[Rev. 11/21/2013 1:04:04
PM--2013]
TITLE 56 - OTHER FINANCIAL INSTITUTIONS
CHAPTER 673 - SAVINGS AND LOAN ASSOCIATIONS
GENERAL PROVISIONS
NRS 673.001 Definitions.
NRS 673.002 “Association”
defined.
NRS 673.005 “Combination
home and business structure” defined.
NRS 673.0054 “Commissioner”
defined.
NRS 673.0056 “Cooperative
housing corporation” defined.
NRS 673.0057 “Deposit”
defined.
NRS 673.0065 “Director”
defined.
NRS 673.007 “Dividend”
defined.
NRS 673.008 “Foreign”
defined.
NRS 673.009 “Gross
income” defined.
NRS 673.011 “Home”
defined.
NRS 673.012 “Home
loan” defined.
NRS 673.013 “Home
property” defined.
NRS 673.014 “Impaired
condition” defined.
NRS 673.015 “Improved
real estate” defined.
NRS 673.016 “Insured
association” defined.
NRS 673.0165 “Interest”
defined.
NRS 673.017 “Investment
certificate” defined.
NRS 673.0185 “Merger”
defined.
NRS 673.019 “Net
earnings” defined.
NRS 673.021 “Net
earnings available for dividends” defined.
NRS 673.022 “Operating
expenses” defined.
NRS 673.023 “Operating
income” defined.
NRS 673.024 “Other
real estate loan” defined.
NRS 673.025 “Real
estate expenses” defined.
NRS 673.026 “Real
estate income” defined.
NRS 673.027 “Real
estate loan” defined.
NRS 673.031 “Savings
account” defined.
NRS 673.032 “Savings
liability” defined.
NRS 673.0321 “Service
office” defined.
NRS 673.034 “Withdrawal
value” defined.
ADMINISTRATION AND ENFORCEMENT
NRS 673.035 Administration
of chapter.
NRS 673.03531 Certain
relationships between employees of Division of Financial Institutions and
association prohibited; termination of prohibited relationship.
NRS 673.039 Records
of Commissioner.
NRS 673.040 Commissioner
to supervise and make policy.
NRS 673.042 Biennial
report of Commissioner: Contents; distribution.
NRS 673.043 Regulations.
NRS 673.0435 Commissioner
may secure injunctions and restraining orders.
NRS 673.044 Notices.
NRS 673.045 Amendment
or alteration of license by Commissioner; appeal.
NRS 673.046 Application
for license: Additional requirements; fingerprints; grounds for refusal to
issue license.
NRS 673.048 Suspension
or revocation of license: Additional grounds.
NRS 673.050 Proceedings
in court to test validity of action by Commissioner or Director.
NRS 673.060 Deposit
of money in State Treasury; payment of expenses; exceptions.
FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES
NRS 673.070 Incorporation
of domestic associations: Procedure; applicability of chapter 78 of NRS; limitations on advertising
for savings and loans.
NRS 673.080 Articles
to be approved by Commissioner; application; permission to organize; fees;
conditions; regulations; withdrawal of application.
NRS 673.090 Provisions
of chapter abridge and enlarge powers and privileges of foreign and domestic
associations.
NRS 673.110 Procedure
for removing “and loan” from name of domestic association.
NRS 673.112 Branch
offices: Definition; establishment and regulation; revocation of approval by
Commissioner; advertisement; fees; regulations.
NRS 673.113 Surety
bond of association.
NRS 673.114 Service
offices: Approval of Commissioner required; revocation of approval.
NRS 673.115 Restrictions
on advertising.
NRS 673.117 Use
or change of business name; prohibitions.
OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS
NRS 673.207 Directors:
Number; filling of vacancies; amendment of bylaws.
NRS 673.208 Persons
requiring Commissioner’s approval to serve as director.
NRS 673.209 Removal
of director, officer or employee on objection of Commissioner.
NRS 673.211 Removal
of director for cause.
NRS 673.212 Fiduciary
relationship of directors and officers to association.
NRS 673.213 Directors:
Compensation and expenses.
NRS 673.214 Officers:
Election; salaries.
NRS 673.215 Directors:
Meetings; quorum.
NRS 673.216 Official
communication from Commissioner: Read at next board meeting and made part of
minutes.
NRS 673.217 Statement
of purchases and sales of real estate and loans made or purchased to be
considered at regular meeting and made part of minutes.
NRS 673.2176 Notification
of change in ownership of stock; application required after certain
acquisitions; investigation; costs; waiver.
NRS 673.218 Pensions
and retirement plans for officers and employees.
NRS 673.219 Directors:
Approval of depositary for money of association.
NRS 673.221 Unlawful
acts; penalty.
NRS 673.2211 Liability
of directors, officers or other persons.
NRS 673.222 Actions
against officers, directors or employees: Payment of expenses of defending
action by association; settlements.
POWERS AND PRIVILEGES OF STATE ASSOCIATIONS
NRS 673.225 Certain
state associations possess same powers and privileges as federally chartered
associations.
NRS 673.227 Land
and office buildings of association; limitation on costs.
NRS 673.228 Trustee
and custodial powers of association.
STOCKS AND CERTIFICATES
NRS 673.250 Licenses
for issuance or sale of stock; contents and conditions of licenses.
NRS 673.260 Annual
license: Fees; renewal; penalty; regulations.
NRS 673.270 Licensing
of salespersons and solicitors; fees; regulations; withdrawal of applications.
NRS 673.273 Stock,
surplus, undivided profits and reserves to include percentage of value of
outstanding investment certificates; dividends on permanent stock; stock
dividends.
NRS 673.274 Acts
prohibited when stock, surplus, undivided profits and reserves below amount
specified.
NRS 673.275 Impairment
of stock; levy of assessment to repair deficiency; reduction of stock.
NRS 673.2755 Investment
certificates: Rights and liabilities of holders; types of certificates;
limitation on approval.
RESERVE FOR LOSSES
NRS 673.2758 Requirements.
INVESTMENTS AND BORROWING
NRS 673.276 Permissible
investments.
NRS 673.2765 Investments
in related service corporations.
NRS 673.2766 Investments
in real property for subdivision or residential development.
NRS 673.278 Purchases
of loans.
NRS 673.279 Purchases
of real property contracts; conditions.
NRS 673.280 Certain
federal obligations are legal investments.
NRS 673.281 Restrictions
on transfer or encumbrance of note and other obligations held by association.
NRS 673.300 Association
may become member and stockholder of Federal Home Loan Bank, borrow money and
invest in bonds.
NRS 673.301 Association
may issue capital notes; voting rights of holders.
NRS 673.302 Limitation
on borrowing.
NRS 673.310 Loans
and advances of credit insured by Federal Housing Administrator or Department
of Veterans Affairs.
NRS 673.315 Investment
in Federal National Mortgage Association.
NRS 673.316 Loans
and investments not limited.
APPRAISALS
NRS 673.317 Approval
of appraiser by Commissioner required; limitations; revocation; notice of
termination of services.
NRS 673.3171 Appraisal
of real estate required before granting loan; requirements.
NRS 673.318 Appraisal
of real estate at time of acquisition.
NRS 673.319 Specific
loss reserve; determination of values by Commissioner.
NRS 673.3191 Reserve
for uncollected interest.
INSURANCE OF ACCOUNTS
NRS 673.320 Associations
empowered to insure accounts.
LOANS
NRS 673.324 Permissible
loans.
NRS 673.3244 Loans
to corporations or partnerships.
NRS 673.3255 Loans
to finance interest in cooperative housing corporation; first security interests.
NRS 673.3271 Loans
to one borrower.
NRS 673.3272 Payment
of charges by association for protection of its investments; required advance
monthly payments.
NRS 673.330 Limitation
on charge for prepayment of loan.
NRS 673.331 Loans
prohibited on security of association’s own stock.
NRS 673.332 Property
acquired by foreclosure or developed by association; real-estate-owned
accounts; subsidiary ledger records.
INTEREST AND DIVIDENDS
NRS 673.333 Apportionment
of earnings and payment of interest; determination of percentage rate of
declaration; classes of savings accounts; notice of change in method of
calculating interest.
NRS 673.336 Restrictions
on declaration of dividends.
INVESTORS
NRS 673.340 Minors
and married persons; payment as valid discharge of association.
NRS 673.360 Administrators,
executors, guardians and trustees; payment as valid discharge of association.
SAFE-DEPOSIT BOXES
NRS 673.373 Notice
of overdue rental; opening of box; retention of contents in general vaults;
delivery of contents to State Treasurer.
WITHDRAWALS
NRS 673.377 Minimum
required available cash, deposits and securities; making and purchasing loans
prohibited when minimum not met.
NRS 673.380 Procedure
when requests for withdrawals exceed amount available.
NRS 673.390 Order
of payment of withdrawals.
NRS 673.420 Notice
to Commissioner of inability to pay request for withdrawal on file more than 60
days.
REPORTS, EXAMINATIONS AND AUDITS
NRS 673.430 Annual
reports: Filing; form and contents; fees; penalty; regulations.
NRS 673.440 Commissioner
may require further information.
NRS 673.450 Hearings,
investigations and examinations by Commissioner; powers of Commissioner;
biennial examination required.
NRS 673.451 Authorization
of Commissioner to investigate business; free access required; compelling
attendance of witnesses.
NRS 673.453 Enforcement
of subpoena by district court.
NRS 673.455 Examination
of holding companies.
NRS 673.460 Examinations
outside State; fees and traveling expenses; regulations.
NRS 673.470 Other
examinations acceptable in lieu of examination by Commissioner.
NRS 673.480 Authority
of Commissioner to make information available to other officers and agencies.
NRS 673.483 Audit
of books and accounts.
NRS 673.4835 Independent
audit and examination: Payment of assessment; cooperation.
SUSPENSION AND REVOCATION OF CHARTERS
NRS 673.484 Grounds;
notice and hearing.
REORGANIZATION; MERGER; CONSOLIDATION
NRS 673.4845 Procedure;
approval by association and Commissioner; fee; regulations.
CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP
NRS 673.485 Authority
of Commissioner to order discontinuance of unlawful or unsafe practices;
special meetings of directors concerning noncompliance.
NRS 673.495 Conservator:
Appointment by Commissioner; district court confirmation.
NRS 673.497 Powers
of conservator; limitations; expenses; compensation.
NRS 673.499 Receiver:
Appointment by Commissioner; court confirmation; powers and authority;
compensation.
NRS 673.515 Appeal
from judgment enjoining Commissioner or dismissing action to enjoin; bond.
NRS 673.525 Penalty
for failure to comply with Commissioner’s demand for possession of property,
business and assets.
NRS 673.535 Enforcement
by sheriff of demand for possession of property, business and assets; written
demand for assistance; duty to enforce.
NRS 673.545 Delivery
of schedule of property, assets and collateral to Commissioner; examination of
directors, officers or employees by Commissioner.
NRS 673.555 Authority
of Commissioner to issue subpoenas and require attendance of parties.
NRS 673.565 Appointment
of custodian; bond.
NRS 673.575 Collection
of money; preservation of assets.
NRS 673.576 Powers
of Commissioner when in possession of business, property and assets.
NRS 673.577 Claims
for damages from disaffirmance of executory contract or lease.
NRS 673.580 Procedure
upon taking possession of insured association: Federal Deposit Insurance Corporation
as liquidator or coliquidator.
NRS 673.590 Delivery
of remaining assets to stockholders.
FOREIGN ASSOCIATIONS
NRS 673.595 Activities
for which license not required; solicitation or acceptance of deposits
prohibited; exception; fee.
NRS 673.597 Conflict
of laws; report to Commissioner of forbidden course or act.
CONVERSION INTO FEDERAL ASSOCIATION
NRS 673.600 Conversion
authorized.
NRS 673.610 Notice
of stockholders’ meeting: Service and proof of service.
NRS 673.620 Majority
approval of resolution at stockholders’ meeting required; filing of minutes
with Commissioner.
NRS 673.630 Filing
of charter or certificate with Commissioner; fee; taxation; regulations.
NRS 673.640 When
state supervision ceases; when property and assets vest in association under
new name and style; enjoyment of property by converted association.
CONVERSION OF FEDERAL ASSOCIATION
NRS 673.650 Conversion
authorized; votes necessary.
NRS 673.660 Time
for election of directors after conversion; time directors to hold office.
NRS 673.670 Filing
of verified minutes of stockholders’ meeting.
NRS 673.680 Verified
copy of minutes as presumptive evidence of holding meeting and action taken.
NRS 673.690 Federal
association and directors to take necessary action to incorporate as state
association; no minimum amount of capital required.
NRS 673.700 Inclusion
of statement of conversion in articles permissible.
NRS 673.710 Time
for filing articles of incorporation with Federal Home Loan Bank; number of
copies; certification by Secretary of State.
NRS 673.720 Time
of association’s cessation as federal association; time of vesting of property
in association under new name and style.
NRS 673.730 Enjoyment
of property by converted association; association as continuation of previous
federal association.
NRS 673.740 Acts
permitted executors, administrators and fiduciaries without obtaining court
approval.
POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS
NRS 673.750 Powers
and privileges same as domestic association; conditions.
EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS
NRS 673.773 Definitions.
NRS 673.777 “Designated
reporter” defined.
NRS 673.783 “Exploitation”
defined.
NRS 673.787 “Older
person” defined.
NRS 673.793 “Reasonable
cause to believe” defined.
NRS 673.797 “Vulnerable
person” defined.
NRS 673.803 Training;
reporting to designated reporter.
NRS 673.807 Designated
reporter: Designation; duty to report; immunity.
UNLAWFUL ACTS; PENALTIES
NRS 673.810 Making
false statement concerning financial condition of savings and loan association.
NRS 673.820 Violation
of chapter or fraudulent misrepresentation of contract or securities by
association; administrative fines.
NRS 673.830 Violation
of chapter or sale of securities through fraudulent misrepresentation.
NRS 673.840 Sale
or offer to sell securities without license or for failure to secure license or
pay fee or penalty.
NRS 673.850 Effect
of revocation of license.
_________
_________
GENERAL PROVISIONS
NRS 673.001 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 673.002 to 673.034, inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1959, 537; A 1969, 966; 1979, 710;
1983, 1771; 1987,
1956)
NRS 673.002 “Association” defined. “Association”
means a savings and loan association subject to the provisions of this chapter.
(Added to NRS by 1959, 537; A 1977, 488)
NRS 673.005 “Combination home and business structure” defined. “Combination home and business structure”
means a building or buildings, including residences for not more than four
families, which are used in part for business purposes, if the residential use
of such a building is substantial and permanent, not merely transitory. The business
use may predominate.
(Added to NRS by 1959, 537; A 1977, 509)
NRS 673.0054 “Commissioner” defined. “Commissioner”
means the Commissioner of Financial Institutions.
(Added to NRS by 1987, 1956)
NRS 673.0056 “Cooperative housing corporation” defined. “Cooperative housing corporation” means a
corporation organized under the laws of this state for the purpose of the
cooperative ownership of real estate whereby each of the stockholders or
members is entitled, through ownership of stock or a certificate of membership
in the corporation, to occupy a house, apartment or other dwelling unit on real
estate owned by the corporation.
(Added to NRS by 1979, 710)
NRS 673.0057 “Deposit” defined. “Deposit”
means that part of the savings liability of an association which is credited to
the account of the holder thereof.
(Added to NRS by 1969, 961)
NRS 673.0065 “Director” defined. “Director”
means the Director of the Department of Business and Industry.
(Added to NRS by 1963, 683; A 1993, 1896)
NRS 673.007 “Dividend” defined. “Dividend”
means that part of the net earnings of an association which is declared payable
by the board of directors to the holders of permanent capital stock.
(Added to NRS by 1959, 537; A 1969, 967)
NRS 673.008 “Foreign” defined. “Foreign,”
used in connection with an association, company or corporation, means an
association, company or corporation organized or incorporated under the laws of
some government other than that of the State of Nevada.
(Added to NRS by 1959, 538)
NRS 673.009 “Gross income” defined. “Gross
income” means the sum for an accounting period of the following:
1. Operating income.
2. Real estate income.
3. All profits actually received during
such accounting period from the sale of securities, real estate or other
property.
4. Other nonrecurring income.
(Added to NRS by 1959, 538)
NRS 673.011 “Home” defined. “Home”
means a dwelling or dwellings for not more than four families, the principal
use of which is for residential purposes. The term includes:
1. A dwelling on a farm.
2. A dwelling unit of a cooperative
housing corporation.
3. A mobile home as defined in NRS 489.120, with the wheels removed and
skirting added, when set on a foundation located on land which the owner of the
home owns or occupies pursuant to a tenancy with a term of 40 years or more.
(Added to NRS by 1959, 538; A 1977, 509; 1979, 710,
1289)
NRS 673.012 “Home loan” defined. “Home
loan” means a real estate loan the security for which is home property.
(Added to NRS by 1959, 538)
NRS 673.013 “Home property” defined. “Home
property” means real estate on which there is located or will be located,
pursuant to a home loan, a home or a combination home and business structure.
(Added to NRS by 1959, 538)
NRS 673.014 “Impaired condition” defined. “Impaired
condition” means a condition in which the assets of an association do not have
an aggregate value equal to the aggregate amount of liabilities of the
association to its creditors, including its savings depositors and all other
persons.
(Added to NRS by 1959, 538; A 1977, 488)
NRS 673.015 “Improved real estate” defined. “Improved
real estate” means real estate on which there is a structure, or building lots
or sites which, by reason of installations and improvements that have been
completed, are building lots or sites ready for building construction thereon.
(Added to NRS by 1959, 538; A 1967, 1014)
NRS 673.016 “Insured association” defined. “Insured
association” means an association the savings accounts of which are insured
wholly or in part by the Federal Deposit Insurance Corporation.
(Added to NRS by 1959, 538; A 1993, 2806)
NRS 673.0165 “Interest” defined. “Interest”
means that part of the net earnings of an association which is declared payable
from time to time on savings accounts or investment certificates by the board
of directors and which represents the primary cost of securing and maintaining
savings funds for an association.
(Added to NRS by 1969, 961)
NRS 673.017 “Investment certificate” defined.
1. “Investment certificate” means any
certificate or contract, either paid up or purchasable on an installment basis,
which is issued for the purpose of providing a means of investment or savings.
2. An accumulative investment certificate
is an investment certificate, not full-paid and without an expressed date of
maturity, upon which the holder has the option of making payments at such times
and in such amounts as the holder elects and as the association permits.
3. A full-paid investment certificate is
an investment certificate, with or without an expressed date of maturity, for
which the association has received the principal amount thereof at or prior to
the time of the issuance of the certificate.
4. A minimum term investment certificate
is an investment certificate for which the association has received a single
payment equal to the principal amount thereof and which has a date expressed
therein before which notice of intention to withdraw cannot be given, or which
requires written notice from the holder to the association for a period
specified therein before the expiration of which period notice of intention to withdraw
cannot be given. On and after such date, or upon and after the expiration of
the specified period following such written notice, each such certificate
ceases to be a minimum term investment certificate and becomes a full-paid
investment certificate, subject to the same withdrawal rights and restrictions
as a full-paid investment certificate.
(Added to NRS by 1959, 538; A 1963, 457; 1969, 967)
NRS 673.0185 “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
association with those of another such association or with those of a federal
association.
(Added to NRS by 1969, 961)
NRS 673.019 “Net earnings” defined. “Net
earnings” means gross income for an accounting period less the aggregate of the
following:
1. Operating expenses.
2. Real estate expenses.
3. All losses actually sustained during
such accounting period from the sale of securities, real estate or other property,
or such portion of such losses as shall not have been charged to reserves,
pursuant to the provisions of this chapter.
4. All interest paid, or due but unpaid,
on borrowed money.
5. Other nonrecurring charges.
(Added to NRS by 1959, 539)
NRS 673.021 “Net earnings available for dividends” defined. “Net earnings available for dividends” means
net earnings for an accounting period less amounts referred to reserves as
provided in this chapter.
(Added to NRS by 1959, 539)
NRS 673.022 “Operating expenses” defined.
1. “Operating expenses” means all expenses
actually paid, or due but unpaid, by an association during an accounting
period, excluding the following:
(a) Real estate expenses.
(b) Interest on borrowed money.
(c) Other nonrecurring charges.
2. That portion of prepaid expenses which
is not apportionable to the period may be excluded from operating expenses, in
which event operating expenses for future periods shall include that portion of
such prepaid expenses apportionable thereto.
(Added to NRS by 1959, 539)
NRS 673.023 “Operating income” defined. “Operating
income” means all income actually received by an association during an
accounting period, excluding foreclosed real estate income.
(Added to NRS by 1959, 539)
NRS 673.024 “Other real estate loan” defined. “Other
real estate loan” means a real estate loan the security for which is improved
real estate other than home property.
(Added to NRS by 1959, 539)
NRS 673.025 “Real estate expenses” defined. “Real
estate expenses” means all expenses actually paid, or due but unpaid, in
connection with the ownership, maintenance and sale of real estate, other than
office building or buildings and real estate held for investment, by an
association during an accounting period, excluding capital expenditures and
losses on the sale of real estate.
(Added to NRS by 1959, 539)
NRS 673.026 “Real estate income” defined. “Real
estate income” means all income actually received by an association during an
accounting period from real estate owned, other than from office building or
buildings and real estate held for investment, excluding profit from sales of
real estate.
(Added to NRS by 1959, 539)
NRS 673.027 “Real estate loan” defined. “Real
estate loan” means any loan or other obligation secured by real estate, whether
in fee or in a leasehold extending or renewable automatically for a period of
at least 50 years, or any transaction out of which a lien or claim is created
against such real estate.
(Added to NRS by 1959, 539)
NRS 673.031 “Savings account” defined. “Savings
account” means that part of the savings liability of the association which is
credited to the account of the depositor thereof.
(Added to NRS by 1959, 539; A 1969, 967; 1977, 488)
NRS 673.032 “Savings liability” defined. “Savings
liability” means the aggregate amount of savings accounts, including interest
credited to such accounts, less withdrawals.
(Added to NRS by 1959, 540; A 1969, 967)
NRS 673.0321 “Service office” defined. “Service
office” means any office or other place of business in this state operated by
one or more savings and loan associations other than the principal office or a
branch of an association, where activities are confined to processing and
storing data and records, accounting, printing, storing of supplies, and such
other activities as the Commissioner approves which involve no personal contact
with the public. At a service office, payment on account of savings or loan may
be processed, but the association shall have all payments which are initially
received at a service office, rather than at the principal office or branch of
the association, made by mail only and directed to a post office box and not to
the address or location of the service office. The Commissioner may require
that an association’s name not be displayed at or near a service office.
(Added to NRS by 1967, 1019; A 1983, 1771; 1987, 1956)
NRS 673.034 “Withdrawal value” defined. “Withdrawal
value” means the amount credited to a savings account, less lawful deductions
therefrom, as shown by the records of the association.
(Added to NRS by 1959, 540)
ADMINISTRATION AND ENFORCEMENT
NRS 673.035 Administration of chapter. The
Commissioner shall administer the provisions of this chapter, subject to
administrative supervision by the Director. He or she shall make the decisions,
determinations and enter the consents and orders necessary or reasonably
appropriate to accomplish the purposes of this chapter.
(Added to NRS by 1961, 763; A 1963, 1076; 1969, 967;
1981, 505; 1983, 1771; 1987, 1956)
NRS 673.03531 Certain relationships between employees of Division of Financial
Institutions and association 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 association;
(b) Receive, directly or indirectly, any payment
from an association;
(c) Be indebted to any association;
(d) Engage in the negotiation of loans for others
with any association; or
(e) Obtain credit or services from an association
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 an association while in office.
3. Any officer or employee of the Division
of Financial Institutions may be indebted to an association on the same terms
as are available to the public generally upon:
(a) A mortgage loan upon 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 with
associations to the greatest amount insured, receive interest on those deposits
and borrow money secured by a pledge of those deposits.
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 1963, 472; A 1977, 509; 1983, 1771)
NRS 673.039 Records of Commissioner. The
Commissioner shall:
1. Keep in his or her office:
(a) For no less than 5 years, every report made
by an association.
(b) The original application of every association
in a permanent file.
(c) Other administrative documents in the manner
provided by law or by appropriate regulations.
2. Provide a complete stenographic record
of every hearing and proceeding conducted by his or her office and maintain,
for no less than 5 years, a transcript of the hearing or proceeding, together
with any regulation, order, decision, determination or consent entered in
connection with the hearing or proceeding.
(Added to NRS by 1961, 764; A 1963, 683; 1969, 968;
1971, 811; 1983, 1772; 1987, 1956)
NRS 673.040 Commissioner to supervise and make policy. The Commissioner shall supervise and make all
policy with regard to all foreign and domestic associations, companies and
corporations governed by this chapter and doing business in this state.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL §
970.21]—(NRS A 1961, 762; 1963, 1076; 1983, 1773; 1987, 1957)
NRS 673.042 Biennial report of Commissioner: Contents; distribution.
1. The Commissioner shall, before
September 1 of each even-numbered year for the biennium ending June 30 of that
year, report to the Governor. The report must:
(a) Show the condition of all associations
reporting to or examined by the Commissioner.
(b) Be accompanied by a detailed statement of all
money received by the Commissioner since his or her last report and the
disposition of that money.
2. Copies of the reports must be furnished
to each association or company licensed under the provisions of this chapter.
(Added to NRS by 1963, 472; A 1969, 1460; 1973, 264;
1983, 1773; 1987,
1957)
NRS 673.043 Regulations.
1. The Commissioner may adopt such
regulations as may be reasonable or necessary to carry out the purposes of this
chapter.
2. The regulations as originally drafted,
and as amended from time to time, must be printed and distributed by the
Commissioner to all associations, and become effective not earlier than 30 days
from the date of issuance, but before the regulations become effective and
within that 30-day period any association may appeal to the Director as to the
reasonableness and necessity of any of or all of the regulations.
(Added to NRS by 1957, 763; A 1961, 764; 1977, 1261;
1983, 1773; 1987,
1957)
NRS 673.0435 Commissioner may secure injunctions and restraining orders. The Commissioner may cause appropriate legal
action to be taken in the district court of any county to secure an injunction
or order restraining a violation of any provision of this chapter.
(Added to NRS by 1969, 962; A 1983, 1773; 1987, 1957)
NRS 673.044 Notices. All
notices must be in writing. All notices issued or required to be issued by the
Commissioner must be sent by registered or certified mail and become effective
upon their deposit in the mails.
(Added to NRS by 1963, 472; A 1983, 1774; 1987, 1957)
NRS 673.045 Amendment or alteration of license by Commissioner; appeal. The Commissioner may, for reasonable cause and
upon 15 days’ notice, amend or alter any license issued by him or her, but the
association may appeal the order of the Commissioner in the manner provided in
this chapter.
(Added to NRS by 1957, 762; A 1961, 764; 1983, 1774; 1987, 1957)
NRS 673.046 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, 1873)
NRS 673.048 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, 1873)
NRS 673.050 Proceedings in court to test validity of action by Commissioner
or Director. A person affected by
any order, ruling, proceeding, act or action of the Commissioner or any person
acting on the Commissioner’s behalf and at the Commissioner’s instance, or the
Director or any person acting on the Director’s behalf and at the Director’s
instance, may test the validity of the action in any court of competent
jurisdiction through injunction, appeal, error or other proper process or
proceeding, mandatory or otherwise.
[22.3:51:1931; added 1955, 589]—(NRS A 1961, 765;
1981, 505, 1314; 1983, 1774; 1987, 1958)
NRS 673.060 Deposit of money in State Treasury; payment of expenses;
exceptions. Except as otherwise
provided in NRS 673.080, 673.112
and 673.595:
1. All fees, charges for expenses,
assessments and other money collected under the provisions of this chapter from
foreign and domestic associations, companies and corporations governed by this
chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
2. The compensation provided for by this
chapter and all expenses incurred under this chapter must be paid from the
money deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[30:51:1931; 1931 NCL § 970.30]—(NRS A 1959, 121,
541; 1961, 765; 1963, 684; 1965, 1135; 1983, 1321; 2003, 3232)
FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES
NRS 673.070 Incorporation of domestic associations: Procedure; applicability
of chapter 78 of NRS; limitations on
advertising for savings and loans.
1. Savings and loan associations, except
banks, trust companies, licensed brokers, small loan companies, thrift
companies and credit unions, whose principal and primary business is to borrow,
loan and invest money, shall be incorporated under the provisions of this
chapter. For that purpose all of the provisions of chapter
78 of NRS (Private Corporations) which are not in conflict with this
chapter are hereby adopted as parts of this chapter, and all the rights,
privileges and powers and all the duties and obligations of such domestic
corporations and of the officers and stockholders thereof shall be as provided
in chapter 78 of NRS except as otherwise
provided in this chapter.
2. A person, firm, partnership,
association or corporation except a savings and loan association incorporated
under this chapter shall not conduct or carry on the business of soliciting or
advertising for savings deposits and loaning of such savings. This subsection
does not apply to banks, trust companies, licensed brokers, thrift companies,
credit unions and licensees under chapter 675
of NRS.
[Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A
1963, 460; 1975, 372; 1977, 488)
NRS 673.080 Articles to be approved by Commissioner; application; permission
to organize; fees; conditions; regulations; withdrawal of application.
1. The Secretary of State shall not issue
any certificate to an association or company authorizing it to do business
until the articles of association, agreement or incorporation are approved by
the Commissioner.
2. No amendment to the articles of the
organization may be filed by the Secretary of State without the written approval
of the articles by the Commissioner.
3. No association may sell, offer for
sale, negotiate for the sale of, take subscriptions for, or issue any of its
common or preferred stock until it has first applied for and secured from the
Commissioner approval of an application for permission to organize as provided
for in this section.
4. Persons who desire to organize an
association in accordance with this chapter shall first execute in triplicate
an application, in the form prescribed by the Commissioner, for permission to
organize an association before taking any other action in connection with the
organization. Upon execution of an application for permission to organize by
seven responsible citizens, referred to in this section as “applicants,” the
original and two copies of the application must be submitted to the
Commissioner. The applicants shall submit with their application the names and
addresses of the applicants, the location of the proposed office, an itemized
account of the financial condition of the proposed association and of the
applicants, the amount and character of the proposed stock, statements,
exhibits, maps and such additional information as the Commissioner requires,
together with an affidavit that the representations made thereby are consistent
with the facts to the best of the applicants’ information and belief. This data
must be sufficiently detailed and comprehensive to enable the Commissioner to
pass upon the application as to:
(a) The character and responsibility of the
applicants;
(b) The need for the association in the community
to be served;
(c) The reasonable probability of its usefulness
and success; and
(d) Whether such an association can be
established without undue injury to any properly conducted existing savings and
loan institutions.
5. If the Commissioner approves the
application he or she shall, within 30 days, notify all associations within 100
miles of the community where the applicant intends to establish an association.
Any association so notified may, within 20 days, protest in writing the
granting of the application. Within 30 days after receipt by the Commissioner
of a written protest, the Commissioner shall fix a date for a hearing upon the
protest, and the hearing must be held not earlier than 30 days nor more than 60
days after the date of receipt of written notice by registered or certified
mail by the parties. The Commissioner shall approve or deny the application
within 90 days after the date of the conclusion of the hearing and give all
parties written notice of his or her decision on or before that date.
6. If the Commissioner approves the
application, he or she shall establish as conditions to be met before the
issuance of a charter requirements as to:
(a) The minimum number of shares of common or
preferred stock to be subscribed to the association’s permanent capital;
(b) The minimum amount of paid-in surplus;
(c) The minimum amount of investment certificates
to be paid into the association’s savings accounts upon issuance of a charter
to it; and
(d) Such other requirements as he or she deems
necessary or desirable.
Ê At least 75
percent of the capital must be subscribed by bona fide residents of this State
or a depository institution or holding company qualified pursuant to the
provisions of chapter 666 of NRS or NRS 666A.010 to 666A.400, inclusive. Approval of an
application for permission to organize an association does not in any manner
obligate the Commissioner to issue a charter, except that when all requirements
of this chapter and of the Commissioner have been fulfilled, he or she shall
issue a charter.
7. The charter expires 180 days after
issuance, unless, within that time, the association has obtained insurance of
accounts from the Federal Deposit Insurance Corporation. The Commissioner may,
for good cause, extend the time of the conditional expiration of the charter
for an additional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue
any of its permanent stock until it has first applied for and secured from the
Commissioner a license authorizing it to operate as a savings and loan
association pursuant to the laws of this State and until it has applied for and
secured insurance of accounts in accordance with the regulations of the Federal
Deposit Insurance Corporation. This insurance of accounts must be maintained at
all times.
9. The Commissioner may extend the time
for any hearing provided for in this section, to the time agreed upon by the
parties.
10. The filing fees are:
(a) For filing an original application, not more
than $4,000 for the principal office. 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 paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) If the license is approved for issuance, not
more than $2,000 for the principal office before issuance.
11. The Commissioner may impose conditions
requiring the impoundment of proceeds from the sale of any stock, limiting the
expense in connection with the sale of stock, and such other conditions as are
reasonable and necessary or advisable to insure the disposition of the proceeds
from the sale of the stock in the manner and for the purposes provided in the
permission to organize.
12. Every permission to organize issued by
the Commissioner must recite in bold type that its issuance is permissive only
and does not constitute a recommendation or endorsement of the organization or
of the stock permitted to be issued.
13. Any corporation applying pursuant to
this section or authorized to organize or authorized to establish a savings and
loan association shall provide for a minimum par value of its permanent capital
stock of at least $1 in its articles of incorporation. Par value of permanent
capital stock may not be reduced below $1 without written permission of the
Commissioner.
14. The removal of the home office or of
any branch office of an association to any other location from its then
existing location requires prior approval of the Commissioner. An application
seeking approval must be delivered to the Commissioner, together with a fee to
cover expenses attendant upon the investigation required for the approval,
which must be not less than $200. All money received by the Commissioner
pursuant to this subsection must be placed in the Investigative Account created
by NRS 232.545.
15. An association shall not pay any
commissions or other compensation for the subscription to or sale of the
original issue of its stock.
16. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section.
17. 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.
[Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A
1957, 755; 1959, 56, 541; 1961, 765; 1963, 460; 1965, 1136; 1969, 95, 969;
1977, 489; 1979, 1289; 1983, 650, 1322, 1774; 1985, 2155; 1987, 1958; 1991, 1810; 1993, 2806; 1995, 1561; 2005, 1874)
NRS 673.090 Provisions of chapter abridge and enlarge powers and privileges
of foreign and domestic associations. The
powers, privileges, duties and restrictions conferred and imposed upon any such
association, company or corporation, whether foreign or domestic, existing or
doing business under the laws of this state are hereby abridged, enlarged or
modified, as each particular case may require, to conform to the provisions of
this chapter, notwithstanding anything to the contrary in their respective articles
of incorporation or charters.
[3:51:1931; 1931 NCL § 970.02]
NRS 673.110 Procedure for removing “and loan” from name of domestic
association. Any domestic
association, which has the words “savings and loan” in its name, may, by filing
with the Commissioner written notice thereof authorized by its board of
directors and by complying otherwise with its articles of incorporation, remove
the words “and loan” from its name.
[15.1:51:1931; added 1955, 589]—(NRS A 1961, 766;
1963, 464; 1983, 1776; 1987, 1960)
NRS 673.112 Branch offices: Definition; establishment and regulation;
revocation of approval by Commissioner; advertisement; fees; regulations.
1. A branch office is a legally
established place of business of an association, other than the home office,
which is authorized by the board of directors and approved by the Commissioner
and at which any of the association’s business may be conducted.
2. All branch offices are subject to
direction from the home office.
3. No association may establish or maintain
a branch office without prior written approval of the Commissioner. Each
application for approval of the establishment and maintenance of a branch
office must:
(a) State the proposed location thereof, the need
therefor, the functions to be performed therein, the estimated annual expense
thereof and the mode of payment therefor.
(b) Be accompanied by a budget of the association
for the current semiannual period and for the next succeeding semiannual
period, which reflects the estimated additional expense of the maintenance of
the branch office.
4. After receipt of an application the
Commissioner shall determine:
(a) Whether the establishment and maintenance of
the branch office will unduly injure any properly conducted existing
association in the community where the branch office is proposed to be
established or in any neighboring community; and
(b) Whether or not the establishment and
maintenance of the branch office will serve the public interest.
5. Before issuance of a charter for a
branch office, the Commissioner shall notify all associations doing business
within a radius of 100 miles of the principal place of business of the
applicant, and within a radius of 100 miles of the proposed branch office. Any
association so notified may, within 20 days, protest in writing the granting of
the application. Within 30 days after receipt by the Commissioner of a written
protest, the Commissioner shall fix a date for a hearing upon the protest. The
hearing must be held not earlier than 60 days nor more than 90 days after the
date of receipt of written notice by registered or certified mail by the
parties.
6. If the Commissioner finds that no undue
injury is likely to result, that the establishment and maintenance of the
branch office is advisable and will serve the public interest, he or she may
approve the application.
7. Approval of an association’s
application for a branch office charter permits the association to establish an
operating office in a temporary or a permanent building, if the building is placed
on or erected at the approved location within 12 months after the approval.
8. For good cause and after notice to the
association, the Commissioner may revoke his or her approval for the
maintenance of a branch office. Failure to establish a branch office in the
manner and within the time permitted under this section constitutes a good
cause for revocation, unless a prior, written request for a waiver of the time
limitation is sought by the association and an extension, in writing, is
granted by the Commissioner.
9. An association which maintains one or
more branch offices shall give each branch office a specific designation by
name and include in the designation the word “branch” and shall prominently
display the designation at the place of business of the branch. When an
association is operating a branch office, all advertising of or by the branch
office must state clearly the location of the principal office of the
association.
10. The filing fees are:
(a) For filing an original application, not more
than $400 for each branch office. 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.
(b) If the license is approved for issuance, not
more than $200 for each branch office before issuance.
11. The Commissioner shall adopt
regulations establishing the amount of the filing fees required pursuant to
this section.
(Added to NRS by 1961, 780; A 1963, 464; 1967, 1014;
1969, 95, 971; 1981, 1314; 1983, 1324, 1777; 1987, 1960; 1991, 1813; 2005, 1876)
NRS 673.113 Surety bond of association.
1. Every association shall maintain bond
coverage with a bonding company which is acceptable to the Commissioner and the
Federal Deposit Insurance Corporation for an amount to be determined by the
Commissioner not to exceed 5 percent of the total assets of the association,
nor for an amount greater than $3,000,000, covering all directors, officers,
employees, agents, data processing service firms and all other operating
hazards that are normally covered under the bond. The bond must be in the form
known as Standard Form No. 22, its equivalent or some other form which may be
acceptable to the Federal Deposit Insurance Corporation and the Commissioner.
The bond coverage may allow for a deductible amount or provision adopted under
Title 12, Code of Federal Regulations, Section 563.19(a), (b) and (c), and
under any subsequent amendments thereto.
2. A true copy of the surety bond must be
placed in the custody of the Commissioner and the original maintained in the
office of the association at all times.
3. The surety bond must provide that a
cancellation thereof, either by the surety company or by the insured, does not
become effective until 10 days’ notice in writing is first given to the
Commissioner, or unless he or she earlier approves the cancellation in writing.
4. When requested by the Commissioner, the
association shall provide a duplicate copy of the invoice showing that the bond
premium has been paid or satisfied.
5. The face amount of the surety bond must
comply with the requirements of the Federal Deposit Insurance Corporation.
(Added to NRS by 1957, 757; A 1959, 542; 1961, 766;
1969, 972; 1983, 1778; 1987, 1962; 1993, 2808)
NRS 673.114 Service offices: Approval of Commissioner required; revocation
of approval.
1. No association may open, maintain or
conduct a service office without approval from the Commissioner.
2. For good cause, and after notice to the
association, the Commissioner may revoke his or her approval for the
maintenance of a service office.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1962)
NRS 673.115 Restrictions on advertising.
1. An association shall not issue or
publish, or cause or permit to be issued or published, any advertisement that
it is doing or is permitted to do any business which is prohibited by law to an
association, or which misrepresents the nature of its stock, investment
certificates, savings deposits or the right of investors or depositors in
respect thereto.
2. An association may set forth in any of
its advertisements any of the purposes for which it is organized.
3. An association shall not issue,
circulate or publish any advertisement after notice in writing from the
Commissioner that in his or her opinion the advertisement is unauthorized,
false, misleading or likely to deceive the public.
4. An association shall not:
(a) State in any advertisement that it is under
state supervision or control.
(b) Include in any advertisement or in any
instrument used by it a replica of the Great Seal of the State of Nevada.
(c) State or imply in any advertisement that
money may be invested with the association at any place other than the
principal office or branch of the association.
(d) Use the word “deposit” or “deposits” in any
form of advertising, unless the use of that word is authorized in the
advertising of a federal savings and loan association pursuant to federal law.
5. No association may offer or deliver any
gift or premium to any investor or saver of an investment certificate or to any
savings depositor in excess of basic cost to the association of $2.50.
(Added to NRS by 1957, 762; A 1961, 767; 1969, 973;
1977, 491; 1983, 1779; 1987, 1962)
NRS 673.117 Use or change of business name; prohibitions.
1. Except as otherwise provided in NRS 673.110, 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, 1873; A 2007, 99)
OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS
NRS 673.207 Directors: Number; filling of vacancies; amendment of bylaws.
1. The business and affairs of every
association must be managed and controlled by a board of not less than five nor
more than 25 directors, of which not more than a minority, but not more than
three, may be full-time officers of the association. The persons designated in
the articles of incorporation are the first directors.
2. Vacancies in the board of directors
must be filled by vote of the stockholders at the annual meetings or at a
special meeting called for that purpose. The board of directors may fill
vacancies occurring on the board, such appointees to serve until the next
annual meeting of the stockholders.
3. The board of directors of any
association may amend the bylaws of the association.
(Added to NRS by 1967, 1020; A 1969, 961; 1975, 372;
1981, 61)
NRS 673.208 Persons requiring Commissioner’s approval to serve as director. No person is eligible to serve as a director
of an association without the written permission of the Commissioner if he or
she:
1. Has been adjudicated a bankrupt or has
taken the benefit of any assignment for the benefit of creditors or has
suffered a judgment recovered against him or her for a sum of money to remain
unsatisfied of record or not safeguarded by supersedeas bond on appeal for a
period of more than 3 months.
2. Is a director, officer or employee of
any other savings and loan association.
3. Is an officer or employee of a
commercial bank in this state.
4. Is not an investor in the association,
owning in his or her own right or in a representative capacity as an executor,
administrator, guardian or trustee stock in the association of the par value of
at least $1,000, or full-paid investment certificates in the association of the
value of at least $1,000. For the purpose of this chapter, a person who owns
stock or investment certificates as a joint tenant with one other person shall
be deemed to own, in his or her own right, one-half of the stock or investment
certificates.
5. Sells or hypothecates all the stock or
investment certificates owned by him or her, or so much thereof that he or she
ceases to be the owner, free from encumbrances, of the amount of stock or
investment certificates required by subsection 4.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1963)
NRS 673.209 Removal of director, officer or employee on objection of Commissioner. If the Commissioner notifies the board of
directors of any association, in writing, that he or she has information that
any director, officer or employee of the association is failing in the
performance of his or her duties, the board of directors shall meet and
consider the 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, the director, officer or employee shall be
removed immediately.
(Added to NRS by 1967, 1020; A 1983, 1780; 1987, 1963)
NRS 673.211 Removal of director for cause.
1. Any director may be removed from
office, if he or she has become ineligible pursuant to NRS
673.209, by an affirmative vote of two-thirds of the members of the board
of directors at any regular meeting of the board of directors or at any special
meeting called for that purpose. Such action shall be ratified at the next
meeting of the stockholders.
2. No such vote upon removal of a director
may be taken until he or she has been advised of the reasons therefor and has
had opportunity to submit to the board of directors his or her statement
relative thereto, either oral or written. If the director affected is present
at the meeting, he or she shall retire after his or her statement has been
submitted and prior to the vote upon the matter of his or her removal.
(Added to NRS by 1967, 1020; A 1977, 492)
NRS 673.212 Fiduciary relationship of directors and officers to association. Directors and officers of an association shall
be deemed to stand in a fiduciary relation to the association 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 a similar position.
(Added to NRS by 1967, 1021; A 1997, 1623)
NRS 673.213 Directors: Compensation and expenses. The
directors of an association shall not charge or receive, directly or
indirectly, any pay or emolument for their services as directors. This
provision shall not prevent the payment of compensation and expenses to
officers of the association who are also directors, nor the payment of
compensation and expenses to directors for attendance upon meetings of the
board of directors, or for special services performed by directors for the
association. All such compensation and expenses shall be approved by the board
of directors.
(Added to NRS by 1967, 1021)
NRS 673.214 Officers: Election; salaries.
1. The board of directors of the
association shall elect the officers named in the bylaws of the association,
which officers shall serve at the pleasure of the board of directors.
2. The principal officers’ salaries shall
be set by the board of directors.
(Added to NRS by 1967, 1021)
NRS 673.215 Directors: Meetings; quorum.
1. The board of directors of each
association shall hold a regular meeting at least once each quarter, at a time
to be designated by it in accordance with its bylaws.
2. Special meetings of the board of
directors may be held upon notice to each director sufficient to permit his or
her attendance. The president or any three members of the board of directors
may call a meeting of the board of directors by giving notice to all of the
directors.
3. At any meeting of the board of
directors, a majority of the members constitutes a quorum for the transaction
of business.
(Added to NRS by 1967, 1021; A 1983, 354)
NRS 673.216 Official communication from Commissioner: Read at next board
meeting and made part of minutes. Every
official communication by the Commissioner directed to the board of directors
of an association must be read at the next meeting of the board of directors
and made a part of the minutes of the meeting.
(Added to NRS by 1967, 1021; A 1983, 1780; 1987, 1964)
NRS 673.217 Statement of purchases and sales of real estate and loans made
or purchased to be considered at regular meeting and made part of minutes. The board of directors, by resolution recorded
in the minutes, shall designate an officer whose duty it shall be to prepare
and submit, at each regular meeting of the board of directors, a written
statement of all the purchases and sales of real estate and securities, and of
every loan or contract made or purchased since the last regular meeting of the
board of directors, describing the collateral securing such loan. The
statement, certified by the designated officer to be correct as of the date of
the meeting at which submitted, shall be considered by the board of directors
at such meeting and be filed as a part of the minute records.
(Added to NRS by 1967, 1021)
NRS 673.2176 Notification of change in ownership of stock; application
required after certain acquisitions; investigation; costs; waiver.
1. An association shall immediately notify
the Commissioner of any change or proposed change in ownership of the
association’s stock which would result in any person, including a business
trust, obtaining 5 percent or more of the association’s outstanding capital
stock.
2. An application must be submitted to the
Commissioner, pursuant to NRS 673.080, by a person
who acquires:
(a) At least 25 percent of an association’s
outstanding stock; or
(b) Any outstanding stock of an association if
the change will result in a change in the control of the association.
Ê Except as
otherwise provided in subsection 4, the Commissioner shall conduct an
investigation to determine whether the character and responsibility of the
applicant is such as to command the confidence of the community in which the
association is located. If the Commissioner denies the application, he or she
may forbid the applicant from participating in the business of the association.
3. The association with which the
applicant is affiliated shall pay such a portion of the cost of the
investigation as the Commissioner requires. All money received by the
Commissioner pursuant to this section must be placed in the Investigative
Account created by NRS 232.545.
4. A savings and loan association may
submit a written request to the Commissioner to waive an investigation pursuant
to subsection 1. The Commissioner may grant a waiver if the applicant has
undergone a similar investigation by a state or federal agency in connection
with the licensing of or his or her employment with a financial institution.
(Added to NRS by 1985, 1346; A 1987, 1964; 1991, 1814)
NRS 673.218 Pensions and retirement plans for officers and employees. An association may provide for pensions,
retirement plans and other benefits for its officers and employees, and may
contribute to the cost thereof in accordance with the plan adopted by its board
of directors.
(Added to NRS by 1967, 1022)
NRS 673.219 Directors: Approval of depositary for money of association. The board of directors shall approve the
depositary or depositaries for funds of the association.
(Added to NRS by 1967, 1022)
NRS 673.221 Unlawful acts; penalty.
1. It is unlawful for an officer,
director, employee or capital stockholder of an association:
(a) To solicit, accept or agree to accept,
directly or indirectly, from any person other than the association, any
gratuity, compensation or other personal benefit for any action taken by the
association or for endeavoring to procure any such action.
(b) To have any interest, direct or indirect, in
the purchase at less than its face value of any evidence of a savings account
or other indebtedness issued by the association, excluding stock certificates
and junior capital notes.
2. It is unlawful for any stockholder with
more than 5 percent of the outstanding capital stock of an association, or any
director or principal officer, to have any interest, direct or indirect, in the
proceeds of a loan or of a purchase or sale made by the association, unless the
loan, purchase or sale is authorized expressly by this chapter or by a
resolution of the board of directors of the association. The resolution must be
approved by a vote of at least two-thirds of all the directors of the
association, and an interested director may not take part in the vote. The loan
must also conform to federal regulations for the insurance of accounts.
3. Any violation of the provisions of this
section is a misdemeanor.
(Added to NRS by 1961, 782; A 1967, 1014; 1977, 510;
1979, 1291)
NRS 673.2211 Liability of directors, officers or other persons. Any association director, officer or other
person who knowingly and willingly participates in any violation of the laws of
this state relative to savings and loan associations is liable for all damage
which the savings and loan association, its stockholders, savings depositors or
creditors sustain in consequence of such violation.
(Added to NRS by 1967, 1024; A 1977, 492)
NRS 673.222 Actions against officers, directors or employees: Payment of
expenses of defending action by association; settlements.
1. An association shall pay on behalf of
or reimburse an officer, director or employee for the expenses of defending an
action brought on behalf of the association or the savings account holders,
other creditors or borrowers thereof, founded upon any act or acts performed or
omitted by such person acting as such officer, director or employee under the
following conditions:
(a) If the person is adjudicated to be not
liable, then all reasonable expenses of such litigation shall be paid by the
association.
(b) If the person is held to be liable on certain
items and not liable on others, the association shall pay the proportion of the
total reasonable expense of the litigation which the items on which he or she
is held to be not liable bear to all the items alleged.
2. If, in the opinion of the association,
any such person is not liable upon the substantive issues alleged, the
association is authorized to compromise and settle such claim or litigation in
its discretion and to pay the entire expense thereof, including the compromise
settlement, if the expense is reasonable. Any action taken by the association
under this subsection requires approval by a vote of at least two-thirds of all
the directors of the association (an interested director taking no part in the
vote), or by a majority vote of the stockholders.
(Added to NRS by 1961, 783; A 1977, 492)
POWERS AND PRIVILEGES OF STATE ASSOCIATIONS
NRS 673.225 Certain state associations possess same powers and privileges as
federally chartered associations.
1. Notwithstanding any other provision of
this chapter, every company, association or corporation licensed under the
provisions of this chapter whose accounts are insured by the Federal Deposit
Insurance Corporation or its successor, or which is a member of a Federal Home
Loan Bank or its successor as an insured association, has the same rights,
powers, privileges, immunities and exceptions which are possessed by any
federally chartered association unless expressly denied by the Commissioner.
2. Whenever additional rights, powers,
privileges or exceptions are granted to any federally chartered association,
every company, association or corporation licensed under the provisions of this
chapter whose accounts are federally insured has those additional rights,
powers, privileges or exceptions unless expressly denied by the Commissioner.
(Added to NRS by 1961, 780; A 1969, 973; 1981, 847;
1983, 1780; 1987,
1964; 1993,
2809)
NRS 673.227 Land and office buildings of association; limitation on costs.
1. An association may purchase or lease
property for its office buildings or construct its office buildings on property
purchased or leased by it, if the total cost of land and improvements does not
exceed 70 percent of the sum of the association’s capital, surplus and
reserves.
2. With the approval of the Commissioner,
senior capital notes of the Federal Deposit Insurance Corporation may be
included in capital for the purposes of this section.
(Added to NRS by 1963, 465; A 1967, 1015; 1971, 628;
1983, 1781; 1987,
1965; 1993,
2809)
NRS 673.228 Trustee and custodial powers of association.
1. An association may act as a trustee or
custodian as provided by the Federal Employee Retirement Security Act of 1974,
as amended or supplemented.
2. An association subscribing to trustee
and custodial power authorized by this section shall be required to segregate
all funds held in such fiduciary capacity from the general assets of the
association and keep a separate set of books and records showing in proper
detail all transactions engaged in under the authority of this section.
3. If individual records are kept of each
self-employed individual retirement plan, all funds held in such trust or
custodial capacity by the association may be commingled for appropriate
purposes of investment.
4. No funds held in such fiduciary
capacity may be used by the association in the conduct of its business,
although such funds may be invested in the savings accounts of the institution
if the trust or custodial retirement plan does not prohibit the investment.
(Added to NRS by 1963, 465; A 1977, 492)
STOCKS AND CERTIFICATES
NRS 673.250 Licenses for issuance or sale of stock; contents and conditions
of licenses.
1. No association may sell or issue any of
its common or preferred stock until it has first applied for and secured from
the Commissioner a license authorizing it so to do as provided in NRS 673.080.
2. Every license must recite in bold type
that the issuance of the license is permissive only and does not constitute a
recommendation or endorsement of the stock permitted to be issued.
3. Before the sale of, or option to buy,
any additional authorized but unissued common or preferred stock, the
association must have the written approval of the Commissioner.
4. The Commissioner may impose conditions
requiring the impoundment of the proceeds from the sale of any stock, limiting
the expense in connection with the sale and such other conditions as are
reasonable and necessary or advisable to ensure the disposition of the proceeds
from the sale of the stock in the manner and for the purposes provided in the
license.
[14:51:1931; 1931 NCL § 970.13]—(NRS A 1957, 754;
1959, 57; 1961, 767; 1963, 465; 1979, 1292; 1983, 652, 1781; 1987, 1965)
NRS 673.260 Annual license: Fees; renewal; penalty; regulations.
1. The license specified in NRS 673.250 authorizes the company, association or
corporation to whom it is issued to sell its approved securities and contracts
within this State for the remainder of the fiscal year ending on June 30 next
succeeding. Each license is renewable, under like restrictions, annually thereafter.
2. For the issuing of any license provided
for in NRS 673.250 and for any renewal thereof, the
fee of the Commissioner is:
(a) For each home office, not more than $400; and
(b) For each branch office, not more than $200.
3. The fees must accompany the license
renewal application. A penalty of 10 percent of the fee payable must be charged
for each month or part thereof that the fees are not paid after June 30 of each
year.
4. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section. All sums received by the Commissioner pursuant to this section must be
deposited in the State Treasury pursuant to the provisions of NRS 658.091.
[Part 15:51:1931; 1931 NCL § 970.14] + [Part
17:51:1931; A 1955, 589]—(NRS A 1959, 542; 1961, 767; 1963, 465; 1965, 1138;
1967, 978; 1973, 730; 1983, 1781; 1987, 1965, 2226; 2003, 3232; 2005, 1877)
NRS 673.270 Licensing of salespersons and solicitors; fees; regulations;
withdrawal of applications.
1. No person may, as a soliciting agent,
soliciting representative or employee of any foreign or domestic company, association
or corporation, or in any other capacity, sell or solicit sales for any
securities such as investment certificates or savings accounts or contract for
the sale of securities until he or she is first licensed as a salesperson or
solicitor for sales of those securities by the Commissioner.
2. No person may be licensed for a period
of more than 1 year, and he or she may not be licensed until he or she has
satisfied the requirements set forth in NRS 673.046.
3. For the issuing of any license provided
for in this section and for any renewal thereof, the fee of the Commissioner
must not be more than $10.
4. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section. All sums received by the Commissioner pursuant to this section must be
deposited in the State Treasury pursuant to the provisions of NRS 658.091.
5. Tellers or other employees of an
insured savings and loan association are exempt from the licensing requirements
unless their employment entails soliciting sales outside their respective
offices as commission salespersons.
6. 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.
[Part 15:51:1931; 1931 NCL § 970.14] + [16:51:1931;
1931 NCL § 970.15] + [Part 17:51:1931; A 1955, 589]—(NRS A 1959, 542; 1961,
768; 1965, 1138; 1969, 974; 1983, 1782; 1987, 1966; 2003, 3233; 2005, 1878)
NRS 673.273 Stock, surplus, undivided profits and reserves to include
percentage of value of outstanding investment certificates; dividends on
permanent stock; stock dividends.
1. Except as permitted by subsection 6,
the total common stock and any preferred stock subscribed and paid plus the
total of the surplus, undivided profits and all reserves available for losses
must not at any time be less than 5 percent of the aggregate certificate value
of the outstanding investment certificates of the association after the 11th
anniversary of the date of insurance of accounts. The stock surplus, undivided
profits and reserves must be at least equal to the percentage of outstanding
investment certificates on each prior anniversary as stated below:
Date of insurance of accounts.............................................................. 3.00
percent
Second anniversary of date of
insurance of accounts..................... 3.20 percent
Third anniversary of date of
insurance of accounts........................ 3.40 percent
Fourth anniversary of date of
insurance of accounts...................... 3.60 percent
Fifth anniversary of date of
insurance of accounts......................... 3.80 percent
Sixth anniversary of date of
insurance of accounts......................... 4.00 percent
Seventh anniversary of date of
insurance of accounts................... 4.20 percent
Eighth anniversary of date of
insurance of accounts...................... 4.40 percent
Ninth anniversary of date of
insurance of accounts........................ 4.60 percent
Tenth anniversary of date of
insurance of accounts....................... 4.80 percent
2. No dividends may be declared on common
or preferred stock until the total of the common stock, preferred stock,
surplus, undivided profits and all reserves available for losses is equal to
the percentage required by subsection 1 of the outstanding investment
certificates and if payment of those dividends would reduce the capital
structure to an amount below that percentage.
3. Subject to the provisions of this
chapter, common stock and any preferred stock is entitled to the rate of
dividend, if earned, fixed by the board of directors. Stock dividends may be
declared by the board of directors at any time, payable only from otherwise
unallocated surplus and undivided profits.
4. No stock dividend may be declared and
paid for any period in which the association has not declared and paid interest
upon its withdrawable accounts.
5. The liability of an association on
account of any capital notes which are subordinated to all outstanding
investment certificates shall be deemed a reserve available for losses for the
purposes of subsection 1 and of NRS 673.274, but no
dividends may be declared on common or preferred stock while the capital notes
are outstanding, without the written permission of the Commissioner.
6. The Commissioner may approve a lower
ratio of the total common stock and any preferred stock, undivided profits and
all reserves which must be available for losses to the aggregate of outstanding
investment certificates. The Commissioner shall not approve any ratio which
would impair the insurance of the association’s accounts by the Federal Deposit
Insurance Corporation.
(Added to NRS by 1957, 758; A 1959, 543; 1961, 768;
1963, 466; 1965, 1466; 1967, 1015; 1983, 652, 1782; 1987, 1966; 1993, 2809)
NRS 673.274 Acts prohibited when stock, surplus, undivided profits and
reserves below amount specified.
1. No association whose stock, surplus,
undivided profits and reserves are less than the amount specified in NRS 673.273 or approved by the Commissioner may:
(a) Issue investment certificates or withdrawal
accounts except in lieu of investment certificates or withdrawal accounts
theretofore issued.
(b) Receive additional money upon investment
certificates or withdrawal accounts other than installment investment
certificates or installment withdrawal accounts.
2. The provisions of this section do not
prohibit the association from crediting to investment certificates the interest
earned thereon, or crediting to withdrawable accounts the interest thereon, if
the payment of the interest is not otherwise prohibited by the provisions of
this chapter.
(Added to NRS by 1959, 540; A 1969, 974; 1983, 653; 1987, 1967)
NRS 673.275 Impairment of stock; levy of assessment to repair deficiency;
reduction of stock.
1. If the Commissioner, as a result of any
examination or from any report made to him or her, finds that the common or
preferred stock of any association is impaired, he or she shall notify the
association that the impairment exists and shall require the association to
make good the impairment within 90 days after the date of the notice.
2. If the amount of the impairment as
determined by the Commissioner is questioned by the association, then upon
application filed within 10 days after the notice from the Commissioner that
the impairment exists, the association may have the value of the assets in
question be determined by appraisals made by independent appraisers acceptable
to the Commissioner and the association.
3. The directors of the association upon
which the notice has been served shall levy a pro rata assessment upon the
common and any preferred stock to make good the impairment. They shall cause
notice of the requirement of the Commissioner and of the levy to be given in
writing to each stockholder of the association, and the amount of assessment
which he or she must pay for the purpose of making good the impairment. In lieu
of making the assessment, the impairment may be made good, without the consent
of the Commissioner, by reduction of the common or preferred stock. Any
stockholder who does not make payment under the assessment shall transfer
sufficient stock to the association to pay his or her pro rata share of the
assessment, and there is no further liability to the stockholder.
(Added to NRS by 1957, 758; A 1961, 769; 1983, 654,
1783; 1987,
1967)
NRS 673.2755 Investment certificates: Rights and liabilities of holders;
types of certificates; limitation on approval.
1. An association may issue investment
certificates, with or without passbooks. The holders of investment certificates
are not liable for debts or assessments, and are entitled upon liquidation of
an association to receive payment in full before any payment or distribution is
made to stockholders. The holders of investment certificates have no right to
participate in the profits of the association.
2. Investment certificates may be issued
as fully paid investment certificates, accumulative investment certificates,
minimum term investment certificates or other types of certificates approved by
the Commissioner. The Commissioner shall not approve any certificates whose
issuance would impair the insurance of the association’s accounts by the
Federal Deposit Insurance Corporation.
(Added to NRS by 1963, 458; A 1977, 493; 1983, 654,
1784; 1987,
1968; 1993,
2810)
RESERVE FOR LOSSES
NRS 673.2758 Requirements. A
reserve for losses shall be maintained by each association, which shall allow
for the write-down of assets to their fair market value in accordance with
generally accepted accounting principles.
(Added to NRS by 1969, 962)
INVESTMENTS AND BORROWING
NRS 673.276 Permissible investments. An
association may invest in:
1. Without limit, obligations of, or
obligations guaranteed as to principal and interest by, the United States or
any state.
2. Obligations of the United States Postal
Service, whether or not guaranteed as to principal and interest by the United
States.
3. Stock of a Federal Home Loan Bank of
which the association is eligible to be a member.
4. Any obligations or consolidated
obligations of any Federal Home Loan Bank or Banks.
5. Stock or obligations of the Federal
Deposit Insurance Corporation.
6. Stock or obligations of a national
mortgage association or any successor or successors thereto, including the
Federal National Mortgage Association.
7. Demand, time or savings deposits with
any bank, credit union or trust company whose deposits are insured by the
Federal Deposit Insurance Corporation, the National Credit Union Share
Insurance Fund or a private insurer approved pursuant to NRS 678.755.
8. Stock or obligations of any corporation
or agency of the United States or any state, or in deposits therewith to the
extent that such a corporation or agency assists in furthering or facilitating
the association’s purposes or powers.
9. Savings accounts of any insured
association licensed by the State and of any federal savings and loan
association, if the accounts of the savings and loan association are insured by
the Federal Deposit Insurance Corporation.
10. Bonds, notes or other evidences of
indebtedness which are general obligations of any city, town, county, school
district or other municipal corporation or political subdivision of any state.
11. Any other investment at the discretion
of the association’s directors if, after the investment is made, the
association’s accounts remain insurable by the Federal Deposit Insurance
Corporation.
(Added to NRS by 1961, 782; A 1963, 467; 1967, 1016;
1969, 974; 1971, 272; 1975, 1827; 1977, 493; 1979, 710, 1292; 1981, 281; 1983,
655, 1279; 1985,
2249; 1993,
2811; 1999,
1449; 2013,
1249)
NRS 673.2765 Investments in related service corporations.
1. An association may invest in the
capital stock, obligations or other securities of a related service corporation
organized under the laws of this state, except a corporation organized for the
underwriting or sale of insurance, subject to any regulations concerning the
insurability of the association’s accounts by the Federal Deposit Insurance
Corporation and to whatever regulations the Commissioner may impose in this
regard, if the entire capital stock of the corporation is available for
purchase by associations organized under the laws of this state only.
2. No association may make the investment
if its aggregate, outstanding investments, pursuant to subsection 1, would then
be in excess of 1 percent of its assets.
(Added to NRS by 1969, 960; A 1983, 656, 1784; 1987, 1968; 1993, 2811)
NRS 673.2766 Investments in real property for subdivision or residential
development.
1. Any investment in real property for
purposes of subdivision or for residential development must not exceed the
market value or appraisal valuation as evidenced by an appraisal report
prepared within 120 days of the investment by a member of the American
Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, or
the Independent Fee Appraisers Society, or by such other appraiser as may be
approved by the Commissioner.
2. Within 30 days after the investment is
made, the association shall provide the Commissioner with a certified copy of
one or more appraisal reports on the real property involved and with a title
insurance company report, reflecting the chain of title for a period of at
least 3 years and the amount of consideration, as available, given for each
title transfer that may have occurred during the reported period.
3. The Commissioner may require a
statement from the association disclosing whether any director, officer or
employee of the association has a direct or indirect interest in the real
property involved or has had an interest at any time during the past 3 years.
Stock ownership in an interested corporation may be considered the direct or
indirect interest of the investor. Failure to make a required disclosure is
unlawful.
(Added to NRS by 1969, 962; A 1983, 1784; 1985, 2250; 1987, 1968)
NRS 673.278 Purchases of loans. The
power of an association to make loans shall include:
1. The power to purchase loans of any type
that the association may make.
2. The power to make loans upon the
security of loans of any type that the association may make.
(Added to NRS by 1957, 761; A 1959, 543)
NRS 673.279 Purchases of real property contracts; conditions. An association may invest its funds in the
purchase of real property contracts under the following conditions only:
1. That it must acquire the merchantable
title to the property covered by such contracts.
2. That the type of property be such as
would be eligible for a mortgage or deed of trust loan under this chapter.
3. Before making any such purchase, the
property shall be appraised and the purchase approved, as in the case of deed
of trust loans, by the board or the executive committee of the association.
(Added to NRS by 1957, 761)
NRS 673.280 Certain federal obligations are legal investments. Any savings and loan association may invest
its funds, or money in its custody, in the bonds of the Home Owners’ Loan
Corporation or in the bonds of any Federal Home Loan Bank, or in consolidated
Federal Home Loan Bank bonds, debentures or notes, or in farm loan bonds,
consolidated farm loan bonds, debentures, consolidated debentures and other
obligations issued by federal land banks and federal intermediate credit banks
under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to
1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of
1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or supplemented, and the
bonds, debentures, consolidated debentures and other obligations issued by
banks for cooperatives under the authority of the Farm Credit Act, formerly 12
U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C.
§§ 2001 to 2259, inclusive, as amended or supplemented.
[Part 1:61:1935; 1931 NCL § 3695.01]—(NRS A 1959, 32;
1973, 1093; 1977, 494; 1991, 496)
NRS 673.281 Restrictions on transfer or encumbrance of note and other
obligations held by association.
1. No association may sell, exchange,
transfer, pledge, hypothecate or otherwise dispose of or encumber any notes or
other obligations held by it, evidencing any loan made or purchased by it, or
the mortgages, trust deeds or other security therefor, that has been on the
books of the association for 3 years or longer, without the approval of the
Commissioner. All loans sold must be sold without recourse and, if under a
contract to service them, then on a basis to provide sufficient compensation to
the association to reimburse it for expenses incurred under its service
contract.
2. This section does not apply to loans
sold in which the association retains a participating interest, nor to loans
pledged as security for borrowing as provided in NRS
673.300 and 673.302.
(Added to NRS by 1967, 1022; A 1983, 1785; 1987, 1969)
NRS 673.300 Association may become member and stockholder of Federal Home
Loan Bank, borrow money and invest in bonds.
1. Any savings and loan association which
may now or hereafter be eligible to become a member of any Federal Home Loan
Bank according to the terms of the Federal Home Loan Bank Act of 1932, 12
U.S.C. §§ 1421 to 1449, inclusive, as amended or supplemented, may:
(a) Subscribe for, purchase, own and hold stock
in such Federal Home Loan Bank, and become a member thereof.
(b) Borrow money from any Federal Home Loan Bank
pursuant to the Federal Home Loan Bank Act, as amended or supplemented.
(c) Invest in the bonds of any Federal Home Loan
Bank.
(d) Give its obligations and pledge securities
and conform to the provisions of the Federal Home Loan Bank Act, and to the
rules and regulations from time to time fixed and prescribed either by the
Federal Home Loan Bank Board or the Federal Home Loan Bank of which it is a
member.
(e) Perform any acts and execute any instruments
authorized or required by the Federal Home Loan Bank Act, as amended or
supplemented, or by rules and regulations adopted pursuant to the Act.
2. All acts authorized by subsection 1
performed prior to March 18, 1935, are hereby validated and confirmed.
[Part 1:59:1935; 1931 NCL § 972.01] + [2:59:1935;
1931 NCL § 972.02]—(NRS A 1977, 494)
NRS 673.301 Association may issue capital notes; voting rights of holders. The power of an association to borrow money
and contract debts shall include the power to issue capital notes evidencing
such borrowings and to subordinate the same to investment certificates and
other liabilities. An association may confer upon the holders of any capital
notes, issued or to be issued by the association, such rights to vote in the
election of directors and on any other matters as shall be stated and expressed
in the articles of incorporation, or in any amendment thereto.
(Added to NRS by 1967, 1022)
NRS 673.302 Limitation on borrowing. The
aggregate amount of all borrowings of any association in force at any one time,
excluding borrowings from the Federal Home Loan Banks, the Federal Deposit
Insurance Corporation or other similar federal agencies, must not exceed 5
percent of the total assets of the association without the approval of the
Commissioner. The Commissioner shall not approve any borrowing which would
impair the insurance of the association’s accounts by the Federal Deposit
Insurance Corporation.
(Added to NRS by 1967, 1022; A 1983, 656, 1785; 1987, 1969; 1993, 2812)
NRS 673.310 Loans and advances of credit insured by Federal Housing
Administrator or Department of Veterans Affairs.
1. Subject to such regulations as may be
prescribed by the Federal Housing Administrator or Department of Veterans
Affairs, savings and loan associations may:
(a) Make such loans and advances of credit, and
purchases of obligations representing the loans and advances of credit, as are
eligible for insurance by the Federal Housing Administrator or are guaranteed
by the Department of Veterans Affairs, and to obtain such insurance.
(b) Make such loans secured by mortgages on real
property as are eligible for insurance by the Federal Housing Administrator or
are guaranteed by the Department of Veterans Affairs, and to obtain such
insurance.
(c) Purchase, invest in and dispose of notes or
bonds secured by mortgages insured by the Federal Housing Administrator or
guaranteed by the Department of Veterans Affairs, securities of national
mortgage associations, and debentures issued by the Department of Veterans
Affairs or the Federal Housing Administrator.
2. No law of this State, nor any articles
of incorporation or bylaws of any savings and loan associations, prescribing
the nature, amount or form of security or requiring security upon which loans
or advances of credit may be made, prescribing or limiting interest rates upon
loans or advances of credit, or prescribing or limiting the period for which loans
or advances of credit may be made, applies to loans, advances of credit or
purchases made pursuant to subsection 1.
3. All loans, advances of credit, and
purchases of obligations described in this section made and insured pursuant to
the terms of the National Housing Act or Servicemen’s Readjustment Act of 1944
are hereby validated and confirmed.
[Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL §
3652.01] + [Part 2:58:1935; 1931 NCL § 3652.02] + [3:58:1935; 1931 NCL §
3652.03]—(NRS A 1959, 544; 1977, 495; 1995, 1100)
NRS 673.315 Investment in Federal National Mortgage Association. Notwithstanding any other provision of law,
any savings and loan association organized under the laws of this State, which
has as one of its principal purposes the making or purchasing of loans secured
by real property mortgages, is authorized to sell such mortgage loans to the
Federal National Mortgage Association, a corporation chartered by an Act of
Congress, or any successor thereof, and in connection therewith to make
payments of any capital contributions, required pursuant to law, in the nature
of subscriptions for stock of the Federal National Mortgage Association or any
successor thereof, to receive stock evidencing such capital contributions, and
to hold or dispose of such stock.
(Added to NRS by 1957, 527; A 1977, 495)
NRS 673.316 Loans and investments not limited.
1. Nothing in this chapter requires any
association to sell, transfer or dispose of any investment or loan made or
purchased by the association before March 30, 1959. Any association may:
(a) Renew, extend the time of payment of, or
rewrite any loan made before that date.
(b) Make additional advances or loans for the
purpose of preserving the security of the loan or for the purpose of protecting
the property securing the loan.
(c) Make any renewal, extension, advance or loan
to the borrower or to any successor in interest in the property securing the
loan.
(d) Make loans on property sold by an association
or extend credit thereon for the purpose of facilitating the sale of the
property regardless of any other provision of this chapter.
2. No advance or loan may be made under
the provisions of this section if the advance or loan would increase the total
liability to the association making the advance or loan to more than 2 percent
of total assets, except with the approval of the Commissioner.
3. For the purpose of preserving the
security of any loan or of protecting the property securing any loan made in
compliance with this chapter, an association may make additional advances or
loans to the borrower or any successor in interest in the property securing the
loan. Regardless of any other provision of this chapter an association may make
loans or extend credit for the purpose of facilitating the sale of property
acquired by repossession, foreclosure or conveyance in lieu of foreclosure if
that activity conforms to generally accepted accounting practices.
(Added to NRS by 1959, 540; A 1963, 467; 1983, 656,
1785; 1987,
1969)
APPRAISALS
NRS 673.317 Approval of appraiser by Commissioner required; limitations;
revocation; notice of termination of services. No
loan may be made upon the appraisement of, nor may compensation for any
appraisement be paid to any appraiser, officer or member of any committee who
has not been first approved in writing by the Commissioner for the association.
The approval is subject to such limitations as the Commissioner provides, and
may be revoked for cause by the Commissioner, after giving due notice to the
appraiser and the association and holding a hearing. The association shall give
notice in writing to the Commissioner of the termination of the services of any
appraiser within 15 days of the termination.
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468;
1983, 1786; 1987,
1970)
NRS 673.3171 Appraisal of real estate required before granting loan;
requirements. Every association
shall appraise each parcel of real estate prior to the granting of a loan. The
appraisal shall be in ink or typed, be dated and identify the security, specify
separate valuations for land and improvements, show the fair market value, and
be signed in ink. The appraised value shall be the value of the land and the
permanent improvements thereon. If the appraisal covers land only, it shall
show that the appraisal covers unimproved land, or covers building lots or
sites which by reason of installations and improvements are ready for the
construction of buildings thereon. The appraisal shall be reviewed by the board
of directors, or by a loan committee designated by the board of directors, in
which case all actions of the loan committee shall be affirmed at the next
board of directors meeting.
(Added to NRS by 1967, 1022)
NRS 673.318 Appraisal of real estate at time of acquisition. Every association shall appraise each parcel
of real estate at the time of acquisition thereof. The report of each appraisal
must be submitted in writing to the board of directors and must be kept in the
records of the association. The Commissioner may require the appraisal of real estate
securing loans by an appraiser selected by the Commissioner. The association
whose securities are appraised under this section shall pay the expense of the
appraisal to the Commissioner upon demand. Money so received must be deposited
in the State Treasury pursuant to the provisions of NRS 658.091. Copies of appraisals must be
furnished to the association.
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468;
1965, 1139; 1983, 1786; 1987, 1970; 2003, 3233)
NRS 673.319 Specific loss reserve; determination of values by Commissioner.
1. The Commissioner may require each
association to establish and maintain a specific loss reserve for the amount by
which the book value of any asset exceeds the Commissioner’s appraisal of the
asset.
2. In determining the values of the
security properties for a group of loans, the Commissioner may use his or her
appraisal of each property or his or her estimate of the total value of the properties
based upon his or her appraisal of a reasonable sample thereof. If any
association contests the validity of the estimate based upon a sample, it may
have an appraisal, at its own expense, by an appraiser approved by the
Commissioner, of all the group from which the sample was drawn, or of a larger
sample of the group than was recommended by the Commissioner.
3. If the Commissioner has directed an
association to carry a specific loss reserve on its books, the amount so
designated for this purpose by the Commissioner cannot be reduced or changed in
any manner without his or her written approval.
4. The provisions of subsections 2 and 3
are effective on July 1, 1967, but must not be applied retroactively.
(Added to NRS by 1959, 541; A 1961, 770; 1967, 1017;
1983, 1786; 1987,
1970)
NRS 673.3191 Reserve for uncollected interest. A
reserve for uncollected interest shall be maintained equivalent to all interest
which has been due for 90 days or more and which is carried as income on the
books of the association.
(Added to NRS by 1967, 1022)
INSURANCE OF ACCOUNTS
NRS 673.320 Associations empowered to insure accounts. Any association, company or corporation which
may be eligible so to do under the terms of the National Housing Act, approved
June 27, 1934, which act is also designated as 12 U.S.C. §§ 1701 to 1743,
inclusive, is authorized and empowered to insure, pursuant to Title IV of the
National Housing Act, any and all of its accounts as such accounts now or
hereafter may be defined under Title IV of the National Housing Act and to do
and perform all things necessary or convenient to effect such insurance.
[1:63:1935; 1931 NCL § 3653.01]
LOANS
NRS 673.324 Permissible loans.
1. An association may make any loan which:
(a) Is secured by real property;
(b) Is secured by personal property;
(c) Results from a credit card issued by the
association;
(d) Is unsecured;
(e) Is made to the United States, its agencies or
any governmental agency of the State of Nevada; or
(f) Is made at the discretion of the
association’s directors, if the loan will not impair the insurability of the
association’s accounts by the Federal Deposit Insurance Corporation.
2. Additional loans or advances on the
same property, without intervening liens, shall be deemed to be first liens for
the purpose of this chapter.
(Added to NRS by 1957, 759; A 1969, 975; 1977, 496;
1983, 657; 1993,
2812)
NRS 673.3244 Loans to corporations or partnerships.
1. No association may make any loans to a:
(a) Corporation if the majority of the stock is
owned or controlled individually or collectively by any one or more of the
directors, officers or majority stockholders of the association; or
(b) Partnership if the limited or general partner
is a director, officer or the majority owner of the association,
Ê unless the
loan is expressly authorized by this chapter or by a resolution of the board of
directors of the association. The resolution must be approved by a vote of at
least two-thirds of all the disinterested directors of the association.
2. An association may make loans to any
corporation or partnership in which a director or officer of the association is
a minority stockholder or partner if the loan is authorized or confirmed, at a
meeting held within 30 days after the loan is made, by the affirmative vote of
all the disinterested directors of the association present at the meeting and
if the affirmative vote constitutes a majority of all the directors of the
association. The interested director or officer shall not vote or participate
in any manner in the action of the board of directors upon the loan. The
authorization or confirmation must be entered in the minutes of the
association. The loan must in all other respects comply with the provisions
covering the granting of loans.
3. If a loan is made to a corporation or
partnership as set forth in subsection 2, and if the director or officer of the
association owns more than 10 percent of the paid-in capital of the
corporation, or if any two or more officers or directors own more than 20
percent of the paid-in capital of the corporation or if any one or more of the
directors is a general partner, the association shall file reports with the
Commissioner showing the following:
(a) The fact of making the loan.
(b) The names of the directors authorizing or
confirming the loan.
(c) The corporate or partnership name of the
borrower.
(d) The name of each director or officer of the
association who is a stockholder, officer, director or partner of the
corporation or partnership to which the loan was made.
(e) The amount of stock held by the officer or
director in the corporation.
(f) The amount of the loan, the rate of interest
thereon, the time when the loan becomes due, the amount, character and value of
the security given therefor, and the fact of final payment when made.
4. All officers, directors or stockholders
holding more than 10 percent of the paid-in capital of the association shall
disclose annually to the Commissioner their investments in any partnership or
corporation to which a loan is made. If any changes in those investments occur,
the Commissioner must be notified.
(Added to NRS by 1967, 1022; A 1983, 658, 1787; 1987, 1971)
NRS 673.3255 Loans to finance interest in cooperative housing corporation;
first security interests.
1. An association may invest any of its
money in a loan to finance a borrower’s interest in or to refinance his or her
existing interest in a cooperative housing corporation if the loan is secured
by:
(a) A first security interest in stock or a
certificate of membership in the cooperative housing corporation; and
(b) An assignment of or lien on the borrower’s
interest in the lease or other right of tenancy to a dwelling unit of the
cooperative housing corporation.
2. A first security interest may exist
even though a mortgage or deed of trust encumbers the property owned by the
cooperative housing corporation if the stock or certificate of membership in
the corporation and the borrower’s lease or other right of tenancy are not
encumbered with a prior security interest. For purposes of this chapter,
additional loans or advances on the same interest in a cooperative housing
corporation, without intervening liens, shall be deemed to be first security
interests. For purposes of this chapter, the interest in a cooperative housing
corporation which is encumbered by a security interest shall be deemed to be
real property and security interest shall be deemed to be a mortgage on real
property.
(Added to NRS by 1983, 660)
NRS 673.3271 Loans to one borrower.
1. An association shall not make at one
time loans to any one borrower, or under any one transaction, or applicable to
any one project, or tract, if the loans in the aggregate are in excess of
whichever of the following is the lesser:
(a) Ten percent of its total savings accounts,
unless that requirement is waived by written approval of the Commissioner.
(b) An amount equal to the sum of its capital,
surplus, undivided profits, loan reserve, federal insurance reserve, capital
notes and such other reserves as the Commissioner may prescribe.
2. For the purpose of this section, the
term “one borrower” means:
(a) Any person or entity that is, or that upon
the making of a loan will become, obligor on a loan.
(b) Nominees of the obligor.
(c) All persons, trusts, partnerships, syndicates
and corporations of which the obligor is a nominee or a beneficiary, partner,
member, or stockholder of record or beneficial interest stockholder owning 10
percent or more of the capital stock of any corporation.
(d) If the obligor is a trust, partnership,
syndicate or corporation, all trusts, partnerships, syndicates and corporations
of which any beneficiary, partner, member, or stockholder of record or
beneficial interest stockholder owning 10 percent or more of the capital stock
is also a beneficiary, partner, member or stockholder of record or beneficial
interest stockholder owning 10 percent or more of the capital stock of the
association.
3. For the purpose of this section, the
term “loans to any one borrower” means the amount of the new loan plus the
total balances of all outstanding loans owed to the association by the
borrower. Notwithstanding any other limitations of this section, the loan may
be made if the new loan when added to the total balances of all outstanding
loans owed to the association by the borrower does not exceed $250,000.
4. For the purpose of this section, the
term “balances of all outstanding loans” means the original amounts loaned by
the association plus any additional advances and interest due and unpaid, less
repayments and participating interests sold and exclusive of any loan on the
security of real estate the title to which has been conveyed to a bona fide
purchaser of the real estate.
5. If an association makes a loan to any
one borrower in an amount which, when added to the total balances of all
outstanding loans owed to the association by the borrower, exceeds $250,000,
the records of the association with respect to the loan must include
documentation showing that the loan was made within the limitations of this
chapter. For the purpose of that documentation, the association may require,
and may accept in good faith, a certification by the borrower identifying the
persons, entities and interests described in the definition of one borrower in
subsection 2.
(Added to NRS by 1967, 1023; A 1969, 976; 1977, 511;
1983, 659, 1788; 1987,
1972)
NRS 673.3272 Payment of charges by association for protection of its
investments; required advance monthly payments.
1. An association may pay:
(a) Current or past-due taxes or assessments
levied upon secured property;
(b) Insurance premiums;
(c) Life insurance premiums on policies that an
association may require to be assigned as additional collateral; or
(d) Other similar charges required for the protection
of its investments.
Ê Such
payments shall be added to the unpaid loan balance and shall have the same
secured status under the deed of trust provisions as the loan itself. No
association may require, as a condition of loan approval or in the extension of
any other service, that any kind of insurance coverage be purchased from or
through the association or from any agency in which a director or officer of
the corporation has any interest.
2. An association may require advance
monthly payments on:
(a) Principal.
(b) Interest.
(c) Taxes.
(d) Assessments.
(e) Insurance premiums.
(f) Other statutory charges accruing upon the
secured property.
Ê Each such
payment may be equivalent to one-twelfth of the estimated annual amount due.
Monthly charges may be adjusted to provide a reasonable method for the payment
of estimated taxes, assessments, insurance premiums and other charges. Upon
receipt thereof such payments may be carried in a separate trust account or
they may be applied to the loan account as a credit upon receipt and debit when
disbursed.
(Added to NRS by 1969, 962)
NRS 673.330 Limitation on charge for prepayment of loan. Associations shall not charge for the
privilege of prepayment in part or in full of any loan an amount greater than 180
days’ interest on the amount prepaid.
[20:51:1931; 1931 NCL § 970.19]—(NRS A 1957, 756;
1961, 770; 1975, 1794; 1983, 660)
NRS 673.331 Loans prohibited on security of association’s own stock. No association shall loan any of its funds
upon the security of its own stock.
(Added to NRS by 1963, 470)
NRS 673.332 Property acquired by foreclosure or developed by association;
real-estate-owned accounts; subsidiary ledger records.
1. An association may hold, manage and
convey real property, including apartments and other buildings:
(a) Acquired by foreclosure or a conveyance in
lieu of foreclosure; or
(b) Developed or built by the association.
Ê Unless the
association has received a written waiver from the Commissioner, the total of
money which it has advanced or committed for property which it has developed or
built may not exceed twice the sum of its capital, surplus, undivided profits,
loan reserve, federal insurance reserve and any other reserves specified by the
Commissioner.
2. When an association acquires title to
any real property pursuant to subsection 1, the document representing the
transaction must be recorded immediately. This subsection does not require
recordation of the evidences of any transfer of stock resulting from
foreclosure of an interest in a cooperative housing corporation.
3. An appropriate real-estate-owned
account must be set up for the property acquired and a separate subsidiary
ledger or other appropriate record must be maintained therefor. The amount
carried in the account must be the sum of the unpaid principal balance of the
loan plus foreclosure costs, less any advance payments and any money held in
the loans-in-process account at the time of acquisition, together with:
(a) Any amounts paid after acquisition for real property
taxes which have accrued before acquisition;
(b) Assessments due or delinquent at the time of
acquisition; and
(c) Necessary acquisition costs and costs of
insurance premiums.
4. The subsidiary ledger record or other
appropriate record on each property acquired must indicate:
(a) The type and character of the property
acquired.
(b) All capitalized items of investment with
related costs.
(c) Former loan or contract of sale account
numbers.
(Added to NRS by 1969, 963; A 1979, 711; 1981, 512; 1983,
1789; 1987,
1973)
INTEREST AND DIVIDENDS
NRS 673.333 Apportionment of earnings and payment of interest; determination
of percentage rate of declaration; classes of savings accounts; notice of
change in method of calculating interest.
1. The apportionment of earnings or
payment of interest by declaration of the board of directors must be made
semiannually on June 30 and December 31 of each year, or quarterly on those
dates, and on March 31 and September 30 of each year.
2. The percentage rate of the declaration
must be determined by the board of directors as it deems expedient for the
safety and security of all savings depositors, but if the percentage rate is
excessive, unjust or inequitable, it is subject to disapproval of, and
reduction by the Commissioner. The association may appeal any disapproval or
reduction by the Commissioner to the Director.
3. No association may be required to pay
or credit interest on accounts of $10 or less which show no entries of debit or
credit for a period of 2 years, except for accumulated interest credits.
4. Except as otherwise provided in this
chapter, interest must be declared on the participation value of each account
at the beginning of the interest period, plus payments on the account made
during the interest period, less amounts withdrawn, which for interest purposes
must be deducted from the latest previous payments on the account, computed at
the rate for the time invested, determined as provided in this section.
5. The date of investment is the date of
actual receipt by the association, except that the board of directors may fix a
date, which may not be later than the 10th day of the month, for determining
the date of investment on which interest is computed. A date later than the
10th may be set if it is permissible for federal associations. If permitted by
federal regulations, as amended, the board of directors may permit investments
to receive interest calculated from the date of actual receipt.
6. In addition to the classes of savings
accounts provided for in this chapter, an association may, with the approval of
its board of directors, authorize additional classes of savings accounts which
will conform to those types or classes, which have been established by the
Federal Home Loan Bank Board by regulation or which may be authorized by it.
7. Except when prescribed for all
associations by federal regulation, any association which changes its method of
calculating interest on its savings accounts so as to decrease the effective
yield of that account shall notify each account holder affected by the change
by mail within 15 days before the proposed effective date of the change.
(Added to NRS by 1957, 759; A 1961, 771; 1963, 470;
1969, 976; 1977, 496; 1979, 1295; 1983, 1789; 1987, 1973)
NRS 673.336 Restrictions on declaration of dividends. No board of directors of a savings and loan
association shall knowingly declare to its stockholders a greater dividend than
has actually been earned by the association after providing adequate reserves
to meet any other contingent liabilities.
(Added to NRS by 1957, 759)
INVESTORS
NRS 673.340 Minors and married persons; payment as valid discharge of
association.
1. Any savings and loan association and
any federal savings and loan association operating in this state may issue
savings accounts or investment certificates to minors with the written consent
of their parents, trustees or guardians, and to married persons, each in their
own right.
2. Any payment thereon, or delivery
thereof, or of any rights thereunder, to a minor of the age of 14 years or
over, or to a married person, or a receipt or acquittance signed by the minor
and parent, trustee or guardian or by a married person who holds such savings
accounts or investment certificates, is a valid and sufficient release and
discharge of the association for any such payment or delivery.
[1:116:1939; 1931 NCL § 974.10]—(NRS A 1977, 497)
NRS 673.360 Administrators, executors, guardians and trustees; payment as
valid discharge of association.
1. A savings account or investment
certificate of any association, including a federal savings and loan
association, may be purchased and held by any person as administrator,
executor, guardian, or as trustee or other fiduciary, in trust for a named
beneficiary or beneficiaries.
2. Any person holding a savings account as
a fiduciary may make payments upon, and withdraw, in whole or in part, the
savings account or investment certificate.
3. The withdrawal value of any such
savings account or investment certificate and interest thereon, or other rights
relating thereto, may be paid or delivered to the fiduciary, and the payment or
delivery to the fiduciary or a receipt or acquittance signed by the fiduciary,
to whom any payment or delivery of rights is made, is a valid and sufficient
release and discharge of the association for the payment or delivery so made.
[Part 2:116:1939; 1931 NCL § 974.11]—(NRS A 1969,
977; 1977, 498)
SAFE-DEPOSIT BOXES
NRS 673.373 Notice of overdue rental; opening of box; retention of contents
in general vaults; delivery of contents to State Treasurer.
1. If the rental due on a safe-deposit box
has not been paid for 90 days, the lessor may send a notice by registered or
certified mail to the last known address of the lessee stating that the
safe-deposit box will be opened and its contents stored at the expense of the
lessee unless payment of the rental is made within 30 days. If the rental is
not paid within 30 days after the mailing of the notice, the box may be opened
in the presence of any officer of the lessor and a notary public. The contents
must be sealed in a package by the notary public, who shall write on the
outside the name of the lessee and the date of the opening of the box in the
presence of the officer. The notary public and the officer shall execute a
certificate reciting the name of the lessee, the date of the opening of the box
and a list of its contents. The certificate must be included in the package,
and a copy of the certificate must be sent by registered or certified mail to
the last known address of the lessee. If the contents of the safe-deposit box
have been unclaimed by the owner for 3 years or less, the package must then be
placed in the general vaults of the lessor at a rental not exceeding the rental
previously charged for the box, until such time that the contents will have
been unclaimed by the owner for more than 3 years, at which time the lessor
shall deliver the package to the State Treasurer in his or her capacity as the
Administrator of Unclaimed Property pursuant to the provisions of chapter 120A of NRS.
2. If the contents of a safe-deposit box
that has been opened pursuant to subsection 1 have been unclaimed by the owner
for more than 3 years, the lessor shall deliver the package to the State
Treasurer in his or her capacity as the Administrator of Unclaimed Property
pursuant to the provisions of chapter 120A
of NRS.
(Added to NRS by 1985, 2248; A 1995, 283; 2001, 1651, 2929)
WITHDRAWALS
NRS 673.377 Minimum required available cash, deposits and securities; making
and purchasing loans prohibited when minimum not met.
1. Every association shall have on hand at
all times in available money, deposits in banks and credit unions, United
States Government bonds, certificates of insured savings and loan associations,
Federal Home Loan Bank evidences of indebtedness, time certificates of insured
federal and state banks, time certificates of insured credit unions or any
indebtedness of any United States Government instrumentality which is by
statute fully guaranteed, a sum not less than 5 percent of the aggregate of
savings accounts and investment certificates to enable it to pay withdrawals in
excess of receipts and to meet accruing expenses. The Commissioner may
prescribe from time to time different amounts required for liquidity purposes,
but the amounts must not be less than 4 percent or more than 8 percent.
2. A deposit in a bank, credit union or
association under the control or the possession of appropriate supervisory
authority must not be considered as cash. Except for deposits in a Federal Home
Loan Bank, a time deposit established hereafter, whether or not time
deposit-open account or deposit evidenced by a certificate of deposit, must not
be considered as cash for such purposes unless:
(a) The member itself made the deposit in
question;
(b) The deposit, together with all other time
deposits of the association in the same bank or credit union, does not exceed
the greater of:
(1) One-quarter of 1 percent of the total
deposits of the bank or credit union as of the last published statement of
condition of the bank or credit union; or
(2) Fifteen thousand dollars; and
(c) No consideration was received from a third
party in connection with the making of the deposit.
3. An association must not make or
purchase any loan, other than advances on the sole security of its savings
accounts, at any time when its liquidity drops below the required level. For
the purpose of this section, a loan is deemed to have been made as of the date
the borrower executed the security instrument, and a loan is deemed to have
been purchased as of the date of the payment therefor.
(Added to NRS by 1957, 762; A 1967, 1019; 1977, 498;
1983, 1791; 1985,
2250; 1987,
1974; 1999,
1450)
NRS 673.380 Procedure when requests for withdrawals exceed amount available.
1. Whenever an association has on file
more withdrawal requests than can be met in full from current funds, it shall
apply to the withdrawals one-half of the monthly receipts, after first
deducting the amount necessary to pay the actual and reasonable expenses
incurred in the operation of the association and the protection of its assets
and reserves set up by it for interest on its savings accounts or certificates.
2. Should the one-half of the monthly
receipts fail to retire at least 5 percent of the aggregate withdrawal
requests, then such portion of the other one-half of the monthly receipts shall
be applied as is necessary to retire 5 percent of the total amount on
withdrawal order.
3. For purposes of this section,
“receipts” means all money coming into the hands of the association except
borrowed money. Borrowed money shall not be considered receipts for the payment
of withdrawals; but all money borrowed from the Federal Home Loan Bank or from
any other federal loan agency for the purpose of paying withdrawals may be used
for such purpose and shall not be considered as receipts.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1977,
499)
NRS 673.390 Order of payment of withdrawals.
1. Except as provided in this section,
withdrawals must be paid in the order of their filing, and no loans or
investments may be made, except by permission of the Commissioner, when any
withdrawal request or order has remained on file unpaid for a period of more
than 30 days. Any foreign or domestic association, company or corporation may,
without the necessity of obtaining permission of the Commissioner, make or
purchase loans or investments not exceeding the principal amount of money
borrowed by an association, company or corporation from a Federal Home Loan
Bank or other federal loan agency. Any such request or order which is not
legally payable for reasons other than the restrictions of this section may not
be considered as on file.
2. Whenever applications for withdrawals
reach such an amount that in the opinion of the Commissioner, it would be
inexpedient to pay such applications in the order of their filing, then, with
the written permission of the Commissioner first obtained, so much as may be
directed by the Commissioner of the money available to pay withdrawals may,
each month, be prorated upon the amounts of all applications for withdrawals on
file, irrespective of the order of filing.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1961,
772; 1983, 1792; 1987,
1975)
NRS 673.420 Notice to Commissioner of inability to pay request for withdrawal
on file more than 60 days. Any
such foreign or domestic association, company or corporation or its secretary
or manager shall immediately notify the Commissioner of its inability to pay a
withdrawal request or order which has been on file for a period of more than 60
days.
[13:51:1931; 1931 NCL § 970.12]—(NRS A 1961, 772;
1983, 1792; 1987,
1975)
REPORTS, EXAMINATIONS AND AUDITS
NRS 673.430 Annual reports: Filing; form and contents; fees; penalty;
regulations.
1. Each association doing business in this
State shall file annually with the Commissioner on or before March 1, a sworn
statement in two sections.
2. One section of the annual report must
contain, in such form and detail as the Commissioner may prescribe, the
following:
(a) The amount of authorized capital by classes
and the par value of each class of stock.
(b) A statement of its assets, liabilities and
capital accounts as of the immediately preceding December 31.
(c) Any other facts which the Commissioner
requires.
Ê This section
must be furnished in duplicate, one certified copy to be returned for
publication at least two times in a newspaper having a general circulation in
each county in which the association maintains an office. Publication must be
completed on or before May 1, and proof of publication must be filed in the
Office of the Commissioner.
3. One section of the annual report must
contain such other information as the Commissioner may require to be furnished.
This section need not be published and, except as otherwise provided in NRS 239.0115, must be treated as
confidential by the Commissioner.
4. The Commissioner may impose and collect
a fee of not more than $10 for each day the annual report is overdue. The
Commissioner shall adopt regulations establishing the amount of the fee that
may be imposed pursuant to this subsection. Every association shall pay to the
Commissioner for supervision and examination a fee based on the rate
established pursuant to NRS 658.101.
5. All sums received by the Commissioner
pursuant to this section must be deposited in the State Treasury pursuant to
the provisions of NRS 658.091.
[Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1957,
757; 1961, 773; 1963, 470; 1965, 1139; 1967, 979; 1969, 978; 1973, 728; 1977,
499; 1979, 1296; 1983, 1792; 1987, 1975, 2226; 1989, 921; 2003, 3233; 2005, 1878; 2007, 2152)
NRS 673.440 Commissioner may require further information. Each such foreign or domestic association,
company or corporation shall cause to be supplied to the Commissioner at any
time, upon his or her demand, any information which he or she may require as to
its condition, affairs or methods.
[Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1961,
773; 1983, 1793; 1987,
1976)
NRS 673.450 Hearings, investigations and examinations by Commissioner;
powers of Commissioner; biennial examination required.
1. The Commissioner may conduct or cause
to be conducted such hearings, investigations or examinations of the books and
records, wherever they may be, relating to the affairs of such organizations as
he or she may deem expedient and in aid of the proper administration of the
provisions of this chapter.
2. In connection with the conduct of any
hearing, investigation or examination, the Commissioner or other person
designated by him or her to conduct it may:
(a) Compel the attendance of any person by
subpoena.
(b) Administer oaths.
(c) Examine any person under oath concerning the
business and conduct of affairs of any association subject to the provisions of
this chapter, and require the production of any books, papers, records, money
and securities relevant to the inquiry. Any willful false swearing is perjury
and is punishable as such.
3. The Commissioner shall conduct at least
once every 2 years an examination of the books and records of each association
licensed under this chapter.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL §
970.21]—(NRS A 1961, 773; 1969, 979; 1979, 1297; 1983, 1793; 1987, 1976)
NRS 673.451 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 association;
(b) Any other person engaged in an activity
regulated 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 must 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, 1873)
NRS 673.453 Enforcement of subpoena by district court.
1. In case of the refusal of any person to
attend or testify or produce any papers required by the subpoena directed to be
served under the provision of NRS 673.450, the
Commissioner may report to the district court in and for the county in which
the examination, hearing or investigation is pending by petition, setting forth
that:
(a) Due notice has been given of the time and
place of attendance of the person or the production of the books and papers;
(b) The person has been subpoenaed in the manner
prescribed in this chapter; and
(c) The person has failed and refused to attend
or produce the papers required by subpoena before the Commissioner in the
examination, hearing or investigation named in the subpoena, or has refused to
answer questions propounded to him or her in the course of such examination,
hearing or investigation,
Ê and asking
an order of the court compelling the person to attend and testify or produce
the books or papers before the Commissioner.
2. The court, upon petition of the
Commissioner, shall enter an order directing the person to appear before the
court at a time and place to be fixed by the court in such order, the time to
be not more than 10 days from the date of the order, and then and there show
cause why he or she has not attended or testified or produced the books or
papers before the Commissioner. A certified copy of the order must be served
upon the person. If it appears to the court that the subpoena was regularly
issued by the Commissioner, the court shall thereupon enter an order that the
person appear before the Commissioner at the time and place fixed in the order
and testify or produce the required books or papers; and upon failure to obey the
order the person shall be dealt with as for contempt of court.
(Added to NRS by 1969, 964; A 1983, 1794; 1987, 1977)
NRS 673.455 Examination of holding companies.
1. The Commissioner may, at the time of
examining a savings and loan association, inspect the books, ledgers and
minutes of any corporation which is registered or required to be registered
under section 408 of the National Housing Act as a holding company whenever, in
his or her discretion, he or she considers it advisable to ascertain facts
which may relate to transactions between the holding company and the affiliated
association. The provisions of NRS 673.450 apply to
the examination of such corporation.
2. Upon making findings to that end, the
Commissioner may order the discontinuance of borrowing or lending, selling or
buying of assets, extending credit or guaranteeing obligations of the holding
company which has been undertaken without the written approval of the
Commissioner.
3. No unreasonable supervisory fees may be
imposed upon any association by a holding company which controls an
association.
(Added to NRS by 1969, 963; A 1983, 1794; 1987, 1977)
NRS 673.460 Examinations outside State; fees and traveling expenses;
regulations.
1. Whenever in connection with an
examination it is necessary or expedient that the Commissioner or his or her
deputy, or both, leave this State, there must be assessed against the
organization under examination a fee of not more than $50 per day for each
person while without the State in connection with an examination, together with
all actual and necessary expenses.
2. The fee charged must be remitted to the
Commissioner, who shall deposit the fees in the State Treasury pursuant to the
provisions of NRS 658.091.
3. The Commissioner shall adopt
regulations establishing the amount of the fee required pursuant to this
section.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL §
970.21]—(NRS A 1959, 545; 1961, 774; 1965, 1140; 1983, 1795; 1987, 1978; 2003, 3234; 2005, 1879)
NRS 673.470 Other examinations acceptable in lieu of examination by
Commissioner. In lieu of making
any examination, the Commissioner may accept any examination of any association
made by the Federal Home Loan Bank Board, any Federal Home Loan Bank, or the
Federal Deposit Insurance Corporation, or may examine any such institution in
conjunction with the Federal Home Loan Bank Board, a Federal Home Loan Bank, or
the Federal Deposit Insurance Corporation.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL §
970.21]—(NRS A 1961, 774; 1983, 1795; 1987, 1978; 1993, 2812)
NRS 673.480 Authority of Commissioner to make information available to other
officers and agencies. The
Commissioner, his or her agents and employees may furnish to the Federal Home
Loan Bank Board, or to any Federal Home Loan Bank, or to examiners appointed by
the Federal Home Loan Bank Board or any Federal Home Loan Bank, or to any
federal loan agency, copies of any instruments concerning, and may disclose any
information with reference to, the conditions or affairs of any such foreign or
domestic association, company or corporation.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL §
970.21]—(NRS A 1961, 774; 1983, 1795; 1987, 1978)
NRS 673.483 Audit of books and accounts.
1. Each association shall, at least once
each year, cause its books and accounts to be audited at its own expense by a
certified public accountant or firm of such accountants selected by the
association and approved by the Commissioner.
2. The Commissioner may prescribe the
scope of the audit.
3. A certified copy of the audit,
including the management and internal control letters relating to the audit,
must be furnished to the Commissioner.
(Added to NRS by 1963, 471; A 1977, 513; 1983, 1795; 1987, 1978)
NRS 673.4835 Independent audit and examination: Payment of assessment;
cooperation. Each association
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)
SUSPENSION AND REVOCATION OF CHARTERS
NRS 673.484 Grounds; notice and hearing. The
Commissioner may after notice and hearing suspend or revoke the charter of any
association for:
1. Repeated failure to abide by the
provisions of this chapter or the regulations adopted thereunder.
2. Failure to pay a tax as required
pursuant to the provisions of chapter 363A
of NRS.
(Added to NRS by 1967, 980; A 1977, 96; 1983, 1796; 1987, 1978; 2003,
20th Special Session, 226)
REORGANIZATION; MERGER; CONSOLIDATION
NRS 673.4845 Procedure; approval by association and Commissioner; fee;
regulations.
1. An association may reorganize, merge or
consolidate with another state or federal association, if the reorganization,
merger or consolidation is based upon a plan which has been adopted by the
board of directors and approved at a regular or special stockholders’ meeting
which has been called to consider the action. The approval must rest on a
favorable vote of a majority of the voting power of the association as
established by its articles.
2. Any such plan for reorganization,
merger or consolidation must be approved by the Commissioner, who shall satisfy
himself or herself that the plan, if approved, would be equitable for the
stockholders of the affected association or associations and would not impair
the usefulness or success of other properly conducted associations in the
community. In submitting an application for approval of any such plan, each
association proposing to reorganize, merge or consolidate must provide a
comprehensive review of its present financial statement and a projected view of
the financial statement of the reorganized, merged or consolidated association.
3. Unless its action is specifically
authorized by or taken in conformity with this chapter, no association may,
directly or indirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or
other liabilities of any financial institution or any other organization,
person or entity.
(c) Transfer assets to any financial institution
or any other organization, person or entity in consideration of the
transferee’s assumption of liability for any portion of the transferor’s savings
accounts, deposits or other liability.
(d) Acquire the assets of any financial
institution or any other organization, person or entity.
4. Each application which is made under
this section must be accompanied by a fee payment of not more than $300. The
responsibility for payment of the fee must be shared equally by the
associations participating in each proposed plan.
5. The Commissioner shall adopt
regulations establishing the amount of the fee required pursuant to this
section.
(Added to NRS by 1969, 966; A 1977, 500, 1262; 1981,
1316; 1983, 1796; 1987, 1978; 2005, 1879)
CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP
NRS 673.485 Authority of Commissioner to order discontinuance of unlawful or
unsafe practices; special meetings of directors concerning noncompliance.
1. If the Commissioner finds as the result
of any examination or from any report made to him or her or to any association
doing business in this state or from any report made to any of its investors
that the association is violating the provisions of its articles of
incorporation, charter, bylaws, or any law of this state, or is conducting its
business in an unsafe or injurious manner, he or she may by an order addressed
to such association direct a discontinuance of such violations or unsafe or
injurious practices and a conformity with all the requirements of law.
2. If an association does not comply with
such order, the Commissioner may order the corporate secretary to call a
special directors’ meeting to consider the matter of noncompliance.
3. The meeting must be held no later than
60 days after issuance of the order to hold the meeting, unless otherwise
restrained by court order or by the board. The business of the meeting must be
limited to the matter of noncompliance and remedies therefor and the notice of
such meeting must set forth in detail the Commissioner’s discontinuance order
and order to call a directors’ meeting.
4. Action taken at the meeting is binding
upon the officers of the association.
(Added to NRS by 1957, 763; A 1961, 774; 1969, 979;
1983, 1796; 1987,
1979)
NRS 673.495 Conservator: Appointment by Commissioner; district court
confirmation.
1. The Commissioner may, with the prior
approval of the board, appoint a conservator for an association if any of the
following occur:
(a) The association does not comply with any
order given pursuant to NRS 673.485, within the
time specified therein.
(b) It appears to the Commissioner that the
association is in an unsafe condition or is conducting its business in an
unsafe or injurious manner such as to render its further proceeding hazardous
to the public or to any or all of its investors.
(c) The Commissioner finds that the association’s
assets are impaired to such an extent that, after deducting all liabilities
other than to its investors they do not equal or exceed the sum of the value of
its outstanding savings accounts and investment certificates and the par value
of its outstanding stock.
(d) The association refuses to submit its books,
papers and accounts to the inspection of the Commissioner or any of his or her
examiners, deputies or assistants.
(e) Any officer of the association refuses to be
examined upon oath concerning the affairs of the association.
(f) It appears to the Commissioner that false
reports have been filed with his or her office.
2. The conservator may be the
Commissioner, his or her deputy or any person qualified for such appointment.
3. Immediately upon appointment, the
conservator shall petition the district court of the county in which the home
office of the association is located for confirmation of his or her
appointment. The court has exclusive jurisdiction to determine the issues and
all related matters and it shall give precedence to such conservatorship
proceedings and expedite the proceedings in every way.
(Added to NRS by 1957, 763; A 1959, 546; 1961, 774;
1969, 980; 1983, 1797; 1987, 1980)
NRS 673.497 Powers of conservator; limitations; expenses; compensation.
1. The conservator confirmed or appointed
by the court has all the power expressed in the court order and the following:
(a) All the rights, powers and privileges
possessed by the directors, officers and stockholders.
(b) The power to request the resignation of or
remove any director, officer or employee for cause and upon written notice,
which must show the Commissioner’s approval of the action.
(c) The power to accept new savings accounts and
additions to existing accounts, which must become segregated accounts and
amounts, if the Commissioner so orders in writing, not subject to offset and
not available for liquidating any indebtedness of an association existing at
the time the conservator was appointed.
2. The conservator may not:
(a) Retain special counsel or other experts
without prior approval of the court;
(b) Incur any expenses other than normal
operating expenses; or
(c) Liquidate assets except in the normal course
of operations or for the preservation of existing asset values.
3. All expenses of the association during
the conservatorship must be paid by the association.
4. The amount of compensation for the
conservator must be determined by the court and paid by the association. When
either the Commissioner or his or her deputy has been appointed conservator,
the compensation must be paid to the State Treasurer.
5. During the conservatorship, debtors to
the association shall continue to make payments to the association as may be
required under the terms of their respective contracts.
6. Savings account depositors may, with
the approval of the conservator, withdraw all or any part of their savings
accounts under the provisions of this chapter or under such regulations as the
Commissioner may prescribe.
7. The conservator shall return the
association to the board of directors if the conditions complained of by the
Commissioner have been removed within 12 months after his or her appointment.
If no change has been effected within that time, a receiver may be appointed by
the Commissioner as provided in this chapter.
(Added to NRS by 1969, 964; A 1975, 373; 1977, 501;
1983, 1798; 1987,
1980)
NRS 673.499 Receiver: Appointment by Commissioner; court confirmation;
powers and authority; compensation.
1. If the Commissioner finds that any
association:
(a) Is in an impaired condition;
(b) Is engaging in practices which threaten to
result in an impaired condition; or
(c) Is in violation of an order or injunction, as
provided in NRS 673.495, which has become final in
that the time to appeal has expired without appeal or a final order entered
from which there can be no appeal,
Ê the
Commissioner may appoint a receiver for the association, which may be the
Commissioner, his or her deputy or any other person, and upon such appointment
shall apply immediately to a court of general jurisdiction in the county in
which the home office of the association is located for confirmation of the
appointment. The court has exclusive jurisdiction to determine the issues and
all related matters. Such proceedings must be given precedence over other cases
pending in the court, and must in every way be expedited. The court shall
confirm the appointment if it finds that one or more grounds exist, and a
certified copy of the order of the court confirming the appointment is evidence
thereof. In the case of an insured association, the appointment by the
Commissioner of a receiver under this section constitutes an official
determination of a public authority of this state pursuant to which a receiver
is appointed for the purpose of liquidation as contemplated by and within the
meaning of section 406 of the National Housing Act of 1934, as amended, if,
within 10 days after the date the application of the Commissioner is filed,
confirmation of such appointment or denial of confirmation has not been issued
by the court. The receiver has all the powers and authority of a conservator
plus the power to liquidate, and has such other powers and authority as may be
expressed in the order of the court. If the Commissioner, or his or her deputy,
or examiner is appointed receiver, he or she shall receive no additional
compensation, but if another person is appointed, then the compensation of the
receiver, as determined by the court, must be paid from the assets of the
association.
2. If the association is an institution
insured by the Federal Deposit Insurance Corporation, the Federal Deposit
Insurance Corporation must be tendered appointment as receiver or coreceiver.
If it accepts such appointment, it may, nevertheless, make loans on the
security of or purchase at public or private sale any part or all of the assets
of the association of which it is receiver or coreceiver, if the loan or
purchase is approved by the court.
3. The procedure in such receivership
action must be in all other respects in accordance with the practice in the
court, including all rights of appeal and review. The directors, officers and
attorneys of an association in office at the time of the initiation of any
proceeding under this section or under NRS 673.495
are expressly authorized to contest any such proceeding and must be reimbursed
for reasonable expenses and attorney fees by the association or from its
assets. Any court having any such proceeding before it shall allow and order
paid reasonable expenses and attorney fees for such directors, officers and
attorneys.
(Added to NRS by 1969, 965; A 1983, 1798; 1987, 1981; 1993, 2812)
NRS 673.515 Appeal from judgment enjoining Commissioner or dismissing action
to enjoin; bond. An appeal from a
judgment enjoining the Commissioner from further proceedings and directing him
or her to surrender the business, property and assets to the association does
not operate as a stay of the judgment, unless the trial court in its discretion
so orders. If an appeal from the judgment is taken by the Commissioner no bond
need be given. If the judgment dismisses the action an appeal therefrom does
not operate as a stay of the judgment but the court rendering such judgment may,
in its discretion, enjoin the Commissioner, pending the appeal, from further
proceedings and direct him or her, pending the appeal, to surrender such
business, property and assets to the association, if a bond is given in an
amount not less than 10 percent of the cash on hand or on deposit.
(Added to NRS by 1957, 764; A 1961, 775; 1983, 1800; 1987, 1982)
NRS 673.525 Penalty for failure to comply with Commissioner’s demand for
possession of property, business and assets. Whenever
the Commissioner demands possession of the property, business and assets of any
association, pursuant to NRS 673.485 to 673.577, inclusive, the refusal of any officer, agent,
employee or director of such association to comply with the demand is a
misdemeanor.
(Added to NRS by 1957, 764; A 1961, 775; 1967, 648;
1983, 1800; 1987,
1982)
NRS 673.535 Enforcement by sheriff of demand for possession of property,
business and assets; written demand for assistance; duty to enforce. If the demand of the Commissioner for the
possession of the property, business and assets is not complied with within 24
hours after service of the demand, the Commissioner may call to his or her
assistance the sheriff of the county in which the principal place of business
of an association is located, by giving the sheriff written demand. The sheriff
shall enforce the demands of the Commissioner.
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1982)
NRS 673.545 Delivery of schedule of property, assets and collateral to
Commissioner; examination of directors, officers or employees by Commissioner. When the Commissioner takes possession of the
property, business and assets of any association, the president and secretary
of an association shall make a schedule of all its property, assets and
collateral held by it as security for loans and make an oath that such schedule
sets forth all such property, assets and collateral. The president and
secretary shall deliver the schedule, and the possession of all property, assets
and collateral not previously delivered to the Commissioner. The Commissioner
may at any time examine under oath any president, secretary, officer, director,
agent or employee of the association, to determine whether or not all the
property, assets or collateral have been transferred and delivered into his or
her possession.
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1983)
NRS 673.555 Authority of Commissioner to issue subpoenas and require
attendance of parties. The
Commissioner may issue subpoenas and require the attendance of parties for
examination.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)
NRS 673.565 Appointment of custodian; bond. When
the Commissioner takes possession of the business, property and assets of an
association, he or she may appoint a custodian. The Commissioner may require a
good and sufficient bond from the custodian and place the custodian in charge
as the Commissioner’s representative.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)
NRS 673.575 Collection of money; preservation of assets. When the Commissioner takes possession of the
property, business and assets of an association, he or she may collect all
money due to such association and give receipt therefor. The Commissioner may
do such other acts as are necessary or expedient to collect, conserve or
protect the association’s business, property and assets.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1801; 1987, 1983)
NRS 673.576 Powers of Commissioner when in possession of business, property
and assets. If the Commissioner is
in possession of the business, property and assets of an association, whether
or not he or she is liquidating the affairs of the association, the
Commissioner may:
1. Pay and discharge any secured claims
against the association. No secured claim may be paid in an amount larger than
the value of the security at the time of payment.
2. Pay administrative or current expenses
incurred before the taking of possession which are necessary or convenient to
the orderly or economic liquidation or preservation of the assets, and pay all
wages or salaries, in amounts not exceeding such amounts as are normally paid
to officers and employees. No salary increases may be proposed or consented to
by the Commissioner, conservator or receiver. The number of staff members which
are required or needed for the operation of the association must be determined
by the Commissioner.
3. Disaffirm any executory contracts,
including leases, to which the association is a party, and disaffirm any
partially executed contracts, including leases, to the extent that they remain
executory. The disaffirmance must be made within 6 months after obtaining
knowledge of the existence of the contract or lease.
(Added to NRS by 1957, 765; A 1961, 776; 1969, 981;
1983, 1801; 1987,
1983)
NRS 673.577 Claims for damages from disaffirmance of executory contract or
lease. Claims for damages
resulting from the disaffirmance of an executory contract or lease by the
Commissioner may be filed and allowed. No claim of a landlord for damages
resulting from the disaffirmance of an unexpired lease of real property or
under any covenant of the lease may be allowed in an amount exceeding the rent
reserved by the lease, without acceleration, for the year succeeding the date
of the surrender of the premises plus the amount of any unpaid accrued rent
without acceleration. Any such claim must be filed within 30 days of the date
of the disaffirmance.
(Added to NRS by 1957, 765; A 1961, 777; 1983, 1801; 1987, 1984)
NRS 673.580 Procedure upon taking possession of insured association: Federal
Deposit Insurance Corporation as liquidator or coliquidator.
1. The Commissioner may, if he or she
takes possession of any association whose savings accounts are to any extent
insured by the Federal Deposit Insurance Corporation, tender to the Federal
Deposit Insurance Corporation the appointment as statutory liquidator of the
association. If he or she does not make a tender as sole statutory liquidator,
he or she shall tender to the Federal Deposit Insurance Corporation the
appointment as statutory coliquidator to act jointly with the Commissioner. The
coliquidatorship may not exist for more than 1 year from the date of tender, at
the expiration of which time the Commissioner becomes the sole liquidator
except as otherwise provided by this section. The Commissioner shall tender to
the Federal Deposit Insurance Corporation the appointment as sole statutory
liquidator of the association whenever the corporation has become subrogated to
the rights of 90 percent of the liability of the association on savings
accounts. If the Federal Deposit Insurance Corporation becomes subrogated as to
all the savings accounts in the association, it may then exercise all the
powers and privileges conferred upon it by this chapter without court approval.
2. If the Federal Deposit Insurance
Corporation accepts the appointment as sole liquidator, it possesses all the
powers and privileges of the Commissioner as statutory liquidator of a
possessed savings and loan association and is subject to all duties of the
Commissioner as sole liquidator, except insofar as the powers and privileges or
duties are in conflict with federal laws, and except as otherwise provided in
this chapter, unless the association resumes business pursuant to the
provisions of this chapter. If the Federal Deposit Insurance Corporation
accepts the appointment as coliquidator, it possesses all the powers and
privileges jointly with the Commissioner and is subject to the duties jointly
with the Commissioner.
3. If the Federal Deposit Insurance
Corporation accepts the appointment as coliquidator or liquidator, it shall
file its acceptance with the Commissioner and the clerk of the district court.
The corporation may act without bond. Upon filing its acceptance of appointment
as sole liquidator, the possession of and title to all the assets, business and
property of the association vests in the Federal Deposit Insurance Corporation
without the execution of any conveyance, assignment, transfer or endorsement.
Upon filing its acceptance of appointment as coliquidator, the possession and
title vests in the Commissioner and the corporation jointly. If the Federal
Deposit Insurance Corporation does not qualify as sole liquidator at or before
the time provided for the expiration of the coliquidatorship, the corporation
must be wholly divested of the joint title and possession, and the sole title
and possession vests in the Commissioner. The vesting of title and possession
of the property of the association does not render the property subject to any
claims by the federal corporation, except those which are encumbered by it with
respect to the association and its property. Whether or not it serves as
liquidator or coliquidator, the corporation may make loans on the security of
or may purchase with the approval of the court, except as otherwise provided in
this chapter, all or any part of the assets of any association, the savings
accounts of which are to any extent insured by it. In the event of a purchase,
the corporation shall pay a reasonable price.
4. Whether or not the Federal Deposit
Insurance Corporation serves as liquidator, whenever it pays or makes available
for payment the savings accounts of any association in liquidation which are
insured by it, it is subrogated upon the surrender and transfer to it of the
savings accounts. The surrender and transfer do not affect any right which the
transferor has in any savings accounts which are not paid or made available for
payment or any right to participate in the distribution of the net proceeds
remaining from the disposition of the assets of the association. The rights of
the investors and creditors of the association must be determined in accordance
with the applicable provisions of the laws of this state.
[Part 22.2:51:1931; added 1955, 589]—(NRS A 1961,
777; 1977, 501; 1983, 1801; 1987, 1984; 1993, 2813)
NRS 673.590 Delivery of remaining assets to stockholders.
1. Whenever, in the case of any
association which has issued common or preferred stock, the Commissioner or the
Federal Deposit Insurance Corporation has fully liquidated all claims other
than claims of the stockholders, and has made due provision for all known or
unclaimed liabilities, excepting claims of stockholders, and has paid all
expenses of liquidation, the Commissioner shall call a meeting of the
stockholders of the savings and loan association.
2. Notice of the meeting must be given by:
(a) Five publications in a 30-day period in one
or more newspapers published in the county in which the principal office of the
association is located; and
(b) Letter to each stockholder mailed to his or
her last known address.
3. At the meeting the Commissioner shall
deliver to the stockholders all the property and effects of the association
remaining in his or her possession except its records, which must be retained
by him or her as part of the records of his or her office. Upon transfer and
delivery he or she is discharged from any further liability to the association
or its creditors, and thereafter the association is in the same position as
though it had never been authorized to transact a savings and loan business.
[22.4:51:1931; added 1955, 589]—(NRS A 1959, 57;
1961, 779; 1977, 503; 1983, 660, 1803; 1987, 1985; 1993, 2814)
FOREIGN ASSOCIATIONS
NRS 673.595 Activities for which license not required; solicitation or
acceptance of deposits prohibited; exception; fee.
1. A foreign association whose activities
are limited to any one or more of those enumerated in NRS 80.015 need not be licensed under this
chapter.
2. Except as otherwise provided in chapter 666 of NRS and NRS 666A.010 to 666A.400, inclusive, a foreign
association may not solicit or accept deposits in this state, but if it was
licensed before July 1, 1985, under the provisions of this section then in
force, it may renew that license annually subject to all the provisions, and
upon payment of the fee, then in force.
(Added to NRS by 1969, 962; A 1979, 1297; 1983, 1325,
1803; 1985,
2158; 1989,
627; 1991,
1317; 1995,
1564)
NRS 673.597 Conflict of laws; report to Commissioner of forbidden course or
act.
1. If any association, company or
corporation organized or incorporated under the laws of any governing body
other than the State of Nevada is doing business in this state under the
provisions of this chapter, and the laws of the other governing body conflict
with any of the provisions of this chapter, the provisions of the laws of this
governing body prevail as to each conflict.
2. Whenever any foreign organization
follows a course or performs any act which is forbidden to any domestic
organization under the terms of this chapter, it shall report to the
Commissioner all of the facts relating thereto.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1959,
57; 1961, 772; 1969, 978; 1983, 1792; 1985, 2251; 1987, 1986)
CONVERSION INTO FEDERAL ASSOCIATION
NRS 673.600 Conversion authorized. Any
savings and loan association eligible to become a member of the Federal Home
Loan Bank, may convert itself into a federal savings and loan association
pursuant to the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468,
inclusive, with the same effect as though originally incorporated under that
act, and the proceedings to effect the conversion shall be as outlined in NRS 673.610 to 673.640,
inclusive.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)
NRS 673.610 Notice of stockholders’ meeting: Service and proof of service.
1. A meeting of the stockholders shall be
held upon not less than 10 days’ written notice to each stockholder, served
either personally or by mail, postage prepaid, directed to him or her at his or
her last known post office address and containing a statement of the time,
place and the purpose for which the meeting is called.
2. Proof by affidavit of due service of
the notice shall be filed in the office of the corporation before or at the
time of the meeting.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)
NRS 673.620 Majority approval of resolution at stockholders’ meeting required;
filing of minutes with Commissioner.
1. At a meeting of the stockholders held
as provided in NRS 673.610, the stockholders may,
by the affirmative vote of the majority of the stockholders present, in person
or by proxy, declare by resolution the determination to convert the state
company, association or corporation into a federal savings and loan
association.
2. A copy of the minutes of the meeting,
verified by the affidavit of the president or vice president and the secretary
of the meeting, must be filed in the Office of the Commissioner within 10 days
after the date of the meeting. The sworn copy of the proceedings of the
meeting, when so filed, is presumptive evidence of the holding and the action
of the meeting.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779;
1977, 504; 1983, 1804; 1987, 1986)
NRS 673.630 Filing of charter or certificate with Commissioner; fee;
taxation; regulations.
1. After the holding of the meeting of
stockholders, the state company, association or corporation shall take such
action, in the manner prescribed or authorized by the laws of the United States
or the rules and regulations promulgated pursuant thereto, as shall make it a
federal savings and loan association, and there shall thereupon be filed in the
Office of the Commissioner a copy of the charter of authorization issued to the
association by the supervising federal regulatory body or a certificate showing
the organization of the association as a federal savings and loan association,
certified by the supervising federal regulatory body. Upon filing with the
Commissioner, the association ceases to be a state savings and loan
association, but retains all rights, privileges and exemptions of a domestic
association of the same kind and character.
2. A fee of not more than $40 must
accompany the copy of the charter of authorization.
3. Federal associations so converted and
their members are subject to the same form of taxation and on the same basis as
state associations and their stockholders.
4. The Commissioner shall adopt
regulations establishing the amount of the fee required pursuant to this
section.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779;
1969, 981; 1977, 504; 1983, 1804; 1987, 1986; 2005, 1880)
NRS 673.640 When state supervision ceases; when property and assets vest in association
under new name and style; enjoyment of property by converted association.
1. At the time when the conversion becomes
effective, the company, association or corporation shall cease to be supervised
by this state, but shall continue as a body corporate converted pursuant to the
provisions of the Home Owners’ Loan Act of 1933 and subject to examination and
regulation pursuant to that act.
2. All the property of the state company,
association or corporation, including all its right, title and interest in and
to all property of whatever kind, whether real, personal or mixed, and things
in action, and every right, privilege, interest and asset of any conceivable
value of benefit then existing, belonging or pertaining to it, or which would
inure to it, shall immediately by operation of law, and without any conveyance
or transfer, and without any further act or deed be vested in and become the
property of the federal savings and loan association. The federal savings and
loan association shall have, hold and enjoy the same in its own right as fully
and to the same extent as the same was possessed, held and enjoyed by the state
company, association or corporation.
3. The federal savings and loan
association as of the time of taking effect of such conversion shall succeed to
all the rights, obligations and relations of the state company, association or
corporation.
[2:60:1935; 1931 NCL § 973.02]
CONVERSION OF FEDERAL ASSOCIATION
NRS 673.650 Conversion authorized; votes necessary. Any
federal savings and loan association may convert itself into a savings and loan
association under the laws of this State upon a vote of 51 percent or more of
the votes of members of the federal savings and loan association cast at any
regular or special meeting called to consider the action.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977,
504)
NRS 673.660 Time for election of directors after conversion; time directors
to hold office. At the meeting the
members shall also vote upon the directors who shall be the directors of the
savings and loan association after conversion takes effect, to hold office
until the next annual meeting and until their successors are elected and
qualified.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977,
504)
NRS 673.670 Filing of verified minutes of stockholders’ meeting. Copies of the minutes of the proceedings of
the meeting, verified by the affidavit of the president or vice president and
the secretary or an assistant secretary, must be filed in the Office of the
Commissioner and, in duplicate, with the Federal Home Loan Bank of which the
association is a member, within 10 days after the meeting.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961,
780; 1983, 1805; 1987,
1987)
NRS 673.680 Verified copy of minutes as presumptive evidence of holding
meeting and action taken. The
verified copies of the minutes of the meeting, when filed as required by NRS 673.670, shall be presumptive evidence of the
holding and action of such meeting.
[Part 1:140:1939; 1931 NCL § 974.30]
NRS 673.690 Federal association and directors to take necessary action to
incorporate as state association; no minimum amount of capital required.
1. After the meeting, the federal
association shall take such action in the manner prescribed and authorized by
the laws of this state as shall make it a savings and loan association of this
state, and the directors elected at the meeting shall file such documents and
follow such procedures as are required by the laws of this state in the case of
the original incorporation of a savings and loan association.
2. A savings and loan association
incorporated by conversion from a federal savings and loan association shall
not be required to comply with any of the provisions of law or any regulation
adopted by the Commissioner relating to the minimum amounts of capital required
to be subscribed in connection with the original incorporation of a savings and
loan association under the laws of this state.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961,
780; 1977, 505; 1983, 1805; 1987, 1987)
NRS 673.700 Inclusion of statement of conversion in articles permissible. The directors may, if they so desire, insert
in the articles of incorporation the following statement: “This association
(company or corporation) is incorporated by conversion from a federal savings
and loan association.”
[Part 1:140:1939; 1931 NCL § 974.30]
NRS 673.710 Time for filing articles of incorporation with Federal Home Loan
Bank; number of copies; certification by Secretary of State. Within 10 days after the filing of the
articles of incorporation with the Secretary of State, there shall be filed
with the Federal Home Loan Bank of which such association is a member two
copies of the articles of incorporation, certified by the Secretary of State.
[Part 1:140:1939; 1931 NCL § 974.30]
NRS 673.720 Time of association’s cessation as federal association; time of
vesting of property in association under new name and style. Upon the filing of the articles of
incorporation with the Secretary of State, the association ceases to be a
federal savings and loan association and thereafter is a savings and loan
association. All of the property of the association, including all of its right,
title and interest in and to all property of every kind and character, whether
real, personal or mixed, immediately by operation of law, without any
conveyance or transfer and without any further act or deed, vests in the
association under its new name and style as a savings and loan association, and
under its new jurisdiction.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977,
505)
NRS 673.730 Enjoyment of property by converted association; association as
continuation of previous federal association. The
savings and loan association shall have, hold and enjoy the property mentioned
in NRS 673.720 in its own right as fully and to the
same extent as the property was possessed, held and enjoyed by it as a federal
savings and loan association, and the savings and loan association continues to
be responsible for all of the obligations of the federal savings and loan
association to the same extent as though the conversion had not taken place. It
is expressly declared that the savings and loan association is merely a
continuation of the federal savings and loan association under a new name, a
new jurisdiction and such revision of its corporate structure as may be
considered necessary for its proper operation under the new jurisdiction.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977,
505)
NRS 673.740 Acts permitted executors, administrators and fiduciaries without
obtaining court approval. Every
executor, administrator, trustee, guardian, receiver, fiduciary, public
corporation, political subdivision, public instrumentality, charitable,
educational and eleemosynary institution, bank, savings bank, trust company,
financial institution, insurance company, or cemetery association, without the
necessity of obtaining court approval, may:
1. Vote in person or by proxy in favor of
converting a federal savings and loan association into a savings and loan
association, or may approve the determination so to convert.
2. Exchange any shares, share accounts or
other rights or claims for securities issued by the savings and loan
association, and may continue to hold as a legal investment any securities so
received.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977,
505)
POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
NRS 673.750 Powers and privileges same as domestic association; conditions. Every federal savings and loan association
incorporated under the provisions of the Home Owners’ Loan Act of 1933, 12
U.S.C. §§ 1461 to 1468, inclusive, as amended or supplemented, having its
principal place of business in the State of Nevada, and the holders of shares
or share accounts issued by the association, respectively, have all the rights,
powers and privileges, and are entitled to the same exemptions and immunities
granted, respectively, to savings and loan associations organized under the
laws of this State and to the holders of savings accounts, investment
certificates or guaranty stock of state associations.
[1:129:1939; 1931 NCL § 974.20]—(NRS A 1963, 472;
1977, 506)
EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS
NRS 673.773 Definitions. As
used in NRS 673.773 to 673.807,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 673.777 to 673.797,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2007, 1490)
NRS 673.777 “Designated reporter” defined. “Designated
reporter” means a person designated by an association to receive reports of
known or suspected exploitation of an older person or vulnerable person
pursuant to NRS 673.807.
(Added to NRS by 2007, 1490)
NRS 673.783 “Exploitation” defined. “Exploitation”
has the meaning ascribed to it in subsection 2 of NRS 200.5092.
(Added to NRS by 2007, 1490)
NRS 673.787 “Older person” defined. “Older
person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.
(Added to NRS by 2007, 1490)
NRS 673.793 “Reasonable cause to believe” defined. “Reasonable
cause to believe” has the meaning ascribed to it in NRS 200.50925.
(Added to NRS by 2007, 1490)
NRS 673.797 “Vulnerable person” defined. “Vulnerable
person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.
(Added to NRS by 2007, 1491)
NRS 673.803 Training; reporting to designated reporter.
1. Each association shall provide training
concerning the identification and reporting of the suspected exploitation of an
older person or vulnerable person to each director, officer and employee of the
association who:
(a) May, as part of his or her regular duties for
the association, 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 director, officer or employee is employed by the
association or assumes the position.
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. A director, officer or 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, 1491)
NRS 673.807 Designated reporter: Designation; duty to report; immunity.
1. Each association shall designate a
person or persons to whom a director, officer or employee of the association
must report known or suspected exploitation of an older person or vulnerable
person.
2. If a director, officer or 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 a director, officer or 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. A director, officer, 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, 1491)
UNLAWFUL ACTS; PENALTIES
NRS 673.810 Making false statement concerning financial condition of savings
and loan association. Any person
who knowingly makes, utters, circulates or transmits to another, or others, any
statement untrue in fact, derogatory to the financial condition of any such
association doing business in this state, with intent to injure the
association, or who counsels, aids, procures or induces another to originate,
make, utter, transmit or circulate any such statement or rumor, with like
intent, is guilty of a misdemeanor.
[31:51:1931; 1931 NCL § 970.21]—(NRS A 1967, 649;
1977, 506)
NRS 673.820 Violation of chapter or fraudulent misrepresentation of contract
or securities by association; administrative fines. In
addition to any other remedy or penalty:
1. Any association which violates any provisions
of this chapter or fraudulently misrepresents the terms of any contract or of
any securities, and thereby secures a sale therefor, shall be punished by an
administrative fine of not more than $10,000 and forfeiture and revocation of
all licenses issued to it under the provisions of this chapter.
2. The Commissioner may impose an
administrative fine of not more than $10,000 upon a person who:
(a) Without a license, conducts any business or
activity for which a license is required pursuant to the provisions of this
chapter; or
(b) Violates any provision of this chapter or any
regulation adopted pursuant thereto.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967,
649; 1977, 506; 2005,
1880)
NRS 673.830 Violation of chapter or sale of securities through fraudulent
misrepresentation. Any person who
shall violate any provision of this chapter or sell any securities as the
result of any fraudulent misrepresentation shall be guilty of a misdemeanor,
and the license issued to him or her shall be forfeited and revoked.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967,
649)
NRS 673.840 Sale or offer to sell securities without license or for failure
to secure license or pay fee or penalty. Any
person doing business in this state, as described in NRS
673.070, who:
1. Sells or offers for sale within this
state any securities of any company, association or corporation which has not
received the license provided for in NRS 673.080
and 673.250;
2. Fails to secure the license provided
for in NRS 673.270; or
3. Fails to pay a fee or penalty as
provided in NRS 673.430,
Ê is guilty of
a misdemeanor for each such violation.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1963,
472; 1967, 649; 1989,
922)
NRS 673.850 Effect of revocation of license. The
revocation of any license issued under any of the provisions of this chapter
shall, from the date of such revocation, place the association to whom it was
issued in the same legal status and subject to the same prohibitions and
penalties as one to whom no license has been issued.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1977,
506)
