Nrs: Chapter 678 - Credit Unions


Published: 2015

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[Rev. 11/21/2013 1:05:47

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CHAPTER 678 - CREDIT UNIONS

GENERAL PROVISIONS

NRS 678.010           Definitions.



NRS 678.020           “Account”

defined.

NRS 678.030           “Beneficiary”

defined.

NRS 678.040           “Board”

defined.

NRS 678.050           “Chair”

defined.

NRS 678.061           “Commissioner”

defined.

NRS 678.070           “Credit

union” defined.

NRS 678.080           “Demand”

defined.

NRS 678.090           “Department”

defined.

NRS 678.100           “Deposits”

defined.

NRS 678.110           “Director”

defined.

NRS 678.120           “Dividend”

defined.

NRS 678.125           “Fixed

assets” defined.

NRS 678.130           “Immediate

family” defined.

NRS 678.140           “Loan

officer” defined.

NRS 678.145           “Member”

defined.

NRS 678.150           “Merger”

defined.

NRS 678.160           “Multiple-party

account” defined.

NRS 678.170           “Net

contribution” defined.

NRS 678.180           “Party”

defined.

NRS 678.190           “Payment”

defined.

NRS 678.210           “Proof

of death” defined.

NRS 678.220           “Sums

on deposit” defined.

NRS 678.230           “Trust

account” defined.

NRS 678.240           “Withdrawal”

defined.

ADMINISTRATION

NRS 678.250           Administration

of chapter; regulations of Commissioner.

NRS 678.260           Duties

of Commissioner; regulations.

NRS 678.270           Powers

of Commissioner concerning regulations and legal actions.

NRS 678.275           Certain

relationships between employee of Division of Financial Institutions and

licensee prohibited; termination of prohibited relationship.

NRS 678.282           Application

for license: Additional requirements; fingerprints; grounds for refusal to

issue license.

NRS 678.284           Suspension

or revocation of license: Additional grounds.

NRS 678.286           Use

or change of business name; prohibitions.

NRS 678.288           Authorization

of Commissioner to investigate business; free access required; compelling

attendance of witnesses.

NRS 678.290           Credit

Union Advisory Council.

FORMATION

NRS 678.300           Requirement

of incorporation; exceptions; applicability of NRS 81.410 to 81.540, inclusive; perpetual existence.

NRS 678.310           Procedure

for incorporation; fees set by regulation.

NRS 678.320           Amendment

of articles of incorporation; bylaws.

NRS 678.330           Offices;

principal place of business.

NRS 678.340           Fiscal

year.

FOREIGN CREDIT UNIONS

NRS 678.342           Certificate

of authority required.

NRS 678.343           Application

for certificate of authority: Filing; form; contents; withdrawal of

application.

NRS 678.3435         Fee

for initial investigation; annual fees; costs for additional investigations;

regulations.

NRS 678.344           Requirements

for issuance of certificate.

NRS 678.345           Applicable

law; filing of annual report.

NRS 678.3455         Application

for certificate of authority to open branch offices.

NRS 678.346           Examination

of records; revocation of certificate.

NRS 678.347           Applicability

of provisions of chapter 80 of NRS.

DIRECTORS, OFFICERS AND COMMITTEES

NRS 678.350           Board

of directors: Number, election and terms of members; procedure for filling

vacancy.

NRS 678.360           Board

of directors: Responsibilities; meetings; executive committee.

NRS 678.370           Board

of directors: Duties.

NRS 678.380           Board

of directors: Powers.

NRS 678.390           Appointment

of audit committee: Duties; powers; suspension of member; employment of

certified or registered public accountant.

NRS 678.400           Credit

committee; loan officer.

NRS 678.410           Removal

of director, officer or employee on objection of Commissioner.

NRS 678.420           Officers:

Election; designation; bonds; terms; duties.

NRS 678.430           List

of directors, officers and committee members.

NRS 678.440           Fiduciary

relationship of directors and officers.

NRS 678.450           Compensation

and expenses of directors, officers and members.

POWERS AND PRIVILEGES

NRS 678.460           General

powers; waiver or modification of law by Commissioner.

NRS 678.470           Receiving

and paying out deposits; borrowing, selling and purchasing assets.

NRS 678.480           Fees

and assessments.

NRS 678.490           Membership

in other credit union or organization; performance of certain services.

NRS 678.500           Donations

and contributions.

MEMBERSHIP; ACCOUNTS

NRS 678.510           Eligibility

for membership.

NRS 678.520           Eligibility

of minor; limitations.

NRS 678.530           Subscription

to and transfer of shares; lien for sums due; reduction in shares.

NRS 678.540           Real

and personal property subject to taxation.

NRS 678.550           Meetings

of members.

NRS 678.560           Savings

deposits; special clubs and accounts.

NRS 678.570           Multiple-party

accounts: Authorization; disbursement of money; limitations.

NRS 678.630           Payment

of trust accounts.

NRS 678.650           Right

to setoff against multiple-party accounts.

RESERVES; DIVIDENDS

NRS 678.670           Regular

reserves.

NRS 678.680           Special

reserves.

NRS 678.690           Assets

qualified for reserves.

NRS 678.700           Dividends.

LOANS; INVESTMENTS

NRS 678.710           Loans

to members: Application; approval; limitations; participation loans; payment.

NRS 678.720           Loans

to members: Extension of previous maximum credit; review.

NRS 678.730           Loans

to and guaranties by directors and members of committees.

NRS 678.740           Security

for loans.

NRS 678.750           Insurance

of members and accounts.

NRS 678.755           Approval

of private insurer and contract of insurance; regulations; reserve.

NRS 678.760           Authorized

investments.

NRS 678.765           Limitation

on investment in fixed assets.

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

NRS 678.767           Definitions.

NRS 678.769           “Designated

reporter” defined.

NRS 678.771           “Exploitation”

defined.

NRS 678.773           “Older

person” defined.

NRS 678.775           “Reasonable

cause to believe” defined.

NRS 678.777           “Vulnerable

person” defined.

NRS 678.778           Training;

reporting to designated reporter.

NRS 678.779           Designated

reporter: Designation; duty to report; immunity.

RECORDS AND REPORTS; EXAMINATIONS

NRS 678.780           Annual

financial report.

NRS 678.790           Examinations

and audits; exceptions; fees.

NRS 678.795           Independent

audit and examination: Payment of assessment; cooperation.

MERGER; CONVERSIONS

NRS 678.800           Merger;

fees set by regulation; regulations.

NRS 678.810           Conversions;

fee set by regulation.

DISSOLUTION AND LIQUIDATION

NRS 678.820           Voluntary

dissolution.

NRS 678.830           Involuntary

dissolution: Suspension of operations; corrective actions; declaration of

insolvency; liquidation.

NRS 678.835           Involuntary

dissolution: Appointment of liquidating agent for credit union closed by

bankruptcy or insolvency.

NRS 678.840           Procedure

for liquidation.

CENTRAL CREDIT UNIONS

NRS 678.850           Organization

and operation; rights and powers.

NRS 678.860           Membership.

NRS 678.870           Voting

representatives.

NRS 678.875           Regular

reserves.

PENALTIES

NRS 678.880           Use

of words “credit union” or conducting business as credit union by person not

organized as credit union; spreading false report concerning management or

finances of credit union.

NRS 678.890           Administrative

fines.

_________

_________

 

GENERAL PROVISIONS

      NRS 678.010  Definitions.  As

used in this chapter, unless the context otherwise requires, the words and

terms defined in NRS 678.020 to 678.240, inclusive, have the meanings ascribed to them

in those sections.

      (Added to NRS by 1975, 376; A 1983, 1830; 1985, 784; 1987, 2013)

      NRS 678.020  “Account” defined.  “Account”

means a contract of deposit of funds between a member and a credit union and

includes deposits, member or share accounts and other like arrangements

regardless of whether they may be characterized as refundable capital

investments.

      (Added to NRS by 1975, 376)

      NRS 678.030  “Beneficiary” defined.  “Beneficiary”

means any person to whom the deposits of an account are to be paid upon the

occurrence of a specified condition.

      (Added to NRS by 1975, 376)

      NRS 678.040  “Board” defined.  “Board”

means the board of directors of a credit union formed pursuant to the

provisions of this chapter.

      (Added to NRS by 1975, 376)

      NRS 678.050  “Chair” defined.  “Chair”

means the chair of the board of a credit union.

      (Added to NRS by 1975, 376)

      NRS 678.061  “Commissioner” defined.  “Commissioner”

means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 2013)

      NRS 678.070  “Credit union” defined.  “Credit

union” means a cooperative, nonprofit corporation, organized for the purposes

of promoting thrift among its members and creating a source of credit for such

members at a fair and reasonable rate of interest.

      (Added to NRS by 1975, 376)

      NRS 678.080  “Demand” defined.  “Demand”

means a request for withdrawal or payment in accordance with all conditions of

the account and bylaws of the credit union.

      (Added to NRS by 1975, 376)

      NRS 678.090  “Department” defined.  “Department”

means the Department of Business and Industry.

      (Added to NRS by 1975, 376; A 1993, 1896)

      NRS 678.100  “Deposits” defined.  “Deposits”

means that part of the savings liability of a credit union which is credited to

the account of the holder thereof.

      (Added to NRS by 1975, 377)

      NRS 678.110  “Director” defined.  “Director”

means the Director of the Department.

      (Added to NRS by 1975, 377; A 1993, 1897)

      NRS 678.120  “Dividend” defined.  “Dividend”

means that part of the net earnings of an association which is declared payable

by the board to the holders of record of permanent capital stock.

      (Added to NRS by 1975, 377)

      NRS 678.125  “Fixed assets” defined.  “Fixed

assets” means the real property which constitutes the premises of a credit

union or any of its offices, and the furniture, fixtures and equipment of the

credit union.

      (Added to NRS by 1985, 783)

      NRS 678.130  “Immediate family” defined.  “Immediate

family” includes any relative, by consanguinity or marriage, of a member living

in the member’s household and includes foster and adopted children.

      (Added to NRS by 1975, 377)

      NRS 678.140  “Loan officer” defined.  “Loan

officer” means the officer appointed by the board of directors or by the credit

committee to process all applications for loans from the members of the credit

union.

      (Added to NRS by 1975, 377)

      NRS 678.145  “Member” defined.  “Member”

means a person who has an account with a credit union and meets the

qualifications for membership specified in the articles of incorporation and

bylaws of the credit union.

      (Added to NRS by 1985, 783)

      NRS 678.150  “Merger” defined.  “Merger”

means that consolidation of corporate structures which results in the uniting

of substantially all the assets and liabilities of one state-chartered

corporation with those of another such corporation or with those of a federal

corporation.

      (Added to NRS by 1975, 377)

      NRS 678.160  “Multiple-party account” defined.

      1.  “Multiple-party account” means:

      (a) An account in the name of two or more

persons, any one or more of whom may make withdrawals;

      (b) An account in the name of one or more persons

as trustee for one or more beneficiaries;

      (c) An account established for deposit of funds

of a partnership, joint venture or other association; or

      (d) An account controlled by two or more persons

as the duly authorized agents or trustees for a corporation, unincorporated

association, charitable or civil organization or any trust, except trusts of

deposits evidenced solely by the form of the deposit.

      2.  At least one party to a multiple-party

account shall be a member of the credit union in which the account is

established.

      (Added to NRS by 1975, 377)

      NRS 678.170  “Net contribution” defined.  “Net

contribution” means the sum of all deposits which a party to a multiple-party

account has made added to any dividends or interest due, less all withdrawals.

It includes, in addition, any deposit life insurance proceeds added to the

account because of the death of a party whose net contribution is in question.

      (Added to NRS by 1975, 377)

      NRS 678.180  “Party” defined.  “Party”

means any person who, by the terms of the account, has a present right of

withdrawal in a multiple-party account. Unless the context indicates otherwise,

it includes a guardian, conservator-trustee, personal representative, assignee,

an attaching creditor of a party or a trustee. This term does not include any

named beneficiary.

      (Added to NRS by 1975, 377)

      NRS 678.190  “Payment” defined.  “Payment”

means the withdrawal and payment of sums on deposit on the directive of a

party.

      (Added to NRS by 1975, 377)

      NRS 678.210  “Proof of death” defined.  “Proof

of death” means a death certificate or other statement issued by an appropriate

official which indicates that a named person is deceased.

      (Added to NRS by 1975, 377)

      NRS 678.220  “Sums on deposit” defined.  “Sums

on deposit” means the balance payable on a multiple-party account including

interest, dividends and any deposit life insurance proceeds added to the

account because of the death of a party.

      (Added to NRS by 1975, 377)

      NRS 678.230  “Trust account” defined.  “Trust

account” means any account which states that a party is a trustee for one or

more identified persons, including but not limited to minors.

      (Added to NRS by 1975, 378)

      NRS 678.240  “Withdrawal” defined.  “Withdrawal”

means payment to a party or a third person pursuant to a directive of a party.

      (Added to NRS by 1975, 378)

ADMINISTRATION

      NRS 678.250  Administration of chapter; regulations of Commissioner.  The Commissioner shall administer the

provisions of this chapter, subject to administrative supervision by the

Director. The Commissioner shall make the decisions and determinations and adopt

regulations which are necessary or reasonably appropriate to accomplish the

purposes of this chapter.

      (Added to NRS by 1975, 378; A 1977, 96; 1983, 1830; 1987, 2013; 2013, 62)

      NRS 678.260  Duties of Commissioner; regulations.  The

Commissioner shall:

      1.  Adopt a regulation establishing the

minimum surety bond required of credit unions in relation to the amount of

property under their control.

      2.  Adopt a regulation that sets forth the

records a credit union must keep and prescribes the period for which those

records must be retained.

      3.  Maintain the original application of

every credit union in a permanent file.

      4.  Maintain for at least 6 years, every

report filed by a credit union with the Division of Financial Institutions.

      5.  Except as otherwise provided in NRS 678.800 and 678.810,

deposit all fees, charges for expenses, assessments and other money which is

collected pursuant to the provisions of this chapter or any regulation adopted

pursuant thereto in the State Treasury pursuant to the provisions of NRS 658.091.

      6.  Prepare copies of articles of

incorporation and bylaws consistent with the provisions of this chapter which

may be used by persons interested in organizing a credit union.

      (Added to NRS by 1975, 378; A 1977, 102; 1983, 1328,

1639, 1830, 2015; 1985,

784; 1987,

2013; 1989,

924; 1999,

1452; 2003,

3234)

      NRS 678.270  Powers of Commissioner concerning regulations and legal actions.  The Commissioner may:

      1.  Adopt regulations, subject to the

advice of the Credit Union Advisory Council, establishing chartering,

supervisory and examination fees; and

      2.  Cause appropriate legal action to be

taken in the district court of any county to secure an injunction or order

restraining a violation of this chapter.

      (Added to NRS by 1975, 378; A 1983, 1831; 1987, 2013; 2013, 63)

      NRS 678.275  Certain relationships between employee of Division of Financial

Institutions and licensee prohibited; termination of prohibited relationship.

      1.  Except as provided in subsections 3 and

4, an officer or employee of the Division of Financial Institutions shall not:

      (a) Be directly or indirectly interested in or

act on behalf of any credit union chartered by this state;

      (b) Receive, directly or indirectly, any payment

from any such credit union;

      (c) Be indebted to any state credit union;

      (d) Engage in the negotiation of loans for others

with any such credit union; or

      (e) Obtain credit or services from a state credit

union conditioned upon a fraudulent practice or undue or unfair preference over

other customers.

      2.  An employee of the Division in the

unclassified service of the State shall not obtain new extensions of credit

from a state credit union while in office.

      3.  Any officer or employee of the Division

of Financial Institutions may be indebted to a credit union on the same terms

as are available to the public generally upon:

      (a) A mortgage loan on his or her own real

property.

      (b) A secured installment debt.

      (c) An unsecured debt.

      4.  Any officer or employee of the Division

of Financial Institutions may establish and maintain savings deposits or share

accounts with credit unions to the greatest amount insured, receive interest on

those deposits or shares and borrow money secured by a pledge of those deposits

or shares.

      5.  If an officer or employee of the

Division of Financial Institutions has a service, a preferred consideration, an

interest or a relationship prohibited by this section at the time of his or her

appointment or employment, or obtains it during his or her employment, he or

she shall terminate it within 120 days after the date of his or her appointment

or employment or the discovery of the prohibited act.

      (Added to NRS by 1983, 1829)

      NRS 678.282  Application for license: Additional requirements; fingerprints;

grounds for refusal to issue license.

      1.  In addition to any other requirements

set forth in this chapter, each applicant must submit:

      (a) Proof satisfactory to the Commissioner that

the applicant:

             (1) Has a good reputation for honesty,

trustworthiness and integrity and is competent to transact the business for

which the applicant seeks to be licensed in a manner which protects the

interests of the general public.

             (2) Has not made a false statement of

material fact on the application for the license.

             (3) Has not committed any of the acts

specified in subsection 2.

             (4) Has not had a license issued pursuant

to this chapter suspended or revoked within the 10 years immediately preceding

the date of the application.

             (5) Has not been convicted of, or entered

a plea of nolo contendere to, a felony or any crime involving fraud,

misrepresentation or moral turpitude.

      (b) A complete set of his or her fingerprints and

written permission authorizing the Division of Financial Institutions of the

Department of Business and Industry to forward the fingerprints to the Central

Repository for Nevada Records of Criminal History for submission to the Federal

Bureau of Investigation for its report.

      2.  In addition to any other lawful

reasons, the Commissioner may refuse to issue a license to an applicant if the

applicant:

      (a) Has committed or participated in any act

which, if committed or done by a holder of a license, would be grounds for the

suspension or revocation of the license.

      (b) Has previously been refused a license

pursuant to this chapter or has had such a license suspended or revoked.

      (c) Has participated in any act which was a basis

for the refusal or revocation of a license pursuant to this chapter.

      (d) Has falsified any of the information

submitted to the Commissioner in support of the application for the license.

      (Added to NRS by 2005, 1889)

      NRS 678.284  Suspension or revocation of license: Additional grounds.  In addition to any other lawful reasons, the

Commissioner may suspend or revoke a license if the licensee has engaged in any

act that would be grounds for denying a license pursuant this chapter.

      (Added to NRS by 2005, 1890)

      NRS 678.286  Use or change of business name; prohibitions.

      1.  A licensee must obtain the approval of

the Commissioner before using or changing a business name.

      2.  A licensee shall not:

      (a) Use any business name which is identical or

similar to a business name used by another licensee under this chapter or which

may mislead or confuse the public.

      (b) Use any printed forms which may mislead or

confuse the public.

      (Added to NRS by 2005, 1890)

      NRS 678.288  Authorization of Commissioner to investigate business; free

access required; compelling attendance of witnesses.

      1.  For the purpose of discovering

violations of this chapter or of securing information lawfully required under

this chapter, the Commissioner or his or her duly authorized representatives

may at any time investigate the business and examine the books, accounts,

papers and records used therein of:

      (a) Any credit union;

      (b) Any other person engaged in an activity for

which a license is required pursuant to the provisions of this chapter; and

      (c) Any person whom the Commissioner has

reasonable cause to believe is violating or is about to violate any provision

of this chapter, whether or not the person claims to be within the authority or

beyond the scope of this chapter.

      2.  For the purpose of examination, the

Commissioner or his or her authorized representatives shall have and be given

free access to the offices and places of business, files, safes and vaults of

such persons.

      3.  The Commissioner may require the

attendance of any person and examine him or her under oath regarding:

      (a) Any transaction or business regulated

pursuant to the provisions of this chapter; or

      (b) The subject matter of any audit, examination,

investigation or hearing.

      (Added to NRS by 2005, 1890)

      NRS 678.290  Credit Union Advisory Council.

      1.  The Credit Union Advisory Council,

consisting of five members appointed by the Governor, is hereby created to

consult with, advise and make recommendations to the Commissioner in all

matters pertaining to credit unions.

      2.  The Governor shall appoint members who

have tested credit union experience from a list of recommended names submitted

by the Nevada Credit Union League.

      3.  After the initial terms, members serve

terms of 4 years, except when appointed to fill unexpired terms.

      4.  The Chair of the Advisory Council must

be elected annually by and from the members thereof.

      5.  The meetings of the Advisory Council

may be held at such times and places as the Chair or Commissioner determines

and may be held regularly at least once every 6 months.

      6.  Council members are entitled to receive

a salary of $60 for each day’s attendance at a meeting of the Council.

      (Added to NRS by 1975, 378; A 1977, 1263; 1981, 71,

1996; 1983, 1449, 1831; 1985, 447; 1987, 2013)

FORMATION

      NRS 678.300  Requirement of incorporation; exceptions; applicability of NRS 81.410 to 81.540, inclusive; perpetual

existence.

      1.  Except for a credit union organized

under the Federal Credit Union Act or a foreign credit union which has been

issued a certificate of authority by the Commissioner, any credit union whose

principal business is to borrow, loan and invest money on behalf of its members

and which issues membership certificates must be incorporated under the

provisions of this chapter. For that purpose, the provisions of NRS 81.410 to 81.540, inclusive, which are not in

conflict with the provisions of this chapter, apply to such corporations and to

the officers and stockholders thereof, except as otherwise provided in NRS 678.342 to 678.347,

inclusive.

      2.  A credit union organized under the

provisions of this chapter has perpetual existence, subject to dissolution as

provided in this chapter.

      (Added to NRS by 1975, 379; A 1977, 890; 1983, 2015; 1985, 315; 1987, 2014)

      NRS 678.310  Procedure for incorporation; fees set by regulation.

      1.  The Secretary of State shall not issue

any certificate of incorporation to any credit union authorizing it to do

business in this state until the articles of incorporation are approved by the

Commissioner.

      2.  An amendment to the articles of

incorporation may not be filed by the Secretary of State without the written

approval of the Commissioner.

      3.  Not less than seven persons who are

residents of Nevada, have a common bond and are of legal age who desire to

organize a credit union under this chapter shall first execute in triplicate an

application, upon forms to be issued by the Commissioner, for permission to

organize an association. The applicants shall submit with or include in their application:

      (a) A copy of the articles of incorporation which

must comply with the provisions of NRS

81.440 except where those provisions conflict with the provisions of this

chapter.

      (b) The par value of the shares, which must be $5

or some multiple thereof.

      (c) The names and addresses of the applicants and

an itemized account of the financial condition of the applicants and the

proposed credit union.

      (d) The name, which must include the words

“credit union,” and the principal place of business.

      (e) Any additional information which the

Commissioner may require to determine the character and responsibility of the

applicants and the need for a credit union in the community to be served.

Ê The

incorporators shall submit a set of proposed bylaws to the Commissioner with

their application and the bylaws when approved by the Commissioner are

effective upon filing the articles of incorporation. The Commissioner shall

approve or disapprove the application within 30 days following its receipt.

      4.  Every application for permission to

organize, as provided for in this section, must be accompanied by an

application fee and a fee payment to cover expenses attendant upon the

investigation required for approval. The amount of the fees must be established

by regulation adopted by the Commissioner.

      5.  The subscribers for a credit union

charter shall not transact any business until formal approval of the charter

has been received.

      (Added to NRS by 1975, 379; A 1977, 890; 1983, 1639,

1831, 2016; 1987,

2014)

      NRS 678.320  Amendment of articles of incorporation; bylaws.

      1.  The articles of incorporation or bylaws

may be amended as provided in the bylaws. Any amendment to the articles of

incorporation or bylaws do not become effective until approved in writing by

the Commissioner.

      2.  The Commissioner shall not charge any

fee for approving amendments to the articles of incorporation or bylaws of any

credit union organized pursuant to this chapter.

      (Added to NRS by 1975, 380; A 1977, 891; 1983, 1832; 1987, 2015)

      NRS 678.330  Offices; principal place of business.

      1.  A credit union may maintain, with the

approval of the Commissioner, offices at locations other than its main office

if the maintenance of the offices is reasonably necessary to furnish service to

its members.

      2.  A credit union may change its principal

place of business within this state upon providing written notice to the

Division of Financial Institutions.

      3.  A credit union may share office space

with one or more credit unions and contract with a corporation to provide

facilities or personnel.

      (Added to NRS by 1975, 380; A 1983, 1832; 1987, 2015)

      NRS 678.340  Fiscal year.  The

fiscal year of all credit unions organized under this chapter shall end on the

last day of December.

      (Added to NRS by 1975, 380)

FOREIGN CREDIT UNIONS

      NRS 678.342  Certificate of authority required.  No

credit union organized under the laws of another state may commence or transact

any business or maintain an office in this state without first obtaining a

certificate of authority from the Commissioner.

      (Added to NRS by 1983, 2014; A 1983, 1645; 1987, 2015)

      NRS 678.343  Application for certificate of authority: Filing; form;

contents; withdrawal of application.  Each

application for an initial certificate of authority submitted by a foreign

credit union must be filed with the Commissioner on a form prescribed by him or

her and must include:

      1.  A copy of the instrument or authority

by which the credit union was created and a copy of its bylaws.

      2.  A statement of its membership, if not

contained in its bylaws.

      3.  A copy of the most recent report

submitted by the credit union to the authorized officer of the state in which

it was organized.

      4.  Any other information required by the

Commissioner.

      5.  The Commissioner shall consider an

application to be withdrawn if the Commissioner has not received all information

and fees required to complete the application within 12 months after the date

the application is first submitted to the Commissioner or within such later

period as the Commissioner determines in accordance with any existing policies

of joint regulatory partners. If an application is deemed to be withdrawn

pursuant to this subsection or if the applicant otherwise withdraws the

application, the Commissioner may not issue a license to the applicant unless

the applicant submits a new application and pays any required fees.

      (Added to NRS by 1983, 2014; A 1983, 1646; 1987, 177, 2015; 2005, 1890)

      NRS 678.3435  Fee for initial investigation; annual fees; costs for additional

investigations; regulations.

      1.  The Commissioner shall charge and

collect a fee of not more than $1,000 for an initial investigation from each

foreign credit union which applies for certification. The fee is not

refundable. An annual fee of not more than $1,000 must be paid by each foreign

credit union for its initial office and not more than $200 for each branch

office. Costs for additional examinations and investigations must be paid by

the credit union at an hourly rate deemed reasonable by the Commissioner.

      2.  The Commissioner shall by regulation

determine the amount of the fees required pursuant to this section.

      (Added to NRS by 1987, 177; A 2005, 1891)

      NRS 678.344  Requirements for issuance of certificate.  The Commissioner shall issue a certificate of

authority to a foreign credit union if he or she is satisfied that:

      1.  The members of the credit union to be

served in this State are adequately protected by any form of security which is

comparable to that required of credit unions organized under the provisions of

this chapter.

      2.  The officer who supervises the credit

union in the state in which it was organized has authorized it to do business

in Nevada and agrees to furnish, upon request, copies of reports relating to

the credit union.

      3.  The members to be served in this State

have a need for the service and adequate service is not available through

existing credit unions.

      4.  A registered agent has been designated.

      5.  The state in which the credit union was

organized issues comparable authorization to credit unions organized under the

provisions of this chapter.

      (Added to NRS by 1983, 2014; A 1983, 1646; 1985, 784; 1987, 2015; 2007, 2727)

      NRS 678.345  Applicable law; filing of annual report.  A foreign credit union which has been issued a

certificate of authority shall:

      1.  Serve its members in this state in

accordance with its bylaws and the laws of the state in which it was organized,

except where those laws conflict with the provisions of this chapter.

      2.  File with the Commissioner a copy of

its annual report at the time it files a similar report with the officer of the

state in which it was organized.

      (Added to NRS by 1983, 2014; A 1983, 1646; 1987, 2016)

      NRS 678.3455  Application for certificate of authority to open branch offices.  A foreign credit union which has been issued a

certificate of authority may apply to the Commissioner for a certificate of

authority to open one or more branch offices in this state. Such an application

must be made on a form prescribed by the Commissioner.

      (Added to NRS by 1987, 177)

      NRS 678.346  Examination of records; revocation of certificate.  The Commissioner may:

      1.  Examine the records of any foreign

credit union which holds a certificate of authority issued by the Commissioner

at any time he or she deems necessary.

      2.  Revoke a certificate of authority

issued to a credit union if he or she finds that the credit union has violated

any provision of this chapter or the regulations of the Commissioner.

      (Added to NRS by 1983, 2015; A 1983, 1647; 1987, 2016)

      NRS 678.347  Applicability of provisions of chapter 80

of NRS.  The provisions of chapter 80 of NRS which are not in conflict with

the provisions of this chapter apply to any foreign credit union which holds a

certificate of authority to transact business or maintain an office in this

State.

      (Added to NRS by 1983, 2015)

DIRECTORS, OFFICERS AND COMMITTEES

      NRS 678.350  Board of directors: Number, election and terms of members;

procedure for filling vacancy.

      1.  The business affairs of a credit union

shall be directed by an odd-numbered board of not fewer than five directors to

be elected at the annual meetings by and from the members, and an audit and

credit committee if appointed by the board. The persons designated in the

articles of incorporation shall be the first directors.

      2.  All members of the board and such

committees shall hold office for such terms as the bylaws may provide.

      3.  Vacancies in the board of directors

shall be filled by vote of the members at the annual meeting or at a special

meeting called for that purpose. The board may fill any vacancies occurring in

the board until successors elected at the annual meeting or special meeting

have qualified. The board shall also fill vacancies in the credit and audit

committees.

      (Added to NRS by 1975, 380)

      NRS 678.360  Board of directors: Responsibilities; meetings; executive

committee.

      1.  The board of directors is responsible

for the general direction of the affairs, funds and records of the credit union

and shall meet as often as necessary to accomplish their duties, but not less

than once a month.

      2.  The board may appoint an executive

committee of not less than three directors who may be authorized, by a majority

vote of the whole board, to act for the board subject to any conditions or

limitations the board may prescribe.

      (Added to NRS by 1975, 380)

      NRS 678.370  Board of directors: Duties.  The

directors of a credit union shall:

      1.  Purchase a blanket fidelity bond in

accordance with the regulations of the Commissioner which provides the credit

union with protection against losses from misappropriation, defalcation in

breach of trust, negligence, acts of God or nature, fire, burglary, robbery or

other cause over which the bonded officers, employers and agents had no

control;

      2.  Declare dividends in the manner

prescribed in the bylaws;

      3.  Determine the interest rate to be

charged on loans and paid on deposits;

      4.  Limit the number of shares and the

amount of deposits which may be owned by any member;

      5.  Establish the compensation of all

employees and officers;

      6.  Establish the maximum secured and

unsecured loan which may be made to any one member;

      7.  Designate a depository or depositories

for the money of the credit union;

      8.  Suspend or remove any member who fails

to perform or negligently performs his or her assigned duties;

      9.  Establish compensation to be paid any

employee, officer or other persons performing services on behalf of the credit

union;

      10.  Determine from time to time the

interest rate, consistent with the provisions of this chapter, which will be

charged on loans; and

      11.  Authorize interest refunds to members

from income earned and received in proportion to interest paid by them on such

classes of loans. Such refunds are subject to conditions imposed by the board.

      (Added to NRS by 1975, 380; A 1983, 1833; 1987, 2016)

      NRS 678.380  Board of directors: Powers.  The

directors may:

      1.  Act upon applications for membership or

appoint membership officers from the members of the credit union to act upon

membership applications subject to conditions imposed by the board. If

membership officers are appointed they shall submit at each board meeting a list

of approved or pending applications for membership.

      2.  Invest surplus funds or designate an

officer or committee to be responsible for making investments subject to rules

and procedures established by the board of directors.

      3.  Authorize the employment of persons

necessary to carry on the business of the credit union.

      4.  Authorize the conveyance of property.

      5.  Borrow or lend money to carry on the

functions of the credit union.

      6.  Appoint any special committees which

the board feels necessary to carry on the business of the credit union.

      7.  Perform or authorize any action not

inconsistent with this chapter and not specifically reserved by the bylaws for

the members.

      8.  Employ a general manager to be in

charge of operations or, in lieu thereof, designate the treasurer to act as

general manager and be in active charge of the affairs of the credit union.

      9.  Amend the bylaws of the credit union.

      (Added to NRS by 1975, 381)

      NRS 678.390  Appointment of audit committee: Duties; powers; suspension of

member; employment of certified or registered public accountant.

      1.  The board may appoint an audit

committee to make an annual audit of the financial records of the credit union

and any interim audits as may be deemed necessary by the board or as may be

directed by the Commissioner. A copy of the report must be submitted to the

board and the Commissioner and a summary presented to the members at the next

annual meeting.

      2.  The audit committee may by unanimous

vote suspend any director, officer or member of the credit union following an

audit, for any violation of this chapter, the charter or bylaws or for any

other practice which the audit committee deems to be unsafe or unauthorized. In

such cases, the audit committee shall call a special meeting of the members not

less than 7 nor more than 21 days following the suspension and the suspension

must be ratified or overturned by the members.

      3.  Any member of the audit committee may

be suspended by the board for the same reasons and in the same manner as

provided in subsection 2.

      4.  The audit committee may by a majority

vote call a special meeting of the members to consider any violation of this

chapter, the charter or bylaws or any practice of the credit union deemed by

the audit committee to be unsafe or unauthorized.

      5.  The board of directors or the audit

committee may employ the services of a certified public accountant or a

registered public accountant to complete the necessary audit of the records of

the credit union.

      (Added to NRS by 1975, 381; A 1981, 1813; 1983, 1640,

1833, 2016; 1987,

2017)

      NRS 678.400  Credit committee; loan officer.

      1.  The board may appoint a:

      (a) Credit committee consisting of an odd number

of members of the credit union, but not less than three members; or

      (b) Loan officer.

      2.  If a credit committee is appointed by

the board, it shall hold such meetings as the business of the credit union may

require but it shall meet at least once a month to consider applications for

loans. A loan may not be made unless it is approved by a majority of the

members of the committee who are present at the meeting at which the

application is considered.

      3.  The credit committee may appoint a loan

officer from among its members and delegate to him or her the power to approve

loans. Only one member of the credit committee may be appointed as loan officer

or assistant loan officer.

      4.  If a loan is not approved by a loan

officer, the application for the loan must be reviewed by the credit committee

or the board of directors, whomever appointed the loan officer. All the members

of the credit committee or the board present at the review must approve the

application before the loan may be made.

      5.  For purposes of internal control, a

loan officer may not disburse funds of the credit union for any loan which has

been approved by him or her in his or her capacity as loan officer.

      (Added to NRS by 1975, 382; A 1983, 2017)

      NRS 678.410  Removal of director, officer or employee on objection of

Commissioner.  If the Commissioner

notifies the board in writing that he or she has information that any director,

officer or employee of a credit union is failing in the performance of his or

her duties, the board shall meet and consider such matter forthwith. The

Commissioner must have notice of the time and place of the meeting. If the

board of directors finds the Commissioner’s objection to be well founded, such

director, officer or employee shall be removed immediately.

      (Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

      NRS 678.420  Officers: Election; designation; bonds; terms; duties.

      1.  At the organizational meeting and

within 30 days following each annual meeting, the directors shall elect, from

their own number, the executive officers of the corporation. The officers must

be designated as:

      (a) Chair of the board;

      (b) Vice chair of the board;

      (c) Treasurer; and

      (d) Secretary.

Ê The

treasurer and secretary may be the same person.

      2.  The treasurer or general manager shall

give a fidelity bond with good and sufficient surety in an amount and character

to be determined by the board in compliance with regulations prescribed by the

Commissioner.

      3.  Each officer shall serve a term of 1

year or until such time as successors are chosen and have qualified.

      4.  The duties of each office must be as

prescribed in the bylaws of the credit union.

      (Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

      NRS 678.430  List of directors, officers and committee members.  Within 30 days following the election of the

executive officers, the secretary shall submit to the Commissioner a list of

the names and addresses of the directors, officers and committee members who

have been elected or appointed.

      (Added to NRS by 1975, 383; A 1983, 1834; 1987, 2018)

      NRS 678.440  Fiduciary relationship of directors and officers.  Directors and officers of an association shall

be deemed to stand in a fiduciary relation to the credit union and shall

discharge the duties of their respective positions in good faith and with the

diligence, care and skill which ordinary, prudent persons would exercise under

similar circumstances in similar positions.

      (Added to NRS by 1975, 383; A 1997, 1623)

      NRS 678.450  Compensation and expenses of directors, officers and members.

      1.  A director or committee member may not

be compensated for his or her services except that he or she may be provided

reasonable life, health, accident and similar insurance protection.

      2.  Any member of the credit union may be

reimbursed for necessary expenses incidental to the performance of credit union

business. All such expenses shall be approved by the board.

      3.  Subsection 1 does not apply to officers

of the credit union who also serve as members of the board or a committee.

      (Added to NRS by 1975, 383)

POWERS AND PRIVILEGES

      NRS 678.460  General powers; waiver or modification of law by Commissioner.  Every credit union organized under the

provisions of this chapter:

      1.  Has all the powers granted by NRS 81.500 that are not inconsistent with

the provisions of this chapter and in addition thereto, the powers enumerated

in NRS 678.470 to 678.500,

inclusive; and

      2.  May exercise any authority and perform

all acts that a federal credit union may exercise or perform, with the consent

and written approval of the Commissioner. The Commissioner may, by regulation,

waive or modify a requirement of Nevada law if the corresponding requirement

for federal credit unions has been or is eliminated or modified.

      (Added to NRS by 1975, 386; A 2001, 2050)

      NRS 678.470  Receiving and paying out deposits; borrowing, selling and

purchasing assets.  A credit union

may, subject to the regulations or approval of the Commissioner:

      1.  Receive from its members or from the

members of another credit union deposits which are payable on demand and honor

requests for withdrawals in the form of checks or drafts.

      2.  Receive deposits from the State

Treasurer which are payable on demand pursuant to the provisions of chapter 356 of NRS.

      3.  Borrow from any source in accordance

with the policy established by the board of directors and discount and sell any

eligible obligations.

      4.  Sell all or any part of its assets or

purchase all or any part of the assets of another credit union.

      (Added to NRS by 1975, 386; A 1981, 1368; 1983, 1835;

1987, 2018)

      NRS 678.480  Fees and assessments.  A

credit union may:

      1.  Require, at the discretion of the

directors, the payment of an entrance fee or annual membership fee of any

person admitted to membership;

      2.  Collect, receive and disburse moneys

and charge a fee for services rendered in connection with the sale of

negotiable checks, money orders and other money-type instruments and for such

other purposes as may provide benefit or convenience to its members; and

      3.  Assess charges to members in accordance

with the bylaws for failure to promptly meet their obligations to the credit

union.

      (Added to NRS by 1975, 387)

      NRS 678.490  Membership in other credit union or organization; performance of

certain services.  A credit union

may:

      1.  Hold membership in other credit unions

organized under this chapter, in the Nevada Credit Union League and in other

organizations composed of credit unions;

      2.  Perform such tasks and missions as may

be requested by the Federal Government, the State of Nevada or any agency or

political subdivision thereof, including, without limitation, a city, county or

school district, when approved by the board of directors and not inconsistent

with the provisions of this chapter;

      3.  Act as fiscal agent for and receive

deposits from the Federal Government, the State of Nevada or an agency or

political subdivision thereof, including, without limitation, a city, county or

school district; and

      4.  Perform trust services for its members,

including the trust estates of deceased members, and act as a custodian of

qualified pension funds of self-employed individuals under the provisions of 26

U.S.C. §§ 861 et seq.

      (Added to NRS by 1975, 387; A 1999, 1453)

      NRS 678.500  Donations and contributions.  A

credit union may:

      1.  Contribute to, support or participate

in any nonprofit service facility whose services will benefit the credit union

or its membership; and

      2.  Make donations or contributions to any

nonprofit civic, charitable or community organization as authorized by the

board of directors.

      (Added to NRS by 1975, 387)

MEMBERSHIP; ACCOUNTS

      NRS 678.510  Eligibility for membership.

      1.  The membership of a particular credit

union shall be limited to the subscribers to the articles of incorporation and

such other persons who have:

      (a) The common bond set forth in the bylaws;

      (b) Paid the entrance fee provided in the bylaws;

      (c) Subscribed for one or more shares and have

paid the initial installment thereon; and

      (d) Complied with other requirements specified in

the articles of incorporation or bylaws.

      2.  The common bond required for membership

in credit unions organized under the provisions of this chapter may include,

but are not limited to persons who:

      (a) Have a similar occupation, association or

interest;

      (b) Reside within an identifiable neighborhood,

community or rural district; or

      (c) Are employed by the same employer,

Ê and members

of the immediate families of such persons.

      3.  Any member of a credit union who loses

the bond that is characteristic of all other members may be permitted to retain

his or her membership in the credit union at the discretion of the board of

directors.

      (Added to NRS by 1975, 383)

      NRS 678.520  Eligibility of minor; limitations.

      1.  Shares may be issued to and deposits

received from a minor and such minor may withdraw the shares and deposits,

including the dividends and interest thereon. For purposes of making deposits,

share investments and withdrawals a minor shall be deemed of legal age.

      2.  A minor under 16 years of age is not

entitled to vote in the meeting of the members either personally or through his

or her parent or guardian. A person may not become a director until he or she

has reached the age of majority.

      (Added to NRS by 1975, 383)

      NRS 678.530  Subscription to and transfer of shares; lien for sums due;

reduction in shares.

      1.  Shares may be subscribed to, paid for

and transferred in such manner as the bylaws may prescribe. A certificate shall

not be issued to denote ownership of a share in a credit union.

      2.  The credit union may impress a lien on

the shares, deposits, accumulated dividends or interest of a member in his or

her individual, joint or trust account for any sum due the credit union from

such member or for any loan endorsed by him or her.

      3.  If the losses of any credit union,

resulting from a depreciation in value of its loans or investments or

otherwise, exceed its undivided earnings and reserve fund so that the estimated

value of its assets is less than the total amount due the shareholders, the

credit union may, by a majority vote of the entire membership, order a

reduction in the shares of each of its shareholders to divide the loss

proportionately among the members. If thereafter the credit union realizes from

such assets a greater amount than was fixed by the order of reduction, such

excess shall be divided among the shareholders whose assets were reduced, but

only to the extent of such reduction.

      (Added to NRS by 1975, 387)

      NRS 678.540  Real and personal property subject to taxation.  The real property and any tangible personal

property owned by a credit union organized pursuant to this chapter or any

other provision of law is subject to taxation to the same extent as other

similar property is taxed.

      (Added to NRS by 1975, 394; A 1985, 1182)

      NRS 678.550  Meetings of members.

      1.  The annual meeting and any special

meetings of the members of the credit union shall be held at the time and place

and in the manner indicated in the bylaws.

      2.  A member may not vote by proxy, but a

society, association, copartnership or corporation having membership in the

credit union may be represented and vote by one of its members or shareholders

if such person has been fully authorized by the governing body of the society,

association, copartnership or corporation to represent it.

      3.  At all meetings a member has but one

vote irrespective of his or her share holdings.

      (Added to NRS by 1975, 386)

      NRS 678.560  Savings deposits; special clubs and accounts.

      1.  A credit union may receive savings

deposits from its members, subject to such conditions and such return as may be

established by the board.

      2.  Christmas clubs, vacation clubs and

other thrift accounts may be operated in accordance with the provisions of the

bylaws.

      (Added to NRS by 1975, 383)

      NRS 678.570  Multiple-party accounts: Authorization; disbursement of money;

limitations.

      1.  A credit union may enter into

multiple-party accounts to the same extent that they may enter into

single-party accounts. Any multiple-party account may be paid, on demand, to

any one or more of the parties unless the terms of the account expressly

stipulate that joint signatures are required.

      2.  A credit union is not required to

inquire as to the source of funds received for deposit to a multiple-party

account or to inquire as to the proposed application of any sum withdrawn from

an account.

      3.  A multiple-party account may be created

with any person designated by the credit union member, but a joint tenant shall

not be permitted to vote, obtain loans or hold office unless he or she is a

qualified member.

      (Added to NRS by 1975, 385)

      NRS 678.630  Payment of trust accounts.

      1.  Any account payable to a trustee for

another person may be paid to the trustee on demand.

      2.  The protection provided a credit union

in subsection 1 has no bearing on the rights of parties in disputes between

themselves or their successors concerning the beneficial ownership of funds in,

or withdrawn from, multiple-party accounts.

      (Added to NRS by 1975, 385; A 2011, 1483)

      NRS 678.650  Right to setoff against multiple-party accounts.  Without qualifying any other statutory right

to setoff or lien and subject to any contractual provision, when a party to a

multiple-party account is indebted to a credit union, the credit union has a

right to setoff against the entire amount of the account.

      (Added to NRS by 1975, 386)

RESERVES; DIVIDENDS

      NRS 678.670  Regular reserves.

      1.  Before the payment of any dividend, the

gross earnings of the credit union must be determined. From the gross earnings

a regular reserve against losses must be set aside according to the following

schedule:

      (a) Until the regular reserve equals 7.5 percent

of the outstanding loans and risk assets, all credit unions with assets of

$500,000 or less shall withhold 10 percent of the gross earnings. Thereafter, 5

percent of the gross income must be withheld until the regular reserve reaches

10 percent of the outstanding loans and risk assets.

      (b) Whenever a credit union has assets of more

than $500,000 and has been in operation for at least 4 years, it shall maintain

its regular reserve as follows:

             (1) Until the regular reserve equals 4

percent of the outstanding loans and risk assets, the credit union shall

withhold 10 percent of its gross earnings.

             (2) Thereafter, until the regular reserve

equals 6 percent of its outstanding loan and risk assets, the credit union

shall withhold 5 percent of its gross earnings.

      (c) Whenever the regular reserve falls below the

required levels, it must be replenished by regular contributions sufficient to

maintain the regular reserve at the levels required by paragraphs (a) and (b).

      2.  The regular reserve belongs to the

credit union and must not be distributed except on liquidation of the credit

union or in accordance with a plan approved by the Commissioner.

      (Added to NRS by 1975, 387; A 1977, 891; 1983, 1641,

1835, 2018; 1987,

2018)

      NRS 678.680  Special reserves.  In

addition to regular reserve, special reserves to protect the interest of

members must be established when:

      1.  Required by regulations issued by the

Commissioner; or

      2.  Directed by the board of the credit

union.

      (Added to NRS by 1975, 388; A 1983, 1835; 1987, 2019)

      NRS 678.690  Assets qualified for reserves.  For

the purpose of establishing the reserves required by NRS

678.670 and 678.680, all assets except the

following are considered risk assets:

      1.  Cash on hand;

      2.  Deposits or shares in federal or state

banks, savings and loan associations and credit unions;

      3.  Assets which are insured by, fully

guaranteed as to principal and interest by, or due from the United States

Government, its agencies, the Federal National Mortgage Association or the

Government National Mortgage Association;

      4.  Loans to other credit unions;

      5.  Loans to members of the credit union

which are fully secured by the shares of the member applying therefor;

      6.  Loans to students insured under the

provisions of the Higher Education Act of 1965, 20 U.S.C. §§ 1071 et seq., or

similar state insurance programs;

      7.  Loans insured under the National

Housing Act, as amended, 12 U.S.C. § 1703, by the Federal Housing

Administration;

      8.  Shares or deposits in central credit

unions organized under the provisions of NRS 678.850,

or of any other state law or the Federal Credit Union Act of 1934, as amended,

12 U.S.C. §§ 1751 et seq.;

      9.  Common trust investments which deal in

investments authorized by this chapter;

      10.  Prepaid expenses;

      11.  Accrued interest on nonrisk

investments;

      12.  Furniture and equipment;

      13.  Land and buildings; and

      14.  A deposit for insurance for members’

accounts required pursuant to subsection 3 of NRS

678.750.

      (Added to NRS by 1975, 388; A 1981, 1814; 1999, 1453)

      NRS 678.700  Dividends.

      1.  The board may, after provision for the

required reserves, declare a dividend to be paid from the remaining net

earnings at a rate, interval and upon such shares as they determine. Dividends

shall be paid on all paid-up shares outstanding at the close of the period for

which the dividend is declared.

      2.  Shares which become fully paid-up

during such dividend period and are outstanding at the close of the period are

entitled to a proportional part of such dividend.

      3.  Dividend credit for a month may be

accrued on shares which are or become fully paid up during that month.

      (Added to NRS by 1975, 388)

LOANS; INVESTMENTS

      NRS 678.710  Loans to members: Application; approval; limitations;

participation loans; payment.

      1.  A credit union may make loans to

members in accordance with the provisions of the bylaws upon receipt of

approval by the credit committee or loan officer at a rate of interest agreed

upon by the credit union and member.

      2.  Every application for a loan must be

made in writing upon a form furnished by the credit union which has been

approved by the board. The application must include the purpose for which the

loan is desired and the security, if any, offered.

      3.  A loan must not be made to any member

in an aggregate amount in excess of 10 percent of the credit union’s unimpaired

capital and surplus.

      4.  A credit union may participate with

other credit unions, corporations or financial institutions in making loans to

credit union members.

      5.  A member may receive a loan in

installments or in one sum and may pay the whole or any part of his or her loan

on any day on which the office of the credit union is open for business.

      (Added to NRS by 1975, 389; A 1981, 1596)

      NRS 678.720  Loans to members: Extension of previous maximum credit; review.

      1.  The credit committee or loan officer

may approve, at his or her own discretion or upon application by a member, an

extension of the maximum credit any member had previously been allowed. If an

extension of credit is permitted, applications for loans within the credit

limitation need no further consideration so long as the aggregate obligation of

the member does not exceed the credit limit.

      2.  The credit committee or loan officer

shall, at least once each year, review all extensions of credit and any

extension of credit shall expire if the member becomes more than 90 days

delinquent in his or her obligations to the credit union.

      (Added to NRS by 1975, 390)

      NRS 678.730  Loans to and guaranties by directors and members of committees.

      1.  A credit union may make loans to its

directors and to members of its committees, except that any loan or aggregate

of loans to any one director or member of a committee which is more than

$30,000 plus pledged shares must be approved by the board.

      2.  A credit union may permit its directors

and members of its committees to act as guarantor or endorser of loans to other

members, except that when such a loan standing alone or when added to any

outstanding loan to the guarantor is more than $30,000, approval of the board

is required.

      (Added to NRS by 1975, 390; A 1983, 2018; 1999, 1454)

      NRS 678.740  Security for loans.

      1.  In addition to generally accepted types

of security, the endorsement of a note by a guarantor or assignment of shares

or wages, in a manner consistent with the laws of this state, shall be deemed

security within the meaning of this chapter.

      2.  The credit committee or loan officer,

subject to the provisions of this chapter and the bylaws, is responsible for

determining the adequacy of security for any loans.

      (Added to NRS by 1975, 390)

      NRS 678.750  Insurance of members and accounts.

      1.  A credit union may purchase insurance

on the lives of its members in an amount equal to their respective shares,

deposits and balances on a loan or any of them.

      2.  A credit union may enter into

cooperative marketing arrangements for its members covering such services as

group life insurance, coverage for temporary disability, plans for health and

accident and such other programs which are demonstrated to be in the interest

of improving the economic and social conditions of the credit union’s members.

      3.  A credit union must apply to the

Commissioner for approval of a plan of insurance for members’ accounts, either

pursuant to the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§

1781 et seq.), or under a contract of insurance issued by an insurer, which

must be approved by the Commissioner and the Commissioner of Insurance pursuant

to NRS 678.755. The issuance of such a contract is

not transacting insurance under title 57 of NRS.

      4.  The Commissioner shall make available

reports of the financial condition of credit unions, reports of examinations

made pursuant to NRS 678.790 and any other reports

that may be required by the insurer and deemed appropriate by the Commissioner.

      (Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836;

1985, 785; 1987, 2019)

      NRS 678.755  Approval of private insurer and contract of insurance;

regulations; reserve.

      1.  In determining whether a private

insurer is acceptable to issue a contract for the insurance of deposits, the

Commissioner and the Commissioner of Insurance must consider:

      (a) The value of the insurer’s capital.

      (b) The ratio of the insurer’s assets, including

reinsurance, which are readily available to cover any losses incurred by

depositors, to its insured deposits. This ratio must be adequate to reimburse

depositors for any losses which they may incur and may not be less than the

ratio maintained by the share insurance fund established under the Federal

Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).

      (c) The qualifications of the directors, officers

and managers of the insurance company.

      (d) The insurer’s articles of incorporation and

its bylaws and all amendments thereto.

      (e) The insurer’s policies for investments.

      (f) The form of all insurance contracts entered

into by the insurer, including contracts for reinsurance.

      (g) The insurer’s requirements for premiums or

deposits.

      (h) The insurer’s policies for the management of

risk.

      (i) Such other considerations as the Commissioner

may provide by regulation which are necessary to carry out the provisions of

this act.

      2.  The Commissioner and the Commissioner

of Insurance shall not approve a contract of insurance unless the protection

afforded thereby to the depositors is substantially equivalent to the

protection afforded by the Federal Credit Union Act of 1934, as amended, (12

U.S.C. §§ 1781 et seq.) to the depositors.

      3.  After a private insurer obtains the

approval of the Commissioner and the Commissioner of Insurance, the

Commissioner, after consultation with the Commissioner of Insurance may, for

cause, require the insurer to establish and maintain for such a time as the

Commissioner may require, a reserve, in cash or United States treasury bills or

notes, in an amount fixed by the Commissioner. If required, the reserve must be

kept in an account approved by the Commissioner in a federally insured

financial institution located in this state.

      (Added to NRS by 1985, 783; A 1987, 2019)

      NRS 678.760  Authorized investments.  Money

not used in loans to members may be invested in:

      1.  Securities, obligations, participations

or other instruments of or issued by or fully guaranteed as to principal and

interest by the United States of America or any agency thereof or in any trust

or trusts established for investing directly or collectively in these

instruments;

      2.  Obligations of this state or any

political subdivision thereof, including, without limitation, a city, county or

school district;

      3.  Certificates of deposit or passbook

type accounts issued by a state or national bank, mutual savings bank or

savings and loan association;

      4.  Loans to or shares or deposits of other

credit unions as permitted by the bylaws;

      5.  Capital shares, obligations or

preferred stock issues of any agency or association organized either as a stock

company, mutual association or membership corporation if the membership or

stockholdings, as the case may be, of the agency or association are confined or

restricted to credit unions or organizations of credit unions, and the purposes

for which the agency or association is organized are designed to service or

otherwise assist credit union operations;

      6.  Shares of a cooperative society

organized under the laws of this state or the United States in a total amount

not exceeding 10 percent of the shares, deposits and surplus of the credit

union;

      7.  Stocks and bonds of United States

corporations to a maximum of 5 percent of unallocated reserves, except that

such an investment must be limited to stocks or bonds yielding income which are

approved by the Commissioner;

      8.  Loans to any credit union association,

national or state, of which the credit union is a member, except that such an

investment must be limited to 1 percent of the shares, capital deposits and

unimpaired surplus of the credit union; and

      9.  Negotiable obligations of federal or

state banks.

      (Added to NRS by 1975, 389; A 1981, 1815; 1983, 1280,

1641, 1836; 1987,

2020; 1989,

1675; 1999,

1454; 2013,

1251)

      NRS 678.765  Limitation on investment in fixed assets.  A credit union must not invest in fixed assets

without the prior approval of the Commissioner if the aggregate value of the

credit union’s existing fixed assets exceeds 7 percent of its total assets.

      (Added to NRS by 1985, 783; A 1987, 2021)

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

      NRS 678.767  Definitions.  As

used in NRS 678.767 to 678.779,

inclusive, unless the context otherwise requires, the words and terms defined

in NRS 678.769 to 678.777,

inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 1494)

      NRS 678.769  “Designated reporter” defined.  “Designated

reporter” means a person designated by a credit union to receive reports of

known or suspected exploitation of an older person or vulnerable person

pursuant to NRS 678.779.

      (Added to NRS by 2007, 1494)

      NRS 678.771  “Exploitation” defined.  “Exploitation”

has the meaning ascribed to it in subsection 2 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.773  “Older person” defined.  “Older

person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.775  “Reasonable cause to believe” defined.  “Reasonable

cause to believe” has the meaning ascribed to it in NRS 200.50925.

      (Added to NRS by 2007, 1494)

      NRS 678.777  “Vulnerable person” defined.  “Vulnerable

person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.778  Training; reporting to designated reporter.

      1.  Each credit union shall provide

training concerning the identification and reporting of the suspected

exploitation of an older person or vulnerable person to each employee of the

credit union who:

      (a) May, as part of his or her regular duties for

the credit union, come into direct contact with an older person or vulnerable

person; or

      (b) May review or approve the financial

documents, records or transactions of an older person or vulnerable person in

connection with providing financial services to the older person or vulnerable

person.

      2.  The training required pursuant to

subsection 1 must be provided as soon as reasonably practicable, but not later

than 6 months after the employee is employed by the credit union.

      3.  The training required pursuant to

subsection 1 must include, without limitation:

      (a) An explanation of the conduct which

constitutes exploitation of an older person or vulnerable person;

      (b) The manner in which exploitation of an older

person or vulnerable person may be recognized;

      (c) Information concerning the manner in which

reports of exploitation are investigated; and

      (d) Instruction concerning when and how to report

known or suspected exploitation of an older person or vulnerable person.

      4.  An employee who has observed or has

knowledge of an incident that is directly related to a transaction or matter

which is within his or her scope of practice and which reasonably appears to be

exploitation of an older person or vulnerable person shall report the known or

suspected exploitation to the designated reporter.

      (Added to NRS by 2007, 1494)

      NRS 678.779  Designated reporter: Designation; duty to report; immunity.

      1.  Each credit union shall designate a

person or persons to whom an employee of the credit union must report known or

suspected exploitation of an older person or vulnerable person.

      2.  If an employee reports known or

suspected exploitation of an older person to a designated reporter and, based

on such a report or based on his or her own observations or knowledge, the

designated reporter knows or has reasonable cause to believe that an older

person has been exploited, the designated reporter shall:

      (a) Except as otherwise provided in subsection 3,

report the known or suspected exploitation of the older person to:

             (1) The local office of the Aging and

Disability Services Division of the Department of Health and Human Services;

             (2) A police department or sheriff’s

office;

             (3) The county’s office for protective

services, if one exists in the county where the suspected action occurred; or

             (4) A toll-free telephone service

designated by the Aging and Disability Services Division of the Department of

Health and Human Services; and

      (b) Make such a report as soon as reasonably

practicable.

      3.  If the designated reporter knows or has

reasonable cause to believe that the exploitation of the older person involves

an act or omission of the Aging and Disability Services Division, another

division of the Department of Health and Human Services or a law enforcement

agency, the designated reporter shall make the report to an agency other than

the one alleged to have committed the act or omission.

      4.  If an employee reports known or

suspected exploitation of a vulnerable person to a designated reporter and,

based on such a report or based on his or her own observations or knowledge,

the designated reporter knows or has reasonable cause to believe that a

vulnerable person has been exploited, the designated reporter shall:

      (a) Except as otherwise provided in subsection 5,

report the known or suspected exploitation of the vulnerable person to a law

enforcement agency; and

      (b) Make such a report as soon as reasonably

practicable.

      5.  If the designated reporter knows or has

reasonable cause to believe that the exploitation of the vulnerable person

involves an act or omission of a law enforcement agency, the designated

reporter shall make the report to a law enforcement agency other than the one

alleged to have committed the act or omission.

      6.  In accordance with the provisions of

subsection 3 of NRS 239A.070, in

making a report pursuant to this section, a designated reporter may:

      (a) Disclose any facts or information that form

the basis of the determination that the designated reporter knows or has

reasonable cause to believe that an older person or vulnerable person has been

exploited, including, without limitation, the identity of any person believed

to be involved in the exploitation of the older person or vulnerable person;

and

      (b) Provide any financial records or other

documentation relating to the exploitation of the older person or vulnerable

person.

      7.  An employee and the designated reporter

are entitled to the immunity from liability set forth in NRS 200.5096 for making a report in good

faith.

      (Added to NRS by 2007, 1495)

RECORDS AND REPORTS; EXAMINATIONS

      NRS 678.780  Annual financial report.  Every

credit union organized under this chapter shall submit an annual financial

report for the calendar year to the Commissioner on or before the first day of

February on forms supplied by him or her for that purpose.

      (Added to NRS by 1975, 390; A 1983, 1328, 1837; 1987, 2021)

      NRS 678.790  Examinations and audits; exceptions; fees.

      1.  The Commissioner shall make a thorough

examination of and into the affairs of each credit union organized under the

provisions of this chapter, as often as the Commissioner may deem necessary,

but at least once within each 18-month period. In lieu thereof, the

Commissioner may accept any or all of a report of an examination of a credit

union made by a federal regulatory agency. If the Commissioner accepts any part

of such a report in one 18-month period, he or she shall examine the credit

union to which the report pertains in the succeeding 18-month period. For the

purpose of performing the examination, the Commissioner may:

      (a) Subpoena witnesses and documents;

      (b) Administer oaths; and

      (c) Compel the giving of testimony.

      2.  The report of the examination must

contain comments to the members relative to the management of the affairs of

the credit union and the general condition of the assets. Within 30 days

following the receipt of the report, the directors shall call a general meeting

of key personnel to consider matters contained in the report.

      3.  The Commissioner shall forward a copy

of the report to the chair of each credit union within 30 days after it is

completed. The board of directors shall inform the members of the credit union

of its general condition at the next annual meeting.

      4.  For each examination the credit union

shall pay a fee based on the rate established pursuant to NRS 658.101.

      5.  The board of directors may engage a

certified public accountant to perform such an examination in lieu of the

Commissioner. In such cases, the examination must be equivalent to the type of

examination made by the Commissioner and the expense must be borne by the

credit union being inspected.

      6.  The Commissioner shall determine

whether an examination performed by an accountant pursuant to subsection 5 is

equivalent to an examination conducted by the Commissioner. The Commissioner

may examine any area of the operation of a credit union if the Commissioner

determines that the examination of that area is not equivalent to an

examination conducted by the Commissioner.

      (Added to NRS by 1975, 391; A 1983, 2018; 1987, 2227; 1989, 1676; 2005, 1891)

      NRS 678.795  Independent audit and examination: Payment of assessment;

cooperation.  Each credit union

shall pay the assessment levied pursuant to NRS

658.055 and cooperate fully with the audits and examinations performed

pursuant thereto.

      (Added to NRS by 1987, 827)

MERGER; CONVERSIONS

      NRS 678.800  Merger; fees set by regulation; regulations.

      1.  Any credit union may, with the approval

of the Commissioner, merge with another credit union under the existing charter

of the other credit union, pursuant to any plan agreed upon by the majority of

the board of each credit union joining in the merger and approved by the

affirmative vote of:

      (a) A majority of the members of the merging

credit union present at a meeting called for that purpose; or

      (b) A majority of the members of the merging

credit union voting by mail on the question.

      2.  After agreement by the directors of

each credit union and approval by the members of the merging credit union, the

chair and secretary of each credit union shall execute a certificate of merger,

which must set forth:

      (a) The time and place of the meeting of the

board of directors at which the plan was agreed upon;

      (b) The vote in favor of adoption of the plan;

      (c) A copy of the resolution or other action by

which the plan was agreed upon;

      (d) The circumstances of the vote in which the

members approved the plan agreed upon, if a vote was required; and

      (e) The vote by which the plan was approved by

the members, if a vote was required.

      3.  A copy of each of the certificates

executed pursuant to subsection 2 and a copy of the plan of merger agreed upon

by the credit unions joining in the merger must be forwarded to the Division of

Financial Institutions for certification and returned to the credit unions

within 30 days.

      4.  After a merger is effected, all

property, property rights and interest of the merged credit union vest in the

surviving credit union without deed, endorsement or other instrument of

transfer, and all debts, obligations and liabilities of the merged credit union

are deemed to be assumed by the surviving credit union under whose charter the

merger was effected.

      5.  If the surviving credit union is to be

a credit union chartered in accordance with the laws of this state, the

application for approval of the merger must be accompanied by an application

fee in an amount prescribed by regulation of the Commissioner. The applicant

shall also pay such additional expenses incurred in the process of

investigation as the Commissioner deems necessary. All money received by the

Commissioner pursuant to this subsection must be placed in the Investigative

Account created by NRS 232.545.

      6.  The Commissioner shall adopt

regulations pursuant to which he or she may order any credit union chartered in

accordance with the provisions of this chapter to merge with:

      (a) Another credit union chartered in accordance

with the provisions of this chapter; or

      (b) A credit union chartered in accordance with

the laws of another state or of the United States, if a majority of the board

of that credit union approves the merger,

Ê when he or

she determines that the merger is in the best interest of the members of the

merging credit union.

      7.  This section is to be liberally

construed to permit a credit union chartered in accordance with this chapter to

merge with a credit union chartered in accordance with this chapter or any

other provisions of law.

      (Added to NRS by 1975, 392; A 1983, 1329, 1642, 1837,

2019; 1987,

2021; 1991,

1816)

      NRS 678.810  Conversions; fee set by regulation.

      1.  A credit union chartered in accordance

with the laws of this state may be converted to a credit union chartered in

accordance with the laws of any other state or the laws of the United States,

subject to regulations adopted by the Commissioner.

      2.  A credit union chartered in accordance

with the laws of the United States or of any other state may convert to a

credit union chartered in accordance with the laws of this state. To effect

such a conversion, a credit union must comply with all the requirements of the

authority under which it was originally chartered and the requirements of the

Commissioner and file proof of such compliance with the Commissioner.

      3.  Every application for permission to

convert to a credit union chartered in accordance with the laws of this state

must be accompanied by an application fee in an amount prescribed by regulation

of the Commissioner. The applicant shall also pay such additional expenses

incurred in the process of investigation as the Commissioner deems necessary.

All money received by the Commissioner pursuant to this subsection must be

placed in the Investigative Account created by NRS 232.545.

      (Added to NRS by 1975, 393; A 1983, 1329, 1838; 1987, 2022; 1991, 1818)

DISSOLUTION AND LIQUIDATION

      NRS 678.820  Voluntary dissolution.

      1.  At a meeting called to consider

dissolution, the membership may vote to dissolve a credit union if notice of

the meeting is mailed to the members at least 10 days prior thereto. Any member

who is not present at the meeting may, within 20 days after the meeting, vote

by signing a form furnished by the Division and filing the form with the

secretary of the credit union. An affirmative vote of a majority of the members

who vote at the meeting or by filing the form is required to dissolve the

credit union.

      2.  If the members vote to dissolve, the

credit union shall, except for the purpose of liquidation, cease its business

operations immediately.

      3.  The chair shall, within 5 days after an

affirmative vote to dissolve the credit union, notify the Division by mail of

the credit union’s intention to liquidate and include with the notice a list of

the names and addresses of the directors and officers.

      (Added to NRS by 1975, 391; A 1983, 2020)

      NRS 678.830  Involuntary dissolution: Suspension of operations; corrective

actions; declaration of insolvency; liquidation.

      1.  If the Division determines that any

credit union organized pursuant to the provisions of this chapter is bankrupt

or insolvent, has willfully violated the provisions of this chapter or is

operating in an unsafe or unsound manner, the Division may, if emergency action

is required to protect the assets of the members, issue an order temporarily

suspending the credit union’s operations. Reasonable notice of the suspension

of operations and of the impending hearing shall be given to the board.

Operations of the credit union shall cease upon receipt of notice from the

Division.

      2.  At the scheduled hearing, the board

shall, if it desires to continue operations, submit a plan of corrective

actions. If the board desires, it may, prior to the hearing, request the

Commissioner to declare the credit union insolvent and appoint a liquidating

agent.

      3.  If the credit union is not represented

at the scheduled hearing or the Division rejects the credit union’s plan to

continue operations, the Commissioner may appoint a liquidating agent and

dissolve the credit union.

      (Added to NRS by 1975, 391; A 1977, 96)

      NRS 678.835  Involuntary dissolution: Appointment of liquidating agent for

credit union closed by bankruptcy or insolvency.  If

a credit union is closed because of bankruptcy or insolvency, the Commissioner

may appoint a liquidating agent.

      (Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836;

1985, 785; 1987, 2019)

      NRS 678.840  Procedure for liquidation.

      1.  A liquidating credit union shall

continue in existence for the purpose of discharging its debts, collecting and

distributing its assets, and doing any other acts required to wind up its

business.

      2.  The board or, in the case of

involuntary dissolution, the liquidating agent, shall pay from the assets, the

obligations of the credit union in the following order:

      (a) Expenses incidental to liquidation including

any surety bond that may be required.

      (b) Any liability due to nonmembers.

      (c) Deposits and savings club accounts.

Ê If any

assets remain, they shall be distributed to the members proportionately to the

number of shares held by each member as of the date dissolution was approved by

the members or ordered by the Commissioner.

      3.  As soon as the board or the liquidating

agent determines that all assets from which there is a reasonable expectancy of

realization have been liquidated and distributed as set forth in this section,

he or she shall execute a certificate of dissolution on a form provided by the

Division and shall file such form with the proper recording authority within

the county in which the credit union has its principal place of business. After

filing or recording, and indexing the original form shall be forwarded to the

Division and upon its receipt and filing such credit union shall be officially

dissolved.

      (Added to NRS by 1975, 392)

CENTRAL CREDIT UNIONS

      NRS 678.850  Organization and operation; rights and powers.

      1.  A central credit union may be organized

and operated under the provisions of this chapter by any three credit unions

incorporated within this state. A central credit union is subject to all

provisions not inconsistent with this section and shall use the term “central” in

its official name.

      2.  A central credit union has all the

rights and powers of any other credit union organized under this chapter and,

in addition, a central credit union may:

      (a) Make loans to other credit unions;

      (b) Purchase shares and make deposits in other

credit unions;

      (c) Obtain the assets and liabilities of any

credit union operating in this state which enters into liquidation;

      (d) Invest in and grant loans to associations of

credit unions or organizations chartered to provide exclusive service to credit

unions; and

      (e) Borrow money from any source and issue notes

or debentures.

      (Added to NRS by 1975, 393; A 1977, 891)

      NRS 678.860  Membership.  The

membership for a central credit union may consist of:

      1.  Credit unions;

      2.  The Nevada Credit Union League, Inc.;

and

      3.  Organizations affiliated with the

Nevada Credit Union League, Inc.

      (Added to NRS by 1975, 393; A 1977, 892)

      NRS 678.870  Voting representatives.

      1.  The board of each credit union that

becomes a member of a central credit union shall designate one person to be its

voting representative in the central credit union.

      2.  The voting representative of a member

credit union is eligible to hold office in the central credit union.

      (Added to NRS by 1975, 393; A 1977, 892)

      NRS 678.875  Regular reserves.

      1.  Before the payment of any dividend by a

central credit union, a regular reserve against loan losses shall be set aside

according to the following schedule:

      (a) Until the regular reserve equals 5 percent of

the outstanding loans and risk assets, 2 percent of the gross earnings shall be

withheld.

      (b) Whenever the regular reserve falls below 5

percent of the outstanding loans and risk assets it shall be replenished in

accordance with the formula set forth in paragraph (a).

      2.  No other reserves need be maintained by

the central credit union.

      (Added to NRS by 1977, 889)

PENALTIES

      NRS 678.880  Use of words “credit union” or conducting business as credit

union by person not organized as credit union; spreading false report concerning

management or finances of credit union.

      1.  Any person, except a credit union

organized under the provisions of this chapter or the Nevada Credit Union

League, which uses a name or title containing the words “credit union” or any

derivation thereof or representing themselves in their advertising or otherwise

as conducting business as a credit union is guilty of a gross misdemeanor.

      2.  Any person who maliciously and

knowingly spreads false reports about the management or finances of any credit

union is guilty of a gross misdemeanor.

      (Added to NRS by 1975, 394)

      NRS 678.890  Administrative fines.  In

addition to any other remedy or penalty, the Commissioner may impose an

administrative fine of not more than $10,000 upon a person who:

      1.  Without a license, conducts any

business or activity for which a license is required pursuant to the provisions

of this chapter; or

      2.  Violates any provision of this chapter

or any regulation adopted pursuant thereto.

      (Added to NRS by 2005, 1890)

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