State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter8 > 8-157_01

8-157.01. Financial institution;electronic terminals; use; user financial institution.(1)Any financial institution which has a main chartered office or approved branchlocated in the State of Nebraska may establish and maintain any number ofautomatic teller machines at which all banking transactions, defined as receivingdeposits of every kind and nature and crediting such to customer accounts,cashing checks and cash withdrawals, transfer of funds from checking accountsto savings accounts, transfer of funds from savings accounts to checking accounts,transfer of funds from either checking accounts and savings accounts to accountsof other customers, payment transfers from customer accounts into accountsmaintained by other customers of the financial institution or the financialinstitution, including preauthorized draft authority, preauthorized loans,and credit transactions, receiving payments payable at the financial institutionor otherwise, and account balance inquiry, may be conducted. Any other transactionincidental to the business of the financial institution or which will providea benefit to the financial institution's customers or the general public maybe conducted at an automatic teller machine upon thirty days' prior writtennotice to the director if the director does not object to the proposed othertransaction within the thirty-day notice period. Neither such automatic tellermachines nor the transactions conducted thereat shall be construed as theestablishment of a branch or as branch banking. Such automatic teller machinesshall be made available on a nondiscriminating basis for use by customersof any financial institution which has a main chartered office or approvedbranch located in the State of Nebraska which becomes a user financial institution.It shall not be deemed discrimination if an automatic teller machine doesnot offer the same transaction services as other automatic teller machinesor if there are no fees charged between affiliate financial institutions forthe use of automatic teller machines.(2) Any financial institution may become a user financial institutionby agreeing to pay the establishing financial institution its automatic tellermachine usage fee. Such agreement shall be implied by the use of such automaticteller machines. Nothing in this subsection shall prohibit a user financialinstitution from agreeing to responsibilities and benefits which might becontained in a standardized agreement. The establishing financial institutionor its designated data processing center shall be responsible for transmittingtransactions originating from its automatic teller machine to a switch, butnothing contained in this section shall be construed to require routing ofall transactions to a switch. All automatic teller machines must be made availableon a nondiscriminating basis, for use by customers of any financial institutionwhich has a main chartered office or approved branch located in the Stateof Nebraska which becomes a user financial institution, through methods, fees,and processes that the establishing financial institution has provided forswitching transactions. The director, upon notice and after a hearing, mayterminate or suspend the use of any automatic teller machine if he or shedetermines that it is not available on a nondiscriminating basis for use bycustomers of any financial institution which has a main chartered office orapproved branch located in the State of Nebraska which becomes a user financialinstitution or that transactions originated by customers of user financialinstitutions are not being routed to a switch or other data processing centers.Nothing in this section may be construed to prohibit nonbank employees fromassisting in transactions originated at the automatic teller machines, andsuch assistance shall not be deemed to be engaging in the business of banking.Such nonbank employees may be trained in the use of the automatic teller machinesby financial institution employees.(3) An establishing financial institution shall not be deemedto make an automatic teller machine available on a nondiscriminating basisif, through personnel services offered, advertising on or off the automaticteller machine's premises, or otherwise, it discriminates in the use of theautomatic teller machine against any user financial institution which hasa main chartered office or approved branch located in the State of Nebraska.(4)(a) Any consumer initiating an electronic funds transferat an automatic teller machine for which an automatic teller machine surchargewill be imposed shall receive notice in accordance with the provisions of15 U.S.C. 1693b(d)(3)(A) and (B), as such section existed on January 1, 2004.Such notice shall (i) be posted in a prominent and conspicuous location onor at the automatic teller machine at which the electronic funds transferis initiated by the consumer and (ii) appear on the screen of the automaticteller machine or appear on a paper notice issued from such machine afterthe transaction is initiated and before the consumer is irrevocably committedto completing the transaction.(b) Subdivision (a)(ii) of this subsection shall not applyuntil January 1, 2005, to any automatic teller machine that lacks the technicalcapability to disclose the notice on the screen or to issue a paper noticeafter the transaction is initiated and before the consumer is irrevocablycommitted to completing the transaction.(5) A point-of-sale terminal may be established at any pointwithin this state. A financial institution may contract with a seller of goodsand services or any other third party for the operation of point-of-sale terminals.A point-of-sale terminal shall be made available on a nondiscriminating basisfor use by customers of any financial institution which has a main charteredoffice or approved branch located in the State of Nebraska which becomes auser financial institution. Nothing in this subsection shall prohibit paymentof fees to a financial institution which issues an access device used to initiateelectronic funds transfer transactions at a point-of-sale terminal.(6) A seller of goods and services or any other third partyon whose premises one or more point-of-sale terminals are established shallnot be, solely by virtue of such establishment, a financial institution andshall not be subject to the laws governing, or other requirements imposedon, financial institutions, except for the requirement that it faithfullyperform its obligations in connection with any transaction originated at anypoint-of-sale terminal on its premises. The acquiring financial institutionshall be responsible for compliance with all applicable standards, rules,and regulations governing point-of-sale transactions.(7) Any financial institution, upon a request of the director,shall file with the director a current listing of all point-of-sale terminalsestablished by the financial institution within this state. For purposes ofthis subsection, point-of-sale terminal shall include a group of one or moreof such terminals established at a single business location. Such listingshall contain any reasonable descriptive information pertaining to the point-of-saleterminal as required by the director. Neither the establishment of such point-of-saleterminal nor any transactions conducted thereat shall be construed as theestablishment of a branch or as branch banking. Following establishment ofa point-of-sale terminal, the director, upon notice and after a hearing, mayterminate or suspend the use of such point-of-sale terminal if he or she determinesthat it is not made available on a nondiscriminating basis for use by customersof any financial institution which has a main chartered office or approvedbranch located in the State of Nebraska which becomes a user financial institution,that the necessary information is not on file with the director, or that transactionsoriginated by customers of user financial institutions are not being routedto a switch or other data processing center. Nothing in this section shallbe construed to prohibit nonbank employees from assisting in transactionsoriginated at the point-of-sale terminals, and such assistance shall not bedeemed to be engaging in the business of banking.(8) Transactions at point-of-sale terminals may include:(a) Check guarantees;(b) Account balance inquiries;(c) Transfers of funds from a customer's account for paymentto a seller's account for goods and services on whose premises the point-of-saleterminal is located in payment for the goods and services;(d) Cash withdrawals by a customer from the customer's accountor accounts;(e) Transfers between accounts of the same customers at thesame financial institution; and(f) Such other transactions as the director, upon application,notice, and hearing, may approve.(9)(a) Automatic teller machines may be established and maintainedby a financial institution which has a main chartered office or approved branchlocated in the State of Nebraska, by a group of two or more of such financialinstitutions, or by a combination of such financial institution or financialinstitutions and a third party.(b) Point-of-sale terminals may be established and maintainedby a financial institution which has a main chartered office or approved branchlocated in the State of Nebraska, by a group of two or more of such financialinstitutions, or by a combination of such financial institutions and a thirdparty. No one, through personnel services offered, advertising on or off thepoint-of-sale terminal premises, or otherwise, may discriminate in the useof the point-of-sale terminal against any other user financial institution.(10) All financial institutions shall be given an equal opportunityfor the use of and access to a switch, and no discrimination shall exist orpreferential treatment be given in either the operation of such switch orthe charges for use thereof. The operation of such switch shall be with theapproval of the director. Approval of such switch shall be given by the directorwhen he or she determines that its design and operation are such as to provideaccess thereto and use thereof by any financial institution without discriminationas to access or cost of its use. Any switch established in Nebraska and approvedby the director prior to January 1, 1993, shall be deemed to be approved forpurposes of this section.(11) Use of an automatic teller machine or a point-of-saleterminal through access to a switch and use of any switch shall be made availableon a nondiscriminating basis to any financial institution. A financial institutionshall only be permitted use of the switch if the financial institution conformsto reasonable technical operating standards which have been established bythe switch.(12) To assure maximum safety and security against malfunction,fraud, theft, and other accidents or abuses and to assure that all such accessdevices will have the capability of activating all automatic teller machinesand point-of-sale terminals established in this state, no automatic tellermachine or point-of-sale terminal shall accept an access device which doesnot conform to such specifications as are generally accepted. No automaticteller machine or point-of-sale terminal shall be established or operatedwhich does not accept an access device which conforms with such specifications.An automatic teller machine shall bear a logo type or otheridentification symbol designed to advise customers that the automatic tellermachine may be activated by any access device which complies with the generallyaccepted specifications. A point-of-sale terminal shall either bear or thepremises on which the point-of-sale terminal is established shall containa visible logo type or other identification symbol designed to advise customersthat the point-of-sale terminal may be activated by any access device whichcomplies with the generally accepted specifications. An automatic teller machineor point-of-sale terminal may also bear, at the option of the establishingor acquiring financial institution, any of the following:(a) The names of all individual financial institutions usingsuch automatic teller machines or point-of-sale terminals in alphabeticalorder, except that the establishing or acquiring financial institution maybe listed first, and in a uniform typeface, size, and color; or(b) The logo type or symbol of any association, corporation,or other entity or organization formed by one or more of the financial institutionsusing such automatic teller machines or point-of-sale terminals.(13) If the director, upon notice and hearing, determinesat any time that the design or operation of a switch or provision for usethereof does discriminate against any financial institution in providing accessthereto and use thereof either through access thereto or by virtue of thecost of its use, he or she may revoke his or her approval of such switch operationand immediately order the discontinuance of the operation of such switch.(14) If it is determined by the director, after notice andhearing, that discrimination against any financial institution has taken place,that one financial institution has been preferred over another, or that anyfinancial institution or person has not complied with any of the provisionsof this section, he or she shall immediately issue a cease and desist orderor an order for compliance within ten days after the date of the order, andupon noncompliance with such order, the offending financial institution shallbe subject to sections 8-1,134 to 8-1,139 and to having the privileges grantedin this section revoked.(15) For purposes of this section:(a) Access means the ability to utilize an automatic tellermachine or a point-of-sale terminal to conduct permitted banking transactionsor purchase goods and services electronically;(b) Access device means a code, a transaction card, or anyother means of access to a customer's account, or any combination thereof,that may be used by a customer for the purpose of initiating an electronicfunds transfer at an automatic teller machine or a point-of-sale terminal;(c) Account means a checking account, a savings account, ashare account, or any other customer asset account held by a financial institution.Such an account may also include a line of credit which a financial institutionhas agreed to extend to its customer;(d) Acquiring financial institution means any financial institutionestablishing a point-of-sale terminal;(e) Affiliate financial institution means any financial institutionwhich is a subsidiary of the same bank holding company;(f) Electronic funds transfer means any transfer of funds,other than a transaction originated by check, draft, or similar paper instrument,that is initiated through a point-of-sale terminal, an automatic teller machine,or a personal terminal for the purpose of ordering, instructing, or authorizinga financial institution to debit or credit an account;(g) Establishing financial institution means any financialinstitution establishing an automatic teller machine which has a main charteredoffice or approved branch located in the State of Nebraska;(h) Financial institution means a state-chartered or federallychartered bank, savings bank, building and loan association, savings and loanassociation, or credit union, or a subsidiary of any such entity;(i) Foreign financial institution means a financial institutionlocated outside the United States;(j) Personal identification number means a combination ofnumerals or letters selected for a customer of a financial institution, amerchant, or any other third party which is used in conjunction with an accessdevice to initiate an electronic funds transfer transaction;(k) Personal terminal means a personal computer and telephone,wherever located, operated by a customer of a financial institution for thepurpose of initiating a transaction affecting an account of the customer;and(l) User financial institution means any financial institutionwhich desires to avail itself of and provide its customers with automaticteller machine or point-of-sale terminal services.(16) Nothing in this section prohibits ordinary clearinghousetransactions between financial institutions.(17) Nothing in this section requires any federally charteredestablishing financial institution to obtain the approval of the directorfor the establishment of any automatic teller machine.(18) Nothing in this section shall prevent any financial institutionwhich has a main chartered office or an approved branch located in the Stateof Nebraska from participating in a national automatic teller machine programto allow its customers to use automatic teller machines located outside ofthe State of Nebraska which are established by out-of-state financial institutionsor foreign financial institutions or to allow customers of out-of-state financialinstitutions or foreign financial institutions to use its automatic tellermachines located in the State of Nebraska. Such participation and any automaticteller machine usage fees charged or received pursuant to the national automaticteller machine program or usage fees charged for the use of its automaticteller machines by customers of out-of-state financial institutions or foreignfinancial institutions shall not be considered for purposes of determiningif an automatic teller machine located in the State of Nebraska has been madeavailable on a nondiscriminating basis for use by customers of any financialinstitution which has a main chartered office or approved branch located inthe State of Nebraska which becomes a user financial institution.(19) An agreement tooperate or share an automatic teller machine may not prohibit, limit, or restrictthe right of the operator or owner of the automatic teller machine to chargea customer conducting a transaction using an account from a foreign financialinstitution an access fee or surcharge not otherwise prohibited under stateor federal law. SourceLaws 1987, LB 615, § 3; Laws 1992, LB 470, § 2; Laws 1993, LB 81, § 8; Laws 1993, LB 423, § 2; Laws 1999, LB 396, § 9; Laws 2000, LB 932, § 3; Laws 2002, LB 1089, § 3; Laws 2003, LB 131, § 4; Laws 2004, LB 999, § 2; Laws 2009, LB75, § 1; Laws 2009, LB327, § 4.