This bill amends the Nebraska Installment Loan Act by updating the licensing requirements for individuals and entities involved in the loan process. It specifies that a license is required for any person who markets, owns, holds, acquires, or services a loan made by a financial institution. Additionally, it clarifies that a license is also necessary for those who hold or acquire ownership interests in a loan or engage with installment loan borrowers. The bill introduces a provision that exempts affiliates of licensees from needing a license if their activities are limited to the securitization of loans made by the licensee, provided that servicing rights are retained by the licensee or transferred to a financial institution.

Furthermore, the bill allows a licensee that controls or owns fifty percent or more of an affiliate to apply for a license on behalf of that affiliate and consolidate compliance obligations, such as examinations and reporting requirements. This aims to streamline the licensing process for affiliated entities under the Nebraska Installment Loan Act. The bill also includes definitions for terms such as "affiliate" and "control" to ensure clarity in its provisions. The original sections of the law being amended are repealed as part of this legislative update.

Statutes affected:
Introduced: 45-1003, 45-1004