Installment loan; agreement; borrower; default; procedure.
Neb. Rev. Stat. § 45-353
in effect45-353. Installment loan; agreement; borrower; default; procedure.
(1) An agreement of the parties to a loan, with respect to default on the part of the borrower, is enforceable only to the extent that:
(a) The borrower fails to make a payment on the loan or other charges required by the agreement; or
(b) The prospect of payment, performance, or realization of collateral is significantly impaired. The burden of establishing the prospect of significant impairment is on the installment loan licensee.
(2) If the borrower has defaulted on his or her promise to pay and if he or she has given specific notice in writing, by registered or certified mail, instructing the licensee to cease further contacts with the borrower in regard to the indebtedness, the installment loan licensee shall, after such notice, except as provided in section 45-352, limit contacts to one notice per month by mail. No notice shall be designed to threaten action not otherwise permitted by law.
(3) With respect to a loan, after a borrower has been in default for ten days for failure to make a required payment, an installment loan licensee may give the borrower the notice described in this section. An installment loan licensee gives notice to the borrower under this section when it delivers the notice to the borrower or delivers or mails the notice to the last-known address of the borrower's residence.
(4) The notice shall be in writing and shall conspicuously state:
(a) The name, address, and telephone number of the installment loan licensee to which payment is to be made;
(b) A brief identification of the loan;
(c) The borrower's right to cure the default;
(d) The amount of payment and date by which payment must be made to cure the default; and
(e) That any credit insurance issued in connection with the loan contract may be canceled unless the borrower cures the default.
(5) With respect to a loan, after a default consisting only of the borrower's failure to make a required payment, an installment loan licensee may neither accelerate maturity of the unpaid balance of the obligation nor take possession of collateral, except voluntarily surrendered collateral, because of such default until twenty days after a notice of the borrower's right to cure is given. The borrower shall have twenty days after the notice is given to cure any default consisting of a failure to make the required payment by tendering the amount of all unpaid sums due at the time of the tender, without acceleration, plus any unpaid charges. Cure restores the borrower to his or her rights under the agreement as though the default had not occurred.
(6) With respect to defaults on the same obligation after an installment loan licensee has once given a notice of the borrower's right to cure, the borrower shall have no further right to cure and the installment loan licensee has no obligation to proceed against the borrower or the collateral.
(7) Upon default by a borrower with respect to a loan, unless the borrower voluntarily surrenders possession of the collateral to the licensee, the licensee may take possession of the collateral without judicial process only if possession can be taken without entry into a dwelling or a locked, unoccupied motor vehicle, and without the use of force or other breach of the peace.
Laws 1965, c. 268, § 20, p. 767; Laws 2007, LB124, § 39; Laws 2025, LB474, § 74.
Source: Nebraska Legislature (nebraskalegislature.gov)URL: https://nebraskalegislature.gov/laws/statutes.php?statute=45-353Fetched: 10/20/2026