sends
the initial notice to correct the deficiency or deficiencies, the department
may deem the application as abandoned and may issue a notice of abandonment of
the application to the applicant in lieu of proceedings to deny the
application.
Sec. 39. Section 8-2734, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2734 (1) The director may, following a hearing in accordance with the
Administrative Procedure Act, suspend or revoke a license or order a licensee
to revoke the designation of an authorized delegate if:
(a) The licensee violates the Nebraska Money Transmitters Act or a rule or
regulation adopted and promulgated or an order issued under the act;
(b) The licensee does not cooperate with an examination or investigation
by the director;
(c) The licensee willfully failed to make any report required by the act;
(d) The licensee engages in fraud, intentional misrepresentation, or gross
negligence;
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(e) An authorized delegate is convicted of a violation of a state or
federal anti-money laundering statute, or violates a rule or regulation adopted
and promulgated or an order issued under the act, as a result of the licensee's
willful misconduct or willful blindness;
(f) The competence, experience, character, or general fitness of the
licensee, authorized delegate, person in control of a licensee, key individual,
or responsible person of the authorized delegate indicates that it is not in
the public interest to permit the person to provide money transmission;
(g) The licensee engages in an unsafe or unsound practice;
(h) The licensee is insolvent, suspends payment of the licensee's
obligations, or makes a general assignment for the benefit of its creditors; or
(i) The licensee does not remove an authorized delegate after the director
issues and serves upon the licensee a final order including a finding that the
authorized delegate has violated the Nebraska Money Transmitters Act.
(2) In determining whether a licensee is engaging in an unsafe or unsound
practice, the director may consider the size and condition of the licensee's
money transmission, the magnitude of the loss, the gravity of the violation of
the Nebraska Money Transmitters Act, and the previous conduct of the person
involved.
(3) A licensee may voluntarily surrender a license by delivering to the
director written notice of the surrender.
(4) If a licensee fails to maintain a surety bond as required by section
8-2731, the department may issue a notice of cancellation of the license in
lieu of revocation proceedings.
(5) Suspension, revocation, cancellation, surrender, or expiration of a
license shall not impair or affect the obligation of a preexisting lawful
contract between the licensee and any person.
(6) Suspension, revocation, cancellation, surrender, or expiration of a
license shall not affect civil or criminal liability for acts committed before
the suspension, revocation, cancellation, surrender, or expiration or liability
for any fines which may be levied against the licensee or any of its key
individuals, executive officers, managers, directors, trustees, or other
persons exercising managerial authority of a licensee for acts committed before
the suspension, revocation, cancellation, surrender, or expiration.
(1) Initial licenses shall remain in full force and effect until the next
succeeding December 31. Each licensee shall, annually on or before December 31
of each year, file a license renewal application and pay to the director a
license fee of two hundred fifty dollars and any processing fee allowed under
subsection (2) of section 8-2730, both of which shall not be subject to refund.
(2) The renewal application and license fee shall be accompanied by a
report, in a form prescribed by the director, which shall include:
(a) A copy of the licensee's most recent audited consolidated annual
financial statement including balance sheet, statement of income or loss,
statement of changes in shareholders' equity, and statement of changes in
financial position, or, if a licensee is a wholly owned subsidiary of another
corporation, the consolidated audited annual financial statement of the parent
corporation may be filed in lieu of the licensee's audited annual financial
statement;
(b) The number of payment instruments sold by the licensee in the state,
the dollar amount of those instruments, and the dollar amount of payment
instruments currently outstanding, for the most recent quarter for which data
is available before the date of the filing of the renewal application, but in
no event more than one hundred twenty days before the renewal date;
(c) Any material changes to any of the information submitted by the
licensee on its original application which have not previously been reported to
the director on any other report required to be filed under the Nebraska Money
Transmitters Act; and
(d) A list of the licensee's permissible investments.
Sec. 40. Section 8-2735, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-2735 (1) The director may issue an order suspending or revoking the
designation of an authorized delegate if the director finds that:
(a) The authorized delegate violated the Nebraska Money Transmitters Act
or a rule or regulation adopted and promulgated or an order issued under the
act;
(b) The authorized delegate did not cooperate with an examination or
investigation by the director;
(c) The authorized delegate engaged in fraud, intentional
misrepresentation, or gross negligence;
(d) The authorized delegate is convicted of a violation of a state or
federal anti-money-laundering statute;
(e) The competence, experience, character, or general fitness of the
authorized delegate or a person in control of the authorized delegate indicates
that it is not in the public interest to permit the authorized delegate to
provide money transmission; or
(f) The authorized delegate is engaging in an unsafe or unsound practice.
(2) In determining whether an authorized delegate is engaging in an unsafe
or unsound practice, the director may consider the size and condition of the
authorized delegate's provision of money transmission, the magnitude of the
loss, the gravity of the violation of the Nebraska Money Transmitters Act or a
rule or regulation adopted and promulgated or order issued under the act, and
the previous conduct of the authorized delegate.
(3) An authorized delegate may apply for relief from a suspension or
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revocation of designation as an authorized delegate according to procedures
prescribed by the director.
(1) A licensee shall file notice with the director within thirty calendar
days after any material change in information provided in a licensee's
application as prescribed by the director.
(2) A licensee shall file a report with the director within five business
days after the licensee has reason to know of the occurrence of any of the
following events:
(a) The filing of a petition by or against the licensee under any
bankruptcy law of the United States for liquidation or reorganization;
(b) The filing of a petition by or against the licensee for receivership,
the commencement of any other judicial or administrative proceeding for its
dissolution or reorganization, or the making of a general assignment for the
benefit of its creditors;
(c) The filing of an action to revoke or suspend the licensee's license in
a state or country in which the licensee engages in business or is licensed;
(d) The cancellation or other impairment of the licensee's bond or other
security;
(e) A charge or conviction of the licensee or of an executive officer,
manager, or director of, or controlling person of, the licensee, for a felony;
or
(f) A charge or conviction of an authorized delegate for a felony.
(3)(a) Except as provided in subdivisions (b) and (c) of this subsection,
a licensee shall notify the director in writing or through the Nationwide
Mortgage Licensing System and Registry within three business days from the time
that the licensee becomes aware of any breach of security of the system of
computerized data owned or licensed by the licensee, which contains personal
information about a Nebraska resident, or the unauthorized access to or use of
such information about a Nebraska resident as a result of the breach.
(b) If a licensee would be required under Nebraska law to provide
notification to a Nebraska resident regarding such incident, then the licensee
shall provide a copy of such notification to the department prior to or
simultaneously with the licensee's notification to the Nebraska resident.
(c) Notice required by this subsection may be delayed if a law enforcement
agency determines that the notice will impede a criminal investigation. Notice
shall be made in good faith, without unreasonable delay, and as soon as
possible after the law enforcement agency determines that notification will no
longer impede the investigation.
(d) For purposes of this subsection, the terms breach of the security of
the system and personal information have the same meaning as in section 87-802.
Sec. 41. Section 8-2736, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2736 (1) If the director determines that a violation of the Nebraska
Money Transmitters Act or of a rule or regulation adopted and promulgated or an
order issued under the act by a licensee or authorized delegate is likely to
cause immediate and irreparable harm to the licensee, the licensee's customers,
or the public as a result of the violation, or cause insolvency or significant
dissipation of assets of the licensee, the director may issue an order
requiring the licensee or authorized delegate to cease and desist from the
violation. The order becomes effective upon service of the order upon the
licensee or authorized delegate.
(2) The director may issue an order against a licensee to cease and desist
from providing money transmission through an authorized delegate that is the
subject of a separate order by the director.
(3) An order to cease and desist remains effective and enforceable pending
the completion of an administrative proceeding pursuant to the Administrative
Procedure Act.
(4) A licensee or an authorized delegate that is served with an order to
cease and desist may petition the district court of Lancaster County for a
judicial order setting aside, limiting, or suspending the enforcement,
operation, or effectiveness of the order pending the completion of an
administrative proceeding pursuant to the Administrative Procedure Act.
(5) Upon entry of an order to cease and desist, the director shall
promptly notify the affected person that such order has been entered and
provide opportunity for hearing in accordance with the Administrative Procedure
Act.
(1) No person acting personally or as an authorized delegate shall acquire
control of any licensee under the Nebraska Money Transmitters Act without first
giving thirty days' notice to the director on forms prescribed by the director
of such proposed acquisition.
(2) The director, upon receipt of such notice, shall act upon the proposed
acquisition within thirty days, and unless he or she disapproves the proposed
acquisition within that period of time, the acquisition shall become effective
on the thirty-first day after receipt without the director's approval, except
that the director may extend the thirty-day period an additional thirty days
if, in his or her judgment, any material information submitted is substantially
inaccurate or the acquiring person has not furnished all the information
required by the director.
(3) An acquisition may be made prior to the expiration of the disapproval
period if the director issues written notice of his or her intent not to
disapprove the action.
(4)(a) The director may disapprove any proposed acquisition if:
(i) The financial condition of any acquiring person is such as might
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jeopardize the financial stability of the acquired licensee;
(ii) The business experience, character, and general fitness of any
acquiring person or of any of the proposed management personnel of the
acquiring person indicate that the acquired licensee would not be operated
honestly, carefully, or efficiently; or
(iii) Any acquiring person neglects, fails, or refuses to furnish all
information required by the director.
(b) The director may require that any acquiring person comply with the
application requirements of section 8-2729.
(c) The director shall notify the acquiring person in writing of
disapproval of the acquisition. The notice shall provide a statement of the
basis for the disapproval.
(d) Within fifteen business days after receipt of written notice of
disapproval, the acquiring person may request a hearing on the proposed
acquisition. The hearing shall be in accordance with the Administrative
Procedure Act and rules and regulations of the department. Following such
hearing, the director shall, by order, approve or disapprove the proposed
acquisition on the basis of the record made at the hearing.
Sec. 42. Section 8-2737, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2737 The director may enter into a consent order at any time with a
person to resolve a matter arising under the Nebraska Money Transmitters Act or
a rule or regulation adopted and promulgated or order issued under the act. A
consent order shall be signed by the person to whom the order is issued or by
the person's authorized representative, and shall indicate agreement with the
terms contained in the order. A consent order may provide that it does not
constitute an admission by a person that the act or a rule or regulation
adopted and promulgated or an order issued under the act has been violated. (1)
The director may conduct an examination of a licensee upon reasonable written
notice to the licensee. The director may examine a licensee without prior
notice if the director has a reasonable basis to believe that the licensee is
in noncompliance with the Nebraska Money Transmitters Act.
(2) An examination may be conducted in conjunction with examinations to be
performed by representatives of agencies of another state or states or
departments or agencies of the United States. The director, in lieu of an
examination, may accept the examination report of an agency of another state or
a department or an agency of the United States or a report prepared by an
independent accounting firm. Reports so accepted are considered for all
purposes as an official report of the department.
(3) The director may make investigations regarding complaints of alleged
violations of the Nebraska Money Transmitters Act, any rule and regulation or
order under the act, or any state or federal law applicable to a licensee, an
authorized delegate, or an applicant for a license, as the director deems
necessary, and to the extent necessary for this purpose, the director may
examine such licensee, authorized delegate, or any other person, interview
officers, principals, employees, and customers of the licensee, authorized
delegate, or applicant, and compel the production of all relevant books,
records, accounts, and documents.
(4) The director may request financial data from a licensee in addition to
that required under section 8-2734.
(5) The director may conduct an examination of any authorized delegate of
a licensee within this state upon reasonable written notice to the licensee and
the authorized delegate. The director may conduct an examination of any
authorized delegate without prior notice to the authorized delegate or licensee
only if the director has a reasonable basis to believe that the licensee or
authorized delegate is in noncompliance with the Nebraska Money Transmitters
Act.
(6) Upon receipt by a licensee, an authorized delegate, or any other
person of a notice of investigation or inquiry request for information from the
department, the licensee, authorized delegate, or other person shall respond
within twenty-one calendar days. Failure to respond is a violation of the
Nebraska Money Transmitters Act. Each day a licensee, authorized delegate, or
other person fails to respond as required by this subsection shall constitute a
separate violation.
(7) If the director finds, after notice and opportunity for hearing in
accordance with the Administrative Procedure Act, that any person has violated
subsection (6) of this section, the director may order such person to pay (a)
an administrative fine of not more than two thousand dollars for each separate
violation and (b) the costs of investigation. The department shall remit fines
collected under this subsection to the State Treasurer for distribution in
accordance with Article VII, section 5, of the Constitution of Nebraska.
(8) If a person fails to pay an administrative fine and the costs of
investigation ordered pursuant to subsection (7) of this section, a lien in the
amount of such fine and costs may be imposed upon all assets and property of
such person in this state and may be recovered in a civil action by the
director. The lien shall attach to the real property of such person when notice
of the lien is filed and indexed against the real property in the office of the
register of deeds in the county where the real property is located. The lien
shall attach to any other property of such person when notice of the lien is
filed against the property in the manner prescribed by law. Failure of the
person to pay such fine and costs shall constitute a separate violation of the
Nebraska Money Transmitters Act.
(9) For purposes of any investigation, examination, or proceeding under
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the Nebraska Money Transmitters Act, the director or any officer designated by
the director may administer oaths and affirmations, subpoena witnesses, compel
attendance, take evidence, and require the production of any books, papers,
correspondence, memoranda, agreements, or other documents or records which the
director deems relevant or material to the inquiry. If any person refuses to
comply with a subpoena issued under this subsection or to testify with respect
to any matter relevant to the proceeding, the district court of Lancaster
County may, on application of the director, issue an order requiring the person
to comply with the subpoena and to testify. Failure to obey an order of the
court to comply with the subpoena may be punished by the court as civil
contempt.
(10) The total charge for an examination under this section shall be paid
by the licensee or authorized delegate as set forth in sections 8-605 and
8-606.
Sec. 43. Section 8-2738, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2738 (1) Except as provided in subsections (2) and (3) of this section,
any person violating the Nebraska Money Transmitters Act or any rule,
regulation, or order of the director adopted, promulgated, or issued pursuant
to the act or who engages in any act, practice, or transaction declared by the
act to be unlawful is guilty of a Class III misdemeanor.
(2) A person who intentionally makes a false statement, misrepresentation,
or false certification in a record filed or required to be maintained under the
Nebraska Money Transmitters Act or who intentionally makes a false entry or
omits a material entry in such a record is guilty of a Class I misdemeanor.
(3) An individual who knowingly engages in money transmission for which a
license is required under the Nebraska Money Transmitters Act without being
licensed under the act is guilty of a Class I misdemeanor.
(1) Each licensee shall make, keep, and preserve the following books,
accounts, and other records for a period of three years which shall be open to
inspection by the director:
(a) A record of each payment instrument and stored value sold;
(b) A general ledger containing all assets, liability, capital, income,
and expense accounts, which general ledger shall be posted at least monthly;
(c) Settlement sheets received from authorized delegates;
(d) Bank statements and bank reconciliation records;
(e) Records of outstanding payment instruments and stored value;
(f) Records of each payment instrument and stored value paid;
(g) A list of the names and addresses of all of the licensee's authorized
delegates; and
(h) Any other records the director reasonably requires by rule or
regulation or order.
(2) Maintenance of such documents as are required by this section in a
photographic, electronic, or other similar form constitutes compliance with
this section.
(3) Records may be maintained at a location other than within this state
so long as the records are made accessible to the director on seven business
days' written notice.
Sec. 44. Section 8-2739, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2739 The director may assess a fine against a person that violates the
Nebraska Money Transmitters Act or a rule or regulation adopted and promulgated
or an order issued under the act in an amount not to exceed five thousand
dollars per violation per day for each day the violation is outstanding, plus
the department's and the State of Nebraska's costs and expenses for the
investigation and prosecution of the matter, including reasonable attorney's
fees. A licensee desiring to conduct money transmission through an authorized
delegate shall authorize each authorized delegate to operate pursuant to an
express written contract which, for contracts entered into on or after January
1, 2014, shall provide the following:
(1) That the licensee appoints the person as its authorized delegate with
authority to engage in the sale and issue of payment instruments or engage in
the business of money transmission on behalf of the licensee;
(2) That neither a licensee nor an authorized delegate may authorize
subdelegates without the written consent of the director; and
(3) That the licensee is subject to supervision and regulation by the
director.
Sec. 45. Section 8-2740, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2740 (1) If the director has reason to believe that a person has
violated or is violating section 8-2709, the director may issue an order to
cease and desist requiring that the person cease and desist from the violation
of section 8-2709.
(2) In an emergency, the director may petition the district court of
Lancaster County for the issuance of a temporary restraining order ex parte
pursuant to the rules of civil procedure.
(3) An order to cease and desist becomes effective when issued by the
director.
(4) An order to cease and desist remains effective and enforceable pending
the completion of an administrative proceeding pursuant to the Administrative
Procedure Act.
(5) A person that is served with an order to cease and desist for
violating section 8-2709 may petition the district court of Lancaster County
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for a judicial order setting aside, limiting, or suspending the enforcement,
operation, or effectiveness of the order pending the completion of an
administrative proceeding pursuant to the Administrative Procedure Act.
(6) Upon entry of an order to cease and desist, the director shall
promptly notify the affected person that such order has been entered and
provide opportunity for hearing in accordance with the Administrative Procedure
Act.
(1) An authorized delegate shall not make any fraudulent or false
statement or misrepresentation to a licensee or to the director.
(2) An authorized delegate shall conduct all money transmission strictly
in accordance with the licensee's written procedures provided to the authorized
delegate.
(3) An authorized delegate shall remit all money owing to the licensee in
accordance with the terms of the contract between the licensee and the
authorized delegate.
(4) An authorized delegate is deemed to consent to the director's
inspection with or without prior notice to the licensee or authorized delegate.
(5) An authorized delegate is under a duty to act only as authorized under
the contract with the licensee and the Nebraska Money Transmitters Act. An
authorized delegate who exceeds its authority is subject to cancellation of its
contract and further disciplinary action by the director.
(6) All funds, less fees, received by an authorized delegate of a licensee
from the sale or delivery of a payment instrument issued by a licensee or
received by an authorized delegate for transmission shall, from the time such
funds are received by such authorized delegate until such time when the funds
or an equivalent amount are remitted by the authorized delegate to the
licensee, constitute trust funds owned by and belonging to the licensee. If an
authorized delegate commingles any such funds with any other funds or property
owned or controlled by the authorized delegate, all commingled proceeds and
other property is impressed with a trust in favor of the licensee in an amount
equal to the amount of the proceeds due the licensee.
Sec. 46. Section 8-2741, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2741 (1) The department shall remit all fees, charges, and costs
collected by the department pursuant to the Nebraska Money Transmitters Act to
the State Treasurer for credit to the Financial Institution Assessment Cash
Fund.
(2) The department shall remit fines collected under the act to the State
Treasurer for distribution in accordance with Article VII, section 5, of the
Constitution of Nebraska.
(1) The director may, following a hearing in accordance with the
Administrative Procedure Act, suspend or revoke any license issued pursuant to
the Nebraska Money Transmitters Act if he or she finds:
(a) Any fact or condition exists that, if it had existed at the time when
the licensee applied for its original or renewal license, would have been
grounds for denying such application;
(b) The licensee's net worth has become inadequate and the licensee, after
ten days' written notice from the director, failed to take such steps as the
director deems necessary to remedy such deficiency;
(c) The licensee knowingly violated any material provision of the act or
any rule or order validly adopted and promulgated under the act;
(d) The licensee conducted money transmission in an unsafe or unsound
manner;
(e) The licensee is insolvent;
(f) The licensee has suspended payment of its obligations, made an
assignment for the benefit of its creditors, or admitted in writing its
inability to pay its debts as they became due;
(g) The licensee filed for liquidation or reorganization under any
bankruptcy law;
(h) The licensee refused to permit the director to make any examination
authorized by the act; or
(i) The licensee willfully failed to make any report required by the act.
(2) In determining whether a licensee is engaging in an unsafe or unsound
practice, the director may consider the size and condition of the licensee's
money transmission, the magnitude of the loss, if any, the gravity of the
violation of the act, and the previous conduct of the licensee.
(3) A licensee may voluntarily surrender a license by delivering to the
director written notice of the surrender, but a surrender shall not affect
civil or criminal liability for acts committed before the surrender or
liability for any fines which may be levied against the licensee or any of its
officers, directors, key shareholders, partners, or members for acts committed
before the surrender.
(4)(a) If a licensee fails to renew its license as required by section
8-2734 and does not voluntarily surrender the license pursuant to this section,
the department may issue a notice of expiration of the license to the licensee
in lieu of revocation proceedings.
(b) If a licensee fails to maintain a surety bond as required by section
8-2727, the department may issue a notice of cancellation of the license in
lieu of revocation proceedings.
(5) Revocation, suspension, surrender, cancellation, or expiration of a
license shall not impair or affect the obligation of a preexisting lawful
contract between the licensee and any person.
(6) Revocation, suspension, cancellation, or expiration of a license shall
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not affect civil or criminal liability for acts committed before the
revocation, suspension, cancellation, or expiration or liability for any fines
which may be levied against the licensee or any of its officers, directors, key
shareholders, partners, or members for acts committed before the revocation,
suspension, cancellation, or expiration.
Sec. 47. Section 8-2742, Reissue Revised Statutes of Nebraska, is amended
to read:
8-2742 For purposes of the Nebraska Money Transmitters Act:
(1) 31 C.F.R. 1010.100 means 31 C.F.R. 1010.100, as such regulation
existed on January 1, 2025;
(2) Bank Secrecy Act means the Bank Secrecy Act, 31 U.S.C. 5311 et seq.,
and the implementing regulations of such act, as such act and regulations
existed on January 1, 2025;
(3) Bank Service Company Act means the Bank Service Company Act, 12 U.S.C.
1861 et seq., as such act existed on January 1, 2025;
(4) Commodity Exchange Act means the Commodity Exchange Act, 7 U.S.C. 1 et
seq., as such act existed on January 1, 2025;
(5) Edge Act means the Edge Act, 12 U.S.C. 611 et seq., as such act
existed on January 1, 2025;
(6) Federal Credit Union Act means the Federal Credit Union Act, 12 U.S.C.
1751 et seq., as such act existed on January 1, 2025;
(7) Federal Deposit Insurance Act means the Federal Deposit Insurance Act,
12 U.S.C. 1811 et seq., as such act existed on January 1, 2025;
(8) Federal remittance rule means 12 C.F.R. part 1005, subpart B, as such
regulation existed on January 1, 2025;
(9) Foreign Account Tax Compliance Act means the Foreign Account Tax
Compliance Act, 26 U.S.C. 1471 et seq., as such act existed on January 1, 2025;
(10) International Banking Act of 1978 means the International Banking Act
of 1978, 12 U.S.C. 3101 et seq., as such act existed on January 1, 2025;
(11) Securities Exchange Act of 1934 means the Securities Exchange Act of
1934, 15 U.S.C. 78a et seq., as such act existed on January 1, 2025;
(12) United States Bankruptcy Code means 11 U.S.C. 101 et seq., as such
sections existed on January 1, 2025; and
(13) Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Public Law 107-56, as such act existed on
January 1, 2025.
(1) The director may, following a hearing in accordance with the
Administrative Procedure Act, issue an order suspending or revoking the
designation of an authorized delegate if the director finds that:
(a) The authorized delegate violated the Nebraska Money Transmitters Act
or a rule or regulation adopted and promulgated or an order issued under the
act;
(b) The authorized delegate did not cooperate with an examination or
investigation by the director;
(c) The authorized delegate engaged in fraud, intentional
misrepresentation, or gross negligence;
(d) The authorized delegate is convicted of a violation of a state or
federal anti-money laundering statute;
(e) The competence, experience, character, or general fitness of the
authorized delegate or a controlling person of the authorized delegate
indicates that it is not in the public interest to permit the authorized
delegate to engage in money transmission services; or
(f) The authorized delegate is engaged in an unsafe or unsound practice.
(2) In determining whether an authorized delegate is engaging in an unsafe
or unsound practice, the director may consider the size and condition of the
authorized delegate's money transmission, the magnitude of the loss, if any,
the gravity of the violation of the act, and the previous conduct of the
authorized delegate.
(3) Any authorized delegate to whom a final order is issued under this
section may apply to the director to modify or rescind the order. The director
shall not grant the application unless the director finds that (a) it is in the
public interest to do so and (b) it is reasonable to believe that the person
will comply with the act and any rule, regulation, or order issued under the
act if and when that person is permitted to resume being an authorized delegate
of a licensee.
Sec. 48. Section 8-3025, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
8-3025 The director may suspend or revoke the charter of a digital asset
depository if, after notice and opportunity for a hearing, the director
determines that:
(1) The digital asset depository has failed or refused to comply with an
order issued under section 8-1,136, 8-2504, or 8-2740 8-2743;
(2) The application for a charter contained a materially false statement,
misrepresentation, or omission; or
(3) An officer, a director, or an agent of the digital asset depository,
in connection with an application for a charter, an examination, a report, or
other document filed with the director, knowingly made a materially false
statement, misrepresentation, or omission to the department, the director, or
the duly authorized agent of the department or director.
Sec. 49. Section 8-3027, Reissue Revised Statutes of Nebraska, is amended
to read:
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8-3027 (1) If the director finds that a digital asset depository has
failed, is operating in an unsafe or unsound condition, or is endangering the
interests of customers, and the failure, unsafe or unsound condition, or
endangerment has not been remedied within the time prescribed under section
8-1,117 or as directed by order of the director issued pursuant to section
8-1,136, 8-2504, or 8-2740 8-2743, the director shall conduct a liquidation or
appoint a receiver as provided by sections 8-198, 8-1,100, and 8-1,102.
(2) For purposes of this section:
(a) Failed or failure means, consistent with an order or rules and
regulations of the director, a circumstance when a digital asset depository has
not:
(i) Complied with the requirements of section 8-3009;
(ii) Maintained capital and surplus as required by section 8-3013; or
(iii) Paid, in the manner commonly accepted by business practices, its
legal obligations to customers on demand or to discharge any promissory notes,
or other indebtedness when due; and
(b) Unsafe or unsound condition means, consistent with an order or rules
and regulations of the director, a circumstance relating to a digital asset
depository which is likely to:
(i) Cause the failure of the digital asset depository;
(ii) Cause a substantial dissipation of assets or earnings;
(iii) Substantially disrupt the services provided by the digital asset
depository to customers; or
(iv) Otherwise substantially prejudice the interests of customers of the
digital asset depository.
Sec. 50. Section 44-502, Reissue Revised Statutes of Nebraska, is amended
to read:
44-502 No policy of life or endowment insurance, except policies of
industrial insurance, shall be issued or delivered in this state unless it
contains in substance the following provisions:
(1) A provision that all premiums shall be payable in advance either at
the home office of the company or to any agent of the company upon delivery of
a receipt signed by one or more of the officers who shall be named in the
policy.
(2) A provision that the insured is entitled to a grace of one month
within which the payment of any premium, after the first year, may be made,
subject, at the option of the company, to an interest charge not in excess of
six percent per annum for the number of days of grace elapsing before the
payment of the premium, during which period of grace the policy shall continue
in force; but in case the policy becomes a claim during the said period of
grace before the overdue premium or the deferred premiums of the current policy
year, if any, are paid, the amount of such premiums, with interest on any
overdue premium, may be deducted from any amount payable under the policy in
settlement.
(3) A provision that the policy shall constitute the entire contract
between the parties; but if the company desires to make the application a part
of the contract, it may do so; Provided, a copy of such application shall be
endorsed upon or attached to the policy when issued, and in such case, the
policy shall contain a provision that the policy and the application therefor
shall constitute the entire contract between the parties.
(4) A provision that all statements made by the insured shall, in the
absence of fraud, be deemed representations and not warranties, and that no
such statement shall avoid the policy unless it is contained in a written
application, and a copy of such application shall be endorsed upon or attached
to the policy when issued.
(5) A provision that the policy shall be incontestable after it shall have
been in force during the lifetime of the insured for two years from its date,
except for nonpayment of premiums and except with respect to limitations of
liability which may be contained in the policy relating to (a) death resulting
from war or acts of war, declared or undeclared, where such limitations shall
have been found by the Director of Insurance to be in keeping with the
interests of the policyholders of the company and to be not unfairly
discriminatory, and (b) aeronautics other than as a fare-paying passenger of a
commercial airline, and flying on a regularly scheduled route between
definitely established airports; and in any such cases the liability of the
company may be limited by the terms of the policy to a sum not less than the
reserve on the face of the policy and the reserve on any paid-up additions
thereto and any dividends standing to the credit of the policy, less any
indebtedness to the company on the policy; and, at the option of the company,
provisions relative to benefits in the event of total and permanent disability,
and provisions which grant additional insurance specifically against death by
accident may be excepted from the incontestable clause; Provided, limitations
with reference to aeronautics shall not be included in any policy where an
extra premium is charged to cover the aeronautic risk, nor shall any such
limitations extending beyond the contestable period be included in or attached
to any policy where the applicant for insurance has not elected in writing to
accept a policy with such limitations, and by such election has agreed to a
reduced coverage for the aviation risk.
(6) A provision that if the age of the insured has been misstated, the
amount payable under the policy shall be such as the premium paid would have
purchased at the correct age.
(7) A provision that the policy shall participate in the surplus of the
company, and that, beginning not later than the end of the third policy year,
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the company shall annually ascertain and apportion the amount of divisible
surplus to which all such policies, as a separate class, are entitled, which
amount shall be carried as a distinct and separate liability in favor of such
policies. The insured, under any annual dividend policy, shall have the right
each year to have the dividend arising from such participation paid in cash,
and if the policy shall provide other dividend options, it shall further
provide that, if the insured shall not elect any such other options, one of
such dividend options provided shall become effective as provided in the
policy; but such participation and its distribution may, by contract, be
deferred to a fixed or specified time, not exceeding twenty years. Upon written
request of the insured the company shall furnish him or her with a statement of
the amount of the surplus provisionally ascertained or set aside on such policy
and held awaiting distribution at the expiration of the deferred dividend
period.
(8) A provision that after three full years' premiums have been paid, the
company at any time, while the policy is in force, will advance, on proper
assignment or pledge of the policy, and on the sole security thereof, at a
specified rate of interest determined pursuant to section 44-502.03 a sum equal
to, or, at the option of the owner of the policy, less than the amount required
by section 44-405, under the conditions specified thereby, and that the company
will deduct from such loan value any existing indebtedness on the policy, which
has not otherwise entered into the computation of such loan value, together
with any unpaid balance of the premium for the current policy year, and may
collect interest in advance on the loan to the end of the current policy year.
Interest if payable annually in advance shall not exceed an effective rate
equivalent to the specified rate of interest determined pursuant to section
44-502.03. It shall be further stipulated in the policy that failure to repay
any such advance, or to pay interest, shall not avoid the policy unless the
total indebtedness thereon to the company shall equal or exceed such loan value
at the time of such failure, nor until one month after notice shall have been
mailed by the company to the last-known address of the insured and of the
assignee, if any. No condition other than as provided herein, or in section
44-405, shall be exacted as prerequisite to any such advance.
(9) A provision for nonforfeiture benefits and cash surrender values in
accordance with the requirements of sections 44-406 to 44-407.09.
(10) A table showing in figures the loan values, if any, and the options
available under the policies each year upon default in premium payments, during
at least the first twenty years of the policy.
(11) A provision that if, in the event of default in premium payments, the
value of the policy shall be applied to the purchase of other insurance, and if
such insurance shall be in force and the original policy shall not have been
surrendered to the company and canceled, the policy may be reinstated within
three years from such default, upon evidence of insurability satisfactory to
the company and payment of arrears of premiums with interest and the payment or
reinstatement of any other indebtedness to the company upon such policy.
(12) A provision that when a policy shall