Which place’s debt rules apply—and who can help?

S_NE PASS-05 — Nebraska bond, insurance, and alternative-security component

Actual fresh research date: October 25, 2026, Pacific time / October 26, 2026 UTC Mode/model: Regular Chat; GPT-5.6 Sol Pro Review status: Same-coordinator continuation, not independent review.

This pass is limited to statutory bonds, surety accounts, financial-security alternatives, continuity and cancellation, security claims, and the narrow security consequences of a separate payment administrator. It does not reopen the Nebraska fee, custody, federal-withdrawal, or Title 433 analyses. The unreviewed PASS-04 findings are not treated here as reviewed evidence.

Executive determination

Nebraska has three materially different security structures relevant to the possible models:

1. Licensed Chapter 69 debt management: a fixed $10,000 surety bond conditioned on faithful accounting for money collected on entrusted accounts by the debt manager and its employees or agents. The statute caps the surety’s aggregate liability to claimants doing business with the office for which the bond is filed. Renewal requires a bond as in an original application and a separate application for each office. The currently linked Secretary of State form runs through December 31 and permits the surety to terminate only future liability on 30 days’ written notice to the Secretary. No statutory cash-deposit substitute, amount adjustment, fidelity-policy substitute, or numeric net-worth formula was verified. Nebraska Legislature+2
2. Covered credit-services organization: a fixed $100,000 surety bond or $100,000 statutory surety account. The account alternative must be maintained at a federally insured bank or savings and loan association located in Nebraska. Security must remain in place until two years after the organization ceases operating in Nebraska. A claimant may sue the organization and the surety or trustee, but the security is liable only for damages awarded under §45-810, and the aggregate security liability is capped at $100,000. Nebraska Legislature+1
3. Independent administrator or processor that is actually engaged in nonexempt money transmission: a current surety-bond formula of the greater of $100,000 or 100% of Nebraska average daily money-transmission liability for the most recently completed three-month period, capped at $500,000. Net worth and permissible investments are separate requirements; an irrevocable letter of credit may qualify as a permissible investment but does not replace the statutory surety bond. The Chapter 69 or CSO money-transmitter exemption belongs only to the actual licensed entity acting within that license’s scope. Nebraska Legislature+3

No reviewed Nebraska source makes a surety bond:

• insurance against every business failure;
• a guarantee that every claimant will recover;
• permission to charge or deduct a fee;
• a substitute for federal TSR or CROA compliance;
• proof that a provider is properly licensed; or
• coverage automatically inherited by an affiliate, processor, administrator, attorney, nonprofit, or remote headquarters.

A. Substantive findings

1. Operative security requirements by model

1.1 Licensed custodial debt management

The bond requirement attaches to an applicant seeking a Chapter 69 debt-management license. That underlying business remains defined by fee-based financial planning and management combined with receipt of money or “evidences thereof” from a qualifying debtor for creditor distribution. The bond requirement does not independently expand that definition to every negotiation, counseling, or settlement service. Nebraska Legislature+1

At application, the applicant must furnish a bond:

• Principal: the debt-management applicant or licensee;
• Obligee/statutory beneficiary: “the people of the state”;
• Amount: $10,000;
• Condition: faithful accounting for all money collected on accounts entrusted to the debt manager and its employees and agents;
• Aggregate surety cap: $10,000 for all claimants doing business with the office for which the bond is filed;
• Approval and filing: Secretary of State approval and filing are required before debt-management business begins. Nebraska Legislature

The currently linked public form adds that:

• the surety is a corporation authorized to conduct surety business in Nebraska;
• principal and surety bind themselves jointly and severally;
• the bond is for persons in Nebraska and injured parties;
• the term begins with license issuance and ends December 31 of the stated year; and
• the surety may cancel future liability on 30 days’ written notice to the Secretary of State. Nebraska Secretary of State

The form is operational evidence of the instrument presently linked by the agency. It is not an actual issued bond and does not establish that no rider, amendment, continuation certificate, or specially approved form can exist.

1.2 Office-specific character

Two clauses point strongly to an office-specific bond:

• §69-1204 caps aggregate surety liability to claimants doing business with “the office for which the bond is filed”; and
• §69-1206 requires a separate renewal application for each office, accompanied by a bond as in an original application. Nebraska Legislature+1

The strongest statutory reading is therefore one $10,000 bond for each licensed office, not one statewide $10,000 aggregate for every office. The posted bond form, however, does not contain an office-address field. Exact agency implementation for multiple offices—separate instruments, riders, schedules, or another method—was not established and remains held.

1.3 DMP employees and agents

The bond condition expressly includes money collected on entrusted accounts by the principal’s employees and agents. Chapter 69 separately exempts employees of a licensed debt manager from an individual license when they act in that role. No separate employee or agent bond was verified. Nebraska Legislature+1

The statutory language does not automatically extend the bond to:

• an independently incorporated affiliate;
• an unrelated account administrator;
• an outside payment processor acting on its own behalf;
• a subvendor outside an agency relationship; or
• activity beyond the principal’s debt-management scope.

Those relationships require their actual contracts, authority, entity identities, and applicable licensing facts.

1.4 Financial responsibility is separate from the bond

The Secretary of State must assess the applicant’s financial responsibility and may request a credit report or other information. The publicly linked financial statement collects assets, liabilities, and banking relationships. Neither the statute nor that form supplies a numeric minimum net worth, liquidity ratio, reserve amount, or insurance requirement. Nebraska Legislature+1

Thus:

• the $10,000 bond does not itself establish acceptable financial responsibility;
• a favorable balance sheet does not replace the bond; and
• the application’s financial statement is neither a consumer trust account nor alternative collateral.

1.5 Noncustodial settlement and counseling

A truly noncustodial negotiation service does not become subject to the Chapter 69 bond merely because it markets “debt settlement.” Conversely, a bank-account title or third-party administrator does not prove noncustody. Because the Chapter 69 treatment of “evidences thereof,” indirect account control, fee-debit authority, and administrator receipt remains unresolved, the corresponding bond result remains unresolved too.

Possible outcomes are:

• Chapter 69 coverage established: $10,000 office bond applies.
• Chapter 69 coverage not established, but CSO coverage established: $100,000 CSO bond/account applies.
• Separate administrator performs nonexempt money transmission: money-transmitter security may apply to that administrator.
• None of those statutes applies: no security requirement under those particular statutes is established—but that does not affirmatively legalize the business model.

1.6 Credit-services organizations

The CSO security requirement applies only if the person falls within the paid credit-improvement, obtaining-credit, or related-advice definition and does not establish an exemption. The exempt party bears the burden of proving its CSO exemption. Statutory exemptions include qualifying regulated lenders, banks, credit unions, §501(c)(3) organizations, Nebraska attorneys acting within legal practice, in-scope collection agencies, and Chapter 69 debt-management licensees. Nebraska Legislature+1

Consequently:

• a nonprofit label is not enough without actual §501(c)(3) status;
• an attorney connection is not enough unless the person is a Nebraska-licensed attorney acting within legal practice;
• a bank relationship is not enough unless the statutory institutional exemption is actually met;
• a Chapter 69 license held by one entity does not automatically exempt an affiliate; and
• the Chapter 69 licensee exemption should not be presumed to cover conduct outside that license’s scope.

1.7 Hybrid DMP/CSO model

Section 45-803(1)(k) exempts a person licensed under Chapter 69 from the CSO Act. For the same licensed legal entity acting within its debt-management business, that text generally prevents duplicate CSO security. It does not establish that:

• a sister company is exempt;
• a separately sold credit-repair product is within the DMP license;
• an independent salesperson or contractor is exempt; or
• the Chapter 69 bond covers every CSO-type representation.

Actual entity and activity facts remain necessary. Nebraska Legislature

2. Model-security matrix

3. Amounts, formulas, alternatives, and separate financial requirements

3.1 Amount and adjustment matrix

The DMP and CSO amounts are fixed statutory amounts. No CPI, entrusted-funds percentage, claim-volume adjustment, or discretionary increase/decrease was verified for either. The incomplete current Title 433 record prevents converting that result into a categorical “no rule can exist” conclusion. Nebraska Legislature+1

The current money-transmitter formula is materially different. The bond amount adjusts according to Nebraska average daily money-transmission liability, but once a $500,000 bond is maintained, the licensee need not continue calculating that liability for the bond provision’s purposes. Nebraska Legislature+1

3.2 DMP government fees are not security and not consumer fees

The following applicant/licensee charges remain distinct from the bond:

• $200 main-office license fee within each county;
• $100 additional-office fee;
• $200 initial investigation fee; and
• $100 renewal fee.

They are payable to the Secretary of State and do not increase the $10,000 bond or authorize a consumer charge. Nebraska Legislature+1

3.3 CSO filing fee is not security

The Secretary of State may charge a CSO registration fee of up to $100. The currently posted registration form states a $100 initial fee and separately requires a $100,000 bond or proper proof of a surety account. Nebraska Legislature+1

3.4 No verified insurance substitute

No reviewed Chapter 69 or CSO statutory clause or currently linked form permits substitution of:

• fidelity insurance;
• professional-liability/E&O insurance;
• cyber insurance;
• crime insurance;
• general-liability insurance;
• a parent guarantee;
• a bank comfort letter;
• a letter of credit; or
• a provider’s ordinary operating account.

A provider may privately carry such protection, but no actual policy was supplied and no statutory credit for it was verified.

3.5 CSO surety-account alternative

The CSO alternative is not merely “keep $100,000 somewhere.” It requires:

• a $100,000 account;
• a federally insured bank or savings and loan association;
• that institution to be located in Nebraska; and
• filing with the Secretary of State the depository, trustee, and account number. Nebraska Legislature

The reviewed statute does not specify:

• allowable account investments;
• interest ownership;
• account-management fees;
• trustee compensation;
• setoff waivers;
• FDIC pass-through treatment;
• collateral substitutions;
• priority among claimants;
• replenishment after a paid claim; or
• a public standard form for proof of the account.

The statutory label “surety account” and reference to a trustee do not, without the actual account documents and governing law, prove every attribute of a private trust.

3.6 Money-transmitter net worth and investments are cumulative, not alternatives

A money-transmitter licensee must separately maintain:

1. the §8-2731 surety bond;
2. the §8-2730 net worth; and
3. §8-2732 permissible investments with market value at least equal to aggregate outstanding money-transmission obligations.

Meeting one does not satisfy the others. Nebraska Legislature+3

An irrevocable standby letter of credit is one permissible-investment type when it satisfies the detailed issuer, unconditionality, automatic-extension, notice, draw, and documentary conditions in §8-2733. It is not a substitute for the separately required surety bond. Nebraska Legislature

4. Official forms, versions, and legal status

4.1 DMP bond form

The Secretary of State’s current Debt Management Agencies page links a one-page “Bond” PDF. The form is:

• titled Debt Management License Bond;
• $10,000;
• principal/surety, jointly and severally bound;
• conditioned on faithful accounting;
• capped at $10,000 aggregate surety liability;
• effective from license issuance through December 31; and
• cancellable as to future liability on 30 days’ written notice to the Secretary. Nebraska Secretary of State+1

Status: current publicly linked agency specimen as of the access date. It is not an issued instrument and contains no visible revision date. The statute requires a Secretary-approved bond, but no reviewed authority establishes that the posted wording is the exclusive form under every circumstance.

4.2 DMP financial statement and application

The current agency page also links:

• a one-page financial statement collecting assets, liabilities, and banking relationships; and
• a one-page license application listing required supporting documents.

Neither is a bond, insurance policy, collateral agreement, or substitute security. Nebraska Secretary of State+1

4.3 CSO bond form

The Secretary of State’s current CSO page links a one-page bond form providing:

• $100,000 principal amount;
• authorized Nebraska surety;
• State and damaged persons as beneficiaries;
• aggregate surety liability no greater than the principal amount;
• blank start and end dates; and
• extension through an acceptable continuation certificate. Nebraska Secretary of State+1

The form’s condition is phrased in terms of avoiding the Act’s “prohibitions,” while §45-805 describes security for damage caused by any violation of the Act. The statute governs; an actual issued instrument would need to be read before resolving any wording issue.

The form contains no public cancellation-notice provision, claims address, proof-of-loss procedure, or two-year-tail clause. The statutory two-year maintenance requirement remains controlling even where the instrument uses stated term dates.

4.4 CSO registration form

The one-page registration form calls for:

• $100 initial filing fee; and
• a $100,000 surety bond or “proper proof” of a $100,000 surety account.

It does not explain what constitutes proper proof, provide a trustee agreement, or contain account-release instructions. Nebraska Secretary of State

4.5 Money-transmitter electronic bonds

A Department of Banking and Finance order signed December 30, 2020 directs money-transmitter applicants and licensees, among several covered license classes, to submit electronic surety bonds through NMLS. The order vacated a 2019 order and states that it remains effective until modified or vacated. No later official modifying or vacating order was located in the bounded public search, but that negative search is not a certified current NMLS checklist. Nebraska Banking and Finance+1

A two-page Department money-transmitter bond form revised July 2014 remains publicly accessible. It predates:

• the 2020 electronic-bond order; and
• the October 1, 2025 LB474 bond formula.

It is therefore treated only as a historical agency-hosted specimen, not the currently controlling mandatory form. Nebraska Banking and Finance+1

No current static NMLS Nebraska money-transmitter bond form, rider, or state checklist was authenticated through the allowed public routes.

5. Effective coverage, cancellation, nonrenewal, replacement, and release

5.1 DMP bond lifecycle

The DMP license expires December 31 unless earlier surrendered, revoked, or suspended. The bond form’s matching end date does not prove that every claim must be filed by December 31. Nebraska Legislature+1

5.2 CSO security lifecycle

A surety account does not become automatically releasable exactly two years after a claimed cessation date. The depository needs the Secretary’s statement, and the Secretary may investigate and require information before issuing it. Nebraska Legislature

5.3 Money-transmitter bond lifecycle

A money-transmitter applicant must provide, and a licensee must at all times maintain, the required bond. Cancellation may occur only after 30 days’ written notice to the Department’s director, and cancellation does not affect liability incurred or accrued while the bond was effective. Failure to maintain the bond permits the Department to issue a notice canceling the license instead of using revocation proceedings. Nebraska Legislature+1

The current statute does not state a general post-cessation bond tail measured in years. It instead preserves incurred or accrued liability and preserves liability for pretermination conduct. A historical form or an older statutory arrangement cannot be substituted for the current text. Nebraska Legislature+1

5.4 Letter-of-credit nonextension

For a letter of credit used as a permissible investment:

• the issuer generally must provide at least 60 days’ notice of nonextension;
• the licensee must demonstrate replacement compliance at least 15 days before expiration; and
• if it cannot, the director may draw the amount needed to satisfy permissible-investment requirements.

Those rules govern the permissible-investment layer, not cancellation or substitution of the surety bond. Nebraska Legislature

6. Claimants, covered losses, actions, caps, and limitations

6.1 DMP bond claims

Covered obligation

The Chapter 69 bond is conditioned on faithful accounting for money collected on entrusted accounts. It is not facially a bond for every possible:

• licensing violation;
• inaccurate advertisement;
• unsuccessful negotiation;
• creditor rejection;
• service-quality dispute;
• privacy event;
• legal-advice issue; or
• contract breach unrelated to entrusted money. Nebraska Legislature+1

A claimant would need to connect the loss to failure to account faithfully for covered money.

Claimant and office scope

The statute refers to all claimants doing business with the office for which the bond was filed. The public form refers to persons in Nebraska and injured parties. Neither the reviewed statute nor form sets out:

• a proof-of-claim form;
• a claims address;
• a notice deadline to the surety;
• required documentation;
• agency adjudication;
• priority between claimants;
• pro rata distribution;
• first-in-time priority;
• exhaustion of provider assets;
• a direct surety-only action; or
• a replenishment obligation after payment.

Those mechanics require the actual bond, surety rules, procedural law, and any controlling decision.

Aggregate cap

The statutory cap is the surety’s aggregate liability, not a statement that each claimant receives up to $10,000. If covered claims exceed $10,000, the reviewed law does not state how the limited proceeds are allocated. Nebraska Legislature

Limitations

Section 69-1216 requires actions in Nebraska courts “under” §§69-1201–69-1217 to be commenced within two years after accrual. A bond action based on §69-1204 may fall within that language, but no controlling decision was located resolving:

• whether every bond action is an action “under” the Act;
• when such a claim accrues;
• effect of delayed discovery;
• effect of surety notice;
• relation to annual expiration or cancellation; or
• any tolling doctrine. Nebraska Legislature

Those questions remain held.

6.2 CSO claims

Covered violation and claimant language

Section 45-805 states that the bond/account benefits the State and any person damaged by an Act violation and allows any person claiming against the security to maintain an action against the CSO and the surety or trustee. But it then limits surety/trustee liability to damages awarded under §45-810. Section 45-810 authorizes a damages action by a buyer injured by an Act violation. Nebraska Legislature+1

That creates a material boundary:

• “any person” appears in the security section;
• the security pays only §45-810 damages; and
• §45-810 identifies an injured buyer.

No controlling Nebraska decision was located resolving whether a nonbuyer can obtain security proceeds despite not being a §45-810 buyer.

Damages

For an injured buyer who proves an Act violation, §45-810 provides an award no less than:

• the amount paid by the buyer to the CSO;
• reasonable attorney fees; and
• court costs. Nebraska Legislature

That is a statutory damages floor after liability is established—not an automatic refund or guaranteed bond payment.

A breach of a CSO contract or an obligation arising from the contract is itself an Act violation, which can potentially support §45-810 damages when the buyer proves injury and the other elements. Nebraska Legislature

Defendants and joinder

Section 45-805 says a claimant may maintain an action “against the credit services organization and against the surety or trustee.” No directly controlling Nebraska CSO case was located deciding whether:

• both must be joined;
• the surety/trustee can be sued alone;
• judgment against the principal must come first; or
• principal-asset exhaustion is required.

The 2024 Nebraska Supreme Court decision in Saint James Apartment Partners, LLC v. Universal Surety Co., 316 Neb. 419, held under a differently worded notary-bond statute that the notary was not a necessary party and the surety could be sued without the notary. The court’s reasoning depended on that statute’s precise wording and punctuation. It cannot be automatically transferred to §45-805. Nebraska.gov

Aggregate cap and excess principal liability

The surety or trustee’s aggregate liability is no more than $100,000. That cap does not say that the CSO’s own liability is limited to $100,000. Nebraska Legislature

In Echo Group, Inc. v. Tradesmen International, 312 Neb. 729 (2022), a construction-lien bond case, the Nebraska Supreme Court reiterated the general rule that absent a condition extending liability, a surety ordinarily cannot be held beyond the penal sum, while the principal could remain responsible for an excess judgment in that case. That decision is not a CSO or DMP holding, but it supports keeping the surety cap distinct from possible principal liability. Nebraska.gov

Limitations and tail

An action under §45-810 or §45-812 is barred after four years from execution of the relevant services contract. The security must separately be maintained until two years after cessation of Nebraska operations. Nebraska Legislature+1

These are independent clocks:

• the two-year security tail does not expressly extend the four-year contract-based limitation;
• the four-year limitation does not permit early release of the security before the two-year tail ends; and
• the exact effect of a timely filed claim, pending litigation, or judgment entered after the tail was not resolved by a located decision.

Injunctions, deceptive-practice remedies, and criminal penalties

The Attorney General or a buyer may seek an injunction, and an Act violation is a deceptive trade practice. The Act also provides a criminal penalty and says its remedies are cumulative. But §45-805 restricts the surety/trustee to §45-810 damages; it does not state that every injunction, penalty, restitution order, or other statutory remedy is payable from the bond/account. Nebraska Legislature+3

6.3 Money-transmitter claims

Current §8-2731 allows:

• any claimant against the licensee to file a claim or sue directly on the bond; and
• the director to claim or sue for any claimant, in one action or successive actions. Nebraska Legislature

The current statute does not state in that section:

• a distribution priority;
• a pro rata formula;
• a replenishment deadline;
• an administrative proof-of-claim form;
• whether every authorized-delegate loss is within the bond;
• a bond-specific limitations period; or
• the current electronic bond’s complete terms.

The Department’s March 21, 2025 Sigue settlement page provides a specific operational example in which Nebraska customers with failed transactions were directed to file refund claims through a surety portal. That settlement does not create a universal Nebraska bond-claim procedure or establish entitlement in another matter. Nebraska Banking and Finance

B. Recovery matrix

C. Bounded security examples

All figures are hypothetical. No example proves a valid claim, a solvent surety, an available account balance, a judicial award, or a provider’s authorization. Government or statutory security does not establish fee earning.

Example 1 — DMP office aggregate

Assumptions

• Office A has the required $10,000 bond.
• Two claims are ultimately established as covered failures faithfully to account for money entrusted through Office A.
• No prior bond payment has occurred.

Inputs

Plain text

Covered Claim 1                              $4,000
Covered Claim 2                              $9,000
                                             ------
Total covered claims                        $13,000
Statutory aggregate surety cap              $10,000

Arithmetic

Plain text

Total claims                                $13,000
Less maximum aggregate surety liability     -10,000
                                             ------
Potential amount beyond bond                 $3,000

Result

The surety’s total liability cannot exceed $10,000 for all claimants doing business with that office. The reviewed statute does not say how the $10,000 is divided between the $4,000 and $9,000 claims. The remaining $3,000 is not guaranteed recoverable from the principal or another source; principal liability and collection belong to later remedies work. Nebraska Legislature

A claim associated with a different office should not be pooled into Office A’s bond without the actual office-specific instruments and agency implementation.

Example 2 — DMP bond cancellation and replacement

Assumptions

• The surety’s written cancellation notice is received by the Secretary on event date N.
• The currently posted form governs.
• No separate rider changes the notice term.

Event sequence

Plain text

Notice received by SOS                         N
Form notice period                             30 days
Earliest prospective cancellation              N + 30 days

The form cancels only future liability after that period. A loss arising from covered conduct during the bond term is not erased by prospective cancellation, although claim accrual and filing remain unresolved.

To continue covered debt-management business after the effective cancellation date, the licensee would need a replacement good and sufficient bond approved and filed before the old coverage ends. No statutory grace period was verified. Nebraska Legislature+1

No calendar date is fabricated because the example supplies only an event date, not a specific day or counting authority.

Example 3 — DMP financial statement is not a bond formula

Inputs

Plain text

Total listed assets                         $250,000
Total listed liabilities                    -200,000
                                             -------
Arithmetic net assets                        $50,000

Result

The arithmetic net amount is $50,000, but Chapter 69 supplies no numeric net-worth threshold against which to test it. The Secretary still makes a qualitative financial-responsibility determination, and the $10,000 bond remains independently required. Nebraska Legislature+1

The example does not conclude that the applicant qualifies.

Example 4 — CSO multiple awards against one aggregate

Assumptions

• Three buyers timely obtain final §45-810 awards.
• Every award is within the bond/account’s substantive coverage.
• No earlier security payment has occurred.

Inputs

Plain text

Buyer A award                               $30,000
Buyer B award                               $50,000
Buyer C award                               $40,000
                                             ------
Total awards                               $120,000
Aggregate CSO security cap                 $100,000

Arithmetic

Plain text

Total awards                               $120,000
Less aggregate security cap               -100,000
                                            -------
Awards exceeding security                  $20,000

Result

The surety or trustee cannot be liable beyond $100,000 aggregate. The statute does not state whether the available security is paid first-come, pro rata, by judgment date, or through another method. It does not cap the CSO’s possible own liability at $100,000, but recovery of the $20,000 excess is not guaranteed. Nebraska Legislature

Example 5 — CSO statutory damages floor

Assumptions

• Buyer paid a CSO $1,200.
• A court finds the buyer was injured by an Act violation.
• Reasonable attorney fees and court costs are determined separately.

Minimum statutory structure

Plain text

Amount paid by buyer                        $1,200
Reasonable attorney fees                 + court determination
Court costs                              + court determination

The award under §45-810 cannot be less than that combination. The bond or account is not automatically payable merely because the buyer paid $1,200; injury, violation, a timely action, an award, security coverage, and remaining aggregate capacity are still required. Nebraska Legislature

Example 6 — CSO cessation tail and unresolved replenishment

Assumptions

• CSO ceases Nebraska operations on event date T0.
• No dispute exists about the cessation date.
• Security account begins at $100,000.
• A valid $25,000 covered payment is later made during the tail.

Statutory duration

Plain text

Cessation date                                T0
Required maintenance period                   2 years
End of statutory period                       T0 + 2 years

Account arithmetic after claim

Plain text

Starting surety account                   $100,000
Covered payment                            -25,000
                                            -------
Arithmetic remaining balance               $75,000

The arithmetic balance is $75,000. The reviewed text does not expressly say whether the CSO must immediately replenish the account to $100,000 during the remaining tail. Therefore:

• no replenishment rule is invented;
• the $75,000 is not declared sufficient;
• the depository may not return the remaining amount to the CSO merely because two calendar years have arithmetically passed; and
• release still requires the Secretary’s statement that the statutory condition has been satisfied. Nebraska Legislature

Example 7 — CSO two-year tail versus four-year action limit

Assumptions

• Contract executed at C0.
• CSO ceases Nebraska operations at T0.
• No tolling applies.

Separate clocks

Plain text

Latest ordinary §45-810 filing point       C0 + 4 years
Security-maintenance endpoint              T0 + 2 years

Neither date replaces the other. A claimant must satisfy the applicable action limit while the security-maintenance and actual-instrument questions are also resolved. The two-year tail does not facially revive an already barred action, and the four-year action limit does not authorize early release before the tail requirement is satisfied. Nebraska Legislature+1

Example 8 — Current money-transmitter bond formula

Formula:

Plain text

Required bond = min($500,000,
                    max($100,000, Nebraska ADMT liability))

Scenario A

Plain text

Nebraska ADMT liability                    $72,500
Statutory minimum                         $100,000
Required bond                             $100,000

Scenario B

Plain text

Nebraska ADMT liability                   $325,000
Required bond                             $325,000

Scenario C

Plain text

Nebraska ADMT liability                   $720,000
Calculated liability-based amount         $720,000
Statutory maximum                        -$500,000
Required bond                             $500,000

A licensee maintaining the $500,000 maximum need not continue calculating ADMT liability for §8-2731’s bond purposes. Actual quarterly reporting, NMLS procedures, and bond riders remain subject to current operational instructions not authenticated here. Nebraska Legislature+1

Example 9 — Money-transmitter net worth is additional security

Assumptions

• Total assets: $150,000,000
• No Director exemption.

Calculation

Plain text

3% of first $100,000,000                 $3,000,000
2% of next $50,000,000                   +1,000,000
                                          ----------
Calculated net-worth requirement          $4,000,000
Statutory floor                             $100,000
Required net worth                        $4,000,000

This $4 million requirement is separate from the surety bond and permissible investments. A Director may exempt an applicant or licensee from the net-worth requirement in whole or part for good cause, but that authority does not waive the bond by its terms. Nebraska Legislature

Example 10 — Bond versus permissible investments

Assumptions

• Nebraska ADMT liability: $400,000
• Aggregate outstanding money-transmission obligations: $600,000
• No qualifying exemption.

Requirements

Plain text

Surety bond under §8-2731                 $400,000
Permissible investments under §8-2732     $600,000

A qualifying $600,000 letter of credit might count toward the permissible-investment requirement if every §8-2733 condition is met. It does not replace the $400,000 surety bond. Nebraska Legislature+2

D. Source register

E. Claim register

F. Component coverage and gaps

G. Researcher self-check

Freshly read in PASS-05

• Current official Nebraska statutory text for:§§69-1201 through 69-1207 as necessary to the bond;§§69-1215 and 69-1216;§§45-802 through 45-815 as necessary to security, exemptions, damages, and limitations;§§8-2702, 8-2703, 8-2715, 8-2724, 8-2730 through 8-2734.
• Current Secretary of State DMP and CSO licensing pages.
• The public DMP bond, financial statement, and application PDFs.
• The public CSO bond and registration PDFs.
• The current Department of Banking and Finance money-transmitter advisory.
• The December 2020 electronic-surety-bond order.
• The July 2014 historical money-transmitter bond form, used only as historical evidence.
• The pertinent portions of:Saint James Apartment Partners, LLC v. Universal Surety Co., 316 Neb. 419 (2024); andEcho Group, Inc. v. Tradesmen International, 312 Neb. 729 (2022).
• The official Sigue settlement page as a bounded operational example.
• Targeted official-domain searches for direct DMP and CSO security decisions and orders.

Reused only as attributed prior history

• PASS-01’s provider and fee classifications and government-fee findings.
• PASS-02’s Title 433 access outcomes and federal timing distinctions.
• PASS-03’s correction that federal withdrawal is from the debt-relief service, not an unconditional bank-account closure or withdrawal right.
• Earlier dated public roster and form access histories.
• The conditional Chapter 69, CSO, and federal coverage holds.

This pass is not an independent review of those prior components.

Not authenticated or not read

• A complete current Title 433 compilation, rule history, adoption orders, or current SOS internal licensing manual.
• Any actual provider bond, continuation certificate, rider, cancellation notice, proof of filing, surety-account agreement, trustee agreement, depository statement, or SOS release statement.
• Any actual fidelity, E&O, cyber, crime, or general-liability policy.
• Any current named provider’s license, registration, bond, account, claim history, or remaining aggregate.
• A current Nebraska NMLS money-transmitter checklist or electronic bond form.
• Any surety underwriting file, indemnity agreement, collateral agreement, reinsurance arrangement, solvency report, or private claim manual.
• Any complete commercial citator, trial-court docket, bankruptcy docket, administrative-file universe, or nonpublic claim record.
• A controlling DMP- or CSO-specific Nebraska appellate decision on direct action, joinder, claim priority, replenishment, accrual, or release.
• Full bankruptcy, insolvency, private-remedies, contract, collection, garnishment, secured-sector, local, tribal, or international analysis.

Actions not performed

No Deep Research, Work, Codex research generation, API, purchase, filing, application, bond quote, account change, agency or company contact, records request, private borrower-data access, website action, publication, Chrome control, other chat, CAPTCHA bypass, or security workaround was used.

Focused disposition: Nebraska’s Chapter 69 security is a fixed, office-focused $10,000 faithful-accounting bond. Its CSO security is a materially broader $100,000 bond-or-account structure tied to Act violations and §45-810 damages, with a two-year post-cessation maintenance period. A separate nonexempt administrator may instead face the current money-transmitter bond formula plus independent net-worth and permissible-investment requirements. Claim allocation, replenishment, direct-action mechanics for DMP/CSO bonds, actual instruments, and the complete current Title 433 universe remain expressly held.

END S_NE PASS-05.