Banking Innovations in Nebraska: A Look at Electronic Funds Transfer Systems
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Authors
Bothe, Robert J.
Issue Date
1976
Volume
9
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|On January 14, 1974, a Nebraska federally chartered savings and loan -institution (First Federal) installed computer terminals in two grocery stores in Lincoln, Nebraska pursuant to an authorization of January 9, 1974, by the Federal Home Loan Bank Board, to allow electronic transfer of funds between the stores and persons who maintained savings accounts at First Federal. Electronic transfer of funds was to be accomplished through a computer installed at the home office of First Federal in Lincoln, Nebraska. In a quo warranto action, the state of Nebraska challenged the funds transfer practice as an unauthorized banking or savings and loan business conducted by the grocery stores in violation of state law. |In State ex rel. Meyer v. American Community Stores Corporation," a case of first impression in the United States, the Nebraska Supreme Court ruled that, by engaging in such electronic funds transfer and by using employees to staff the computer terminals, the stores were not performing a prohibited banking or savings and loan business. As a result of the decision in American Community Stores, electronic funds transfer systems have proliferated in the state of Nebraska...
Description
Citation
9 Creighton L. Rev. 340 (1975-1976)
Publisher
Creighton University School of Law