§ 8-916. Bank subsidiary; powers; depository institution; limitations; agency relationship; limitations.
AI-assisted research summary: Bank subsidiaries and certain savings associations may act as agents for depository institutions, but depository institutions cannot use agency arrangements to do activities they could not do as principals.
(1) Any bank subsidiary of a bank holding company may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for a depository institution without regard to the location of the depository institution. (2) Notwithstanding any other provision of law, a bank acting as an agent in accordance with this section for another depository institution shall not be considered to be a branch of the other depository institution. (3) A depository institution shall not: (a) Conduct any activity as an agent under subsection (1) or (6) of this section which such institution is prohibited from conducting as a principal under any applicable law; or (b) As a principal, have an agent conduct any activity under subsection (1) or (6) of this section which the institution is prohibited from conducting under any applicable law. (4) No provision of this section shall be construed as affecting: (a) The authority of any depository institution to act as an agent on behalf of any other depository institution under any other provision of law; or (b) Whether a depository institution which conducts any activity as an agent on behalf of any other depository institution under any other provision of law shall be considered to be a branch of such other depository institution. (5) An agency relationship between depository institutions under subsection (1) or (6) of this section shall be on terms that are consistent with safe and sound banking practices and all applicable rules and regulations of the department, any appropriate federal banking regulatory agency, and, if applicable, any foreign state agency. (6) A savings association insured by the Federal Deposit Insurance Corporation which was an affiliate of a bank on or before July 1, 1994, may conduct activities as an agent on behalf of such bank in the same manner as an insured bank affiliate of such bank may act as an agent for such bank under this section to the extent such activities are conducted only in: (a) Nebraska or any foreign state in which: (i) The bank is not prohibited from operating a branch under any provision of law; and (ii) The savings association maintained an office or branch and conducted business on or before July 1, 1994; or (b) Nebraska or any foreign state in which: (i) The bank is not expressly prohibited from operating a branch under applicable Nebraska or foreign state law; and (ii) The savings association maintained a main office and conducted business on or before July 1, 1994. (7) For purposes of this section: (a) Bank means any bank, in addition to those defined in section 8-909, chartered by the United States or by any foreign state agency and insured by the Federal Deposit Insurance Corporation; (b) Savings institution means any savings and loan association, building and loan association, capital stock savings association, savings bank, or similar entity, chartered under Chapter 8, article 3, chartered by the United States, or chartered by any foreign state agency and insured by the Federal Deposit Insurance Corporation; (c) Depository institution means either a bank as defined in subdivision (a) of this subsection or a savings institution as defined in subdivision (b) of this subsection; (d) Affiliate means any entity that controls, is controlled by, or is under common control with another entity; and (e) Control means to own directly or indirectly or to control in any manner twenty-five percent of the voting shares of any bank, savings institution, or holding company or to control in any manner the election of the majority of directors of any bank, savings institution, or holding company. History: Laws 1995, LB 384, § 27; Laws 2003, LB 217, § 17.