Prepayment Penalties

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Lease

A lessor may not charge a penalty for the early termination of a consumer rental purchase agreement. NEB. REV. STAT. § 69-2109.

Installment Loan

Every installment loan licensee must permit payment to be made in advance in any amount equal to one or more full installments on any loan contract at any time during regular business hours, but the licensee may apply such payment first to all accrued charges in full up to the date of such payment. NEB. REV. STAT. § 45-1022.

Loan

A prepayment charge is considered to be a “loan service cost” and are permissible so long as they are reasonable and necessary costs and charged incurred in connection with the making, closing, disbursing, servicing, extending, transferring, or renewing of a loan. NEB. REV. STAT. § 45-101.02. "

The Nebraska Installment Loan Act applies to loans made by installment loan companies as part of their licensed business. The Act regulates and limits all loans made by a licensee to small borrowers. Gruenemeier v. Commonwealth Co., 131 N.W.2d 713 (Neb. 1964). See Albers v. Overland Nat. Bank, 324 N.W.2d 396 (Neb. 1982) (the Act “contemplates a ‘small loan’ where the risk is great and the expense under conventional interest rates prohibitive”).

Nebraska Installment Loan Act governs “goods” and does not expressly exclude agricultural or commercial goods. NEB. REV. STAT. § 45-335.