§ 8-126. Bank directors; qualifications; approval by department; revocation of approval; procedure.
AI-assisted research summary: Bank directors must meet character and experience standards, and no one may serve on a bank board until the bank gets department approval.
(1) Reasonable efforts shall be made for a majority of the members of the board of directors of any bank to have their primary residences (a) in this state, (b) within twenty-five miles of the main office of the bank, (c) in the county in which the main office of such bank is located, or (d) in counties in which branches of such bank are located. (2) Directors of banks shall be persons of good moral character, known integrity, business experience, and responsibility. No person shall act as a member of the board of directors of any bank until such bank applies for and obtains approval from the department. (3) If the department, upon investigation, determines that any director of a bank is conducting the business of the bank in an unsafe or unauthorized manner or is endangering the interests of the stockholders or depositors, the Director of Banking and Finance has the authority, following notice and opportunity for hearing, to revoke such approval to act as a member of the board of directors. (4) The Director of Banking and Finance may adopt and promulgate rules and regulations and prescribe forms to carry out this section. History: Laws 1909, c. 10, § 12, p. 71; R.S.1913, § 291; Laws 1919, c. 190, tit. V, art. XVI, § 10, p. 689; Laws 1921, c. 313, § 1, p. 1001; C.S.1922, § 7991; C.S.1929, § 8-121; Laws 1935, c. 7, § 1, p. 70; C.S.Supp.,1941, § 8-121; R.S.1943, § 8-118; Laws 1959, c. 15, § 2, p. 132; R.R.S.1943, § 8-118; Laws 1963, c. 29, § 26, p. 144; Laws 1973, LB 164, § 11; Laws 1986, LB 1035, § 1; Laws 1987, LB 2, § 7; Laws 1988, LB 996, § 1; Laws 1989, LB 322, § 1; Laws 1993, LB 81, § 2; Laws 1997, LB 137, § 3; Laws 1998, LB 1321, § 7; Laws 2017, LB140, § 26; Laws 2025, LB250, § 1.