Ask Reggi Your Question Now
Can you summarize NERS 8-113?
BANKS AND BANKING > Unauthorized use of word bank or its derivatives; penalty.
Short Summary
This legal document governs the unauthorized use of the word bank or any derivative thereof in the State of Nebraska. It applies to individuals, firms, companies, corporations, or associations doing business in Nebraska, unless they are organized as a bank under the Nebraska Banking Act or the authority of the director or federal government, a digital asset depository that is not a digital asset depository institution, or as a building and loan association, savings and loan association, or savings bank under Chapter 8, article 3, or the authority of the federal government. There are several exemptions to this rule, including certain banks, bank holding companies, affiliates or subsidiaries of banks or bank holding companies, mortgage bankers licensed under the Residential Mortgage Licensing Act, digital asset depository institutions chartered under the Nebraska Financial Innovation Act, organizations exempt from taxation under section 501(c)(3) of the Internal Revenue Code, trade associations representing the banking or savings and loan industries, firms sponsoring solid waste recycling programs, and firms in existence prior to December 1, 1975, with names containing the word bank or its derivative. Violation of this section is considered a Class V misdemeanor.
Whom does it apply to?
Individuals, firms, companies, corporations, or associations doing business in the State of Nebraska, unless organized as a bank under the Nebraska Banking Act or the authority of the director or federal government, a digital asset depository that is not a digital asset depository institution, or as a building and loan association, savings and loan association, or savings bank under Chapter 8, article 3, or the authority of the federal government.
What does it govern?
Unauthorized use of the word bank or its derivatives
What are exemptions?
Banks, building and loan associations, savings and loan associations, or savings banks chartered and supervised by a foreign state agency; Bank holding companies registered pursuant to section 8-913 if the term holding company is also used as any part of the title or description of any business activity or if the derivative banc is used; Affiliates or subsidiaries of banks, building and loan associations, savings and loan associations, savings banks, or bank holding companies; Organizations substantially owned by banks, building and loan associations, savings and loan associations, savings banks, or bank holding companies; Mortgage bankers licensed or registered under the Residential Mortgage Licensing Act if the word mortgage immediately precedes the word bank or its derivative; Digital asset depository institutions chartered under the Nebraska Financial Innovation Act if the term digital asset is also used as any part of the title or description of any business activity or if any derivative of the word bank is used in such title or description; Organizations described in section 501(c)(3) of the Internal Revenue Code that are exempt from taxation and not providing or arranging for financial services subject to the authority of the department, a foreign state agency, or the federal government; Trade associations exempt from taxation under section 501(c)(6) of the code representing a segment of the banking or savings and loan industries, and any affiliate or subsidiary thereof; Firms, companies, corporations, or associations sponsoring incentive-based solid waste recycling programs that issue reward points or credits; Firms, companies, corporations, or associations that have been in existence and doing business prior to December 1, 1975, under a name composed in part of the word bank or some derivative thereof.
What are the Penalties?
Class V misdemeanor
Jurisdiction
Nebraska