Pub. 9 2014-2015 Issue 6

www.nebankers.org 4 Extraordinary Service for Extraordinary Members. 12 18 MARCH/APRIL 2015 EDITORIAL: The Nebraska Banker seeks to reflect news and information relevant to Nebraska and other news and information of direct interest to members of the Nebraska Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Nebraska Bankers Association. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the Nebraska Bankers Association. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to themagazine, which began bi-monthly publication inMay 2006, is included in membership fees to the Nebraska Bankers Association. 8 7 President’s Message – Reflecting After Year One Here’s a quick peek at some of the NBA’s current organizational priorities. By Richard J. Baier, President & CEO, Nebraska Bankers Association 8 Washington Update – Targeting Data Breaches Share your story with lawmakers and help ensure that Congress puts a national standard in place for data security and breach notifications. By Frank Keating, President & CEO, American Bankers Association 10 NBA Education Calendar 12 Counselor’s Corner – Vendor Limitations of Liability for Security Breaches: The Alimentary Canal Problem Find out how to best work with your vendors when a security breach occurs. By Bryan Handlos, Kutak Rock LLP 16 Security Officer’s By-Word – Bank Computer Hacking Results in ACH Fraud Consider a few changes to your bank’s security procedures to ensure transactions with your correspondent bank are safe. By Charles M. Towle, KBS President 18 Tech Talk – Vendor Continuity Planning Here’s a good summary of the FFIEC’s Business Continuity Planning Handbook, Appendix J, which addresses third-party management and capacity, testing with third-party trusted service providers, and cyber resilience. By Alyssa Middleton, CoNetrix 20 Conducting an Independent Review of ALCO Processes: Clarity From FDIC Never underestimate the importance of sound interest rate risk management systems and processes. By Jeffrey E. Caughron, COO/Managing Director, The Baker Group LP 22 The Defense of “No Consideration” and Holding Guarantors to Their Contractual Obligations Discover how guaranties and hypothecation agreements may be used as risk-management tools and how they can benefit lenders, borrowers, and guarantors alike. By Kent Endacott, Endacott Peetz Timmer PC LLO 24 Legislative Profile: Capitol Holds Warm Memories for Speaker Hadley The halls of the Nebraska Capitol were a familiar sight to Speaker Galen Hadley when he began his first term as a state senator in 2008. Find out what his focus is today. 25 What Will Banking Compliance Look Like in 2015? Compliance should be at the top of the agenda for each and every bank in America. By Darlia Fogarty, Director of Compliance, Compliance Alliance 26 Bert Ely’s Farm Credit Watch – ABA Demands FCS Oversight Hearings Learn more about the Farm Credit System’s implicit Treasury backing, the waste generated by its unfair tax advantages, and the missed opportunities resulting from the neglect of its core mission. By Bert Ely, Alexandria, Va. 30 Federal Bankruptcy Court in Nebraska Discharged Private Student Loans Although conventional wisdom holds that student loans are not dischargeable in bankruptcy, Noelle DeLaet successfully proved that her student loans caused her undue hardship in the U.S. Bankruptcy Court for the District of Nebraska.