Nebraska Revised Statute 8-143

Chapter 8 Section 143

8-143.

Loans; excessive amount; violations; forfeiture of charter; directors' personal liability.

If the directors of any bank knowingly violate or knowingly permit any of the officers, employees, or agents of the bank to violate section 8-141, all rights, privileges, and franchises of the bank shall be forfeited. Before the charter of the bank is declared forfeited, the violation shall be determined and adjudged by a court of competent jurisdiction in an action brought for that purpose by the Director of Banking and Finance in his or her own name. In case of such violation, every director of the bank who participated in or knowingly assented to the violation or permission to violate section 8-141 shall be liable in his or her personal and individual capacity for all damages which the bank, its shareholders, or any other person has sustained in consequence of such violation.

Source

  • Laws 1923, c. 191, § 45, p. 461;
  • C.S.1929, § 8-150;
  • Laws 1933, c. 18, § 33, p. 152;
  • C.S.Supp.,1941, § 8-150;
  • Laws 1943, c. 9, § 1(3), p. 68;
  • R.S.1943, § 8-152;
  • Laws 1959, c. 15, § 15, p. 138;
  • R.R.S.1943, § 8-152;
  • Laws 1963, c. 29, § 43, p. 152;
  • Laws 2010, LB890, § 3;
  • Laws 2017, LB140, § 39.

Annotations

  • To state a cause of action under this section against bank directors, a plaintiff must factually allege that (1) the loan exceeds the limit imposed by section 8-141; (2) the directors participated in or knowingly assented to the violation of section 8-141; (3) the plaintiff is a person entitled to relief under this section; and (4) the plaintiff has sustained damages as the result of the excessive loan. Schuyler State Bank v. Cech, 228 Neb. 588, 423 N.W.2d 464 (1988).

  • That part of this section imposing personal liability upon bank directors for damages sustained as the result of knowingly making excessive loans is remedial in character, and a cause of action therefor is complete the moment the excessive loan is made. Department of Banking v. McMullen, 134 Neb. 338, 278 N.W. 551 (1938).

  • This section bearing penalty contrasted with section 8-147. State ex rel. Davis v. Farmers State Bank of Winside, 112 Neb. 597, 200 N.W. 173 (1924).