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

Article 2: Limitation of Actions · Last amended 2008 · Last verified July 22, 2026

In one sentenceThis section requires an action to enforce a bank’s obligation to pay a certificate of deposit by the earlier of the deadline under UCC section 3-118(e) or seven years after the latest of several maturity, renewal, and reporting triggers, with added protection for CDs auto-renewing on July 1, 2008.

Full Text of § 25-227

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(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.

Source

Laws 2008, LB151, § 1.

Plain-English Summary

Certificates of deposit can sit unclaimed for years, and section 25-227 sets out when a depository institution can no longer be made to honor one. Where the CD is subject to the Uniform Commercial Code’s own limitations provision for the obligation to pay an instrument, that UCC deadline applies if it would come sooner. Otherwise, the general rule is seven years, but the section spends most of its length defining exactly when that seven years starts.

The seven-year period runs from the latest of four possible triggers: the CD’s stated maturity date; the due date shown in the depository institution’s last written renewal notice, if any; the date of the depository institution’s last written communication acknowledging its obligation on the CD; or the last day of the tax year for which someone identified on the CD last reported the interest income on a tax return. Whichever of those four dates falls latest starts the seven-year clock.

Automatically renewing CDs that were already in existence on July 1, 2008 get an added protection: the action can be brought by the later of the standard seven-years-from-the-latest-trigger rule, or one year after July 1, 2008. That protected the holders of long-running auto-renewing CDs from having a claim cut off before they’d had a fair chance to act after the statute took effect. The section as a whole applies to every certificate of deposit in existence on or after July 1, 2008.

Frequently Asked Questions

How long does a bank remain obligated to pay out an old certificate of deposit in Nebraska?

By the earlier of the deadline under UCC section 3-118(e) if that section applies, or seven years after the latest of several triggering dates the section defines — maturity, renewal notice, last written acknowledgment, or last reported interest income.

What starts the seven-year clock on an ordinary certificate of deposit?

The latest of four dates: the CD’s maturity date, the due date in the last written renewal notice, the date of the last written communication recognizing the obligation, or the last day of the tax year the interest was last reported on a return.

Is there a special rule for automatically renewing CDs?

Yes. For an automatically renewing CD in existence on July 1, 2008, the action may be brought by the later of the standard seven-years-from-latest-trigger rule or one year after July 1, 2008.

Does the Uniform Commercial Code ever apply instead of this section’s seven-year rule?

Yes, when the CD is subject to UCC section 3-118(e); the action must be brought by the earlier of that UCC deadline or the seven-year period this section defines.

Which certificates of deposit does this section cover?

All certificates of deposit that are in existence on or after July 1, 2008, under subsection (4).

Source & verification. Section text and the amendment-history citation are reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the Nebraska Legislature. Last verified July 22, 2026. · Official source

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