45-1004 Installment loans; authority of licensee; affiliate of licensee; how treated. - Nebraska Statutes

45-1004. Installment loans; authority of licensee; affiliate of licensee; how treated.(1) Any person may, after procuring a license from the department, engage or continue in the business of making loans of money and charge, contract for, and receive the maximum for interest and other charges in accordance with the authorization and requirements of the Nebraska Installment Loan Act.(2)(a) A license is not required for an affiliate of a licensee if the activities of the affiliate in this state are limited solely to the securitization of loans made by the licensee and the servicing rights to the loans are retained by the licensee or assigned or otherwise transferred to a financial institution, licensee, or permittee.(b) For purposes of this subsection:(i) Affiliate means an entity that controls, is controlled by, or is under common control with another entity;(ii) Control means to own directly or indirectly or to control in any manner twenty-five percent of the voting shares of an entity or to control in any manner the election of the majority of directors of any entity; and(iii) Securitization means the placing of individual installment loans made by licensees into a commingled or pooled security that is subsequently sold or otherwise transferred to another entity.(c) Nothing in this subsection shall be construed to exempt a licensee or affiliate from the Securities Act of Nebraska. SourceLaws 1941, c. 90, § 4, p. 346; C.S.Supp.,1941, § 45-132; Laws 1943, c. 108, § 3, p. 376; R.S.1943, § 45-116; Laws 1997, LB 555, § 4; Laws 2000, LB 932, § 29; R.S.Supp.,2000, § 45-116; Laws 2001, LB 53, § 32. Cross ReferencesSecurities Act of Nebraska, see section 8-1123. AnnotationsLicensee may charge rates authorized by Installment Loan Act. Pattavina v. Pignotti, 177 Neb. 217, 128 N.W.2d 817 (1964).