25-227. Action to enforce obligation to pay certificate of deposit; when.

563 words·~3 min read·/ne/chapter-25/25-227

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)For purposes of this section:

(a)Account agreement means one or more written instruments that establish when a certificate of deposit is payable;

(b)Certificate of deposit means a deposit or share account at a depository institution that:

(i)Is payable by the depository institution at the expiration of a specified time; and

(ii)May be transferable or nontransferable, negotiable or nonnegotiable, and renewable or nonrenewable;

(c)Depository institution means a state-chartered or federally chartered financial institution located in this state that is authorized to maintain certificates of deposit; and

(d)Maturity date means the time specified in an account agreement when a certificate of deposit is first payable, without taking into account any agreement regarding renewals.

(2)Subject to subsection

(3)of this section, an action to enforce the obligation of a depository institution to pay all or part of the balance of a certificate of deposit shall be commenced by the earlier of:

(a)The time that an action to enforce an obligation under subsection

(e)of section 3-118 , Uniform Commercial Code, must be commenced if the certificate of deposit is subject to such section; or

(b)Seven years after the later of:

(i)The maturity date of the certificate of deposit;

(ii)The due date of the certificate of deposit indicated in the depository institution's last written notice of renewal of the certificate of deposit, if any;

(iii)The date of the last written communication from the depository institution recognizing the depository institution's obligation with respect to the certificate of deposit; or

(iv)The last day of the taxable year for which a person identified in the certificate of deposit last reported interest income earned on the certificate of deposit on a federal or state income tax return.

(3)Notwithstanding subsection

(2)of this section, an action to enforce the obligation of a depository institution to pay all or part of the balance of an automatically renewing certificate of deposit in existence on July 1, 2008, shall be commenced by the later of:

(a)Seven years after the later of:

(i)The maturity date of the certificate of deposit;

(ii)The due date of the certificate of deposit indicated in the depository institution's last written notice of renewal of the certificate of deposit, if any;

(iii)The date of the last written communication from the depository institution recognizing the depository institution's obligation to pay the certificate of deposit; or

(b)One year after July 1, 2008.

(4)This section applies to all certificates of deposit that are in existence on or after July 1, 2008.

An action commenced on November 30, 2009, was time barred by this section, because it was past the 7 years after the maturity date of the certificate of deposit and more than a year since July 1, 2008. Swift v. Norwest Bank-Omaha West, 285 Neb. 619, 828 N.W.2d 755 (2013).

The maturity date of a certificate of deposit was 9 months after the date issued, and the maturity date did not extend for 9 additional months every time the certificate of deposit automatically renewed. Swift v. Norwest Bank-Omaha West, 285 Neb. 619, 828 N.W.2d 755 (2013).