§ 45-350 — Installment loans; rate of interest; additional charges authorized; loan period; violation; effect

(1) Installment loan licensees may charge, contract for, or receive any amount or rate of interest permitted by section 45-101.03 , 45-101.04 , or 45-349 upon any loan or upon any part or all of any aggregate indebtedness of the same person. Except as provided in subsection (2) of this section, the charging, contracting for, or receiving of a rate of interest permitted by section 45-101.04 does not exempt the licensee from compliance with the Nebraska Installment Loan and Sales Act.
(2)(a) Loans made by an installment loan licensee pursuant to subdivision (4) of section 45-101.04 are not subject to the Nebraska Installment Loan and Sales Act if such loans are not made on real property.
(b) Loans made by an installment loan licensee pursuant to subdivision (11) of section 45-101.04 on real property are not subject to the Nebraska Installment Loan and Sales Act. An installment loan licensee making such loans shall comply with and be subject to the Residential Mortgage Licensing Act with respect to such loans, except that the installment loan licensee shall not be required to obtain a mortgage banker license under the Residential Mortgage Licensing Act.
(c) Any mortgage loan originator who works as an employee or independent agent of an installment loan licensee shall be required to obtain a mortgage loan originator license and shall be subject to the Residential Mortgage Licensing Act.
(3) Except as provided in subdivision (2)(a) of section 45-349 , no installment loan licensee shall enter into any loan contract under the Nebraska Installment Loan and Sales Act under which the borrower agrees to make any payment of principal more than thirty-six calendar months from the date of making such contract when the principal balance is not more than three thousand dollars. Every loan contract precomputed pursuant to subsection (2) of section 45-349 shall provide for repayment of principal and charges in installments which shall be payable at approximately equal periodic intervals of time and so arranged that no installment is substantially greater in amount than any preceding installment. When necessary in order to facilitate payment in accordance with the borrower's principal source of income or when the loan contract is not precomputed pursuant to subsection (2) of section 45-349 , the payment schedule may reduce or omit installment payments. Any loan contract made in violation of this section, either knowingly or without the exercise of due care to prevent the violation, shall not on that account be void, but the licensee has no right to collect or receive any interest or charges on such loan. If any interest or other charges have been collected or contracted for, the installment loan licensee shall refund to the borrower all interest and other charges collected and shall not collect thereafter any interest or other charges contracted for and thereafter due on the loan involved, as liquidated damages, and the installment loan licensee or its assignee, if found liable, shall pay the costs of any action relating thereto, including reasonable attorney's fees. No installment loan licensee shall be found liable under this subsection if it shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid any such error.

Legislative History

Source: Laws 1965, c. 268, § 17, p. 766; Laws 1967, c. 276, § 3, p. 744; Laws 1988, LB 352, § 74; Laws 1993, LB 121, § 272; Laws 2005, LB 533, § 49; Laws 2025, LB474, § 71. Operative Date: October 1, 2025 Cross References: Residential Mortgage Licensing Act, see section 45-701.