8-702 Banking institutions; maintain insurance or provide notice; notice requirements; violation; penalty; proof of compliance filed with Department of Banking and Finance; employment of mortgage loan - Nebraska Statutes

8-702. Banking institutions; maintain insuranceor provide notice; notice requirements; violation; penalty; proof of compliancefiled with Department of Banking and Finance; employment of mortgage loanoriginators; requirements; automatic forfeiture of charter.(1)Except as provided in subsection (2) of this section, any banking institutionorganized under the laws of this state shall, before a charter may be issued,enter into such contracts, incur such obligations, and generally do and performany and all such acts and things whatsoever as may be necessary or appropriatein order to obtain membership in the Federal Deposit Insurance Corporationand provide for insurance of deposits in the banking institution. Any bankinginstitution may take advantage of any and all memberships, loans, subscriptions,contracts, grants, rights, or privileges which may at any time be availableor inure to banking institutions or to their depositors, creditors, stockholders,conservators, receivers, or liquidators by virtue of those provisions of section8 of the Federal Banking Act of 1933 (section 12B of the Federal Reserve Act,as amended) which establish the Federal Deposit Insurance Corporation andprovide for the insurance of deposits or of any other provisions of that orof any other act or resolution of Congress to aid, regulate, or safeguardbanking institutions and their depositors, including any amendments of thesame or any substitutions therefor. Any banking institution may also subscribefor and acquire any stock, debentures, bonds, or other types of securitiesof the Federal Deposit Insurance Corporation and comply with the lawful regulationsand requirements from time to time issued or made by such corporation.(2)(a) A banking institution which has not complied with subsection(1) of this section and which was in operation on September 4, 2005, may continueto operate if it provides notice to depositors and holders of savings certificates,certificates of indebtedness, or other similar instruments that such depositsor instruments are not insured. Such notice shall be given (i) on the dateany such deposit, savings certificate, certificate of indebtedness, or similarinstrument is created for deposits made and instruments created on or afterOctober 1, 1984, and (ii) annually on October 1 thereafter as follows: ASPROVIDED BY THE LAWS OF THE STATE OF NEBRASKA YOU ARE HEREBY NOTIFIED THATYOUR DEPOSIT, SAVINGS CERTIFICATE, CERTIFICATE OF INDEBTEDNESS, OR OTHER SIMILARINSTRUMENT IS NOT INSURED. Any advertising conducted by such banking institutionshall in each case state: THE DEPOSITS, SAVINGS CERTIFICATES, CERTIFICATESOF INDEBTEDNESS, OR SIMILAR INSTRUMENTS OF THIS INSTITUTION ARE NOT INSURED.The banking institution shall also display such notice in one or more prominentplaces in all facilities in which the institution operates. All such noticesand statements shall be given in large or contrasting type in such a mannerthat such notices shall be conspicuous. Each willful failure to give the noticeprescribed in subdivision (2)(a) of this section shallconstitute a Class II misdemeanor. All officers and directors of any suchbanking institution shall be jointly and severally responsible for the issuanceof the notices described in subdivision(2)(a) of this section in the form and manner described. The bankinginstitution shall annually by November 1 file proof of compliance with subdivision (2)(a) of this section withthe Department of Banking and Finance.(b) Effective July 31, 2010, orwithin sixty days after the Nationwide Mortgage Licensing System and Registryis capable of accepting such registrations, whichever occurs later, anybanking institution described in subdivision (a) of this subsection that employsmortgage loan originators, as defined in section 45-702, shall register suchemployees with the Nationwide Mortgage Licensing System and Registry, as definedin section 45-702, by furnishing the following information concerning theemployees' identities to the NationwideMortgage Licensing System and Registry:(i) Fingerprints for submission to the Federal Bureau of Investigation,and any governmental agency or entity authorized to receive such information,for a state and national criminal history background check; and(ii) Personal history and experience, including authorization for theNationwide Mortgage Licensing System and Registry to obtain information relatedto any administrative, civil, or criminal findings by any governmental jurisdiction.(3) The charter of any banking institution which fails to comply withthe provisions of this section shall be automatically forfeited and such bankinginstitution shall be liquidated and dissolved, either voluntarily by its boardof directors under the supervision of the department or involuntarily by thedepartment as in cases of insolvency, except that such charter shall not beautomatically forfeited for failure to comply with subdivision (2)(b) of thissection if the banking institution cures such violation within sixty daysafter receipt of notice of such violation from the Department of Banking andFinance. Any banking institution whose charter is automatically forfeitedunder the provisions of this subsection which continues to engage in the businessfor which it had been chartered after such forfeiture, as well as the directorsand officers thereof, shall be subject to the penalties provided by law forillegally engaging in the business of banking. SourceLaws 1935, c. 8, § 2, p. 73; C.S.Supp.,1941, § 8-402; R.S.1943, § 8-702; Laws 1963, c. 31, § 2, p. 190; Laws 1983, LB 252, § 5; Laws 1984, LB 899, § 3; Laws 2005, LB 533, § 22; Laws 2009, LB328, § 2; Laws 2010, LB892, § 1.Effective Date: March 4, 2010