Two CU Bills Introduced in Nebraska

Two credit union bills have been filed in the Nebraska legislature.

LB453 would require the Director for the Department of Banking and Finance to publish a notice of a credit union's application to expand its field of membership when the Director determines that a hearing is not warranted. The notice of the application would be required in a paper of general circulation in the county or counties in which the expanded field of membership has been requested. Also, a notice of the filing will be sent to the Nebraska Bankers Association and the Nebraska Independent Community Bankers Association.

If the Director receives substantive objection to the field of membership application, the Director would be required to hold a hearing. The Director would publish a notice of the hearing in a newspaper of general circulation in the county or counties of the proposed field of membership and notify the Nebraska Bankers Association and The Nebraska Independent Community Bankers Association of the hearing.

LB407 would provide parity to Nebraska state-chartered credit unions with a credit union chartered in another state operating one or more branches in the state. The Nebraska state-chartered credit union would have to apply with the Department of Banking and Finance for approval to engage in an activity that is permissible for a credit union charters in another state operating in Nebraska. A credit union seeking the authority to engage in this activity must be well capitalized as of the most recent examination.

There will be a hearing on both bills before the Banking, Insurance, and Commerce Committee on February 26.