8-234 Branch trust offices authorized; procedure. - Nebraska Statutes

8-234. Branch trust officesauthorized; procedure.(1) With the approval of the Directorof Banking and Finance, a corporation organized to do business as a trustcompany under the Nebraska Trust Company Act may establish and maintain branchtrust offices within this state and in any other state pursuant to section 8-2303.(2) A corporation organized to do business as a trust company underthe Nebraska Trust Company Act, in order to establish a branch trust officein Nebraska pursuant to subsection (1) of this section, shall apply to theDirector of Banking and Finance on a form prescribed by the director. Uponreceipt of a substantially complete application, the director shall hold apublic hearing on the matter if he or she determines, in his or her discretion,that the condition of the corporation organized to do business as a trustcompany warrants a hearing. If the director determines that the conditionof the corporation organized to do business as a trust company does not warranta hearing, the director shall (a) publish a notice of the filing of the applicationin a newspaper of general circulation in the county where the proposed branchtrust office would be located and (b) give notice of such application fora branch trust office to all financial institutions within the county wherethe proposed branch trust office would be located and to such other interestedparties as the director may determine. The director shall send the noticeto financial institutions by first-class mail, postage prepaid, or electronicmail. Electronic mail may be used if the financial institution agrees in advanceto receive such notices by electronic mail. Afinancial institution may designate one office for receipt of any such noticeif it has more than one office located within the county where such noticeis to be sent or a main office in a county other than the county where suchnotice is to be sent. If the director receives a substantive objectionto the proposed branch trust office within fifteen days after publicationof such notice, he or she shall hold a hearing on the application. Noticeof a hearing held pursuant to this subsection shall be published for two consecutiveweeks in a newspaper of general circulation in the county where the proposedbranch trust office would be located. The expense of any publication and mailingrequired by this section shall be paid by the applicant. The date for hearingthe application shall not be more than ninety days after the filing of theapplication and not less than thirty-one days after the last publication ofnotice of hearing. The costs of the hearing shall be assessed in accordancewith the rules and regulations of the Department of Banking and Finance.(3) The director shall approve the application for a branch trust officeif he or she finds that (a) the establishment of the branch trust office wouldnot adversely affect the financial condition of the corporation organizedto do business as a trust company, (b) there is a need in the community forthe branch trust office, and (c) establishment of the branch trust officewould be in the public interest.(4) With the approval of the director, a state-chartered bank authorizedto conduct a trust business pursuant to sections 8-159 to 8-162 may establishand maintain branch trust offices within this state and in any other statepursuant to section 8-2303. The procedure for the establishment of any branchtrust office under this subsection shall be the same as provided in subsections(2) and (3) of this section. The activities at the branch trust office shallbe limited to the activities permitted by the Nebraska Trust Company Act,and the general business of banking shall not be conducted at the branch trustoffice. Nothing in this subsection is intended to prohibit the establishmentof a branch pursuant to section 8-157 at which trust business may be conducted.(5) A branch trust office of a corporation organized to do businessas a trust company or of a state-chartered bank shall not be closed withoutthe prior written approval of the director. SourceLaws 1998, LB 1321, § 52; Laws 2002, LB 1089, § 5; Laws 2003, LB 217, § 10; Laws 2005, LB 533, § 14; Laws 2008, LB851, § 10; Laws 2010, LB890, § 7.Operative Date: July 15, 2010