§ 8-1506 — Failing financial institution; Director of Banking and Finance; powers; hearing; order; appeal

Nebraska § 8-1506

• Jurisdiction: Nebraska
• Ch. 8: Banks and Banking

Text

(1) Whenever the Department of Banking and Finance determines the acquisition of any financial institution chartered under the laws of Nebraska is necessary because its capital is impaired, it is conducting its business in an unsafe or unauthorized manner, or it is endangering the interest of depositors or savers, the Director of Banking and Finance may take immediate action in the case of an emergency so declared by the Governor, the Secretary of State, and the Director of Banking and Finance, without the benefit of a hearing, to convert or merge the charter, form of ownership, or operating powers, some or all of the assets and liabilities, or one or more of the branches of the financial institution into the charter, form of ownership, or operating powers of one or more financial institutions to facilitate the acquisition. Such immediate action may include the ability by the director to take possession of the institution.
(2) In the case of a financial institution chartered by the United States or a foreign state agency as defined in section 8-101.03 and upon receipt of notice by the director from the financial institution's primary state or federal regulator that the acquisition of the financial institution is necessary because (a) the financial institution's capital is impaired, (b) the financial institution is conducting business in an unsafe or unauthorized manner, or (c) the financial institution is endangering the interest of depositors or savers, the director may take immediate action without the benefit of a hearing, to convert or merge the charter, form of ownership, or operating powers, some or all of the assets and liabilities, or one or more of the branches of the financial institution into the charter, form of ownership, or operating powers of one or more financial institutions chartered under the laws of Nebraska to facilitate the acquisition.
(3) Any stockholder, depositor, or creditor of any financial institution chartered under the laws of Nebraska shall, upon application to the director within five days of the entry of the order, be afforded a hearing relating to the department's order and determination not later than ten days after such application has been filed. On the basis of such hearing, the director shall enter a final order which may continue the original order in effect, revoke it, or modify it. Any person aggrieved by a final order of the director made pursuant to this section may appeal the order by filing, within ten days after the entry of the final order, a written petition praying that the final order be modified or set aside in whole or in part. Upon service of the petition, the director shall within fifteen days certify and file in such court a copy of the original order, the application for hearing, all exhibits and testimony, and the final order from which the appeal is taken. Such appeal shall otherwise be governed by the Administrative Procedure Act.

Legislative History

Source: Laws 1983, LB 241, § 1; Laws 1985, LB 653, § 10; Laws 1988, LB 352, § 13; Laws 1990, LB 956, § 12; Laws 2025, LB251, § 15. Effective Date: March 12, 2025 Cross References: Administrative Procedure Act, see section 84-920.