Pub. 13 2018-2019 Issue 6

WWW.NEBANKERS.ORG 20 banks holding public funds in excess of the amount insured by the FDIC are required to furnish securities for each political sub- division and state agency placing deposits in the bank. Under LB 622, a bank would be allowed to furnish securities basedupon the aggregate amount of public deposits of all political subdivisions and state agencies with deposits in the bank. LB 121 –Direct BorrowingBy Cit- ies and Villages: Introduced by Senator Sue Crawford (Bellevue), LB 121 would clarify provisions relating to direct bor- rowing fromfinancial institutions by cities and villages to (a) allow installment loans to be repaid over a termnot to exceed seven years; (b) extend the limitation on the total amount of indebtedness from direct borrowing by a city of the second class to 20 percent of the municipal budget of the city; (c) provide that the amount of any loan attributable in any year to the limitation on the total amount of outstanding indebt- edness from direct borrowing is the total amount of the outstanding loan balance divided by the number of years over which the loan is to be repaid; and (d) measure the permissible amount of the loan on the date the ordinance or resolution approving the direct borrowing is approved. LB 257 – Collateral Insurance/ Loss Payee: Introduced by Senator Mark Kolterman (Seward), LB 257 would provide additional protection to lenders named as “loss payees” under policies insuring the collateral for their loans. The bill would require insurers issuing checks for payment of damages to automobiles in excess of $2,500 and to homes or com- mercial buildings in excess of $7,500 to be made payable to the insured and to the loss payee or repair person. The NBA is also playing defense against efforts by Nebraska-based credit unions to expand their field of member- ship. The NBA has levied challenges in two separate proceedings before the Department of Banking and Finance in which state–chartered credit unions are attempting to expand the scope of their existing community charters. In one case, MembersOwn Credit Union is seeking to expand its existing com- munity charter covering Lancaster and Gage counties, to include 11 additional counties. In the second action, Liberty First Credit Union similarly attempted to gobble up additional turf and applied to add the entire Omaha Metropolitan Statistical Area to its existing commu- nity charter in Lancaster and Seward counties. The credit union has since withdrawn their application. Banker responses to “action alerts" en- couraging support forLB622 (PublicFunds Pooled Collateral) and in opposition to LB 407 (Expanded Powers for Credit Unions) have been instrumental in moving LB 622 toward final passage and in keeping LB 407 “bottled up" in Committee. While the NBAGovernment Relations teamserves as your “boots on the ground" at the Capitol in Lincoln,member engagement on legislative issues and the relationships that you estab- lish with your state senator clearly make the difference in any success of the NBA Government Relations program.  Robert J. Hallstrom, General Counsel, Nebraska Bankers Association Gerald Stilmock, Associate General Counsel, Nebraska Bankers Association Legislative Update —continued frompage18 Fully registered Dealer Bank • Not FDIC Insured • No Bank Guarantee • May Lose Value FROM ONE COMMUNITY BANK TO ANOTHER. We have delivered fixed income strategies and support to banks of all sizes since 1985. Operating in over 30 states, the Capital Markets Group is always ready to meet the needs of our fellow community bankers. We keep investing simple so that banks can focus on what really matters — lending to the communities who support us. • Portfolio Strategy, Sales and Service • Bond and Securities Underwriting/Trading • BancPath® and FlexLoan® via Asset Management Group We speak the same language.