[Rev. 11/21/2013 1:05:47
PM--2013]
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)