Hearing Notice                                                                             

NOTICE OF RULEMAKING HEARING

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on March 1, 2024, commencing at 10:00 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:

1) The proposed revisions to Title 48, Chapter 6

2) The proposed revisions to Title 48, Chapter 7

3) The proposed revisions to Title 48, Chapter 9

4) The proposed revisions to Title 48,

Chapter 12 48 NAC 6-Agents of Broker-Dealers: The purpose of the proposed revisions to Title 48, Chapter 6 is to adopt the North American Securities Administrators Association (“NASAA”) “Examination Requirements for Broker-Dealer Agents Model Rule.” This rule will allow agents who have elected to participate in the Financial Industry Regulatory Authority’s (“FINRA”) Maintaining Qualifications Program to extend the validity of their state examinations from two to five years.

48 NAC 7-Investment Advisers: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt NASAA’s “Model Rule for Investment Adviser Written Policies and Procedures Under the Uniform Securities Act of 1956 and 2002.” This rule requires investment advisers to adopt policies and procedures to ensure compliance with the Securities Act of Nebraska. The model rule will replace existing provisions in Chapter 7 that require investment advisers to adopt similar policies and procedures.

48 NAC 9-Investment Adviser Representatives: The purpose of the proposed revisions to Title 48, Chapter 7 is to adopt two NASAA model rules. The first model rule, the NASAA “Investment Adviser Representative Examination Validity Program Model Rule” will allow investment adviser representatives who participated in NASAA’s Exam Validity Extension Program and complete continuing education to extend the validity of their state examinations from two to five years. The second model rule, NASAA’s “Model Rule on Investment Adviser Representative Continuing Education” implements continuing education requirements for investment adviser representatives.

48 NAC 12-Fraudulent, Dishonest and Unethical Business Practices: The purpose of the proposed revision is to adopt NASAA’s “Unpaid Arbitration Awards Under the Uniform Securities Acts of 1956 and 2022.” This rule provides that the failure to pay arbitration awards, court judgments, and regulator fines is an unethical practice.

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84- 907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, Regulations Division, 1201 N Street, Suite 120, Lincoln, Nebraska 68509. In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing. Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.

If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 12th day of January, 2024.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

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48 NAC 6

Chapter 6 Appendix

48 NAC 7

Chapter 7 Appendix

 48 NAC 9

Chapter 9 Appendix 

 48 NAC 12

 Chapter 12 Appendix  

 Fiscal Impact Statement 

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2023 RENEWAL DEADLINE November 1, 2023 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2023. Firms will need to assemble required documentation and review filings to ensure all information is accurate and up-to-date. Failure to submit supplements or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2024.

State Regulators Settle with ACI Payments, Inc. for Unauthorized Withdrawals from Mr. Cooper Customer Accounts

State regulators and state attorneys general levy combined fines of $20 million for data misuse impacting 480,000 consumers nationwide

Wednesday, October 18, 2023 (Lincoln) — The Nebraska Department of Banking and Finance and 43 other state financial agencies have reached settlements with ACI Payments, Inc., for erroneously initiating electronic transactions totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper (formerly known as Nationstar Mortgage, LLC). State regulators levied $10 million in fines through a multistate enforcement action led by regulators from Arkansas, Connecticut, Maryland and Texas with support from the Conference of State Bank Supervisors. Additionally, 50 attorneys general, including the attorney general of Nebraska, levied $10 million in fines to ACI, in coordination with state regulators. Together these fines totaled $20 million.

ACI Payments, a subsidiary of ACI Worldwide Corp., is a state-regulated money services business licensed in Nebraska and nearly all other U.S. states (NMLS ID 936777). Mr. Cooper offered ACI’s Speedpay product for its customers to schedule their monthly mortgage payments, enabling automatic transfers of authorized mortgage payments from their personal bank accounts to Mr. Cooper. The violations occurred when ACI Payments erroneously used live customer data in a test of its Speedpay platform, causing unexpected and sometimes multiple mortgage payments from customer accounts. In some cases, these transactions exposed consumers to overdraft or insufficient funds fees.

Upon notification of the incident from ACI Payments, state regulators commenced a multistate money transmission investigation reviewing all aspects of the event, including investigating the facts and circumstances surrounding the erroneous transactions, evaluating consumer impact, analyzing the root cause of the incident, and evaluating the remedial steps taken by the company.

This enforcement action orders the following of ACI Payments, Inc.:

• Risk and Compliance Programs – Maintain a comprehensive Enterprise Risk Management Program and a Third-Party Risk Management Program tailored to the nature, size, complexity and risk profile of ACI.
• Agreement Monitoring – Regular reporting (for two years) to a state regulator monitoring committee to ensure both the adequacy of the risk management programs and compliance with the order.
• Administrative Costs and Penalties – Payment of $10 million in fines for administrative costs and penalties.

State financial regulators license and supervise over 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS), including mortgage companies, money services businesses, consumer finance providers and debt collectors. Nebraska consumers can submit complaints about nonbank financial services companies through its website at Complaints | Nebraska Banking and Finance or by calling NDBF at 402-471-2171.  Consumers can also verify that a company is licensed to do business in their state, and view past enforcement actions, by visiting NMLS Consumer Access.

Click HERE to read the enforcement action which includes the list of participating states.

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NDBF Deputy Director Claire McHenry announced as NASAA President

September 12, 2023 (Lincoln, NE)

Claire McHenry, Deputy Director of the Nebraska Department of Banking and Finance (NDBF), and head of the Department’s Bureau of Securities, begins her one-year tenure today as President of the North American Securities Administrators Association (NASAA). McHenry gave her inaugural address during the annual NASAA conference, held this year in San Diego, California.

McHenry has over fifteen years of state securities regulation experience. Prior to joining NDBF in May 2016, she was an examiner with the Securities Bureau of the DC Department of Insurance, Securities and Banking where she led examinations of complex investment advisers and broker-dealers, investigated unlicensed activities and unregistered securities offerings, and developed enforcement cases. McHenry is a member of the NASAA Broker-Dealer Section and is a NASAA Spring Conference Chair. McHenry has been a speaker at NASAA training conferences presenting on audit findings and effective private fund examinations. She earned her Bachelor of Science and Business Administration from Washington University in St. Louis and her Juris Doctorate from American University – Washington College of Law.

“Nebraska has greatly benefited from having McHenry’s leadership as the Deputy Director of the Securities Bureau,” said Kelly Lammers, NDBF Director. “She has a calm passion in the promotion of the securities industry, recognition of consumer protection, and is a proven leader in policy, moving forward the Nebraska Protection of Vulnerable Adults from Financial Exploitation Act, with a commitment to keeping the Securities Rules current. The Department is both proud of McHenry’s accomplishments and looking forward to our continued strong working relationship with NASAA and with President McHenry leading North American securities policy as NASAA President.”

Organized in 1919, NASAA is the oldest international organization devoted to investor protection. It is a voluntary association whose membership consists of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.

NASAA President Claire McHenry

Are You an Informed Investor?

Other People's Money Investment Scams

Securities regulators have seen a rise in schemes where scammers target victims with the promise of making big returns by trading “other people’s money.” This frequently occurs online, with the scammer posting an investment opportunity on a social media platform or reaching out to unwitting recipients via a messaging application (such as WhatsApp). Investors should be cautious when approached with unsolicited investment opportunities. Learn more in the PDF below.

Informed Investor Advisory

The NDBF announced it has joined a multi-state settlement with Robinhood Financial LLC, which will pay up to $10.2 million in penalties for operational and technical failures that harmed main street investors. Thanks to states working together, local issues became national settlements and state securities regulators were able to protect investors.

Follow the link to read more on this issue.

Robinhood Financial LLC settlement

Governor Pillen Proclaims April as Financial Awareness Month

April 14, 2023 (LINCOLN, NE) –On April 13^th, Gov. Jim Pillen proclaimed the month of April as Financial Awareness Month in Nebraska. The proclamation recognizes the importance of financial awareness to Nebraskans and Nebraska as a leader in financial innovation, financial literacy education, and consumer and vulnerable adult protection.

The month-long financial awareness campaign is an initiative from the Nebraska Council on Economic Education (NCEE) and the Nebraska Department of Banking and Finance (NDBF). Working together, the chartered, licensed financial industry, NCEE & NDBF conducting a variety of educational activities in schools, workplaces, and communities this month, and throughout the year, to educate Nebraskans about the importance of setting goals, making wise financial decisions, and protecting yourself and your financial future.

“Financial awareness is more that understanding how to spend money, it is a lifelong pursuit of using information available at the time of spending, savings, investing to make informed financial decisions.   A savings program may provide peace of mind for a rainy day or a dream of a well-earned vacation.  A credit card may present concerning fees, or it may be a safety backup that gets you home in an emergency.  Times of increasing interest rates require consideration before using optional debt, that is not quickly repaid.  Regardless of the month, now is great time to visit with your existing financial professional or open a new relationship with a bank, credit union, or registered securities professional to help protect and grow your finances,” said NDBF Director Kelly Lammers. “This next month and in months to come follow the Department on Facebook and Linked in.   Today’s world of as we address There have been a number of recent financial initiatives, from the Financial Innovation Act to added consumer protections for vulnerable and senior adults. It’s important to review the basics as well as learn about new products like cryptocurrencies and digital assets to improve your financial awareness.”

“For NCEE’s almost 60-year history, we have focused on K-12 economic education. If we can reach kids early and install good financial habits, we can change their financial futures,” said NCEE president, Dr. Jennifer Davidson. “With WalletHub recently ranking Nebraska as the most financial literate state, we know that it is working; however, there is always more that can be done. I encourage everyone to engage with something during this April Financial Awareness Month. Financial literacy is a life-long pursuit. No matter what age and stage you’re at, we can always do something to better our financial position.”

One of NCEE’s signature programs is the Nebraska In-School Savings Program. These programs give select upper elementary students an opportunity to gain job skills working as school branch tellers. Student tellers from several Nebraska in school savings program will join in the proclamation signing celebration. All students in schools with a savings programs are given the opportunity to participate and save weekly. Students are rewarded with incentives for frequency of saving (not amounts), as the program is designed to reward and instill the habit of saving.

NDBF Director Lammers and Dr. Jennifer Davidson, President of NCEE, encourage all Nebraskans to take part in financial awareness efforts offered by NCEE, NDBF, and other organizations, including:

• The Nebraska Council on Economic Education is the premiere organization providing economic and financial education and resources to Nebraska. NCEE programming and resources can be found at https://nebraskacouncil.unl.edu and https://nceefinance.org.
• NDBF has information on financial education topics at https://ndbf.nebraska.gov/consumers/consumer-resources.
• The Office of the Nebraska Attorney General has information on how to protect yourself from identity theft and scams at https://ProtectTheGoodLife.Nebraska.gov.
• The Nebraska State Treasurer’s Office, in partnership with NCEE, has a robust and personalized financial education learning center, Enrich. https://nast.enrich.org/landing/nast-start-nebraska

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NDBF Financial Awareness Month 2023

NDBF Joins with State Securities Regulators and SEC in a $45 Million Settlement with Nexo Capital Over Interest-Bearing Accounts

February 14, 2023 (Lincoln, NE) – The Nebraska Department of Banking & Finance (NDBF) will receive a payment of $424,528.30 from Nexo Capital, Inc. (Nexo) after entering a Consent Order with Nexo. The NDBF joined other state securities regulators and the U.S. Securities Exchange Commission (SEC) in this $45 million settlement with Nexo. 

In the past year, a North American Securities Administrators Association (“NASAA”) working group of state regulators conducted a comprehensive investigation into Nexo’s alleged offer and sale of unregistered securities in the form of its Earned Interest Product (EIP).

Nexo is a Cayman Islands corporation established in 2018 that provides virtual currency-related financial services to retail and institutional borrowers in the United States, including trading, borrowing, and lending services. During the investigation, it was discovered that EIP investors could passively earn interest on digital assets by loaning those assets to Nexo. This included 346 Nebraska EIP accounts with a value of $2,480,000 as of July 31, 2022. Nexo maintained total discretion over the revenue-generating activities utilized to earn returns for investors. The company offered and promoted the EIP and other products to investors in the U.S. via its website and social media channels suggesting in some instances that investors could obtain returns as high as 36%.

Nexo is alleged to have failed to comply with state registration requirements and, as a result, investors were sold unregistered securities in violation of state law and additionally were deprived of critical information and disclosures necessary to understand the potential risks of the EIP.

“Securities laws are designed to protect investors through full and fair disclosure and the registration of securities is essential to that protection.” said NDBF Deputy Director Claire McHenry. “State securities regulators continue to lead the effort to ensure companies involved in offering digital asset investments comply with our laws and that investors are treated fairly.”

For the states participating in the settlement, Nexo will pay a fine of $424,528.30 and cease offering and selling the EIP or accepting further investments in the EIP until such activities are compliant with applicable state and federal securities laws. For any EIP accounts, savings wallets, and non-collateral wallets held by Nebraska residents after April 1, 2023, Nexo will assist customers with any withdrawals or transfers.

NDBF would like to thank its fellow NASAA member agencies, especially the multistate working group, for its coordinated efforts and the SEC for their collaboration and assistance.

NDBF encourages Nebraskans to review financial opportunities carefully and to check the registration status of the investment and the person offering it by visiting ndbf.nebraska.gov.

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Nexo Press Release 02-14-2023

NDBF Cautions Investors on the Rise of the “Finfluencers”

November 8, 2022 (LINCOLN, NE)— The Nebraska Department of Banking and Finance (“NDBF”) is joining the North American Securities Administrators Association (“NASAA”) in releasing an Informed Investor Advisory that recommends investors use caution when considering advice from social media financial influencers, or “finfluencers.”

A finfluencer is a person who, by virtue of their popular or cultural status, has the capability to influence the financial decision-making process of others through promotions or recommendations on social media, according to the Informed Investor Advisory. They may seek to influence potential investors by publishing posts or videos to their social media accounts, often stylized to be entertaining so that the post or video will be shared with other potential investors.

“More and more people are turning to social media to get investment advice.  Nebraska investors would be wise to consider the source of any unsolicited financial advice and treat any decision with careful consideration before making an investment,” said NDBF Deputy Director Claire McHenry.  “Investors should keep in mind that influencers are not subject to the same regulations as licensed financial professionals and may have undisclosed conflicts of interest.”

The advisory includes information to help investors better understand how influencers operate, what to consider when coming across financial advice on social media, and where to go for help with concerns about a possible finfluencer. The advisory also points out red flags to consider including dubious advice, unverifiable or outdated financial credentials, or investment recommendations not backed up by accurate data.

NDBF encourages Nebraskans to review financial opportunities on social media carefully and to check the registration status of the investment and the person offering it by visiting ndbf.nebraska.gov.  “Be wary of content on social media promising big or guaranteed returns with little or no risk.  If it sounds too good to be true, it probably is,” said Deputy Director McHenry.

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Informed Investor Advisory Finfluencer

11.08.22 Finfluencer.pdf

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2022 RENEWAL DEADLINE

November 1, 2022 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2022. Firms will need to assemble required documentation and review filings to insure all information is accurate and up-to-date. Failure to submit supplements or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2023.

The Department will again be utilizing ShareFile for firms to submit all supplements and correspondence. The Department will send out a secure ShareFile link, unique to each firm, with the initial Notification dated November 1, 2022.  If for some reason you do not receive the notification, please email the department at DOB.SecuritiesBureau@Nebraska.gov to request a link.

FINRA Broker-Dealers and Agents please adhere FINRA’s 2023 Annual Renewal Program and Timeline.

State-registered investment adviser and investment adviser representative deadlines:

• By December 16, 2022 – Submit Nebraska specific forms and documentation to NDBF

• Before December 22, 2022 – Submit renewal payments through CRD/IARD

Non-FINRA Broker-Dealers and Agents must submit all required forms and documentation to NDBF by December 16, 2022, via ShareFile link. The Department encourages firms to remit fees electronically via ACH if possible.

NOTICE OF RULEMAKING HEARING
NEBRASKA DEPARTMENT OF BANKING AND FINANCE
Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on September 22, 2022, commencing at 1:30 p.m., at the First Nebraska Administrative Building, 1526 K Street, 4th Floor Lancaster Hearing Room, Lincoln, Nebraska 68508.
The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:
1. 46 NAC 1 – Adopts Form AC of the Office of the Comptroller of the Currency for applications to convert mutual building and loan associations or mutual savings and loan associations to capital stock-savings associations. The proposed Rule will incorporate some provisions of existing 46 NAC 7.
2. 46 NAC 2 – Provides capital requirements for newly formed capital stock-savings associations. Replaces outdated amounts required in existing 46 NAC 8 to be in agreement with Neb. Rev. Stat. § 8-116 and Federal Deposit Insurance Corporation requirements. The proposed Rule will incorporate some provisions of existing 46 NAC 8.
3. 46 NAC 3 – Provides a new reference to Neb. Rev. Stat. § 21-1771 for Credit Union Act audits. Updates criteria for auditor independence, removes obsolete quarterly loan inspection language, removes requirement to send account verifications to Department, provides option for electronic submission of annual reports, provides that Department may require enhanced audit procedures due to safety and soundness concerns, and removes obsolete language from 46 NAC 11. Extends date for submission of audit report to 120 days after completion of audit. The proposed Rule will incorporate some provisions of existing 46 NAC 11.
4. 46 NAC – Chapters 7, 8, 10, and 11 are proposed for repeal to remove obsolete language and to replace current language with proposed 46 NAC, Chapters 1, 2, and 3.
The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84-907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the
Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, 1445 K Street, Suite 2300, Lincoln, Nebraska 68508. In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.
A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.
All interested persons are invited to attend and testify at the hearing. Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.
If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.
Dated at Lincoln, Nebraska, this 5th day of August, 2022.

Kelly Lammers, Director
Nebraska Department of Banking and Finance

PROPOSED 46 NAC 1_08.01.2022

Appendix NDBF Title 46 Chapter 1 (2022)

PROPOSED 46 NAC 2_08.01.2022

PROPOSED 46 NAC 3_08.01.2022

Fiscal Impact Statement 46 NAC

Rules 46_NDBF Publication Notice

FOR IMMEDIATE RELEASE

CONTACT Claire McHenry, Deputy Director – Securities Bureau

Phone 402-471-2171

Email claire.mchenry@nebraska.gov

_____________________________________________________________________________________

NDBF Joins with State Securities Regulators and the US Securities and Exchange Commission to Settle with Digital Asset Lending Platform BlockFi for Sales of Unregistered Securities

April 7, 2022 – The Nebraska Department of Banking and Finance (NDBF) today announced that a digital-asset financial services company, BlockFi Lending LLC (BlockFi), agreed to enter into a consent order with NDBF to settle offers and sales of unregistered securities in the form of interest-bearing digital asset deposit accounts called BlockFi Interest Accounts (BIAs) to Nebraska residents. As of December 31, 2021, BlockFi had 407,030 BIA investors in the US, of which more than 1,624 were Nebraska residents.

BlockFi agreed to pay $50 million to the 53 member agencies of the North American Securities Administrators Association (NASAA) and $50 million to the Securities and Exchange Commission (SEC) to settle its offers and sales of unregistered securities. The 53 NASAA member agencies will share equally in their half of the settlement. BlockFi will pay NDBF $943,396.22 to remedy its past unregistered offer and sale of securities to Nebraska residents.

Beginning January 2021, NASAA member agencies in a multistate working group contacted BlockFi and provided notice that the company may have offered and sold securities not in compliance with state securities laws. In July and September 2021, Alabama, Kentucky, New Jersey, Texas, Vermont, and Washington filed actions against BlockFi concerning its offer and sale of unregistered securities. As alleged in the state securities actions, BlockFi promoted its BIAs with promises of high returns for investors who purchased the lending products. It took control of and pooled its investors’ loaned digital assets, and exercised sole discretion over the pooled digital assets, including how to use the digital assets to generate a return and pay investors their promised interest. According to the filed state actions, BlockFi failed to comply with state registration requirements and, as a result, investors were sold unregistered securities in violation of state law and deprived of critical information and disclosure necessary to understand the potential risks of these lending products.

BlockFi’s agreement to enter into a settlement with NDBF comes amidst rising concerns over the proliferation of “decentralized” and digital asset-based financial products and services targeting retail investors. Many of these products and services are analogous to traditional financial services offered by banks and brokerages, but without any of the regulatory safeguards provided by registered firms and products. For example, registered firms must truthfully disclose all known material facts and explain the risks associated with their investments, while the Federal Deposit Insurance Corporation, National Credit Union Administration, and the Securities Investor Protection Corporation insure depositors and investors against certain kinds of losses. Financial service firms operating in innovative fintech markets may not be complying with important laws that protect retail clients, and investors may not have access to the information necessary to conduct due diligence and make fully informed decisions.

“State securities regulators recognize the value new technology brings to financial markets. Complying with existing laws and regulations promotes competitive capital markets and continued investor protection,” said NDBF Deputy Director Claire McHenry. “This action by NASAA member agencies and the SEC sets an example for other firms providing digital asset financial products and services of how to work toward complying with state and federal law.”

BlockFi has stopped offering its BIAs to the public. BlockFi’s parent company, BlockFi Inc., represents it intends to file with state and federal regulators to offer and sell a new product called BlockFi Yield. As part of the settlement terms, BlockFi has ceased allowing new investments in the BIAs and will not allow new investments until its securities are properly registered. BlockFi may continue to deploy digital assets for existing BIA investors and may continue to pay interest. Between February 14 and the date BlockFi Inc.’s securities are registered and qualified or permitted for sale with the states and SEC, current investors may keep their existing investments with BlockFi and will continue to earn interest under their initial agreement with the company. This measure is designed to protect the interests of existing investors while allowing BlockFi time to bring itself into compliance with state and federal law.

NDBF is continuing to consider enforcement actions against firms that fail to comply with state law. Firms that need to register and deal with past unregistered activity should contact their state and federal regulators. NDBF can be contacted at 402-471-2171.

NDBF would like to thank its fellow NASAA member agencies, especially the multistate working group, for its coordinated efforts and the SEC for their collaboration and assistance.

4.07.22 BlockFi Final.pdf

BlockFi Lending Findings of Fact Conclusions of Law and Consent Order.pdf

State Regulators Settle with Hundreds of Mortgage Loan Originators over SAFE Act Education Requirements

Feb. 15, 2022 (LINCOLN, NE) – The Nebraska Department of Banking and Finance (NDBF), and financial regulatory agencies from 41 other states reached settlements with 441 mortgage loan originators nationwide who deceptively claimed to have completed annual continuing education as required under state and federal law.

Through the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.

NDBF Director Kelly Lammers said, “The Department’s mission is to protect and maintain the confidence in the financial industries of Nebraska. These settlements show that Nebraska consumers can be confident that the mortgage loan originators they work with follow the law and are monitored for regulatory compliance.”

Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for the licensing and registration of state-licensed mortgage loan originators. The law calls on the states to implement and enforce these standards, and every state has enacted its own version of the SAFE Act that requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education.

Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.

The irregular education activity was discovered through a gesture-driven authentication tool called BioSig-ID, which is used to monitor all online courses approved under the SAFE Act mandate.

Contact: William Lawrence, Consumer Finance Counsel
Phone: 402-471-2171
Email: DOB.Mortgage@nebraska.gov

NDBF REES Settlements News Release.pdf

NOTICE OF RULEMAKING HEARING

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on November 10, 2021 commencing at 10 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:

1. The proposed revision of 48 NAC Chapters 1, 3, 4, 9, 10, 12, 18, 19, 20, 38, & 39.

48 NAC 2—General Provisions. The purpose of the proposed amendments is to delete unnecessary rules pertaining to fee schedules and forms, to clarify when a document filed electronically is received by the Department, and to clarify that the Department will not accept checks drawn on non-United States banks for payment of filing fees.

48 NAC 3—Definition of an Offer.  The purpose of the proposed amendment is to update the reference to the Department’s website.

48 NAC 4—Broker-Dealers.  The purpose of the proposed amendment is to update requirements related to audited financial statements for newly formed broker-dealers, and to clarify requirements related to the broker-dealer’s designated principal. 

48 NAC 9 Investment Adviser Representatives. The purpose of the proposed amendment is to allow dual registration for investment adviser representatives during the time in which an investment adviser representative is transferring firms.

48 NAC 10—Recordkeeping by Investment Advisers.  The purpose of the proposed amendments is to amend recordkeeping requirements for investment advisers as related to marketing.

48 NAC 12—Fraudulent, Dishonest and Unethical Business Practices.  The purpose of the proposed amendments is to repeal the existing rules related to marketing and to incorporate by reference the United States Securities & Exchange Commission’s recently amended marketing rule. 

48 NAC 18—Information Requirements for the Section 8-1111(20) Nebraska Intrastate Issuer Exemption.  The purpose of the proposed amendments is to increase the amount that can be offered from $1 million to $1.25 million.

48 NAC 19—Orders Curing Late Notice.  The purpose of the proposed amendments is to adopt a procedure for curing late notices of Regulation D, Rule 506 filings. 

48 NAC 20—Federal Covered Securities.  The purpose of the proposed amendments is to provide a cross-reference to the procedure to cure late notices of Regulation D, Rule 506 filings. 

48 NAC 38—Information Requirements for the Section 8-1111(23) Notice.  The purpose of the proposed amendments is to increase the amount that can be raised pursuant to this exemption from $750,000.00 to $811,500.00 as a result of changes in the Consumer Price Index for All Urban Consumers as prepared by the United States Department of Labor, Bureau of Labor Statistics.

48 NAC 39—Conditions and Information Requirement for the Section 8-1111(24) Crowdfunding Exemption.  The purpose of this amendment is to eliminate a requirement related to the payment of filing fees by physical check. 

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84-907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, 1201 N Street, Suite 120, Lincoln, Nebraska 68509.  In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.   

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing.  Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.

If auxiliary aids or reasonable accommodations, including accommodations related to COVID-19, are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 27^th day of September, 2021.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

Hearing Notice.pdf

Fiscal Impact Statement.pdf

Title 48 Chapter 01.pdf

Title 48 Chapter 03 Appendix.pdf

Title 48 Chapter 03.pdf

Title 48 Chapter 04 Appendix.pdf

Title 48 Chapter 04.pdf

Title 48 Chapter 09 Appendix.pdf

Title 48 Chapter 09.pdf

Title 48 Chapter 10 Appendix.pdf

Title 48 Chapter 10.pdf

Title 48 Chapter 12 Appendix.pdf

Title 48 Chapter 12.pdf

Title 48 Chapter 18 Appendix.pdf

Title 48 Chapter 18.pdf

Title 48 Chapter 19.pdf

Title 48 Chapter 20 Appendix.pdf

Title 48 Chapter 20.pdf

Title 48 Chapter 38 Appendix.pdf

Title 48 Chapter 38.pdf

Title 48 Chapter 39 Appendix.pdf

Title 48 Chapter 39.pdf

CONTACT Claire McHenry, Deputy Director
Phone 402-471-2171
Email Claire.mchenry@nebraska.gov

NDBF SHEDS LIGHT ON INVESTMENT FUND EXPENSE RATIOS

August 16, 2021 (LINCOLN, NE) — As part of its ongoing effort to raise investor awareness, the Nebraska Department of Banking and Finance (NDBF) today issued an advisory discussing the importance of paying attention to expense ratios when comparing mutual funds and exchange traded funds.
The advisory explains what expense ratios are; how they are calculated; how they are affected by a fund’s management style, investment strategy and portfolio size; and important considerations for investors.
“Expense ratios are an important element for investors to consider, along with a fund’s risk/return profile, when comparing funds,” NDBF Deputy Director Claire McHenry said.
The full advisory is available on the agency’s website here ndbf.nebraska.gov.
Before making any financial decisions, ask questions, do your homework, and contact the NDBF at 402-471-2171 for more information.

                                                                                                                                                          #####

Investment Expense Ratios Investor Advisory

Investment Expense Ratios Informed Investor Advisory

Contact: Mike Cameron, Securities Bureau Counsel

Phone: 402-471-2171

Email: mike.cameron@nebraska.gov

NDBF RECOGNIZES JUNE 15 AS WORLD ELDER ABUSE AWARENESS DAY

CHECK FOR WARNING SIGNS OF SUSPECTED GUARDIAN FINANCIAL ABUSE

June 15, 2021 (LINCOLN, NE) — In recognition of World Elder Abuse Awareness Day today, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals and the public throughout Nebraska to be on the lookout for signs of elder financial abuse, including potential exploitation by guardians.

A guardian, whether publicly funded or privately appointed, has a legal obligation to act in the best interest of a protected individual. Guardians often are granted extensive access and control of a protected individual’s assets. Financial abuse or exploitation by guardians could occur if the guardian improperly uses the protected individual’s funds, securities, property, or other assets.

“A trusted guardian can be a wonderful resource. But sometimes guardians may take advantage of the people or assets in their care,” NDBF Deputy Director Claire McHenry said. “Taking the time to understand the warning signs of guardian financial abuse and the steps that can be taken to report such abuse are key to helping those who cannot help themselves.”

The North American Securities Administrators Association (NASAA), of which NDBF is a member, has developed resources to help call attention to the red flags of fraud and suspected guardian financial abuse. The “Guarding the Guardians” publication provides examples of exploitation and information on how to report suspected elder financial abuse.

Examples of suspected guardian abuse include:

• The guardian takes money from the protected individual’s investment portfolio to buy a new car for personal use.
• The guardian overcharges for a caregiving service, such as billing the estate hourly for wait time to file paperwork in person when it could have been submitted online.
• The guardian does not take the protected individual to medical appointments or purchase their necessary medication.

The publication as well as other resources to help seniors are available on NASAA’s Serve Our Seniors website (serveourseniors.org) at the following link: http://serveourseniors.org/about/investors/. Other senior investor protection resources are available on the NDBF’s website at ndbf.nebraska.gov.

NDBF asks anyone with suspicions of possible senior financial exploitation to contact the agency at 402-471-2171.

#####

6.15.21 WEAAD.pdf

Contact: Christopher German, Senior Staff Attorney

Phone: 402-471-2171

Email: christopher.german@nebraska.gov

Order Curing Late Notice for Federal Covered Securities

March 18, 2021 (LINCOLN, NE) - The Nebraska Department of Banking and Finance (NDBF) is providing the following notice regarding Form D, Regulation 506 filings for federal covered securities.  Effective March 18, 2021, LB 363 (2021) amended Section 8-1108.02 of the Securities Act of Nebraska (“the Act”) to allow late Form D filings to be cured. 

The Act requires that issuers using Regulation D must file a Form D with the Department no later than fifteen days after the first sale in Nebraska. However, Section 8-1108.02 now provides the late filing of the Form D may be cured by an order issued by the Director at the Director’s discretion and payment of a $200 late fee.  As NDBF adopts rules to implement Section 8-1108.02, a filer will need to submit a payment of the $200 late fee and a written request signed and dated by an officer, director, general partner, managing member or legal counsel of the seller and containing the information outlined in 48 NAC 19.003. Filers submitting electronic filings through the North American Securities Administrators Association’s Electronic Filing Depository will be charged the late fee automatically at the time of filing.  The written request may be submitted to the Department via email.  

Previously, a late filing under Section 8-1108.02 could not be cured and the filer had to either register the securities or withdraw their filing and qualify for a different applicable exemption within the Act. The implementation of a curative order for late filings of federal covered securities is consistent with the ability to cure late notices available under other exemptions in the Act. 

Additional information about the filing requirement for Regulation D offerings is available at NDBF’s website at https://ndbf.nebraska.gov/industries/securities/filing-requirements-regulation-d-offerings.  If you have questions, please call NDBF at 402-471-2171.

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3.18.21 LB 363 Notices.pdf

First 2021 my moNEy video meets commitment to assist in understanding financial services

The Department of Banking and Finance and Department of Insurance presents videos on a variety of financial topics through the my moNEy series.  The latest video provides information on Compound Interest.  Use Compound Interest to your advantage by avoiding the pitfalls and investing in your future.

CONTACT Claire McHenry, Deputy Director – Securities Bureau 

PHONE 402-471-3445

EMAIL claire.mchenry@nebraska.gov 

NDBF REMINDS REGULATED FIRMS OF CUSTOMER OBLIGATIONS AND INVESTORS ABOUT RISKS OF STOCK PRICE VOLATILITY

February 1, 2021 (LINCOLN, NEB.) -- The Nebraska Department of Banking and Finance (NDBF) today called on firms and other regulated entities to ensure that investor protection obligations are being met during recent price volatility in shares of certain publicly traded companies.

“Regulated entities have an obligation to their customers. The NDBF will work with fellow regulators to ensure that investor protection, fairness and transparency are upheld in the public securities markets,” said Deputy Director Claire McHenry. “We are closely monitoring this developing situation and will examine actions by online brokerages and others to ensure that they are in compliance with their client obligations.”

Deputy Director McHenry also cautioned investors about the risks associated with investing in publicly traded companies that are experiencing volatility. “Investing in companies experiencing price volatility can be risky and investors should understand their risk tolerance when considering such investments,” Deputy Director McHenry said.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call Nebraska Department of Banking and Finance at 402-471-2171.

02.01.21 Share-Price-Volatility Draft 1.docx

                                                                          #####

FOR IMMEDIATE RELEASE 

CONTACT: Thomas Sindelar, Investigation Supervisor
PHONE: 402-471-2171
EMAIL: thomas.sindelar@nebraska.gov

Nebraska Department of Banking and Finance Orders Two Internet “Investment” Companies to Stop Soliciting Investors

Lincoln, Neb., October 20, 2020 – The Nebraska Department of Banking and Finance (“NDBF”) has issued Cease and Desist Orders (“Order”) against two entities that claimed to offer investments via the internet.

On August 17, 2020, NDBF issued an Order to Canadian FX Traders. The entity maintained the website, https://canfxtraders.com/, which has been deactivated. The Order prohibits the entity from offering or selling securities in Nebraska until the securities have been registered with NDBF. The Order also prohibits the entity from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with NDBF.

Canadian FX Traders offered “binary options in cryptocurrency trades” to at least one Nebraska investor. This investor invested $1,500.00 with Canadian FX Traders. The company led the investor to believe that the trading had been successful as her purported balance had increased to $38,000.00. When she attempted to withdraw funds, she was informed that she needed to pay various additional fees before the funds could be withdrawn. She paid over $4,800.00 in additional fees in an attempt to withdraw her funds. Ultimately, the investor was unable to withdraw her funds and she lost her entire investment along with the additional fees she paid to Canadian FX Traders.

On September 2, 2020, NDBF issued an Order to Crypto-Initiation Company of Bournemouth, United Kingdom. The entity maintained the website, https://cryptoinitiation.com/, which has been deactivated. The Order prohibits the entity from offering or selling securities in Nebraska until the securities have been registered with NDBF. The Order also prohibits the entity named from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with NDBF.

Crypto-Initiation Company offered “investment plans” which promised eight percent weekly returns to at least one Nebraska investor. The investor invested $50,000.00 in one of the investment plans. After investing, the investor was told that he needed to make an additional pledge in order to start receiving his payments. The investor increased his investment to $75,000.00 but never received his promised payments. The investor lost the entire investment.

A copy of the Cease and Desist Orders are available on NDBF’s website at www.ndbf.nebraska.gov.

NDBF strongly cautions investors on conducting business over the Internet with financial companies with whom they are unfamiliar. In many cases, the investor is told to wire money or send a prepaid card, often to a location outside the United States. In other cases, the investors are instructed to send bitcoin to fund their investment. Investors never receive the promised return and cannot recover their money. Furthermore, these investors may be asked to provide personal information such as social security numbers and bank account numbers to the Internet company, which makes them prime targets for identity theft.

More information about the laws governing the financial industries in Nebraska can be found on NDBF’s website. If you have questions about any investment matters, call NDBF at (402) 471-3445.

Crypto Cease and Desist Press Release

 Canadian FX Traders Cease & Desist Order

Crypto-Initiation Company Cease & Desist Order

####

CONTACT Claire McHenry, Deputy Director – Securities Bureau

PHONE 402-471-3445

EMAIL claire.mchenry@nebraska.gov

NDBF Alerts Nebraskans about Investments in Precious Metals and Self-Directed Individual Retirement Accounts

August 28, 2020 (LINCOLN, NEB.) – The Nebraska Department of Banking and Finance (NDBF) has recently received an increased volume of complaints related to investments in precious metals in self-directed individual retirement accounts. Precious metals such as gold and silver have been the subject of widespread advertising campaigns on television, online, and in print media. Such advertisements may emphasize the potential for large returns while downplaying any risks. Precious metal promotions may target seniors who may have concerns about protecting their long-term investments, including retirement accounts.

Companies may point to financial crisis or market volatility as evidence of greater stability and security available through precious metals as opposed to other investments.  Historically speaking, the value of gold-related investments fluctuates even more than the stock market. Gold often moves in reverse of stocks and bonds, so when stocks are down, gold seems like a very tempting investment.

Precious metals can be part of a well-diversified portfolio, but like all investment opportunities, an investment in precious metals involves risk. Individuals should not rely on claims in advertisements, word-of-mouth referrals, or “cold calling” tactics utilized by firms promoting these investments. Consumers should be particularly wary of aggressive sales tactics encouraging the liquidation of their existing portfolio in favor of investment in precious metals. NDBF strongly encourages any prospective investor to conduct thorough independent research on any opportunity prior to investing.

The Financial Industry Regulatory Authority (FINRA) issued an Investor Alert that provides tips for individuals considering an investment in precious metals:

1. Say “NO” to pushy salespeople.
2. Check out the salesperson’s background before you invest.
3. Be on high alert when you hear “low risk”.
4. Look out for leverage risk.
5. Get a full accounting of fees.

Using these strategies can help you understand the benefits and risks of a prospective investment, avoid surprise costs or fees, and protect yourselves from fraud.

Self-Directed Individual Retirement Accounts (IRAs)

Precious metals companies may also encourage individuals to open a self-directed IRA. As with other IRAs, the owner of a self-directed IRA invests funds in various assets and a custodian holds the IRA on the owner’s behalf. Yet while most IRA investments are limited to common securities like stocks or bonds, self-directed IRAs allow for investment in alternative assets. These alternative assets, including cryptocurrencies and precious metals, are riskier investments than those permitted by most IRA custodians. Self-directed IRA custodians have only limited duties to make sure that the alternative assets – and the promoter selling them – are legitimate.  Unscrupulous investment promoters may exploit self-directed IRAs because they permit investors to hold riskier assets, including those not registered as securities.

Anyone considering a self-directed IRA should obtain as much information as possible prior to investing, including:

• Duties and responsibilities of the IRA custodian.
• Fees associated with the account.
• Tax consequences of opening, investing in, or withdrawing from a self-directed IRA.
• Specific details regarding the alternative assets in which funds will be invested.

NDBF also recommends working with individuals and firms that are registered to sell securities and to verify their background and registration status.  Background information on registered individuals and firms is available through NDBF. In addition, you may obtain information regarding a broker or investment adviser through FINRA’s Broker Check database at BrokerCheck.FINRA.org or through the SEC’s Investment Adviser Public Disclosure website at AdviserInfo.SEC.gov.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call Nebraska Department of Banking and Finance at 402-471-3445.

Precious Metals Investor Alert 8.2020.pdf

###

May 1, 2020.  Nebraska Department of Banking and Finance Director Mark Quandahl has designated the Nebraska Bankers Insurance and Services Company (NBISCO) as the Administrator of the Single Bank Pooled Collateral program for the State of Nebraska.

Notice of Intent to Award

And

Public Comment Period

April 16, 2020

The Nebraska Department of Banking and Finance states its intention to designate an Administrator of the Single Bank Pooled Method (SBPM) on or about May 1, 2020.

Pursuant to:  Nebraska Department of Banking and Finance RFP 2020-001

For:     Administrator of Single Bank Pooled Method

Intended appointee:   Nebraska Bankers Insurance and Services Company (NBISCO)

Any member of the public may comment on this notice of intent to award, the contents of RFP 2020-001, the intended appointee and the proposal response of the Nebraska Bankers and Insurance and Services Company from this date until 5:00 pm (the close of business) on April 30, 2020 by emailing said comments to mark.quandahl@nebraska.gov

Nebraska Department of Banking and Finance

By Mark Quandahl, Director

Notice of Intent to Award.pdf

Please note the updates to the schedule for RFP 2020-001.

Activity
Date/Time

5. Oral Interviews, Presentations and/or Demonstrations
03/13/2020 through 04/03/2020

6. Post “Notification of Intent to Appoint” on internet 

04/10/2020

7.  Public Comment Period
04/13/2020 through 04/27/2020

8.  Contract Finalization period  
04/10/2020 through 04/30/2020

9.  Designation/appointment       
05/01/2020*

10.  Protest Period for non-appointed applicants 
05/04/2020 through 05/15/2020*

11.  Administrator Start Date   
07/01/2020*

* Unchanged from previous activity schedule of events

RFP 2020-001 Schedule Update 20200330

NDBF Urges Nebraskans to Beware of Con Artists Looking to Profit from Coronavirus Fear and Uncertainty

March 9, 2020 (LINCOLN, NEB.)  — In light of the ongoing developments related to the current coronavirus (COVID-19) situation, and its impact on financial markets, the Nebraska Department of Banking and Finance (NDBF) is urging Nebraskans to beware of con artists seeking to capitalize on fear and uncertainty.

“We know con artists are opportunistic and use current events to cloak their schemes with an air of immediacy and legitimacy. Never make an investment decision without understanding what you are investing in, who you are doing business with, where your money is going, how it will be used, and how you can get it back,” said NDBF Deputy Director Claire McHenry. “Always ask if the salesperson and the security are registered with their state or provincial securities regulator.”

Deputy Director McHenry also said investors should be on the lookout for scam artists trying to use the market downturn and the coronavirus to scare investors into so-called “safer, guaranteed investments.” “If you have concerns about your retirement accounts or investments, talk to your financial professional,” Deputy Director McHenry said. “Avoid making decisions based on panic or fear.”

To help investors identify common telltale signs of possible investment fraud, NDBF has provided three questions to ask before making a new investment.

• First, is the investment being offered with a guaranteed high return with little or no risk?

All investments carry risk that you may potentially lose some or all of your money. Anyone who says their investment offer has no risk is lying. No one can guarantee an investment return.

• Second, is there a sense of urgency or limited availability surrounding the investment?

If the offer is legitimate, it will be there later. If someone offers you a “can’t miss” investment opportunity and puts you on the spot, do not be afraid to walk away.

• Third, is the person offering the investment, and the investment itself, properly licensed or registered?

For the same reasons you would not go to an unlicensed doctor or dentist, you should avoid unregistered investment salespeople and their products.

“Make sure you have all the facts before you hand your money over to someone else to invest,” Deputy Director McHenry said. Deputy Director McHenry also encourages investors to contact NDBF with any questions about the investment professional they are working with or the product being offered.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

#####

Press Release - Coronavirus March 9 2020.pdf

NDBF Closes Ericson State Bank, Ericson, Nebraska

Contacts:

Mark Quandahl, Director                                       Patricia Humlicek Herstein, General Counsel

402-417-8982                                                          402-525-8312                                                                                                

mark.quandahl@nebraska.gov                               patricia.herstein@nebraska.gov

Main Office:  402-471-2171                                         

FOR IMMEDIATE RELEASE

February 14, 2020 (Lincoln, Neb.) – The Nebraska Department of Banking and Finance (NDBF) announced that at 4:00 p.m. today it closed Ericson State Bank, Ericson, Nebraska, because it was insolvent.  NDBF had been closely monitoring the bank for some time and recently made a demand for a capital injection, which was not met.

NDBF named the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank.  The FDIC has entered into a purchase and assumption agreement with Farmers and Merchants Bank, Milford, Nebraska.  The transaction includes the assumption of all customer deposits.  The sole office of Ericson State Bank, located at 427 Central Avenue, Ericson, Nebraska, will be open for business on Tuesday, February 18, 2020, under the name, Farmers and Merchants Bank.  Farmers and Merchants Bank is owned by Country Bank Shares, Inc., Milford, Nebraska.

“The failure of Ericson State Bank resulted primarily from large out-of-territory commercial loan losses and poor management practices which led to a deterioration of the bank’s capital.  When the capital was not replenished, the Department was left with no option but to place the insolvent institution in receivership,” said Mark Quandahl, NDBF Director.  Quandahl noted that the overwhelming majority of Nebraska banks are in a strong condition.

Ericson State Bank was chartered in 1959, and is a subsidiary of Wheeler County Bancshares, Inc., a one-bank holding company, located in Ericson, Nebraska, owned by Debra Poulsen and Jack Poulsen.  As of December 31, 2019, Ericson State Bank had total assets of approximately $100.9 Million and total deposits of approximately $95.2 Million. 

A copy of a 2019 NDBF regulatory action against the bank can be found at http://www.nebraska.gov/ndbf/searches/Orders/20190923_EricsonStateBank_ConsentOrder.pdf

The most recent closures of Nebraska state-chartered banks occurred November 4, 2011, when Mid City Bank, Inc., Omaha, Nebraska, was declared insolvent, and February 13, 2009, when NDBF closed Sherman County Bank, Loup City, Nebraska.  Mid City Bank, Inc. was purchased by Premier Bank, formerly known as Purdum State Bank, Purdum, Nebraska.  Sherman County Bank was purchased by Heritage Bank, headquartered in Wood River, Nebraska.  Prior to the Loup City closing, no state-chartered bank had been closed since 1989.

Customers with questions about today's transaction should call the FDIC toll-free at

1-877-367-2717.

Interested parties may also visit the FDIC website:      

https://www.fdic.gov/bank/individual/failed/banklist.html

Statistical data about the bank may be found at: https://www7.fdic.gov/idasp/confirmation_outside.asp?inCert1=18265

********************************************************************************

• Mark Quandahl and Patti Herstein will be available between 4:00 p.m. – 6:00 p.m. CST on Friday, February 14.

• Mark Quandahl will be available on Saturday, February 15, 9:00 a.m. – 4:00 p.m. CST.

• The NDBF main office will be closed for the weekend and the Presidents’ Day Holiday on Monday, February 17, and will reopen Tuesday, February 18, from 8:00 a.m. – 5:00 p.m. CST

********************************************************************************

A copy of the official release is here:

NDBF Press Release Insolvent Bank Closure 2-14-2020

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2019 RENEWAL DEADLINE

November 1, 2019 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2019. Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date. Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2020.

State-registered investment adviser and investment adviser representative deadlines:

• By December 20, 2018 – Submit Nebraska specific forms and documentation to NDBF

• Before December 26, 2018 – Submit renewal payments through CRD/IARD

• Before December 26, 2018 – Submit required electronic form filings through CRD/IARD

FINRA broker-dealer and agent deadlines:

• Before December 26, 2018 – Submit renewal payments through CRD/IARD

• Before December 26, 2018 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF by December 20, 2019

###

2020 Non FINRA Renewal Notice and Checklist.pdf

2020 IA Renewal Notice.pdf

Nebraska Department of Banking and Finance

September 27, 2019

Notice of Request for Information

The Nebraska Department of Banking and Finance has issued a Request for Information for gathering information from qualified parties interested in serving as administrator of a Single Bank Pooled Collateral program as set forth in LB 622 of the 2019 Nebraska Legislature.

The due date and time for responses to the RFI is 2:00 p.m. Central Daylight Time on November 1, 2019.

All information pertinent to this request can be found on the Department’s webpage at https://ndbf.nebraska.gov/

Questions regarding the RFI should be submitted to Nebraska Department of Banking and Finance Director Mark Quandahl at mark.quandahl@nebraska.gov

RFI Pooled Collateral 2019 FINAL September 19 2019

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on August 19, 2019, commencing at 1:30 p.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following changes to the Rules and Regulations of the Department:

1) The proposed revision of 48 NAC Chapters 2, 4, 5, 7, 10, 12, 18, 20, and 21.

2) The proposed outright repeal of 48 NAC Chapters 17, 22-34, and 36.

48 NAC 2—Definitions. The purpose of the proposed amendments is to repeal definitions that are no longer necessary due to the proposed amendments to 48 NAC 21, and the proposed outright repeal of 48 NAC 22-34, and 36. The proposal also clarifies existing definitions and adopts a definition of the term "Department."

48 NAC 4—Broker-Dealers. The purpose of the proposed amendments is to eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 5—Issuer-Dealers. The purpose of the proposed amendments is to eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 7—Investment Advisers. The purpose of the proposed amendments is to adopt cybersecurity requirements for investment advisers. In addition, the proposed amendments eliminate requirements for manual signatures and the payment of filing fees by physical checks or money orders.

48 NAC 10—Recordkeeping by Investment Advisers. The purpose of the proposed amendments is to amend recordkeeping requirements for investment advisers as related to cybersecurity.

48 NAC 12—Fraudulent, Dishonest and Unethical Business Practices. The purpose of the proposed amendments is to provide that an investment adviser’s use of a client’s password to access the client’s account is a dishonest and unethical business practice. The rule further provides that an investment adviser’s failure to establish, maintain and enforce a required policy is a dishonest and unethical business practice.

48 NAC 17—Uniform Limited Offering Exemption. This chapter is proposed for outright repeal as such rule is no longer necessary as a result of the United States Securities and Exchange Commission’s repeal of Regulation D, Rule 505, 17 CFR 230.505.

48 NAC 18—Information Requirements for the Section 8-1111(20) Nebraska Intrastate Issuer Exemption. The purpose of the proposed amendments is to eliminate

requirements for manual signatures and the payment of filing fees by physical checks or money order.

48 NAC 20—Federal Covered Securities. The purpose of the proposed amendments is to eliminate the requirement that issuers offering securities in Nebraska pursuant to the Securities & Exchange Commission ("SEC") Regulation A, Tier 2 use a broker-dealer, provided no commissions or other remuneration are paid as provided by LB 259 (2019). The proposal also eliminates requirements that filing fees be paid by physical check or money order.

48 NAC 21—Underwriting Expenses, Underwriter’s Warrants, Selling Expenses, and Selling Securities Holders. The purpose of the proposed amendment is to replace this rule with a rule captioned "North American Securities Administrator Association Statements of Policy." The rule incorporates by reference Statements of Policy adopted by the North American Securities Administrators Association ("NASAA") and requires issuers registering offerings to comply with the requirements of the Statements of Policy. The following NASAA Statements of Policy are proposed for adoption:

1) "Statement of Policy Regarding Corporate Securities Definitions" as amended on May 6, 2018.

2) "Statement of Policy Regarding Underwriting and Selling Expenses, Underwriter’s Warrants and Selling Expenses" as amended on May 6, 2018.

3) "Statement of Policy Regarding Promotional Shares" as amended on March 31, 2008.

4) "Statement of Policy Regarding Promoters’ Equity Investment" as amended on September 11, 2016.

5) "Statement of Policy Regarding Loans and Other Material Transactions" as amended on May 6, 2018.

6) "Statement of Policy Regarding the Impoundment of Proceeds" as amended on March 31, 2008.

7) "Statement of Policy Regarding Unequal Voting Rights" as amended on September 11, 2016.

8) "Statement of Policy Regarding Specificity in Use of Proceeds" as amended on September 11, 2016.

9) "Statement of Policy Regarding Unsound Financial Condition" as amended on May 6, 2018.

10) "Statement of Policy Regarding Debt Securities" as adopted on April 25, 1993.

11) "Statement of Policy Regarding Preferred Stock" as amended on September 11, 2016.

12) "Statement of Policy Regarding Options and Warrants" as amended on March 31, 2008.

13) "Statement of Policy Regarding Real Estate Investment Trusts" as amended on May 7, 2007.

14) "Statement of Policy Regarding Real Estate Programs" as amended on May 7, 2007.

15) "Registration of Oil and Gas Programs" as amended on May 6, 2012.

16) "Registration of Publicly-Offered Cattle Feeding Programs" as adopted on September 17, 1980.

17) "Registration of Commodity Pool Programs" as amended on May 6, 2012.

18) "Equipment Programs" as amended on May 6, 2012.

19) "Registration of Asset Backed Securities" as amended on May 6, 2012.

20) "Statement of Policy Regarding Church Extension Fund Securities" as amended on April 18, 2004.

21) "Mortgage Program Guidelines" as amended on May 7, 2007.

22) "Omnibus Guidelines" as amended on May 7, 2007.

23) "Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures" as adopted on May 7, 2017.

48 NAC 22—Promotional Shares. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 23—Promoter’s Equity Investment. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 24—Loans and Other Material Affiliated Transactions. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 25—Impoundment of Proceeds. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 26—Unequal Voting Rights. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 27—Specificity Regarding Use of Proceeds. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 28—Unsound Financial Condition. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 29—Debt Securities. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 30—Preferred Stock. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 31—Options and Warrants. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 32—Real Estate Investment Trusts. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 33—Limited Partnerships. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 34—Registration of Asset Backed Securities. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

48 NAC 36—General Obligation Financing by Religious Denominations. This chapter is proposed for outright repeal due to the adoption of the NASAA Statements of Policy in the proposed amendments to 48 NAC 21.

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84-907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, 1201 N Street, Suite 120, Lincoln, Nebraska 68509. In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing. Interested persons may also submit written comments to the Department of Banking and Finance prior to the hearing, which comments will be made part of the hearing record at the time of the hearing.

If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 11th day of July, 2019.

Claire McHenry, Deputy Director—Securities

Nebraska Department of Banking and Finance

• Title 48 Changes
  • TITLE 48 CHAPTER 02.pdf
  • TITLE 48 CHAPTER 04.pdf
    • TITLE 48 CHAPTER 4 Appendix.pdf
  • TITLE 48 CHAPTER 05.pdf
  • TITLE 48 CHAPTER 07.pdf
    • TITLE 48 CHAPTER 7 Appendix.pdf
  • TITLE 48 CHAPTER 10.pdf
    • TITLE 48 CHAPTER 10 Appendix.pdf
  • TITLE 48 CHAPTER 12.pdf
    • TITLE 48 CHAPTER 12 Appendix.pdf
  • TITLE 48 CHAPTER 17.pdf
  • TITLE 48 CHAPTER 18.pdf
    • TITLE 48 CHAPTER 18 Appendix.pdf
  • TITLE 48 CHAPTER 20.pdf
    • TITLE 48 CHAPTER 20 Appendix.pdf
  • TITLE 48 CHAPTER 21.pdf
  • TITLE 48 CHAPTER 22.pdf
  • TITLE 48 CHAPTER 23.pdf
  • TITLE 48 CHAPTER 24.pdf
  • TITLE 48 CHAPTER 25.pdf
  • TITLE 48 CHAPTER 26.pdf
  • TITLE 48 CHAPTER 27.pdf
  • TITLE 48 CHAPTER 28.pdf
  • TITLE 48 CHAPTER 29.pdf
  • TITLE 48 CHAPTER 30.pdf
  • TITLE 48 CHAPTER 31.pdf
  • TITLE 48 CHAPTER 32.pdf
  • TITLE 48 CHAPTER 33.pdf
  • TITLE 48 CHAPTER 34.pdf
  • TITLE 48 CHAPTER 36.pdf
  • Fiscal Impact Statement

   

• NASAA Statement of Policy
  • Asset Backed Securities
  • Cattle Feeding Programs
  • Church Extension Fund Securities
  • Commodity Pool Programs
  • Corporate Securities Definitions
  • Debt Securities
  • Electronic Offering Documents and Electronic Signatures
  • Equipment Programs
  • Impoundment of Proceeds
  • Loans and Other Material Transactions
  • Mortgage Program Guidelines
  • Oil and Gas Programs
  • Omnibus Guidelines
  • Options and Warrants
  • Preferred Stock
  • Promoters Equity Investment
  • Promotional Shares
  • Real Estate Investment Trusts
  • Real Estate Programs
  • Specifity in Use of Proceeds
  • Underwriting Expenses
  • Unequal Voting Rights
  • Unsound Financial Condition

May 20, 2019 (LINCOLN, NEB.) — Investors are increasingly turning to robo-advisers to help them manage their portfolios. Easy-to-use smartphone apps and online portals make setting up an account with a robo-adviser convenient and quick, which is contributing to their increasing popularity.

The Nebraska Department of Banking and Finance (NDBF) today issued an investor awareness advisory providing information and resources to help investors better understand robo-advisers. The advisory discusses how robo-advisers work and things to consider when investing with a robo-adviser.The full advisory is available on the agency’s website here https://ndbf.nebraska.gov/about/news-publications.

Robo-advisers are relatively new to the investing landscape. Before making any financial decisions, ask questions, do your homework.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

###

Consumer Advisory - Robo-Advisers.pdf

Informed Investor Advisory - Robo-Advisers.pdf

April 22, 2019 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) today announced that the North American Securities Administrators Association’s (NASAA) Electronic Filing Depository (EFD) System has been expanded to accommodate the electronic filing of Form NF-UIT notice filings for unit investment trusts (UITs) with the NDBF.

Developed by NASAA, the EFD System was launched in 2014 and was initially used to facilitate the filing of Form D for Regulation D, Rule 506 offerings with state securities regulators and to pay related fees.

“By continuing to embrace technology, states are providing more innovative capital formation solutions to benefit issuers and investors alike,” NDBF Deputy Director Claire McHenry said.

Nebraska is among a growing number of states participating in the online filing of Form NF-UIT and among the 48 states participating in the online EFD system for Form D.  Future system enhancements are being considered to accommodate the electronic filing of Form NF-Mutual Funds and franchise filings.

The Department’s expansion of online filing for unit investment trusts  helps grow Nebraska and further the state’s mission of creating opportunities through more effective, more efficient and consumer focused state government.

The EFD website also enables the public to search and view, free of charge, filings made through EFD with state securities regulators. EFD is available at: https://www.efdnasaa.org.

“If you have questions about a particular offering, you should contact the NDBF,” McHenry said.

Issuers or investors with questions about EFD can contact the NDBF at (402) 471-3445.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Online UIT Filings.pdf

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Nebraska Energy Office 1% Energy Related Disaster loans through Nebraska Financial Institutions

Nebraska Financial Institutions should be aware of important changes to the Nebraska Energy Office’s Dollar and Energy Savings Loan Program. The NEO has adjusted its Dollar and Energy Savings Loan program to make it more attractive to Nebraska Financial Institutions and more helpful to Nebraskans affected by the recent weather disasters.

Effective immediately, the Nebraska Energy Office (NEO) is offering Dollar and Energy Savings Loan Program 1% loans to assist those impacted by floods to repair their homes, provided the home has not been condemned. 

Project applications need to be submitted to your Nebraska-based lender and the NEO office prior to installation for verification of compliance with program requirements.  However, if emergency improvements have been made, and you wish to apply for the 1% program with your lender, NEO will consider prior improvements provided installed equipment and materials meet program requirements.  NEO is also waiving the requirement that the property needs to be at least 5 years old for this offering.  

This program will end August 1, 2019.  All necessary project forms and additional information can be obtained here: 

Getting a Loan for Prequalified Projects. 

Additional questions, please contact energy@nebraska.gov

Representatives from Department of Banking and Finance and the Nebraska Energy Offices will hold a webinar to provide information and take questions from interested Nebraska Financial Institutions on the NEO’s Disaster Assistance 1% Dollar and Energy Savings Loan Program

Event Information:         Nebraska Energy Office 1% Disaster Loans

Time:                                 9:00 am CST to 10:00 am CST  April 12, 2019

https://nvcn-cio.webex.com/nvcn-cio/onstage/g.php?MTID=e116112b646a7f8667e5861c73e9ab420

March 21, 2019 (LINCOLN, NEB.)  In the aftermath of widespread damage from the recent flooding throughout Nebraska, the Nebraska Department of Banking and Finance (NDBF) cautioned investors to watch out for opportunistic investment scams.

“Nebraskans have big hearts and are looking for ways to help out communities and neighbors impacted by flooding. However, we know from experience that financial predators are out there trying to seek profit from the misfortune of others,” said NDBF Director Mark Quandahl. “Unsolicited investment offers seeking to capitalize on the aftermath of the flooding should be approached with extreme caution.”

NDBF Deputy Director Claire McHenry reminded investors to watch for red flags of disaster-related scams, including unsolicited email, social media messages, crowdfunding pitches or telephone calls promoting investment pools or bonds to help flood victims, water-removal or purification technologies, electricity-generating devices and distressed real estate remediation programs. She said that scam artists may linger long after the flood waters have receded to prey on victims who anticipate receiving large lump-sum insurance settlements for damaged property and other losses.

NDBF offered three tips to help investors avoid disaster-related scams:
•Delete unsolicited emails or social media messages and hang up on aggressive cold callerspromoting flood-related investments, especially those from small companies touting unprovenor new technologies or products.
•Use common sense. Claims of guaranteed returns or low/no investment risk are classic redflags. Every investment involves some degree of risk.
•Do your homework. Contact NDBF to check that both the seller and investment are licensedand registered. If not, they may be operating illegally. Contact information for other statesecurities regulators is available on www.nasaa.org.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

NDBF Press Release - Nebraska Flooding - Scams Alert (03-21-2019)

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NDBF REMINDS DDS LICENSEES OF May 1, 2019 RENEWAL DEADLINE

The Nebraska Department of Banking and Finance ("NDBF") reminds DDS licensees holding an active Delayed Deposit Services license in Nebraska that it will expire on May 1, 2019.

Nebraska Statutes require that each Delayed Deposit Services Business renew its license annually. Be advised that Section 45-926 of the Delayed Deposit Services Licensing Act prohibits the operation of a Delayed Deposit Services business without a license. Your current license will expire on May 1, 2019.

The 2019 Delayed Deposit Services Renewal Licensing Forms and Instructions are available on the Department web site at https://ndbf.nebraska.gov/industries/delayed-deposit-services-payday-len.... Licensees must use the licensing forms provided on the Department’s website. Forms from previous years will not be accepted.

To renew a DDS Business License, a licensee must submit the following:

1) Delayed Deposit Services Business License Renewal Application and Fee- MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE AND BE POSTMARKED NO LATER THAN APRIL 12, 2019.

 Companies holding licenses in more than one county, all principal places of business and branches may be submitted on one application.

 When you submit the license renewal application, you must include the appropriate renewal fees. The renewal fee is $500 for each principal place of business and $500 for each branch office.

2) Delayed Deposit Services Licensee Annual Report and Supplemental Annual Report for 2018- MUST BE ELECTRONICALLY SUBMITTED TO DOB.CONSUMERFINANCE@NEBRASKA.GOV NO LATER THAN APRIL 12, 2019.

 Annual Report and Supplemental Annual Report for 2018 must be submitted for each license #.

3) Delayed Deposit Services Licensee Annual Report- Affidavit

 Upon approval of the Annual Report and Supplemental Annual Report, the Department will email the Licensee’s Primary Contact the required Affidavit to be signed and notarized. The individual signing this form is affirming that to the best of his or her knowledge the information contained in the Annual Report is true.

 The completed Affidavit MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE.

ONCE APPROVED, RENEWAL LICENSES AND CERTIFICATES OF BRANCH APPROVAL WILL BE MAILED TO THE PRINCIPAL PLACE OF BUSINESS.

You must still file an Annual Report and Supplemental Annual Report, even if you are not renewing your DDS license.

If you have questions, please email dob.consumerfinance@nebraska.gov and include your company name and license number in the subject line or call 402-471-2171.

2018 Annual Report

DDS Business License Renewal Application 2019

DDS 2018 Supplemental Annual Report

Electronic Surety Bond Adoption

EFFECTIVE February 1, 2019

On January 25, 2019 the Director of the Nebraska Department of Banking and Finance signed the Order Adopting Acceptance of Electronic Surety Bonds for Mortgage Bankers, Installment Loan Licensees, Installment Sales Licensees and Money Transmitter Licensees.  Effective February 1, 2019, Electronic Surety Bond (ESB) tracking will be managed through NMLS for the following license types:

•             Mortgage Banker License

•             Mortgage Banker Registration

•             Installment Loan License

•             Installment Sales License

•             Installment Sales Registration

•             Money Transmitter License

Management of ESBs through NMLS will allow for the tracking of surety bond requirements and the maintenance of surety bond information validated by authorized surety companies and/or surety bond producers. After February 1, 2019, new company license applications will be required to meet all surety bond requirements by completing the electronic process. Current licensees must convert all existing surety bonds to NMLS via the submission of an ESB by the date listed on the Conversion Plan found on the State Licensing Requirement page of the NMLS Resource Center. Please thoroughly review the Conversion Plan and take the necessary steps to convert existing surety bonds by the January 31, 2020 deadline. Failure to complete the conversion process may affect your company’s ability to renew your license for the next year. Refer to the renewal section of the Conversion Plan for more information. 

Licensees must first grant authority to their surety bond company/producer in NMLS, and then contact the company/producer to prepare the ESB. See the ESB for Licensees page for resources and more information. As noted in the Conversion Plan, there is an ESB Quick Guide on the NMLS Resource Center for your reference. 

If you have any questions about the ESB adoption plan, feel free to contact this agency at 402-471-2171or by email at dob.mortgage@nebraska.gov.  When contacting this agency, please specify the type of license you are referring.

Electronic Surety Bond Adoption

November 30, 2018 (Lincoln, Nebraska) – Bruce A. Billesbach (“Billesbach”) of Blair Nebraska has been convicted of securities fraud in two Nebraska counties. Billesbach sold investment interests to Nebraska residents to fund an options and futures trading program operated by him. Billesbach fraudulently failed to provide material information to the investors in his offer and sale of securities to them.  Billesbach was sentenced to a total of ten years of probation in Douglas County and five years of probation in Washington County.  In addition, Billesbach was ordered to pay restitution totaling $70,000. 

The Nebraska Department of Banking and Finance investigated the transactions and initiated criminal referrals to prosecutors in Douglas and Washington counties.

More information about the laws governing the securities industry in Nebraska can be found on the Department’s website at www.ndbf.nebraska.gov. If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Nebraska man convicted of Securities Fraud.pdf

####

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2018 RENEWAL DEADLINE

November 2, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2018.  Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date.  Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2019.

State-registered investment adviser and investment adviser representative deadlines:

• By December 21, 2018 – Submit Nebraska specific forms and documentation to NDBF

• Before December 27, 2018 – Submit renewal payments through CRD/IARD

• Before December 27, 2018 – Submit required electronic form filings through CRD/IARD

  FINRA broker-dealer and agent deadlines:

• Before December 27, 2018 – Submit renewal payments through CRD/IARD

• Before December 27, 2018 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF by December 21, 2018.

2019 IA Renewal Notice.pdf

2019 Non FINRA Renewal Notice and Checklist.pdf

WATCH FOR SCAMS IN FLORENCE’S WAKE

September 18, 2018 (LINCOLN, NEB.) — In the wake of widespread damage caused by Hurricane Florence, the Nebraska Department of Banking and Finance (NDBF) cautioned investors to watch out for opportunistic investment or charitable scams.

“Natural disasters bring out the best and worst in people. While news stemming from Hurricane Florence has rightfully focused on the tireless efforts of first responders and neighbors helping neighbors, we know from experience that financial predators are lurking like snakes in the water to seek profit from the misfortune of others,” said Deputy Director Claire McHenry “Unsolicited investment offers seeking to capitalize on the aftermath of Hurricane Florence should be approached with extreme caution.”

McHenry reminded investors to watch for red flags of hurricane-related scams, including unsolicited email, social media messages, crowdfunding pitches or telephone calls promoting investment pools or bonds to help storm victims, water-removal or purification technologies, electricity-generating devices and distressed real estate remediation programs. She said scam artists may linger long after the storm has passed to prey on victims who anticipate receiving large lump-sum insurance settlements for damaged property and other losses.

The agency also cautioned about fraudulent charitable solicitations that prey on the goodness of people seeking to help those in need.

“There will be fraudulent solicitations for charities in Florence’s wake,” McHenry said. “Donors are reminded to do their research. As with any charitable contribution, those who want to contribute to relief efforts should send contributions to charitable organizations that are registered properly with state authorities and with an established track record of getting donations to victims.”

NDBF offered three quick tips to help investors avoid disaster-related scams:

• Delete unsolicited emails or social media messages and hang up on aggressive cold callers promoting hurricane-related investments, especially those from small companies touting unproven or new technologies or products.

   

• Use common sense. Claims of guaranteed returns or low/no investment risk are classic red flags. Every investment involves some degree of risk.

• Do your homework. Contact your state or provincial securities regulator to check that both the seller and investment are licensed and registered. If not, they may be operating illegally. Contact information is available on NASAA’s website.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Hurricane Florence.pdf

###

STATE RESIDENTS URGED TO BE ON GUARD AGAINST AFFINITY FRAUD

STATE REGULATOR WARNS INVESTORS NOT TO LET GUARD DOWN

August 16, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) issued a warning today for Nebraska residents to be on the lookout for affinity fraud.  Affinity fraud occurs when an investment promoter plays upon the fact that they share something in common with a potential investor – such as attending the same place of worship, being a member of the same race or ethnic group, or working in the same profession.  Investors are more likely to trust this type of salesperson. But after lowering their guard and giving their money to a promoter, they can end up losing their entire investment.

NDBF urges investors to not be taken in by testimonials from other group members who express enthusiasm for an investment’s success. “Many investors fall prey to promoters who may seem to share your values and life experiences,” said Deputy Director Claire McHenry. “But no matter who is promoting an investment opportunity, you should protect yourself by maintaining your skepticism and investigating before investing your money.” 

“While early investors may receive returns on their investments, scam artists frequently use money from later investors to pay high returns to early investors.  Those who invest at the later stages of the scam often lose all the money they thought they were investing,” McHenry said.

McHenry encourages investors to be leery about promises of “guaranteed” investments since all investments involve risk.  In addition, she said investors should be very skeptical when high rates of return are promised, especially when few investments are earning high returns. 

“Affinity fraud are some of the saddest cases that we see,” said McHenry, “because people not only lose their money but they’ve been betrayed by someone they trusted.”

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

20180816 - Consumer Advisory - Affinity Fraud

###

NDBF RECOGNIZES WORLD ELDER ABUSE AWARENESS DAY

WARNS OF THE DANGER SIGNS FOR SUSPECTED ABUSE BY GUARDIANS

June 15, 2018 (LINCOLN, NEB.) — In recognition of World Elder Abuse Awareness Day (WEAAD) today, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals and the public throughout Nebraska to be on the lookout for the red flags of suspected financial abuse, including potential abuse by guardians assigned to oversee the financial matters of seniors no longer able to do so for themselves.

"A trusted guardian can be a wonderful resource. But sometimes guardians may take advantage of the trust placed in them to look after the people or assets in their care," NDBF Deputy Director Claire McHenry said.

A guardian is a person or entity appointed by a court to exercise some or all authority over a person and/or estate. A guardian has power to make decisions related to the health and safety of the incapacitated person. Financial abuse by guardians occurs when the guardian improperly uses the protected individual’s financial assets.

"Fraudsters often target seniors for financial exploitation because they may be isolated from family, caregivers, and other support networks. That’s why it is important to know the red flags that could signal a senior’s savings may be in danger," Deputy Director McHenry said.

The North American Securities Administrators Association (NASAA), of which NDBF is a member, recently developed a resource to help call attention to the red flags of suspected guardian financial abuse. The "Guarding the Guardians" publication also provides examples of exploitation and information on how to report suspected abuse.

Suspected signs of guardian financial abuse include:

 Using guardianship authority to transfer property for the guardian’s benefit.

 Receiving personal payments from a protected individual without court permission.

 Authorizing frequent cash withdrawals from the protected individual’s accounts without explanation.

 Using or borrowing property for personal benefit without court authorization.

 Making unexplained decisions that are not in the protected individual’s best interest.

Deputy Director McHenry asks anyone with suspicions of possible exploitation by guardians to contact the agency at 402-471-2171.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - WEAAD

NDBF WARNS ABOUT FAKE FINANCIAL REGULATOR

JUNE 8, 2018 (LINCOLN, NEB.) - The Nebraska Department of Banking and Finance is warning Nebraska residents about an entity claiming to be a financial regulator.  The Federal Securities Trading Regulatory Board (“FSTRB”), with a website at www.fstrb.org claims to be operating from 201 North 8^th Street, Unit 210, Lincoln, Nebraska.  According to its website, the FSTRB is responsible to “oversee, administer, and enforce the federal securities laws related to Corporate Mergers & Acquisitions.”  The FSTRB also claims to license entities and individuals engaged in the financial industry, including broker-dealers, investment advisers, “deposit taking” institutions, and money transmitters.

The Department was contacted by a resident of Finland who reported that a group of investors were attempting to purchase the stock of a company located in Pennsylvania.  During the transaction, the FSTRB became involved in the facilitation of the sale of the stock.  As instructed by a FSTRB employee, the investors wired money to an account in the Philippines. 

The Department has confirmed that there is no entity calling itself the FSTRB located at the address listed on its website.  Furthermore, the FSTRB is not a legitimate financial regulator.  It appears that this entity and website were created to give credibility to securities transactions and to induce investors to wire funds to “purchase” the securities. 

On June 8, 2018, the Department issued a Cease and Desist Order against FSTRB ordering it to cease acting as a broker-dealer and to cease making false and misleading representations to investors, including representing that they are a regulatory agency. 

To help investors determine if they are dealing with a bogus regulator, the North American Securities Administrators Association, an organization consisting of state and provincial securities regulators, including the Department, identified the following warning signs:

1. You cannot find references to them on any other regulatory websites. If you cannot find information about the “regulator” on the site of the International Organization of Securities Commissions, www.iosco.org, they probably are not a legitimate regulator.

2. They endorse or approve any investment opportunity, stock, or company. Legitimate regulators are not in the business of promoting any deal, only enforcing securities laws and ensuring fair dealing.

3. They say that paying a fee to “release restricted shares” is anything other than an attempt to steal your savings. This is a common ploy, and a recent twist on age-old advance fee schemes.

4. Little or no information about the “regulator” appears in Internet search engines. Any legitimate regulator should generate hundreds of entries in any Internet search engine.

5. If you talk to other regulators, and they say they have “never heard of them,” you are most likely dealing with a fake regulator.

The Department strongly cautions consumers on conducting business over the Internet with financial companies with whom they are unfamiliar.  In many cases, the customer is told to wire money or send a money order, often to a location outside the United States. Consumers never receive the promised services and cannot recover their money.  Furthermore, these consumers may be asked to provide personal information such as social security numbers and bank account numbers to the Internet company, which makes them prime targets for identity theft. 

Individuals who conducted business with the FSTRB are asked to contact the Department.

A copy of the Cease and Desist Order is also available on the Department’s website at www.ndbf.nebraska.gov. 

More information about the laws governing the financial industries in Nebraska can be found on the Department’s website.  If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

FSTRB Cease and Desist Press Release

FSTRB Cease and Desist Order

The Federal Trade Commission issued a WESTERN UNION refund alert on March 22, 2018.  FRAUDSTERS are reportedly using official looking emails to collect information about your Western Union settlement.  FTC warns everyone, do not apply for a Western Union settlement refund on line, you must use the forms made available by the FTC.

If you lost money to scammers who had you pay using Western Union between January 1, 2004 and January 19, 2017, you can ask for your money back.

To learn more, follow the link to the Federal Trade Commission.

https://www.consumer.ftc.gov/blog/2018/03/western-union-refunds-scam-alert?utm_source=govdelivery

NDBF Announces New Resources and Tools for Choosing a Financial Professional

February 14, 2018 (Lincoln, Neb.)  — The Nebraska Department of Banking and Finance (“NDBF”) announced today a new resource, The Informed Investor Advisory: Financial Service Providers.  The advisory will help Nebraskans understand the different types of financial services providers, how to check out their background, and important questions to ask before signing a contract.

Nebraskans are also encouraged to check out a new online guide available at www.aarp.org/InterviewAnAdvisor that helps identify questions to ask before hiring a financial adviser.  Interview an Adviser is a free tool launched recently by AARP and the North American Securities Administrators Association (NASAA), of which the Department is a member.  The online tool does not require an AARP membership to use. 

“Many people would benefit from working with a financial professional.  It’s best to take the time and do your homework to understand the services they offer, their responsibilities to you, and what you will be paying.  However, many people don’t know where to start or what questions to ask,” says NDBF Deputy Director Claire McHenry.

The selection of any professional can be done best by following a step-by-step search process.  Check his or her credentials, experience, reputation and qualifications by using BrokerCheck.FINRA.org or contacting NDBF.  Identify your primary needs in seeking financial advice in order to evaluate each financial adviser you meet based on his or her ability to help fulfill those needs.  Ask a lot of questions to make sure the adviser is a good fit for you based on your financial situation and needs.  It is your responsibility and right to fully investigate the financial adviser's background, methods of practice, and credentials.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Informed Investor Advisory Financial Service Providers
Choosing Advisers and Planners Consumer Alert

The Nebraska Department of Banking and Finance has issued a Cease and Desist Order against Steve’s Payday Loans and its officers, directors, employees, and agents.  The Order prohibits Steve’s Payday Loans from deceptively claiming to be, and from operating as, a payday lender in Nebraska until the entity has obtained the required delayed deposit services business license in Nebraska.

NDBF Press Release - Steve's Payday Loans 12-5-2017

Steve's Payday Loans Cease and Desist Order

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2017 RENEWAL DEADLINE

The Nebraska Department of Banking and Finance (“NDBF”) reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2017.  Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date.  Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2018.

State-registered investment adviser and investment adviser representative deadlines:

• By December 22, 2017 – Submit Nebraska specific forms and documentation to NDBF
  ( see requirements)
• Before December 26, 2017 – Submit renewal payments through CRD/IARD
• Before December 27, 2017 – Submit required electronic form filings through CRD/IARD

FINRA broker-dealer and agent deadlines:

• Before December 26, 2017 – Submit renewal payments through CRD/IARD
• Before December 27, 2017 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF
( see requirements) by December 22, 2017.  

NDBF OFFERS NEW PUBLICATION ON RED FLAGS OF GUARDIAN FINANCIAL ABUSE

NOVEMBER 2, 2017 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) announced the availability of a new brochure, “Guarding the Guardians,” to help spotlight suspected guardian financial exploitation.

“Education is an investor’s best defense against this type of financial abuse. We are pleased to provide this free resource to the public to strengthen awareness of the warning signs of guardian financial abuse,” said Deputy Director Claire McHenry.

A guardian is a person or entity appointed by a court to exercise some or all authority over a person and/or estate. A guardian has power to make decisions related to the health and safety of the incapacitated person. Financial abuse by guardians occurs when the guardian improperly uses the protected individual’s financial accounts.

In addition to helping individuals identify suspected guardian abuse, the “Guarding the Guardians” brochure also provides examples of warning signs of exploitation and offers information on where to turn for help.

The brochure was developed by the North American Securities Administrators Association, of which NDBF is a member. A copy of the brochure is available on the agency’s website at www.ndbf.nebraska.gov/about/news-publications. To learn more about investor education resources available in Nebraska, contact the NDBF at (877) 471-3445 in Nebraska, or (402) 471-3445 for out of state. 

Guardian Brochure
Consumer Alert - Guardian Financial Abuse

Ohio Company Ordered to Stop Soliciting Investors

August 31, 2017 (Lincoln, Nebraska) – The Nebraska Department of Banking and Finance (“Department”) issued a Cease and Desist Order against an Ohio company known as A Voice 4 U, LLC; its President, Katrina S. Farmer (“Farmer”); and its affiliates, control persons, officers, directors, agents, and employees.  The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until the securities have been registered with the Department. The Order also prohibits the entity and individuals named from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with the Department.  

From 2012 to 2014, Farmer sold profit-sharing agreements in A Voice 4 U, LLC to investors in Nebraska. The profit-sharing agreements were not registered in Nebraska under the Securities Act of Nebraska. Neither A Voice 4 U, LLC nor Farmer were registered in Nebraska as a broker-dealer or agent of a broker-dealer.  The sale of unregistered securities and the solicitation of investments by unlicensed broker-dealers is illegal under Nebraska law.

Individuals who invested in the above securities are asked to contact the Department.

More information about the laws governing the securities industry in Nebraska can be found on the Department’s website at www.ndbf.nebraska.gov. If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

CONTACT: Thomas A. Sindelar, Investigation Supervisor
PHONE: (402) 471-2171
EMAIL: thomas.sindelar@nebraska.gov 

A Voice 4 U C&D
A Voice 4 U Consumer Alert

The Nebraska Department of Banking and Finance has adopted forms and guidelines to implement amendments to the laws governing the licensing of bank executive officers and credit union loan officers.  The amendments, adopted as part of LB 140 (2017), are effective August 24, 2017, and authorize exemptions from the licensing process.  The Department has also updated a number of related forms to reflect the amendments.

Click here for the Financial Institution Officer Exemptions

Securities Act of Nebraska Rules Effective

Comprehensive Securities Rules Update Announced

JUNE 20, 2017 (LINCOLN, NEB.) — The Nebraska Department of Banking & Finance (“Department”)
announces that amendments to its Rules under the Securities Act of Nebraska contained in Title 48 of
the Nebraska Administrative Code became effective June 5, 2017. These amendments represent the
first comprehensive amendments to these rules since 1999, as 33 of the 42 chapters in Title 48 were
amended.

The amendments reflect the Department’s goal of reducing regulatory complexity and promoting
uniformity while protecting investors and promoting capital formation in Nebraska. Highlights of the
amendments include the following:

• Implements filing requirements for Regulation A, Tier 2 Offerings,
•  Increases the maximum amount that can be raised pursuant to the Intrastate Offering Exemption, Section 8-1111(20) of the Securities Act of Nebraska, from $750,000.00 to $1,000,000.00,
•  Amends the information required to be submitted to the Department to request an Order Curing Late Notice for certain notice filings,
•  Adopts the most recent North American Securities Administrators Association (“NASAA”) Statements of Policy concerning the registration of securities in Nebraska,
•  Adopts the recent amendments to NASAA’s Brochure Rule for state -registered investment advisers,
•  Adopts NASAA’s model custody rule for state -registered investment advisers, which includes a definition of the term “custody”,
•  Adopts rules concerning succession planning for state-registered investment advisers, and
•  Repeals a rule concerning debt securities issued by a church or congregation

Copies of the updated regulations are available on the Department’s website.

The Department will be conducting compliance seminars with state-registered investment advisers to
discuss rule amendments affecting them. Details regarding the seminars will be forthcoming in the next
few weeks.

View Notice of New Securities Rules

On Thursday June 8, 2017, Department of Banking and Finance Legal Counsel Mike Cameron and Deputy Director Financial Institutions Kelly Lammers met with Girls State participants.  The discussion included the uniqueness of Nebraska Securities and Banking regulations, the volume of updates to laws and rules over this past year, and time for questions, which included interest in ID theft.  Pictured below in a State Capitol hearing room are Mike Cameron and Girls State delegates representing the communities of Friend, Hartington, Callaway, Scribner, Sutherland, Syracuse, Tekamah, Mullen, Wahoo, and Minden.

Papillion Company Ordered to Stop Soliciting Investors

The Nebraska Department of Banking and Finance (“Department”) has issued a Cease and Desist Order to Blazefly, Inc., Papillion, NE, its President Jamie Crager, and its affiliates, control persons, officers, directors, agents, and employees.  The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until the securities have been registered, and until the entity and individuals are registered as broker-dealers or agents of a broker-dealer with the Department.   

Blazefly Inc C&D
Blazefly Inc Order Affirming C&D
Consumer Alert Blazefly Inc May 2017

Comprehensive Banking Act Update Signed Into Law

LB 140 was signed into law by Governor Pete Ricketts on March 29, 2017, during a ceremony at the Nebraska State Capitol.  LB 140 is the first comprehensive revision of the Nebraska Banking Act since 1963.  LB 140 also updates related laws for banks and other financial institutions. 

In 2016, then Banking, Commerce and Insurance (BCI) Committee Chair Jim Scheer introduced Legislative Resolution 430, proposing to study whether the Nebraska Banking Act should be updated. Senator Scheer gathered legislators, BCI committee staff, banking and credit union industry professionals and Department of Banking and Finance (NDBF) staff into a working group, and led a seven-month section by section review and redrafting of the Act.  LB 140 is the product of the LR 430 study committee and reflects its goals:  reducing regulatory complexity and carefully updating the Act to reflect the current banking environment, while protecting consumers and preserving the public confidence in the financial institutions of Nebraska.

LB 140 was introduced by Senator Matt Williams, Vice Chair of BCI, who participated in the working group.  The bill as introduced encompassed 143 Pages and 157 Sections, consisting of a combination of new sections, repealed sections, and amendments of existing sections of the Banking Act. Among its provisions, LB 140 authorizes an increase in the maximum number of a bank board of directors from 15 to 25; prohibits bank-affiliated individuals from being paid a higher rate of interest on deposits than paid by the bank for similar deposits and provides that a violation is a Class IV felony; allows financial institutions, in a state of emergency, to open a temporary office to conduct business for up to 30 months; authorizes the Department to provide for the electronic filing of certain bonds; repeals a registration requirement for banks making personal loans; and clarifies merger and acquisition procedures. 

The Legislature incorporated three other bills into LB 140:  LB196, introduced by Sen. Joni Craighead at the request of NDBF, which provides an annual update of the equal rights laws for  state-chartered depository financial institutions with their federal counterparts, and LB341 and LB 454, introduced by current BCI Chair Sen. Brett Lindstrom, who participated in the LR 430 working group. These bills allow for an opt-out of licensing requirements for bank executive officers and credit union loan officers, respectively.   

With the exception of the three sections amended by former LB 196, which carried the emergency clause and became effective March 30, 2017, LB 140 will become effective on or about September 1, 2017. NDBF will provide detailed information on the changes prior to that date.   The Slip Law version of LB 140 can be viewed at http://nebraskalegislature.gov/bills/view_bill.php?DocumentID=30705

State Regulators Release BSA/AML Self-Assessment Tool

State regulators and the Conference of State Bank Supervisors (CSBS) have released a new voluntary self-assessment tool to help banks better manage Bank Secrecy Act and anti-money laundering risk. The tool is meant to help institutions better identify, monitor, and communicate BSA/AML risk, reduce uncertainty surrounding BSA/AML compliance and foster greater transparency within the industry. Learn more and access the tool at the CSBD WebSite.

Securities Rules Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on August 10, 2016, commencing at 9:30 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

Hearing Notice
Fiscal Impact Statement
Current Title 48 Securities Rules

Effective July 1, 2016, the Nebraska Department of Banking and Finance (NDBF) will require issuers filing pursuant to registration by coordination under Section 8-1106 of the Securities Act of Nebraska to file a separate Form U-1/Uniform Application to Register Securities for each distinctive share class to be offered. NDBF will receipt each share class under a separate and distinct state file number, applying the requisite fee to each filing accordingly. NDBF will no longer allow an issuer to reallocate fees between share classes of the offering after the initial filing is received and receipted.

A Bellevue area woman won this year’s DASH for the STASH in Nebraska. Eighteen Nebraska libraries and other locations participated in the contest from March 15-May 15, 2016. Much like a scavenger hunt, players gather information about saving and investing by going to participating locations, reading investor education posters, and answering questions. The posters covered four key topics: finding financial advisers, avoiding fraud, understanding investment fees, and building a nest egg. The winner was randomly selected from those players who correctly answered the questions and awarded $1,000 to open or add to an Individual Retirement Account (IRA).

NEBRASKA DEPARTMENT OF BANKING AND FINANCE, INVESTOR PROTECTION INSTITUTE TO OFFER $1,000 PRIZE IN “DASH FOR THE STASH” FINANCIAL LITERACY PUSH IN LIBRARIES

Public libraries and other institutions in Nebraska will participate in the DASH for the STASH investor education/protection program and contest taking place April 15-May 15, 2015 as part of Financial Literacy Month. Research shows that the four focuses of DASH for the STASH – financial fraud, building a nest egg, selecting financial advisers, and the cost of investment fees – are all topics about which many investors need to learn more.

Read more, including Contest Rules, Participating Libraries, and the Focus of the Contest

The Office of the Comptroller of the Currency (OCC) has issued a warning that the Web site "helpwithmybank.com," is attempting to masquerade as the legitimate Web site, "helpwithmybank.gov," and contains potentially damaging malware. The illegitimate site redirects the user to the legitimate site "helpwithmybank.gov" in an attempt to convince users that they are connecting to a legitimate site. Attempts to connect to the fake Web site could expose the user to harmful malware.

Any information that you may have concerning this matter should be brought to the attention of:

Email: occalertresponses@occ.treas.gov
Mail: Office of the Comptroller of the Currency Enforcement & Compliance Division, MS 8-10 250 E St. SW, Washington, DC 20219
Fax: (202) 874-5301

Lincoln, Neb., September 13, 2011 – Jack E. Herstein, Assistant Director of the Nebraska Department of Banking and Finance and head of the Department’s Bureau of Securities, begins his one-year tenure today as President of the North American Securities Administrators Association (NASAA). Herstein gave his inaugural address during the annual NASAA conference, being held this year in Wichita, Kansas. NASAA is celebrating 100 years of state securities regulation in the state which enacted the first laws to protect investors.

Full Press Release

Effective June 25, 2011, Chapters 1 and 15 of Title 48 of the Nebraska Administrative Code have been amended. Please ensure you have the most recent version of these Chapters.

Revised Chapter 1 updates the Department address.
Revised Chapter 15 provides for the filing of financial statements and sales reports by certain issuers claiming a transactional exemption from securities registration pursuant to 48 NAC 15 and Neb. Rev. Stat. § 8-1111(9). The revisions implement statutory changes enacted in 2010 and apply to issuers who make filings in five consecutive years or who sell in excess of $1 million dollars in securities.

The Department has updated its Delayed Deposit Services Interpretative Opinions and its Frequently Asked Questions document. The Interpretative Opinions were effective May 1, 2011, and include new Interpretative Opinion No. 7, which relates to Collection Items and the types of documentation that Department examiners will be looking for in collection files.

Click here for the DDS Interpretative Opinions.
Click here for the DDS FAQs.

Jack E. Herstein, Assistant Director of the Nebraska Department of Banking and Finance and head of the Department’s Bureau of Securities, has been elected President-Elect of the North American Securities Administrators Association (NASAA). Organized in 1919, NASAA is the oldest international organization devoted to investor protection. It is a voluntary association whose membership consists of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.

Full Press Release

The Nebraska Department of Banking and Finance is warning Nebraska residents about two Internet-based companies offering personal loans to consumers. Barstow Brokers claims to be based at 11110 Fort Street, Suite 201, Omaha, Nebraska, and 1st Liberty Financial Corporation lists its address as 2900 South 70th Street, Suite 200, Lincoln, Nebraska. The Department has verified that the companies do not have offices at the addresses listed. Both companies require potential borrowers to pay fees between $200 and $1,500 in advance of funding any loan. The Department urges consumers to exercise extreme caution when completing online loan applications which require personal information. Money is often not the only thing scammers are seeking; many are after personal information. With the application, the scammer has access to a consumer’s Social Security number, credit card numbers, and bank account information.

Full Press Release
 

Information for Customers of TierOne Bank, a Federal Savings Bank, Insolvent The Federal Deposit Insurance Corporation (FDIC) was named receiver of TierOne Bank, FSB, after it was closed by the Office of Thrift Supervision on June 4, 2010. Customers of TierOne Bank who have questions or concerns are strongly urged to review a special FDIC website for TierOne Bank: http://www.fdic.gov/bank/individual/failed/tieronebankne.html.

Great Western Bank, 3405 South Sycamore Avenue, Sioux Falls, South Dakota 57110, assumed all the deposits and purchased assets of TierOne Bank from the FDIC. Contact with Great Western Bank may be by telephone at 605-371-9708, or through its website, www.greatwesternbank.com

The Department cautions customers of TierOne Bank that customers of failed financial institutions are prime targets for attempts at identity theft. Neither the FDIC nor the purchasing bank will send emails requesting private information such as social security numbers, account numbers, or account passwords. Do not respond to, and immediately delete, any such emails.

The Nebraska Department of Banking and Finance today announced that it has joined a 35 State settlement agreement with CitiFinancial and its mortgage lending entities. The agreement between CitiFinancial and state mortgage regulators was executed after an examination conducted by the Massachusetts Division of Banks to determine compliance with state and federal consumer protection laws. The examination found that CitiFinancial had failed to report 91,127 residential mortgage loans to the federal government as required by the Home Mortgage Disclosure Act (HMDA), including 472 Nebraska loans that were not reported. The mortgage loans that were omitted from CitiFinancial’s HMDA Loan Application Register were originated between 2004 through 2007. The underreporting of the mortgage loans was apparently caused by an internal systems error at CitiFinancial that went undetected until the Massachusetts examination.

Read Press Release

The Nebraska Department of Banking and Finance has issued a Cease and Desist Order and an Order to Show Cause against Envision Investment Advisors, LLC, 1065 North 115th Street, Suite 150, Omaha, Ne, and Ryan Jindra, its President and Chief Executive Officer. Envision is an investment advisory firm registered with the Department and the Securities and Exchange Commission (SEC).

Read News Release
Order to Cease and Desist
Order to Show Cause

The Department issues a warning of a scam targeting consumers who want to become mystery shoppers. A company calling itself Global Compliance, Inc., offers consumers an opportunity to participate in a paid customer research program known as “mystery shopping” or “secret shopping.” The Department has verified that the company does not have offices at the addresses listed.

Read News Release

The Nebraska Department of Banking and Finance (NDBF) announced that at 4 p.m. Feb. 13, it closed Sherman County Bank of Loup City, Nebraska. The bank’s branch offices in Farwell, Dannebrog and St. Paul, which operated under the name Howard County Bank, were also closed. The NDBF had been closely monitoring the bank and had ordered it to increase its capital reserves to a safe level. However, efforts by the bank to do so were unsuccessful. The Department named the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank. The FDIC has entered into a purchase and assumption agreement with Heritage Bank headquartered in Wood River, Nebraska, to assume all of the deposits. Heritage Bank has branch offices in Aurora, Doniphan, Grand Island, Hastings, Kearney, Neligh and Stromsburg, as well as mobile branches in Adams, Buffalo and Hall counties. Customers who have questions regarding Sherman County Bank and their accounts can call the FDIC toll free at 1-800-823-5346. Customers can also visit the FDIC’s website at www.fdic.gov for more information.

Read News Release

The Nebraska Department of Banking and Finance is warning consumers about an apparent online lending fraud involving an Internet-based lender, USA Financial Center, which listed its address as 1033 O Street, Suite 600, in Lincoln, Ne. The Department has verified that the company was not licensed and does not have an office at that location.

Read News Release

The Nebraska Department of Banking and Finance is issuing a warning of yet another scam targeting consumers who use Internet-based companies to borrow money. This time, a company calling itself Penbrook Financial Group, which lists its address as 6910 Pacific Street, Omaha, NE, offers personal loans to consumers and requires up-front "collateral payments" in advance of funding a loan. In this case, the company required a borrower to make four monthly payments totaling $2,460 prior to securing the loan. The Department has verified that the company does not have an office at the address listed.

Read News Release

Attorney General Jon Bruning and John Munn, Director of the Nebraska Department of Banking and Finance (NDBF), announced that the State is suing Omaha-based Advantage Mortgage Service, Inc., a mortgage brokerage firm, and its principal owners and operators for predatory lending practices. The NDBF is also instituting license revocation proceedings.

View the news release
Read the Administrative Order
Read the Court Filed Complaint

Nebraska Department of Banking and Finance Director John Munn issued a consumer advisory today urging Nebraskans facing the possibility of foreclosure on a home mortgage to be cautious when working with foreclosure rescue consultants and companies. Recent inquiries to the Department regarding foreclosure have prompted Department officials to warn Nebraskans of the potential risks associated with foreclosure rescue services.

View the press release

The Nebraska Department of Banking and Finance (NDBF) issued an Order to Cease and Desist on May 22,2007, against Northern Utilities, LLC, 2840 South 70th Street, #360, Suite 7, Lincoln, and two managing members, David R. Anderson and Trent P. Anderson. The Order states that Northern Utilities is offering $48,000,000 in membership interests to finance the development of an ethanol plant in Bradshaw, Nebraska.

View the press release