State Codes and Statutes
Statutes > Nebraska > Chapter45 > 45-100745-1007. Installment loans; license; bond.(1) Except as otherwise provided in this section, a license shall notbe issued until the applicant gives to the department a bond in the penalsum of fifty thousand dollars to be executed by the applicant and a suretycompany authorized to do business in the State of Nebraska, conditioned forthe faithful performance by the applicant, as a licensee, of the duties andobligations pertaining to the business of lending money and the prompt paymentof any judgment recovered against the applicant, as a licensee, under theNebraska Installment Loan Act.(2)(a) Except as providedin subsection (3) of this section, a licensee who employs or enters into anindependent agent agreement with an individual required to obtain a mortgageloan originator license pursuant to the Residential Mortgage Licensing Actshall maintain the surety bond required by subsection (1) of this sectionand a supplemental surety bond. The supplemental surety bond posted by suchlicensee shall cover all mortgage loan originators who are employees or independentagents of such licensee. The supplemental surety bond shall be for the useof the State of Nebraska and any Nebraska resident who may have claims orcauses of action against such licensee arising from a transaction involvinga residential mortgage loan, as defined in section 45-702, or against an individualwho is a mortgage loan originator employed by, or in an independent agentrelationship with, the licensee. The initial amount of the supplemental suretybond shall be one hundred thousand dollars.(b) Upon filing of the mortgage report of conditionrequired by section 45-1018, a licensee shall maintain or increase its supplementalsurety bond to reflect the total dollar amount of the closed residential mortgageloans originated in this state in the preceding year in accordance with thefollowing table. A licensee may decrease its supplemental surety bond in accordancewith the following table if the supplemental surety bond required is lessthan the amount of the supplemental surety bond on file with the department.DollarAmount of Closed ResidentialMortgage LoansSuretyBond Required$0.00to $5,000,000.00$100,000.00$5,000,000.01to $10,000,000.00$125,000.00$10,000,000.01to $25,000,000.00$150,000.00Over$25,000,000.00$200,000.00(3)(a) A person who hasbeen issued multiple licenses pursuant to section 45-1010 and who employsor enters into an independent agent agreement with an individual requiredto obtain a mortgage loan originator license pursuant to the Residential MortgageLicensing Act shall maintain a surety bond for each license that he, she,or it holds as required in subsection (1) of this section and shall also postone supplemental surety bond which shall cover all licenses held by such person.The supplemental surety bond posted by such person shall cover all mortgageloan originators who are employees or independent agents of such person. Thesupplemental surety bond shall be for the use of the State of Nebraska andany Nebraska resident who may have claims or causes of action against suchperson arising from a transaction involving a residential mortgage loan oragainst an individual who is a mortgage loan originator employed by, or inan independent agent relationship with, the person. The amount of such supplementalsurety bond shall be as follows:(i) The initial supplemental surety bond shall bein the amount of one hundred thousand dollars; and(ii) Upon filing of the mortgagereport of condition required by section 45-1018, the person's supplementalsurety bond shall be maintained in accordance with subdivision (2)(b) of thissection. For purposes of calculating the amount of the bond that is required,the total dollar amount of the closed loans shall include all residentialmortgage loans in this state closed by the person.(b) A person who holds both oneor more installment loan licenses pursuant to the Nebraska Installment LoanAct and a mortgage banker license pursuant to the Residential Mortgage LicensingAct shall not be required to post and maintain a supplemental surety bondif such person meets the following conditions:(i) The person maintains a suretybond as provided in subsection (1) of this section for each installment loanlicense he, she, or it holds;(ii) The person maintains a mortgage banker suretybond as provided in section 45-724; and(iii) The mortgage banker surety bond covers all transactionsinvolving residential mortgage loans, including such transactions done pursuantto the person's installment loan license or licenses.(4) Should the department determinethat a licensee does not maintain a supplemental surety bond in the amountrequired by subsection (2) or (3) of this section, the department shall givewritten notification to the licensee requiring him, her, or it to increasethe surety bond within thirty days to the amount required by subsection (2)or (3) of this section.(5) Thebond or a substitute bond requiredby subsection (1) of this section shall remain in effect or thelicensee shall immediately cease making loans and the license shall be canceledby the director. SourceLaws 1941, c. 90, § 31, p. 357; C.S.Supp.,1941, § 45-157; R.S.1943, § 45-119; Laws 1997, LB 555, § 7; R.S.1943, (1998), § 45-119; Laws 2001, LB 53, § 35; Laws 2003, LB 218, § 13; Laws 2006, LB 876, § 49; Laws 2009, LB328, § 42. Cross ReferencesResidential Mortgage Licensing Act, see section 45-701.
