Omaha National Bank v. Nebraskans for Independent Banking, Inc.

Background

Omaha National Bank asked a federal bank regulator for approval to open a drive-in/walk-in facility. Under Nebraska law at the time, a state-chartered bank could operate one "attached auxiliary teller office" and up to two "detached auxiliary teller offices," as defined in state banking regulations. The en banc Court of Appeals concluded the added facility was a branch the state bank could not operate and relied on a federal law, 12 U.S.C. § 36, in reaching that result.

Reasoning

After the Court of Appeals decision, Nebraska’s legislature approved Legislative Bill 763, amending the definition of allowable auxiliary teller facilities in § 8-157(2). The amendment was approved on March 11, 1976 and will take effect in July 1976. The Supreme Court noted that this change in state law "may have a substantial bearing on the outcome" of the case. Because the new state rule could affect whether the facility counts as a prohibited branch, the Supreme Court granted review, vacated the Court of Appeals’ judgment, and sent the case back for reconsideration in light of the legislative change.

Real world impact

The decision does not decide whether the bank can open the drive-in/walk-in facility. Instead, it pauses final resolution and requires the Court of Appeals to reconsider the case under the amended Nebraska law that will take effect in July 1976. The outcome for the bank and for similar state banks depends on how the lower court interprets the new state definition of auxiliary teller offices.