§ 45-703.01 — Nonprofit organization; certificate of exemption; qualification; application; denial; notice; appeal; department; powers; revocation of certificate; grounds

Nebraska § 45-703.01

• Jurisdiction: Nebraska
• Ch. 45: Interest, Loans, and Debt

Text

(1) A nonprofit organization may apply to the director for
a certificate of exemption on a form as prescribed by the department. The
director shall grant such certificate if the director finds that the nonprofit
organization is a bona fide nonprofit organization. In order for a nonprofit
organization to qualify as a bona fide nonprofit organization, the director
shall find that it meets the following:
(a) Has the status
of a tax exempt organization under section 501(c) of the Internal Revenue
Code of 1986;
(b)
Promotes affordable housing or provides homeownership education or similar
services;
(c)
Conducts its activities in a manner that serves public or charitable purposes
rather than commercial purposes;
(d) Receives funding and revenue and charges fees
in a manner that does not incentivize it or its employees to act other than
in the best interests of its clients;
(e) Compensates its employees in a manner that does
not incentivize employees to act other than in the best interests of its clients;
and
(f)
Provides or identifies for the borrower residential mortgage loans with terms
favorable to the borrower and comparable to mortgage loans and housing assistance
provided under government assistance programs.
(2) For residential mortgage
loans to have terms that are favorable to the borrower, the director shall
determine that terms are consistent with loan origination in a public or charitable
context rather than in a commercial context.
(3) If the director determines
that the application for a certificate of exemption should be denied, the
director shall notify the applicant in writing of the denial and of the reasons
for the denial. A decision of the director denying an application for a certificate
of exemption pursuant to the Residential Mortgage Licensing Act may be appealed.
The appeal shall be in accordance with the Administrative Procedure Act and
rules and regulations adopted and promulgated by the department.
(4) The department
has the authority to examine the books and activities of an organization it
determines is a bona fide nonprofit organization. The director may, following
a hearing under the Administrative Procedure Act, revoke the certificate of
exemption granted to a bona fide nonprofit organization if he or she determines
that such nonprofit organization fails to meet the requirements of subsection
(1) of this section.
(5) In making its determinations and examinations
under subsections (1), (2), and (4) of this section, the department may rely
on its receipt and review of:
(a) Reports filed with federal, state, or local housing
agencies and authorities; or
(b) Reports and attestations required by the department.

Legislative History

Source: Laws 2012, LB965, § 13. Cross References: Administrative Procedure Act, see section 84-920.