8-157 Branch banking; Director of Banking and Finance; powers. - Nebraska Statutes

8-157. Branch banking;Director of Banking and Finance; powers.(1) Except as otherwiseprovided in this section and section 8-2104, the general business of everybank shall be transacted at the place of business specified in its charter.(2)(a)(i) Except as provided in subdivision (2)(a)(ii) of this section,with the approval of the director, any bank located in this state may establishand maintain in this state an unlimited number of branches at which all bankingtransactions allowed by law may be made.(ii) Any bank that owns or controls more than twenty-two percent ofthe total deposits in Nebraska, as described in subdivision (2)(c) of section 8-910 and computed in accordance with subsection (3) of section 8-910, orany bank that is a subsidiary of a bank holding company that owns or controlsmore than twenty-two percent of the total deposits in Nebraska, as describedin subdivision (2)(c) of section 8-910 and computed in accordance with subsection(3) of section 8-910, shall not establish and maintain an unlimited numberof branches as provided in subdivision (2)(a)(i) of this section. With theapproval of the director, a bank as described in this subdivision may establishand maintain in the county in which such bank is located an unlimited numberof branches at which all banking transactions allowed by law may be made,except that if such bank is located in a Class I or Class III county, suchbank may establish and maintain in Class I and Class III counties an unlimitednumber of branches at which all banking transactions allowed by law may bemade.(iii) Any bank which establishes and maintains branches pursuant tosubdivision (2)(a)(i) of this section and which subsequently becomes a bankas described in subdivision (2)(a)(ii) of this section shall not be subjectto the limitations as to location of branches contained in subdivision (2)(a)(ii)of this section with regard to any such established branch and shall continueto be entitled to maintain any such established branch as if such bank hadnot become a bank as described in subdivision (2)(a)(ii) of this section.(b) With the approval of the director, any bank or any branch may establishand maintain a mobile branch at which all banking transactions allowed bylaw may be made. Such mobile branch may consist of one or more vehicles whichmay transact business only within the county in which such bank or such branchis located and within counties in this state which adjoin such county.(c) For purposes of this subsection:(i) Class I county means a county in this state with a population ofthree hundred thousand or more as determined by the most recent federal decennialcensus;(ii) Class II county means a county in this state with a populationof at least two hundred thousand and less than three hundred thousand as determinedby the most recent federal decennial census;(iii) Class III county means a county in this state with a populationof at least one hundred thousand and less than two hundred thousand as determinedby the most recent federal decennial census; and(iv) Class IV county means a county in this state with a populationof less than one hundred thousand as determined by the most recent federaldecennial census.(3) With the approval of the director, a bank may establish and maintainbranches acquired pursuant to section 8-1506 or 8-1516. All banking transactionsallowed by law may be made at such branches.(4) With the approval of the director, a bank may acquire the assetsand assume the deposits of a branch of another financial institution in Nebraskaif the acquired branch is converted to a branch of the acquiring bank. Allbanking transactions allowed by law may be made at a branch acquired pursuantto this subsection.(5) With the approval of the director, a bank may establish a branchpursuant to subdivision (6) of section 8-115.01. All banking transactionsallowed by law may be made at such branch.(6) The name given to any branch established and maintained pursuantto this section shall not be substantially similar to the name of any existingbank or branch which is unaffiliated with the newly created branch and islocated in the same city, village, or county. The name of such newly createdbranch shall be approved by the director.(7) A bank which has a main chartered office or an approved branch locatedin the State of Nebraska may, through any of its executive officers, includingexecutive officers licensed as such pursuant to section 8-139, or designatedagents, conduct a loan closing at a location other than the place of businessspecified in the bank's charter or any branch thereof.(8) A bank which has a main chartered office or approved branch locatedin the State of Nebraska may, upon notification to the department, establishsavings account programs at any elementary or secondary school, whether publicor private, that has students who reside in the same city or village as themain chartered office or branch of the bank, or, if the main office of thebank is located in an unincorporated area of a county, at any school thathas students who reside in the same unincorporated area. The savings accountprograms shall be limited to the establishment of individual student accountsand the receipt of deposits for such accounts.(9) Upon receiving an application for a branch to be established pursuantto subdivision (2)(a) of this section, to establish a mobile branch pursuantto subdivision (2)(b) of this section, to acquire a branch of another financialinstitution pursuant to subsection (4) of this section, or to move the locationof an established branch other than a move made pursuant to subdivision (6)of section 8-115.01, the director shall hold a public hearing on the matterif he or she determines, in his or her discretion, that the condition of theapplicant bank warrants a hearing. If the director determines that the conditionof the bank does not warrant a hearing, the director shall (a) publish a noticeof the filing of the application in a newspaper of general circulation inthe county where the proposed branch or mobile branch would be located, theexpense of which shall be paid by the applicant bank, and (b) give noticeof such application to all financial institutions located within the countywhere the proposed branch or mobile branch would be located and to such otherinterested parties as the director may determine. The director shall sendthe notice to financial institutions by first-class mail, postage prepaid,or electronic mail. Electronic mail may be used if the financial institutionagrees in advance to receive such notices by electronic mail. A financial institution may designate one office for receiptof any such notice if it has more than one office located within the countywhere such notice is to be sent or a main office in a county other than thecounty where such notice is to be sent. If the director receivesany substantive objection to the proposed branch or mobile branch within fifteendays after publication of such notice, he or she shall hold a hearing on theapplication. Notice of a hearing held pursuant to this subsection shall bepublished for two consecutive weeks in a newspaper of general circulationin the county where the proposed branch or mobile branch would be located.The date for hearing the application shall not be more than ninety days afterthe filing of the application and not less than thirty days after the lastpublication of notice of hearing. The expense of any publication and mailingrequired by this section shall be paid by the applicant. SourceLaws 1927, c. 33, § 1, p. 153; C.S.1929, § 8-1,118; R.S.1943, § 8-1,105; Laws 1959, c. 17, § 1, p. 141; R.R.S.1943, § 8-1,105; Laws 1963, c. 29, § 57, p. 158; Laws 1973, LB 312, § 1; Laws 1975, LB 269, § 2; Laws 1977, LB 77, § 1; Laws 1983, LB 58, § 1; Laws 1983, LB 252, § 4; Laws 1984, LB 1026, § 1; Laws 1985, LB 295, § 1; Laws 1985, LB 625, § 1; Laws 1986, LB 983, § 3; Laws 1987, LB 615, § 2; Laws 1988, LB 703, § 1; Laws 1989, LB 272, § 1; Laws 1990, LB 956, § 4; Laws 1991, LB 190, § 1; Laws 1991, LB 782, § 1; Laws 1992, LB 470, § 1; Laws 1992, LB 757, § 3; Laws 1993, LB 81, § 7; Laws 1995, LB 456, § 1; Laws 1995, LB 599, § 2; Laws 1996, LB 1275, § 3; Laws 1997, LB 56, § 1; Laws 1997, LB 136, § 1; Laws 1997, LB 137, § 6; Laws 1997, LB 351, § 9; Laws 2002, LB 957, § 4; Laws 2002, LB 1089, § 2; Laws 2002, LB 1094, § 5; Laws 2003, LB 217, § 7; Laws 2005, LB 533, § 9; Laws 2008, LB851, § 6; Laws 2010, LB890, § 4.Operative Date: July 15, 2010AnnotationsSubsection (3) of this section does not indicate that the approval of the director of the Department of Banking and Finance absolves a bank from any obligations it may owe to the minority shareholders, that the director is required to disapprove a merger that is unfair to the minority shareholders, or that the director is empowered to require a bank to pay the fair value of a dissenter's shares. Stoneman v. United Neb. Bank, 254 Neb. 477, 577 N.W.2d 271 (1998).Detached facility approximately one block from bank, providing drive-in and walk-in teller stations offering most banking services, is a branch bank. Nebraskans for Independent Banking, Inc. v. Omaha Nat. Bank, 530 F.2d 755 (8th Cir. 1976). (Opinion vacated and cause remanded to district court for further proceedings in light of Supreme Court per curiam opinion, 426 U.S. 310, dated June 7, 1976.)Federal district court would not abstain from deciding whether state banking statute was properly adopted by Nebraska Legislature where analysis of the applicable Nebraska case law left no doubt that such statute was invalid. Nebraskans for Independent Banking, Inc. v. Omaha Nat. Bank, 423 F.Supp. 519 (D. Neb. 1976).Branch banking is illegal in Nebraska. Farris v. Indian Hills Nat. Bank, 244 F.Supp. 594 (D. Neb. 1964).