Nebraska state law regulates what entities may or may not use the term “bank” or derivative of the work “bank” in its name or in advertising. Specifically, Neb.Rev.Stat. § 8-113 provides that only certain entities other than state or federally chartered banks, building and loan associations, savings and loan associations or savings banks may use the word “bank” or any derivative thereof as any part of a title or description of any business activity.
Entities that are excluded from the provisions regarding the unauthorized use of the word “bank” include: (a) out-of-state state-chartered banks, building and loan associations, savings and loan associations and savings banks; (b) bank holding companies if the term “holding company” is also used as any part of the title or description of any business activity or if the derivative banc is used; (c) affiliates or subsidiaries of (i) a bank organized under the Nebraska Banking Act or the authority of the federal government or chartered and supervised by a foreign state agency, (ii) a building and loan association, savings and loan association, or savings bank organized under Nebraska law or the authority of the federal government or chartered and supervised by a foreign state agency, or (iii) a bank holding company registered pursuant to § 8-913 if the term holding company is also used as any part of the title or description of any business activity or if the derivative banc is used; (d) organizations substantially owned by (i) a bank organized under the Nebraska Banking Act or the authority of the federal government or chartered and supervised by a foreign state agency, (ii) a building and loan association, savings and loan association, or savings bank organized under Nebraska law or the authority of the federal government or chartered and supervised by a foreign state agency, or (iii) a bank holding company registered pursuant to § 8-913 if the term holding company is also used as any part of the title or description of any business activity or if the derivative banc is used; (e) mortgage banks licensed or registered under the Mortgage Bankers Registration and Licensing Act, if the word mortgage immediately precedes the word bank or its derivative; (f) organizations which are described in § 501(c)(3) of the Internal Revenue Code and exempt from taxation under § 501(a) of the code, and which are not providing or arranging for financial services subject to the authority of the department, a foreign state agency, or the federal government; (g) trade associations which are exempt from taxation under § 501(c)(6) of the code and which represent a segment of the banking or savings and loan industries, and any affiliate or subsidiary thereof; (h) firms, companies, corporations, or associations which sponsor incentive-based solid waste recycling programs that issue reward points or credits to persons for their participation therein; and (i) such other firms, companies, corporations, or associations that have been in existence and doing business prior to December 1, 1975, under a name composed in part of the word bank or some derivative thereof.
Neb.Rev.Stat. § 8-113 also does not apply to an individual, firm, company, corporation, or association doing business in Nebraska which uses the word bank or any derivative thereof as any part of a title or description of any business activity if such use is unlikely to mislead or confuse the public or give the impression that such individual, firm, company, corporation, or association is lawfully organized and operating as a bank under the Nebraska Banking Act or the authority of the federal government, or as a building and loan association, savings and loan association, or savings bank under Chapter 8, article 3, or the authority of the federal government.
NOTE: In an opinion issued by the Attorney General on April 10, 2007, the Attorney General ruled that the regulatory authority granted to the National Credit Union Administration under the Federal Credit Union Act, preempts application of state law prohibiting use of the bank, or its derivation, by a federal or state-chartered credit union.