Nrs: Chapter 677 - Thrift Companies


Published: 2015

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

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CHAPTER 677 - THRIFT COMPANIES

GENERAL PROVISIONS

NRS 677.010           Short

title.

NRS 677.020           Definitions.

NRS 677.030           “Amount

of cash advance” defined.

NRS 677.040           “Amount

of loan obligation” defined.

NRS 677.050           “Borrowings”

defined.

NRS 677.060           “Charges”

defined.

NRS 677.065           “Commissioner”

defined.

NRS 677.070           “Community”

defined.

NRS 677.075           “Deposit”

defined.

NRS 677.090           “Gross

amount” defined.

NRS 677.100           “License”

defined.

NRS 677.110           “Licensee”

defined.

NRS 677.115           “Loan”

defined.

NRS 677.125           “Stockholders’

equity” defined.

NRS 677.130           “Thrift

certificate” defined.

NRS 677.140           “Unpaid

principal balance” defined.

NRS 677.145           Certain

relationships between employee of Division of Financial Institutions and

licensee prohibited; termination of prohibited relationship.

NRS 677.147           Applicability

of chapters 78 and 92A of NRS.

FORMATION

NRS 677.150           Authorization

by Commissioner.

NRS 677.160           Application

for authority to engage in business: Form; contents; filing fee; regulations; withdrawal

of application.

NRS 677.170           Fidelity

bond.

NRS 677.175           Additional

bond.

NRS 677.180           Investigation

and examination of applicant.

NRS 677.190           Requisites

for approval of application.

NRS 677.200           Qualifications

of president and certain managers of corporation.

NRS 677.210           Minimum

stockholders’ equity required.

NRS 677.220           Certificate

of authorization to transact business.

NRS 677.230           Reserves.

NRS 677.240           Authorization

for change of place of business.

PROTECTION OF INVESTORS

NRS 677.241           Power

of licensee to obtain benefits of federal programs.

NRS 677.243           Records

of employees; confidentiality.

NRS 677.245           Limitation

on investment in real property; recording deed or other document; subsidiary

ledger or other appropriate record.

NRS 677.247           Applicant

required to obtain insurance of deposits; regulations.

BRANCH OFFICES

NRS 677.250           Establishment

and maintenance.

NRS 677.270           Requisites

for approval of application; notice of approval or denial.

NRS 677.290           Right

to open branch office expires if office not open within 6 months after approval

of application.

NRS 677.300           Authorization

for change of location; posting of certificate.

NRS 677.310           Specified

designation of branch offices by name or number required.

NRS 677.320           Closing

or discontinuance of branch office.

NRS 677.330           Mobile

offices.

LICENSING

NRS 677.340           Persons

ineligible for licensing.

NRS 677.350           Applicability

of chapter to persons who seek to evade.

NRS 677.355           Licensee

may own interest in bank or savings and loan association.

NRS 677.360           Expiration,

renewal and reinstatement of license; fees; regulations.

NRS 677.370           Posting

of license; transferability and assignability of license.

NRS 677.373           Application

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

issue license.

NRS 677.375           Suspension

or revocation of license: Additional grounds.

ADMINISTRATION AND ENFORCEMENT

Generally

NRS 677.380           Regulations

and orders of Commissioner.

NRS 677.390           Disposition

of money collected pursuant to chapter.

 

Reports, Examinations and Audits

NRS 677.400           Annual

report by licensee; composite reports.

NRS 677.410           Preparation

of annual reports and financial statements; special reports; extensions;

removal of qualification.

NRS 677.420           Notification

of change in ownership of stock; application for approval after certain

acquisitions; investigation; costs; waiver.

NRS 677.430           Commissioner

to examine licensee’s business at least annually; fee.

NRS 677.435           Independent

audit and examination: Payment of assessment; cooperation.

NRS 677.440           Authority

of Commissioner to investigate business; free access required; compelling

attendance of witnesses.

NRS 677.450           Authority

of Commissioner to require attendance of witnesses and production of documents.

NRS 677.460           Charging

off assets; regulations and orders.

NRS 677.470           Licensee

to pay costs of audit of books and records.

 

Remedial Actions

NRS 677.480           Order

of Commissioner directing discontinuance of unsafe or injurious practice.

NRS 677.490           Surrender

of license by licensee; surrender as affecting licensee’s liability.

NRS 677.500           Temporary

suspension of license: Conditions; notice; hearing; term of suspension.

NRS 677.510           Revocation

or suspension of license: Grounds; notice; hearing; order.

NRS 677.520           Preexisting

contracts unaffected by revocation, suspension, expiration or surrender of

license.

NRS 677.530           Order

to desist or refrain; action to enjoin violations; appointment and powers of

receiver.

NRS 677.540           Taking

possession of business by Commissioner: Conditions; resumption of business.

NRS 677.545           Taking

possession of business by Commissioner: Acquisition by or merger with another

institution.

NRS 677.550           Order

suspending or limiting payment of liabilities; effect of order; assignment or

hypothecation of indebtedness.

NRS 677.560           Application

by licensee to enjoin further proceedings.

NRS 677.570           Authority

of Commissioner to liquidate or conserve company.

GENERAL REGULATIONS

NRS 677.580           Use

of holding company or other device for evading or avoiding chapter prohibited;

right to issue preferred stock or debentures not affected.

NRS 677.590           Issuance

of thrift certificates prohibited; exception.

NRS 677.600           Permissible

depositories.

NRS 677.610           Authorized

investments.

NRS 677.612           Authority

to accept deposit by fiduciary in trust; payment to fiduciary of withdrawal

value and interest.

NRS 677.616           Deposit

by and payment to minor.

NRS 677.620           Limit

on deposits; limit on total borrowings; borrowing money from Federal Home Loan

Bank.

NRS 677.630           Permissible

transactions in real property.

NRS 677.640           Conduct

of business in place where other business being conducted; name under which

business may be transacted; loans by mail.

NRS 677.645           Use

or change of business name; prohibitions.

NRS 677.650           Making

loan to or purchasing contract or chose in action from officer, director or

other specified person prohibited; exception; personal liability.

NRS 677.660           Advertising:

Prohibitions; insurance of deposits.

NRS 677.665           Formation

of bank.

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

NRS 677.673           Definitions.

NRS 677.677           “Designated

reporter” defined.

NRS 677.683           “Exploitation”

defined.

NRS 677.687           “Older

person” defined.

NRS 677.693           “Reasonable

cause to believe” defined.

NRS 677.697           “Vulnerable

person” defined.

NRS 677.703           Training;

reporting to designated reporter.

NRS 677.707           Designated

reporter: Designation; duty to report; immunity.

LOANS; POWERS AND PRIVILEGES

NRS 677.720           Requirements

for making and paying of loans: Duties of licensee.

NRS 677.730           Interest,

charges and repayment.

NRS 677.750           Prohibited

practices by licensee.

NRS 677.760           Restriction

on percentage of loans secured by stocks or bonds of any one obligor;

exception.

NRS 677.770           Limitations

on amount of secured loans or obligations of any one obligor.

NRS 677.780           Loans

may be made to any person; exceptions; property situated outside of State.

NRS 677.790           Powers

of licensee.

NRS 677.795           Authority

to exercise powers of banks.

UNLAWFUL ACTS; PENALTIES

NRS 677.800           Violation

of provisions of chapter.

NRS 677.805           Administrative

fines.

NRS 677.810           Receiving

certain compensation or property; making false entry in books or records;

embezzlement.

NRS 677.820           Fraudulent

insolvency; malfeasance of directors.

NRS 677.830           Making

loan or purchasing contract in violation of chapter.

NRS 677.840           Deposit

of company’s money on condition of loan or advance.

NRS 677.850           Accepting

deposits with knowledge of insolvency of company or violation of chapter.

_________

_________

 

GENERAL PROVISIONS

      NRS 677.010  Short title.  This

chapter may be cited as the Nevada Thrift Companies Act.

      (Added to NRS by 1975, 1829)

      NRS 677.020  Definitions.  As

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

terms defined in NRS 677.030 to 677.140, inclusive, have the meanings ascribed to them

in those sections.

      (Added to NRS by 1975, 1829; A 1979, 995; 1983, 1817;

1985, 2196;

1987, 1997;

1997, 1014)

      NRS 677.030  “Amount of cash advance” defined.  “Amount

of cash advance” means the amount of cash or its equivalent actually received

by a borrower or paid out at his or her direction or on his or her behalf.

      (Added to NRS by 1975, 1829)

      NRS 677.040  “Amount of loan obligation” defined.  “Amount

of loan obligation” means the amount of cash advance plus the aggregate of

charges added thereto pursuant to authority of this chapter.

      (Added to NRS by 1975, 1829)

      NRS 677.050  “Borrowings” defined.  “Borrowings”

means liability to any thrift investor or financial institution.

      (Added to NRS by 1975, 1829)

      NRS 677.060  “Charges” defined.  “Charges”

include:

      1.  The aggregate interest, fees, bonuses,

commissions, brokerage, discounts, expenses and other forms of costs charged,

contracted for or received by a licensee or any other person in connection with

the investigating, arranging, negotiating, procuring, guaranteeing, making,

servicing, collecting or enforcing of a loan, or for forbearance of money,

credit, goods, things in action or any other service or services rendered; and

      2.  Any profit or advantage of any kind

that any person may contract for, collect, receive or in any manner obtain by a

collateral sale, purchase or agreement in connection with negotiating, making

or otherwise in connection with any loan, except commissions received on

insurance sold.

      (Added to NRS by 1975, 1829)

      NRS 677.065  “Commissioner” defined.  “Commissioner”

means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 1997)

      NRS 677.070  “Community” defined.  “Community”

means a contiguous area of the same economic unit or metropolitan area, as

determined by the Commissioner, and may include all or part of a city or

several towns or cities.

      (Added to NRS by 1975, 1829; A 1983, 1817; 1987, 1997)

      NRS 677.075  “Deposit” defined.

      1.  “Deposit” means that part of the

liability of a licensee which is credited to the account of a depositor.

      2.  The term includes a time deposit

evidenced by a certificate of deposit, but does not include an obligation

evidenced by a thrift certificate.

      (Added to NRS by 1985, 2193; A 1987, 1244)

      NRS 677.090  “Gross amount” defined.  “Gross

amount” means the total amount or value advanced to or on behalf of the

borrower, including all payments for interest, principal, expenses and charges

of any nature taken substantially contemporaneously with the making of the

loan.

      (Added to NRS by 1975, 1829)

      NRS 677.100  “License” defined.  “License”

means a license, issued under the authority of this chapter, to accept deposits

and make loans in accordance with the provisions of this chapter, at a single

place of business.

      (Added to NRS by 1975, 1830; A 1985, 2196)

      NRS 677.110  “Licensee” defined.  “Licensee”

means a person to whom one or more licenses have been issued.

      (Added to NRS by 1975, 1830)

      NRS 677.115  “Loan” defined.  “Loan”

does not include a bona fide conditional contract of sale.

      (Added to NRS by 1979, 995)

      NRS 677.125  “Stockholders’ equity” defined.  “Stockholders’

equity” means the capital, surplus and retained earnings of a licensee.

      (Added to NRS by 1997, 1014)

      NRS 677.130  “Thrift certificate” defined.  “Thrift

certificate” means a chose in action, in passbook or certificate form,

evidencing the obligation of the licensee to pay money and does not include

subordinate debt securities.

      (Added to NRS by 1975, 1830; A 1979, 995)

      NRS 677.140  “Unpaid principal balance” defined.  “Unpaid

principal balance” means the net amount of money, credit, goods or things in

action received by the borrower at the time of entering into the transaction

and the decreasing balances thereof after application of each payment made on

the obligation.

      (Added to NRS by 1975, 1830)

      NRS 677.145  Certain relationships between employee of Division of Financial

Institutions and licensee prohibited; termination of prohibited relationship.

      1.  Except as provided in subsections 3 and

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

      (a) Be directly or indirectly interested in or

act on behalf of any licensee;

      (b) Receive, directly or indirectly, any payment

from any licensee;

      (c) Be indebted to any licensee;

      (d) Engage in the negotiation of loans for others

with any licensee; or

      (e) Obtain credit or services from a licensee

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

customers.

      2.  An employee of the Division in the

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

from a licensee while in office.

      3.  Any officer or employee of the Division

of Financial Institutions may be indebted to a licensee on the same terms as

are available to the public generally upon:

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

property.

      (b) A secured installment debt.

      (c) An unsecured debt.

      4.  Any officer or employee of the Division

of Financial Institutions may establish and maintain savings deposits with

licensees 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 1983, 1816)

      NRS 677.147  Applicability of chapters 78

and 92A of NRS.  The

provisions of chapters 78 and 92A of NRS that are not in conflict with this

chapter are hereby adopted as part of this chapter.

      (Added to NRS by 1997, 1014)

FORMATION

      NRS 677.150  Authorization by Commissioner.  If

authorized by the Commissioner, as provided in this chapter, a corporation may

be formed in accordance with the laws of this state to engage in business under

this chapter.

      (Added to NRS by 1975, 1830; A 1983, 1817; 1987, 1997; 1997, 1014)

      NRS 677.160  Application for authority to engage in business: Form; contents;

filing fee; regulations; withdrawal of application.

      1.  The request for authority to engage in

business pursuant to this chapter must be set forth in an application in such

form and containing such information as the Commissioner requires.

      2.  The filing fees are:

      (a) For filing an original application, not more

than $2,000 for the principal office and not more than $300 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 paragraph must be placed in the

Investigative Account created by NRS

232.545.

      (b) If the license is approved for issuance, not

more than $1,000 for the principal office and not more than $200 for each

branch office before issuance.

      3.  The Commissioner shall adopt

regulations establishing the amount of the fees required pursuant to this

section.

      4.  The Commissioner shall consider an

application to be withdrawn if the Commissioner has not received all

information and fees required to complete the application within 12 months

after the date the application is first submitted to the Commissioner or within

such later period as the Commissioner determines in accordance with any

existing policies of joint regulatory partners. If an application is deemed to

be withdrawn pursuant to this subsection or if the applicant otherwise

withdraws the application, the Commissioner may not issue a license to the

applicant unless the applicant submits a new application and pays any required

fees.

      (Added to NRS by 1975, 1830; A 1983, 1327, 1817; 1987, 1997; 1991, 1816; 2005, 1888)

      NRS 677.170  Fidelity bond.  A

licensee which proposes to accept deposits shall file with the Commissioner a

fidelity bond providing fidelity coverage on each officer, director and

employee of at least $100,000. The fidelity bond may be either a banker’s blanket

bond or a finance company’s blanket bond, but must be written by an insurer who

has been approved by the Commissioner.

      (Added to NRS by 1975, 1830; A 1977, 1045; 1983,

1605, 1637, 1817; 1985, 2196, 2197; 1987, 1998)

      NRS 677.175  Additional bond.  If

the Commissioner finds that a bond filed pursuant to NRS

677.170 is not sufficient to protect the interests of the public, he or she

shall require the applicant to deposit an additional bond.

      (Added to NRS by 1983, 1605; A 1983, 1644; 1985, 2197; 1987, 1998)

      NRS 677.180  Investigation and examination of applicant.  Upon the filing of an application, the

Commissioner shall make or cause to be made a careful investigation and

examination relative to the following:

      1.  Character, reputation and financial

standing of the organizers or incorporators.

      2.  The need for a thrift company or an

additional thrift company, as the case may be, in the community where the

proposed licensee is to be located, giving particular consideration to the

adequacy of existing thrift company services and the need for additional

services of this kind in the community.

      3.  The ability of the community to support

the proposed licensee, giving consideration to:

      (a) The competition offered by existing

licensees;

      (b) Whether a thrift company has previously

operated in the community; and

      (c) The opportunities for profitable employment

of the licensee’s money as indicated by the average demand for credit, the

number of potential investors, the volume of transactions where the services of

a thrift company would be appropriate, and the business and industries of the

community with particular regard to their stability, diversification and size.

      4.  The character, banking, industrial

loan, finance or thrift company or other experience and business qualifications

of the proposed officers and managers of the licensee.

      5.  The character, financial

responsibility, business experience and standing of the proposed stockholders

and directors.

      6.  Any other facts and circumstances

bearing on the proposed licensee as in the opinion of the Commissioner may be

relevant.

      (Added to NRS by 1975, 1830; A 1979, 995; 1983, 1818;

1987, 1998)

      NRS 677.190  Requisites for approval of application.  The

Commissioner shall not approve the application unless he or she ascertains to

his or her satisfaction:

      1.  That the public convenience and

advantage will be promoted by the establishment of the proposed corporation.

      2.  That the corporation is being formed

for no other purpose than the legitimate objectives contemplated by this

chapter.

      3.  That the proposed capital structure is

adequate.

      4.  That the financial responsibility,

character and general fitness of the proposed officers, directors, stockholders

and other investors are such as to command the confidence of the community and

to warrant belief that the business will be operated honestly and fairly within

the purpose of this chapter, and that the proposed officers and directors have

sufficient banking, industrial loan or other experience, ability and standing

to afford reasonable promise of successful operation.

      5.  That the applicant has complied with

all the applicable provisions of this chapter.

      (Added to NRS by 1975, 1831; A 1983, 1818; 1985, 2197; 1987, 1999; 1997, 1014)

      NRS 677.200  Qualifications of president and certain managers of corporation.  The president of the corporation must have not

less than 10 years of experience in a regulated financial institution in this

state, or in any other state or the District of Columbia. The manager of the

principal office and any branch office must have not less than 2 years of

experience in a regulated financial institution in this state, or in any other

state or the District of Columbia.

      (Added to NRS by 1975, 1831; A 1977, 1045; 1985, 2198; 1995, 1564; 1997, 1014)

      NRS 677.210  Minimum stockholders’ equity required.  The

stockholders’ equity of any corporation formed to do business under this

chapter must not be less than $325,000, plus an additional $25,000 for each of

its branch offices.

      (Added to NRS by 1975, 1833; A 1997, 1015)

      NRS 677.220  Certificate of authorization to transact business.  If the Commissioner approves an application

for authority to form a corporation to engage in business under this chapter,

he or she shall issue a certificate in duplicate authorizing the organization

of the corporation and the operation of a thrift company, specifying the date

on which and the conditions under which its place of business may be opened,

including the place where it will be located. The Commissioner shall deliver

one copy to the applicant and retain the other copy.

      (Added to NRS by 1975, 1831; A 1983, 1819; 1987, 1999)

      NRS 677.230  Reserves.

      1.  Except as otherwise provided in

subsection 2, the Commissioner may establish the basis upon which reasonable

and adequate reserves must be created and maintained, which must be no less

than 3 percent of the deposits, in:

      (a) Cash and due from federally insured financial

institutions in this state, financial institutions insured by a private insurer

approved pursuant to NRS 678.755, or

any Federal Reserve Bank;

      (b) United States treasury bills or notes;

      (c) Short-term obligations of the federal or

state government; or

      (d) Money deposited in federally insured

financial institutions in this state, financial institutions insured by a

private insurer approved pursuant to NRS

678.755, or any Federal Reserve Bank.

Ê For the

purposes of this subsection, “short-term” means having a maturity of 2 years or

less.

      2.  The Commissioner shall require a

licensee who is insured by the Federal Deposit Insurance Corporation to comply

with the reserve requirements established by that insurer.

      (Added to NRS by 1975, 1833; A 1979, 996; 1983, 1819;

1985, 2198;

1987, 1999;

1989, 1097;

1993, 2815;

1999, 1451)

      NRS 677.240  Authorization for change of place of business.  If a licensee desires to change its place of

business to a street address other than that designated in its authorization,

it shall give written notice to the Commissioner who shall issue his or her

written authorization of the change, if the Commissioner finds such change of

place of business would not justify a negative finding.

      (Added to NRS by 1975, 1831; A 1983, 1819; 1987, 1999)

PROTECTION OF INVESTORS

      NRS 677.241  Power of licensee to obtain benefits of federal programs.  Subject to the prior approval of the

Commissioner, a licensee may, by a majority vote of its board of directors:

      1.  Enter into a contract, incur an

obligation and perform other acts necessary to obtain a membership or other

benefit that is available to a thrift company or its customers, stockholders,

conservators, receivers or liquidators pursuant to the provisions of:

      (a) The Federal Deposit Insurance Act (12 U.S.C.

§§ 1811 et seq.); or

      (b) The National Housing Act (12 U.S.C. §§ 1701

to 1743, inclusive).

      2.  Subscribe for and acquire any stock,

debentures, bonds or other types of securities of the Federal Deposit Insurance

Corporation.

      (Added to NRS by 1985, 2193; A 1987, 2000; 1997, 1015)

      NRS 677.243  Records of employees; confidentiality.

      1.  Each licensee shall maintain a record

that includes for each employee:

      (a) The employee’s full name;

      (b) The address of each place at which the

employee has resided during the previous 10 years;

      (c) The name and address of each employer during

the previous 10 years;

      (d) A recent photograph of the employee measuring

3 by 5 inches; and

      (e) Any alias used by the employee.

      2.  A licensee may comply with the

provisions of subsection 1 by maintaining the employee identification

information required pursuant to 26 C.F.R. Part 31.

      3.  The information contained in the record

required pursuant to this section must be provided to the Commissioner upon his

or her request, but is otherwise confidential.

      (Added to NRS by 1985, 2193; A 1987, 2000; 1997, 1015)

      NRS 677.245  Limitation on investment in real property; recording deed or

other document; subsidiary ledger or other appropriate record.

      1.  Unless the licensee has received a

written waiver from the Commissioner, the total amount of money that the

licensee has advanced or committed for the real property that it has developed

or constructed may not exceed twice the sum of its stockholders’ equity and any

other reserves required by the Commissioner.

      2.  If a licensee acquires title to any

real property pursuant to the provisions of subsection 1 of NRS 677.630, the deed or other document representing

the transaction must be recorded within a reasonable time after the acquisition

of that property.

      3.  An account must be established for the

acquired property with a separate subsidiary ledger or other appropriate

record. The amount carried in the account must be the sum of the unpaid

principal balance of any loan made by the licensee that was secured by the

foreclosed property plus the cost of the foreclosure less any advance payments

held in the account for loans in progress at the time of acquisition, together

with:

      (a) Any amount paid after acquisition for taxes

on the property that accrued before the acquisition;

      (b) Assessments that are due or delinquent at the

time of acquisition;

      (c) Any other costs of acquisition; and

      (d) The cost of insurance on the property.

      4.  The subsidiary ledger or other

appropriate record must indicate as to each property:

      (a) The type and character of the property;

      (b) All the capitalized items of investment and

their cost; and

      (c) The account number of the former loan or

contract of sale.

      (Added to NRS by 1985, 2193; A 1987, 2000; 1997, 1015)

      NRS 677.247  Applicant required to obtain insurance of deposits; regulations.

      1.  Except as otherwise provided in

subsection 2, an applicant for an authorization to engage in the business

regulated pursuant to this chapter must obtain:

      (a) The insurance of deposits provided pursuant

to the provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et

seq.); or

      (b) The insurance of deposits provided pursuant

to the provisions of the National Housing Act (12 U.S.C. §§ 1701 to 1743,

inclusive).

      2.  A person who:

      (a) Is licensed pursuant to this chapter before

October 1, 1997; and

      (b) Has not obtained the insurance of deposits

provided in subsection 1,

Ê may obtain a

contract for the insurance of deposits that is issued by a private insurer. The

contract must be approved by the Commissioner and the Commissioner of

Insurance.

      3.  The Commissioner shall adopt

regulations prescribing the requirements that must be complied with before a

contract issued pursuant to subsection 2 will be approved by him or her.

      (Added to NRS by 1985, 2194; A 1987, 2001; 1997, 1016)

BRANCH OFFICES

      NRS 677.250  Establishment and maintenance.  When

authorized by the Commissioner as provided in this chapter, a licensee,

pursuant to a resolution of its board of directors, may establish and maintain

one or more branch offices within or outside the State.

      (Added to NRS by 1975, 1832; A 1983, 1819; 1987, 2002; 1997, 1017)

      NRS 677.270  Requisites for approval of application; notice of approval or

denial.

      1.  The Commissioner shall not approve an

application for a branch office until he or she has ascertained to his or her

satisfaction that the facts set forth in the application are true and:

      (a) That public convenience and advantage will be

promoted by the establishment of the proposed branch office.

      (b) That the licensee has the stockholders’

equity required by this chapter.

      2.  The Commissioner must give his or her

approval or denial for an application for a branch office to the licensee

within 45 days after the date of application to open a branch office unless the

Commissioner gives notice within the original 45-day period that he or she is

extending the period for decision for a period not to exceed an additional 45

days.

      (Added to NRS by 1975, 1832; A 1979, 996; 1983, 1819;

1987, 2002;

1997, 1017)

      NRS 677.290  Right to open branch office expires if office not open within 6

months after approval of application.  The

failure of a licensee to open and operate a branch office within 6 months after

the Commissioner approves the application therefor automatically terminates the

right of the licensee to open the branch office.

      (Added to NRS by 1975, 1832; A 1979, 996; 1983, 1820;

1987, 2002)

      NRS 677.300  Authorization for change of location; posting of certificate.  When authorized by the Commissioner, a

licensee may change the location of a branch office from one location to

another. The Commissioner must give his or her approval or denial to the

licensee within 25 days from the date of application for a change in branch

location unless the Commissioner gives notice within the original 25-day period

that he or she is extending the period for decision for a term not to exceed an

additional 25 days. Every licensee shall keep posted in a conspicuous place in

each branch office the certificate issued by the Commissioner permitting the

operating of the branch office.

      (Added to NRS by 1975, 1832; A 1979, 997; 1983, 1820;

1987, 2002)

      NRS 677.310  Specified designation of branch offices by name or number

required.  A licensee which

maintains a branch office or branch offices shall give to each branch office

maintained by it a specified designation by name or number and include in the

designation the word “branch” or the word “office” and shall prominently

display the designation at the place of business of the branch.

      (Added to NRS by 1975, 1832)

      NRS 677.320  Closing or discontinuance of branch office.

      1.  With the prior written approval of the

Commissioner, a licensee may close or discontinue the operation of any branch

office if public notice thereof is given in such manner as the Commissioner

directs at least 30 days before the date of closing or discontinuance.

      2.  After a branch office has been closed

or discontinued it may not be reopened without the approval of the

Commissioner.

      (Added to NRS by 1975, 1832; A 1983, 1820; 1987, 2003)

      NRS 677.330  Mobile offices.

      1.  The Commissioner may authorize a

licensee to operate a mobile office.

      2.  A mobile office must serve its

designated area at least once each 30 days. Each mobile office must be licensed

as a branch office.

      3.  Each application for authority to

operate a mobile office must specify the permanent office of the licensee,

either its main office or one of its branches, at which the records of the

mobile office will be kept.

      (Added to NRS by 1975, 1833; A 1979, 557; 1983, 1820;

1985, 2198;

1987, 2003)

LICENSING

      NRS 677.340  Persons ineligible for licensing.

      1.  Except as otherwise provided in NRS 677.545 and chapter

666 of NRS, no person doing business under the law of:

      (a) Any other state; or

      (b) The United States if the principal office of

the business is not located in Nevada,

Ê relating to

banks, savings and loan associations or persons licensed under chapter 675 of NRS is eligible to become a

licensee under this chapter. This chapter does not apply to any business

transacted by any such person under the authority of and as permitted by any

such law.

      2.  Except as otherwise provided in

subsection 3 and chapter 666 of NRS, a

subsidiary of a parent corporation:

      (a) One or more of whose other subsidiaries is

engaged in any of the activities listed in subsection 1; or

      (b) Whose parent corporation is prohibited from

obtaining a license under this chapter,

Ê is not

eligible to be licensed under this chapter.

      3.  Subsection 2 does not apply to a bank

which is doing business under the law of the United States if its principal

office is located in Nevada.

      (Added to NRS by 1975, 1833; A 1981, 1594; 1983, 153,

1606; 1985, 2159,

2199; 1995, 1564)

      NRS 677.350  Applicability of chapter to persons who seek to evade.  The provisions of this chapter apply to any

person who seeks to evade its application by any device, subterfuge or pretense

whatever, including, but not thereby limiting the generality of the foregoing:

      1.  The loan, forbearance, use or sale of

credit as guarantor, surety, endorser, comaker or otherwise, money, goods or

things in action.

      2.  The use of collateral or related sales

or purchases of goods or services, or agreements to sell or purchase, whether

real or pretended.

      3.  Receiving or charging compensation for

goods or services, whether or not sold, delivered or provided.

      4.  The real or pretended negotiation,

arrangement or procurement of a loan through any use or activity of a third

person, whether real or fictitious.

      (Added to NRS by 1975, 1834)

      NRS 677.355  Licensee may own interest in bank or savings and loan

association.  The provisions of

this chapter do not prohibit a licensee or a person owning an interest in a

licensee from obtaining a license or owning an interest in a corporation

licensed under chapter 659 or 673 of NRS.

      (Added to NRS by 1983, 1605)

      NRS 677.360  Expiration, renewal and reinstatement of license; fees;

regulations.

      1.  A license expires on December 31 of

each year. On or before that date, each licensee must pay to the Commissioner a

fee not more than $1,000 for the renewal of each license held by the licensee.

The Commissioner may reinstate an expired license upon receipt of the fee for

renewal and a fee of not more than $400 for reinstatement.

      2.  The Commissioner shall adopt

regulations establishing the amount of the fees required pursuant to this

section.

      (Added to NRS by 1975, 1834; A 1979, 962; 1983, 1328,

1821; 1987,

2003; 1989,

923; 2005,

1888)

      NRS 677.370  Posting of license; transferability and assignability of

license.

      1.  Each licensee shall conspicuously post

each license in the place of business to which it pertains.

      2.  No license is transferable or

assignable without the permission of the Commissioner.

      (Added to NRS by 1975, 1834; A 1983, 1821; 1987, 2003)

      NRS 677.373  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, 1886)

      NRS 677.375  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, 1887)

ADMINISTRATION AND ENFORCEMENT

Generally

      NRS 677.380  Regulations and orders of Commissioner.

      1.  The Commissioner may adopt regulations

and make orders for the administration and enforcement of this chapter, in

addition to and not inconsistent with this chapter.

      2.  Any ruling, demand, requirement or

similar administrative act may be promulgated by an order.

      3.  Every order must be in writing, must

state its effective date and the date of its promulgation, and must be entered

in an indexed permanent book which is a public record.

      4.  A copy of every order containing a

requirement of general application must be mailed to each licensee at least 20

days before the effective date thereof.

      (Added to NRS by 1975, 1834; A 1983, 1822; 1987, 2003)

      NRS 677.390  Disposition of money collected pursuant to chapter.  Except as otherwise provided in NRS 677.160, all fees and charges collected under the

provisions of this chapter must be deposited in the State Treasury pursuant to

the provisions of NRS 658.091.

      (Added to NRS by 1975, 1834; A 1977, 102; 1983, 1328;

1985, 2199;

2003, 3234)

Reports, Examinations and Audits

      NRS 677.400  Annual report by licensee; composite reports.

      1.  Annually, on or before May 15, unless

the Commissioner grants a written extension, each licensee shall file with the

Commissioner a report of operations of the licensed business for the preceding

calendar year.

      2.  The report must give information with

respect to the financial condition of the licensee, including, without

limitation:

      (a) Balance sheets at the beginning and end of

the year;

      (b) A statement of income and expenses for the

period;

      (c) A reconciliation of the surplus or net worth

with the balance sheets;

      (d) A schedule of the assets used and useful in

the licensed business;

      (e) The size of loans and an analysis of charges,

including the monthly average number and amount of loans outstanding;

      (f) An analysis of delinquent accounts;

      (g) Any court actions undertaken to effect

collection; and

      (h) Any further statistical information

reasonably prescribed by the Commissioner.

      3.  The report must be made under oath and

be in the form prescribed by the Commissioner.

      4.  If any person or affiliated group holds

more than one license in this state, that person or group may file a composite

annual report, if a short form of report applicable to each licensed office

accompanies the report.

      5.  A licensee may comply with the

provisions of this section by filing with the Commissioner a copy of the annual

audit report filed by the licensee with the Federal Deposit Insurance

Corporation pursuant to 12 U.S.C. § 1831m.

      (Added to NRS by 1975, 1837; A 1979, 997; 1983, 1822;

1987, 2003;

1997, 1017)

      NRS 677.410  Preparation of annual reports and financial statements; special

reports; extensions; removal of qualification.

      1.  The annual reports and financial

statements required by this chapter must be prepared in accordance with

generally accepted accounting principles and must be accompanied by a report,

certificate, or opinion of an independent certified public accountant or

independent public accountant, and must contain such relevant information as

the Commissioner may require. The audits must be conducted in accordance with

generally accepted auditing standards and the regulations of the Commissioner.

      2.  A licensee shall make other special

reports to the Commissioner as the Commissioner may from time to time require.

      3.  For good cause and upon written

request, the Commissioner may extend the time for compliance with the

provisions of this chapter.

      4.  If the report, certificate or opinion

of the independent accountant is in any way qualified, the Commissioner may

require the company to take such action as he or she deems appropriate to

permit an independent accountant to remove such qualification from the report,

certificate or opinion.

      (Added to NRS by 1975, 1838; A 1983, 1822; 1987, 2004)

      NRS 677.420  Notification of change in ownership of stock; application for

approval after certain acquisitions; investigation; costs; waiver.

      1.  A licensee shall notify the

Commissioner of any change in the ownership of 10 percent or more of the

outstanding voting stock of the licensee within 3 business days after the

licensee has knowledge of the change.

      2.  An application for approval must be

submitted to the Commissioner by a person who acquires:

      (a) At least 25 percent of a licensee’s

outstanding voting stock; or

      (b) Any outstanding voting stock of a licensee if

the change will result in a change in the control of the licensee.

Ê Except as

otherwise provided in subsection 4, the Commissioner shall conduct an

investigation in accordance with NRS 677.180. If

the Commissioner denies the application, he or she may forbid the applicant

from participating in the business of the licensee.

      3.  The licensee 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

subsection must be placed in the Investigative Account created by NRS 232.545.

      4.  A licensee may submit a written request

to the Commissioner to waive an investigation pursuant to subsection 2. 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 1975, 1838; A 1983, 1823; 1985, 1348; 1987, 2004; 1991, 1816; 1997, 1018)

      NRS 677.430  Commissioner to examine licensee’s business at least annually;

fee.

      1.  At least once each year, the

Commissioner or his or her authorized representatives shall make an examination

of the place of business of each licensee and of the loans, transactions,

books, papers and records of such licensee so far as they pertain to the

business licensed under this chapter.

      2.  For each examination the Commissioner

shall charge and collect from the licensee a fee for conducting the examination

and preparing and typing the report of the examination at the rate established

pursuant to NRS 658.101.

      (Added to NRS by 1975, 1835; A 1977, 102; 1983, 1823;

1987, 2005,

2227)

      NRS 677.435  Independent audit and examination: Payment of assessment;

cooperation.  Each licensee 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)

      NRS 677.440  Authority 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) A licensee;

      (b) Any other person engaged in the business

described in this chapter, participating in the business as a principal, agent,

broker or otherwise;

      (c) Any other person engaged in an activity for

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

      (d) 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; and

      (e) Any company which is a subsidiary of,

affiliated with or owned or controlled by a licensee.

      2.  For the purpose of examination, the

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

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

such persons.

      3.  The Commissioner may require the

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

      (a) Any transaction or business regulated

pursuant to the provisions of this chapter; or

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

investigation or hearing.

      (Added to NRS by 1975, 1834; A 1983, 1606, 1637,

1823; 1987,

2005; 2005,

1887)

      NRS 677.450  Authority of Commissioner to require attendance of witnesses and

production of documents.  The

Commissioner may require the attendance of any person and may examine him or

her under oath relative to loans or business regulated by this chapter or the

subject matter of any examination, investigation or hearing, and may require

the production of books, accounts, papers and records.

      (Added to NRS by 1975, 1835; A 1983, 1823; 1987, 2005)

      NRS 677.460  Charging off assets; regulations and orders.  The Commissioner may provide by regulation or

order for the charging off of assets considered to be of little or no value.

      (Added to NRS by 1975, 1834; A 1983, 1824; 1987, 2006)

      NRS 677.470  Licensee to pay costs of audit of books and records.  In addition to the annual fee provided by this

chapter, the Commissioner shall assess and collect from each licensee the

reasonable cost of auditing the books and records of a licensee.

      (Added to NRS by 1975, 1834; A 1983, 1824; 1987, 2006)

Remedial Actions

      NRS 677.480  Order of Commissioner directing discontinuance of unsafe or

injurious practice.  If it appears

to the Commissioner any company is conducting business in an unsafe or

injurious manner, he or she may by written order direct the discontinuance of

any unsafe or injurious practices.

      (Added to NRS by 1975, 1835; A 1983, 1824; 1987, 2006)

      NRS 677.490  Surrender of license by licensee; surrender as affecting

licensee’s liability.  Any licensee

may surrender any license by delivering it to the Commissioner with written

notice of its surrender, but a surrender does not affect his or her civil or

criminal liability for acts committed before the surrender.

      (Added to NRS by 1975, 1835; A 1983, 1824; 1987, 2006)

      NRS 677.500  Temporary suspension of license: Conditions; notice; hearing;

term of suspension.  If the

Commissioner finds that probable cause for revocation of any license exists and

that enforcement of this chapter requires immediate suspension of a license

pending investigation, he or she may, upon 5 days’ written notice and without a

hearing, enter an order suspending a license for a period not exceeding 20 days

pending the holding of a hearing.

      (Added to NRS by 1975, 1835; A 1977, 96; 1983, 1824; 1987, 2006)

      NRS 677.510  Revocation or suspension of license: Grounds; notice; hearing;

order.

      1.  If the Commissioner has reason to

believe that grounds for revocation or suspension of a license exist, he or she

shall give 20 days’ written notice to the licensee stating the contemplated

action and, in general, the grounds therefor and set a date for a hearing.

      2.  At the conclusion of a hearing, the

Commissioner shall:

      (a) Enter a written order either dismissing the

charges, or revoking the license, or suspending the license for a period of not

more than 60 days, which period must include any prior temporary suspension. A

copy of the order must be sent by registered or certified mail to the licensee.

      (b) Impose upon the licensee an administrative

fine of not more than $10,000 for each violation by the licensee of any

provision of this chapter or any lawful regulation adopted pursuant thereto.

      (c) If a fine is imposed pursuant to this

section, enter such order as is necessary to recover the costs of the

proceeding, including his or her investigative costs and attorney’s fees.

      3.  The grounds for revocation or

suspension of a license are that:

      (a) The licensee has failed to pay the annual

license fee;

      (b) The licensee, either knowingly or without any

exercise of due care to prevent it, has violated any provision of this chapter,

or any lawful regulation adopted pursuant thereto;

      (c) The licensee has failed to pay a tax as

required pursuant to the provisions of chapter

363A of NRS;

      (d) Any fact or condition exists which would have

justified the Commissioner in denying the licensee’s original application for a

license hereunder; or

      (e) The applicant failed to open an office for

the conduct of the business authorized under this chapter within 120 days after

the date the license was issued, or has failed to remain open for the conduct

of the business for a period of 120 days without good cause therefor.

      4.  Any revocation or suspension applies

only to the license granted to a person for the particular office for which

grounds for revocation or suspension exist.

      5.  An order suspending or revoking a

license becomes effective 5 days after being entered unless the order specifies

otherwise or a stay is granted.

      (Added to NRS by 1975, 1836; A 1983, 1824; 1987, 2006; 1993, 902; 2003,

20th Special Session, 227; 2005, 1888)

      NRS 677.520  Preexisting contracts unaffected by revocation, suspension,

expiration or surrender of license.  The

revocation, suspension, expiration or surrender of any license does not impair

or affect the obligation of any preexisting lawful contract between the

licensee and any obligors. Such a contract and all lawful charges thereon may

be collected by the licensee, its successors or assigns.

      (Added to NRS by 1975, 1837; A 1989, 923)

      NRS 677.530  Order to desist or refrain; action to enjoin violations;

appointment and powers of receiver.

      1.  Whenever the Commissioner has

reasonable cause to believe that any person is violating or is threatening to

or intends to violate any provision of this chapter, he or she may, in addition

to all actions provided for in this chapter and without prejudice thereto,

enter an order requiring the person to desist or to refrain from such

violation.

      2.  An action may be brought on the

relation of the Attorney General and the Commissioner to enjoin a person from

engaging in or continuing a violation or from doing any act or acts in

furtherance thereof. In any such action, an order or judgment may be entered

awarding such preliminary or final injunction as may be deemed proper.

      3.  In addition to all other means provided

by law for the enforcement of a restraining order or injunction, the court in

which an action is brought may impound, and appoint a receiver for, the

property and business of the defendant, including books, papers, documents and

records pertaining thereto, or so much thereof as the court deems reasonably

necessary to prevent violations of this chapter through or by means of the use

of the property and business. Such receiver, when appointed and qualified, has

such powers and duties as to custody, collection, administration, winding up

and liquidation of such property and business as are from time to time

conferred upon the receiver by the court.

      (Added to NRS by 1975, 1835; A 1983, 1825; 1987, 2007)

      NRS 677.540  Taking possession of business by Commissioner: Conditions;

resumption of business.  Whenever

it appears to the Commissioner that:

      1.  The stockholders’ equity of any

licensee is less than its initial stockholders’ equity;

      2.  Any licensee has violated its articles

of incorporation or any law of this state;

      3.  Any licensee is conducting its business

in an unsafe or unauthorized manner;

      4.  Any licensee refuses to submit its

books, papers and affairs to the inspection of any examiner;

      5.  Any officer of any licensee refuses to

be examined upon oath touching the concerns of the licensee;

      6.  Any licensee has suspended payment of its

obligations;

      7.  Any licensee is in a condition that it

is unsound or unsafe for it to transact business;

      8.  Any licensee neglects or refuses to

observe any order of the Commissioner made pursuant to this chapter unless the

enforcement of the order is restrained in a proceeding brought by the licensee;

      9.  Any licensee has accepted deposits in

violation of the provisions of this chapter; or

      10.  Any fact or condition exists which, if

it had existed at the time of the original application for authority to

organize and establish a corporation to engage in business under this chapter,

it reasonably would have warranted the disapproval of the application by the

Commissioner,

Ê the

Commissioner may forthwith take possession of the property and business of the

licensee and retain possession until it resumes business or its affairs are

finally liquidated as provided in this chapter. The licensee, with the consent

of the Commissioner, may resume business upon such conditions as the

Commissioner may prescribe.

      (Added to NRS by 1975, 1836; A 1983, 1825; 1985, 2199, 2200; 1987, 2007; 1997, 1018)

      NRS 677.545  Taking possession of business by Commissioner: Acquisition by or

merger with another institution.

      1.  Except as limited by subsection 2, if

the Commissioner has taken possession of the property and business of a

corporation licensed under this chapter pursuant to NRS

677.540, or a receiver, other than the State, has been appointed for and

taken possession of the property and business of a corporation, the

Commissioner may solicit offers from and authorize or require the acquisition

of the corporation by or its merger with another institution or company in the

following order of priority:

      (a) A corporation which is licensed pursuant to

this chapter.

      (b) Any other depository institution licensed

under the laws of this state or of the United States if its principal office is

located in this state, including institutions whose parent corporation has

offices or operations in other states.

      (c) A bank, savings and loan association or

thrift company, or its parent corporation, licensed pursuant to the laws of the

United States or of another state, whose operations are principally conducted

within the state of Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New

Mexico, Oregon, Utah, Washington or Wyoming.

      (d) A bank, savings and loan association or

thrift company, or its parent corporation, licensed pursuant to the laws of the

United States or of another state, whether or not its principal place of

business is in another state.

Ê The

Commissioner shall solicit written offers from all eligible institutions,

regardless of the order of priority established by this subsection, and wait at

least 30 days after solicitation before selecting the institution to be

approved.

      2.  The selection of an institution must be

made in accordance with the order of priority established in subsection 1 only

if a selection affords the greatest financial recovery by the corporation’s

depositors of all offers received. The Commissioner may not accept any offer

which affords the corporation’s depositors a smaller financial recovery than

they would receive if the corporation were liquidated. If the Commissioner

receives one or more acceptable offers he or she may negotiate with the

institutions submitting acceptable offers, following that order of priority,

and accept that offer which would afford the greatest financial recovery by the

corporation’s depositors.

      (Added to NRS by 1985, 2195; A 1987, 1315, 2008)

      NRS 677.550  Order suspending or limiting payment of liabilities; effect of

order; assignment or hypothecation of indebtedness.

      1.  The Commissioner may order a licensee

to suspend the payment of its liabilities or limit the payment of its

liabilities in such manner as he or she prescribes, if it appears to the

Commissioner that this action is necessary for the protection of the licensee,

its depositors or creditors, or in the public interest. The order is effective

upon receipt of notice by the licensee and continues in effect until rescinded

or modified by the Commissioner in a writing delivered to the manager or

executive officer of the licensee.

      2.  Subsection 1 does not affect the right

of any licensee to pay its current operating expenses and liabilities incurred

during the period of suspension or limitation.

      3.  After an order suspending or limiting

the payment of liabilities is effective and until that order is rescinded, the

licensee shall make no assignment or hypothecation of any indebtedness due to

it from a depositor without first crediting thereon the liability of the

licensee to the depositor.

      4.  The authority granted to the

Commissioner by this section may be exercised by him or her in conjunction with

all other powers granted by this chapter, or independently from them.

      (Added to NRS by 1975, 1837; A 1983, 1826; 1985, 2200, 2201; 1987, 2009)

      NRS 677.560  Application by licensee to enjoin further proceedings.  Whenever the Commissioner has taken possession

of the property and business of any licensee, a licensee, within 10 days after

a taking, if it deems itself aggrieved thereby, may apply to the district court

in the county in which the main office of the licensee is located to enjoin

further proceedings. The court, after citing the Commissioner to show cause why

further proceedings should not be enjoined and after a hearing and a

determination of the facts upon the merits may dismiss such application or

enjoin the Commissioner from further proceedings and direct him or her to

surrender the property and business to such licensee, or make such further

order as may be just.

      (Added to NRS by 1975, 1837; A 1983, 1826; 1987, 2009)

      NRS 677.570  Authority of Commissioner to liquidate or conserve company.  When the Commissioner takes possession of the

property and business of any company for the purpose of liquidation or

conservation, he or she may liquidate or conserve the company. In such a

liquidation or conservation the Commissioner has the same authority with

reference to licensees as are vested in the Commissioner by title 55 of NRS

with reference to banks and in addition may deposit money coming into his or

her hands in the course of liquidation in one or more state or national banks

or credit unions.

      (Added to NRS by 1975, 1837; A 1983, 1827; 1987, 2010; 1999, 1452)

GENERAL REGULATIONS

      NRS 677.580  Use of holding company or other device for evading or avoiding

chapter prohibited; right to issue preferred stock or debentures not affected.  A holding company or any other device may not

be used for the purpose of evading or avoiding any of the provisions of this

chapter. This section does not affect the right of a company to issue preferred

stock or debentures when permitted to do so under the laws of this state.

      (Added to NRS by 1975, 1838)

      NRS 677.590  Issuance of thrift certificates prohibited; exception.

      1.  Except as otherwise provided in

subsection 2, this chapter does not permit a licensee to issue thrift

certificates.

      2.  A licensee who maintains a branch

office located outside this state may issue thrift certificates and any other

securities that are permitted to be issued by a licensee pursuant to the laws

of the state in which the branch office is located.

      (Added to NRS by 1975, 1844; A 1985, 2201; 1997, 1019)

      NRS 677.600  Permissible depositories.  A

licensee shall not deposit any of its money with any other moneyed corporation,

unless that corporation has been designated as a depository by a majority vote

of the directors or the executive committee, exclusive of any director who is

an officer, director or trustee of the depository so designated. Such a

depository must be a federally insured financial institution, a financial

institution insured by a private insurer approved pursuant to NRS 678.755 or any Federal Reserve Bank.

      (Added to NRS by 1975, 1844; A 1985, 2202; 1997, 1019; 1999, 1452)

      NRS 677.610  Authorized investments.  A

licensee shall not invest any of its money, except:

      1.  As authorized in this chapter;

      2.  In legal investments for banks, credit

unions or savings associations; or

      3.  To the extent of 5 percent or less of

its total assets, in preferred stock of corporations which have been given a

rating of “A” or better by a national rating service and which are not in

default in the payment of dividends.

      (Added to NRS by 1975, 1844; A 1981, 1025; 1987, 1244; 1999, 1452)

      NRS 677.612  Authority to accept deposit by fiduciary in trust; payment to

fiduciary of withdrawal value and interest.

      1.  A deposit may be made with a licensee

by any administrator, executor or guardian of an estate, a trustee or other

fiduciary in trust for a named beneficiary or beneficiaries.

      2.  The fiduciary may make additional

deposits and withdraw the deposit, in whole or in part.

      3.  The withdrawal value of the deposit and

the interest thereon, or other rights relating to the deposit, 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

licensee for the payment or delivery so made.

      (Added to NRS by 1987, 1243)

      NRS 677.616  Deposit by and payment to minor.

      1.  If a deposit is made with a licensee by

a minor, the licensee may pay to the depositor such sums as may be due him or

her, and the receipt of the minor to the licensee is valid.

      2.  A licensee may operate a deposit account

in the name of a minor or in the name of two or more persons one or more of

whom are minors with the same effect upon its liability as if the minors were

of lawful age.

      (Added to NRS by 1987, 1243)

      NRS 677.620  Limit on deposits; limit on total borrowings; borrowing money

from Federal Home Loan Bank.

      1.  Except as otherwise provided in

subsections 2 and 3, a licensee shall not have at any time deposits in an

aggregate sum in excess of 10 times the aggregate amount of its stockholders’

equity.

      2.  A licensee insured by the Federal

Deposit Insurance Corporation shall comply with the limits imposed by that

insurer, if any.

      3.  If a licensee has operated under this

chapter for 1 year or more and during its most recent fiscal year has been

profitable, the Commissioner may increase the ratio of deposits to

stockholders’ equity prescribed in subsection 1 to not more than the greatest

net worth to savings ratio permitted for any savings and loan association

operating in this state. The Commissioner shall give his or her approval or

denial of the application for an increased ratio to the licensee in writing

with supporting reasons within 30 days after the date of the application

submitted by the licensee unless the Commissioner gives notice within the

original 30-day period that he or she is extending the period for decision for

a period not to exceed an additional 30 days. The Commissioner may, for

reasonable cause, decrease the ratio authorized under this subsection at any

time, but not below the ratio prescribed in subsection 1.

      4.  A licensee may not have total

borrowings, exclusive of deposits, which exceed the larger of:

      (a) Five times its stockholders’ equity; or

      (b) The face amount of total deposits at the time

a borrowing is made.

      5.  A licensee may borrow money from a

Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be

deemed borrowed money for the purposes of the limitations prescribed in

subsection 4. A licensee may pledge any of its assets as collateral security

for money borrowed pursuant to this subsection.

      (Added to NRS by 1975, 1844; A 1977, 1045; 1979, 997;

1981, 1025; 1983, 1607, 1638, 1827; 1985, 2202, 2203; 1987, 2010; 1989, 1098; 1993, 2816; 1997, 1019)

      NRS 677.630  Permissible transactions in real property.

      1.  A licensee may purchase, hold, develop

and convey real property, including apartments and other buildings, for the

following purposes only:

      (a) Real property conveyed to it in satisfaction

of debts contracted in the course of its business.

      (b) Real property purchased at sale under

judgments, decrees or mortgage foreclosures or foreclosures of or trustees’

sales under deeds of trust, or pursuant to an order of a bankruptcy court. A

licensee shall not bid against its debtor at any such sale in a larger amount

than is necessary to satisfy its debt and costs.

      (c) Real property necessary as premises for the

transaction of its business. A licensee shall not invest directly or indirectly

an amount exceeding one-third of its stockholders’ equity in the lot and

building in which the business of the company is carried on, furniture and

fixtures, and vaults, necessary and proper to carry on its business.

      (d) Real property purchased or held for the

purpose of development. An investment for this purpose must not exceed the

market value of the property as evidenced by an appraisal prepared by a member

of the American Institute of Real Estate Appraisers, the National Association

of Review Appraisers and Mortgage Underwriters, the Society of Real Estate

Appraisers or the Independent Fee Appraisers Society or an appraiser approved

by the Commissioner. Within 120 days after the investment is made:

             (1) The licensee shall provide the

Commissioner with a certified copy of one or more appraisal reports and a

report from a title insurer which shows, for not less than the immediately

preceding 3 years, the chain of title and the amount of consideration for which

the title was transferred, if that information is available.

             (2) The Commissioner may require a

statement from the licensee disclosing whether any director, officer or

employee of the licensee has, or has had within the immediately preceding 3

years, any direct or indirect interest in the property. For the purposes of

this subparagraph, “interest” includes ownership of stock in a corporation

which has an interest in the property.

Ê If the total

amount to be invested in real property for residential development, excluding

any real property which is mortgaged to the licensee as security for money

owing to the licensee, exceeds the stockholders’ equity of the licensee, the

investment may not be made without the written approval of the Commissioner.

Any person who fails to make a disclosure required by this section is guilty of

a misdemeanor.

      2.  No real estate acquired pursuant to

paragraph (a) or (b) of subsection 1 may be held for a longer period than 5

years unless it has been improved by the licensee and is producing a fair

income based upon the appraised value.

      (Added to NRS by 1975, 1844; A 1981, 1026; 1983,

1828; 1985,

2204, 2205;

1987, 1244,

2011; 1989, 1099; 1997, 1020)

      NRS 677.640  Conduct of business in place where other business being

conducted; name under which business may be transacted; loans by mail.  A licensee shall not make loans or accept

deposits under this chapter:

      1.  Within any office, suite, room or place

of business in which any other business is solicited or engaged in, except an

insurance agency or notary public, or in association or conjunction with any

other business unless authority to do so is given by the Commissioner.

      2.  Under any name or at any place other

than that stated in the license.

Ê This section

does not prevent the making of loans by mail or prohibit accommodations to

individual borrowers when necessitated by hours of employment, sickness or

other emergency situations.

      (Added to NRS by 1975, 1832; A 1983, 1828; 1985, 2205, 2206; 1987, 2011)

      NRS 677.645  Use or change of business name; prohibitions.

      1.  A licensee must obtain the approval of

the Commissioner before using or changing a business name.

      2.  A licensee shall not:

      (a) Use any business name which is identical or

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

may mislead or confuse the public.

      (b) Use any printed forms which may mislead or

confuse the public.

      (Added to NRS by 2005, 1887)

      NRS 677.650  Making loan to or purchasing contract or chose in action from

officer, director or other specified person prohibited; exception; personal

liability.

      1.  Except as otherwise provided in subsection

2, a licensee shall not directly or indirectly make any loan to, or purchase a

contract or chose in action from:

      (a) A person who is an officer, director or

holder of record or beneficiary of 10 percent or more of the shares of the

licensee;

      (b) A person in which an officer, director or

holder of record or beneficiary of 10 percent or more of the shares of the

licensee directly or indirectly is financially interested; or

      (c) A person who acquired the contract directly

or indirectly or through intervening assignments from a person described in

paragraph (a) or (b),

Ê unless the

licensee has been authorized by the Commissioner to make that loan or purchase

that contract or chose in action from that person.

      2.  Loans may be made to an officer, director

or stockholder of the licensee, upon collateral of his or her deposits with the

licensee, of not more than 90 percent of the amount of his or her deposits, at

the same rates of interest and under the same terms as loans secured by

deposits are offered to members of the general public.

      3.  Any officer, director or stockholder of

a licensee who:

      (a) Knowingly and intentionally makes or procures

or participates in making or procuring, directly or indirectly, a loan or

contract in violation of this section; or

      (b) Knowingly approves a loan or contract in

violation of this section,

Ê is

personally liable for any loss resulting to the licensee from the loan or

contract, in addition to any other penalties provided by law.

      (Added to NRS by 1975, 1845; A 1981, 1027; 1985, 2206; 1997, 1021)

      NRS 677.660  Advertising: Prohibitions; insurance of deposits.

      1.  A person shall not advertise, print,

display, publish, distribute or broadcast or cause or permit to be advertised,

printed, displayed, published, distributed or broadcast, in any manner, any

statement or representation with regard to the rates, terms or conditions for

making or negotiating loans, or with regard to deposits, which is false,

misleading or deceptive.

      2.  Except as otherwise provided in this

subsection, a licensee shall not use any advertising or make any

representations which indicate, imply or might lead a person to believe that it

is a bank, a thrift company or a savings bank, unless it is insured by the

Federal Deposit Insurance Corporation. The provisions of this subsection do not

apply to a thrift company that does not accept money for deposit.

      3.  A licensee whose deposits are insured

by the Federal Deposit Insurance Corporation shall include that information in

its advertising relating to deposits.

      (Added to NRS by 1975, 1844; A 1985, 348, 2207; 1989, 1099; 1993, 2817; 1997, 1022)

      NRS 677.665  Formation of bank.  A

corporation authorized to engage in business pursuant to this chapter may form

a bank pursuant to the provisions of subsection 2 of NRS 659.015.

      (Added to NRS by 1997, 1014)

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

      NRS 677.673  Definitions.  As

used in NRS 677.673 to 677.707,

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

in NRS 677.677 to 677.697,

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

      (Added to NRS by 2007, 1492)

      NRS 677.677  “Designated reporter” defined.  “Designated

reporter” means a person designated by a licensee to receive reports of known

or suspected exploitation of an older person or vulnerable person pursuant to NRS 677.707.

      (Added to NRS by 2007, 1492)

      NRS 677.683  “Exploitation” defined.  “Exploitation”

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

      (Added to NRS by 2007, 1492)

      NRS 677.687  “Older person” defined.  “Older

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

      (Added to NRS by 2007, 1492)

      NRS 677.693  “Reasonable cause to believe” defined.  “Reasonable

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

      (Added to NRS by 2007, 1492)

      NRS 677.697  “Vulnerable person” defined.  “Vulnerable

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

      (Added to NRS by 2007, 1492)

      NRS 677.703  Training; reporting to designated reporter.

      1.  Each licensee shall provide training

concerning the identification and reporting of the suspected exploitation of an

older person or vulnerable person to each officer and employee of the licensee

who:

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

the licensee, 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 officer or employee is employed by the licensee.

      3.  The training required pursuant to

subsection 1 must include, without limitation:

      (a) An explanation of the conduct which

constitutes exploitation of an older person or vulnerable person;

      (b) The manner in which exploitation of an older

person or vulnerable person may be recognized;

      (c) Information concerning the manner in which

reports of exploitation are investigated; and

      (d) Instruction concerning when and how to report

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

      4.  An 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, 1492)

      NRS 677.707  Designated reporter: Designation; duty to report; immunity.

      1.  Each licensee shall designate a person

or persons to whom an officer or employee of the licensee must report known or

suspected exploitation of an older person or vulnerable person.

      2.  If an 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 an 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.  An 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, 1493)

LOANS; POWERS AND PRIVILEGES

      NRS 677.720  Requirements for making and paying of loans: Duties of licensee.

      1.  Every licensee shall:

      (a) Deliver to the borrower, or if more than one,

to one of them, at the time of making a loan under this chapter a copy of the

loan obligation or, in lieu thereof, a statement showing in clear and distinct

terms the date of the loan and amount of loan obligation and the date of its

maturity, the nature of the security, if any, for the loan, the name and

address of the borrower and of the licensee, and the description or schedule of

payments on the loan.

      (b) Except as otherwise provided in subsection 2,

give to the person making any cash payment on account of any loan a receipt at

the time the payment is made, which receipt must show the balance due, if any,

after application of the payment. A receipt for the amount of the payment only

may be given temporarily and replaced within a reasonable time with a receipt

as prescribed in this paragraph.

      (c) Permit payment in advance in an amount equal to

one or more full installments at any time during the regular business hours of

the licensee.

      (d) Upon repayment of a loan in full, mark

plainly every note or other evidence of the indebtedness or assignment signed

by any obligor with the word “paid” or “cancelled,” and release or provide the

borrower with evidence to release any mortgage or security instrument no longer

securing any indebtedness to the licensee.

      2.  In lieu of the receipt mentioned in

paragraph (b) of subsection 1, the licensee may issue a coupon payment

book to the borrower setting forth the amount and due date of each installment

and containing a payment record stub corresponding to each coupon.

      (Added to NRS by 1975, 1842; A 1989, 1100)

      NRS 677.730  Interest, charges and repayment.  A

licensee may lend any amount of money:

      1.  At any rate of interest;

      2.  Subject to the imposition of any charge

in any amount; and

      3.  Upon any schedule of repayment,

Ê to which the

parties may agree.

      (Added to NRS by 1975, 1842; A 1979, 1000; 1985, 2208; 1989, 1100; 1997, 1022)

      NRS 677.750  Prohibited practices by licensee.  A

licensee shall not:

      1.  Take any confession of judgment or any

power of attorney running to himself or herself or to any third person to confess

judgment or to appear for the borrower in a judicial proceeding.

      2.  Take any note or promise to pay which

does not disclose the date and amount of the loan obligation, a schedule or

description of the payments to be made thereon, and the rate or aggregate

amount of agreed charges.

      3.  Take any instrument in which blanks are

left to be filled in after the loan is made.

      (Added to NRS by 1975, 1843)

      NRS 677.760  Restriction on percentage of loans secured by stocks or bonds of

any one obligor; exception.

      1.  A

licensee shall not lend in the aggregate more than 10 percent of its

stockholders’ equity upon:

      (a) The security of the stock of any one

corporation, which stock, except as otherwise provided in subsection 2, may not

exceed 10 percent of the outstanding stock of that corporation.

      (b) The security of the bonds of any one obligor

except:

             (1) Bonds of the United States or for the

payment of which the credit of the United States is pledged;

             (2) Bonds of the State of Nevada, or for

the payment of which the credit of the State of Nevada is pledged; and

             (3) Bonds which are general obligations of

any county, city, metropolitan water district, school district or irrigation

district of the State of Nevada.

      2.  The stock of a corporation upon the security

of which a licensee loans money pursuant to paragraph (a) of subsection 1 may

exceed 10 percent of the outstanding stock of that corporation if:

      (a) The licensee has secured collateral, other

than deposits with the licensee, which has a market value of not less than 115

percent of the amount loaned; or

      (b) The loans are secured by deposits with the

licensee and the amount of the money loaned does not exceed 90 percent of the

deposits used as collateral.

      (Added to NRS by 1975, 1843; A 1989, 1101; 1997, 1022)

      NRS 677.770  Limitations on amount of secured loans or obligations of any one

obligor.  Secured loans or

obligations of any one person as primary obligor made or held by a licensee may

not, in any event, exceed in the aggregate 25 percent of the stockholders’

equity of the licensee. Loans secured by deposits with the licensee must not be

included in applying this limitation.

      (Added to NRS by 1975, 1843; A 1985, 2208; 1987, 1245; 1989, 1101; 1993, 2817; 1997, 1023)

      NRS 677.780  Loans may be made to any person; exceptions; property situated

outside of State.

      1.  Except as provided in NRS 677.770 and 677.790, a

licensee may make loans to any person, secured by real or personal property,

without regard to the location or nature of the security.

      2.  Any loan made on property situated

outside this state which is lawful under the laws of the state in which the

property is situated may be collected or otherwise enforced in this state in

accordance with its terms.

      (Added to NRS by 1975, 1843; A 1985, 2209)

      NRS 677.790  Powers of licensee.  Except

as provided in NRS 677.770, a licensee may:

      1.  Make loans secured by, and purchase,

sell or discount in any amount:

      (a) Bona fide trust receipts;

      (b) Secured choses in action;

      (c) Chattel mortgages;

      (d) Conditional sales contracts;

      (e) Security agreements;

      (f) Leases;

      (g) Lien contracts; and

      (h) Deeds of trust.

      2.  Accept deposits, including deposits

payable on demand and time deposits, and issue certificates of deposit.

      3.  Enter into leases and purchase

equipment for those leases.

      (Added to NRS by 1975, 1843; A 1979, 1000; 1983,

1608; 1985,

2209; 1987,

1245)

      NRS 677.795  Authority to exercise powers of banks.  A

licensee may, with the approval of the Commissioner, exercise any authority,

right, power and privilege, and perform any act and enjoy the same immunities

as banks licensed pursuant to chapter 659 of

NRS.

      (Added to NRS by 1987, 1243; A 1987, 2024)

UNLAWFUL ACTS; PENALTIES

      NRS 677.800  Violation of provisions of chapter.  Any

person and the members, officers, directors, agents and employees thereof who

knowingly and intentionally violate or participate in the violation of any

provision of this chapter are guilty of a misdemeanor, unless a greater penalty

is provided in this chapter.

      (Added to NRS by 1975, 1845; A 1997, 1023)

      NRS 677.805  Administrative fines.  In

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

administrative fine of not more than $10,000 upon a person who, without a

license, conducts any business or activity for which a license is required

pursuant to the provisions of this chapter.

      (Added to NRS by 2005, 1887)

      NRS 677.810  Receiving certain compensation or property; making false entry

in books or records; embezzlement.  A

director, officer or employee of a licensee who:

      1.  Asks for or receives or consents or

agrees to receive any commission, emolument or gratuity or any money, property

or thing of value for procuring or endeavoring to procure for a person any loan

from the licensee, or the purchase or discount of any note, contract or other

obligation or property by the licensee;

      2.  Knowingly receives or possesses himself

or herself of any of its property otherwise than in payment of a just demand,

or with the intent to defraud omits to make or cause to be made a full and true

entry thereof in its books and accounts or concurs in omitting to make any

material entry thereof;

      3.  Knowingly makes or concurs in making or

publishing any false entry in its books or records, any written report, exhibit

or statement of its affairs or pecuniary condition containing any material

statement which is false, or having the custody of its books willfully refuses

or neglects to make any proper entry in the books as required by law, or to

exhibit or allow them to be inspected or extracts to be taken therefrom by the

Commissioner or his or her deputies or investigators, or alters, conceals,

destroys or removes any book or record;

      4.  Embezzles, abstracts or willfully

misapplies the money, securities or credits of a licensee, or who, with the

intent to injure or defraud the licensee or a customer of the licensee:

      (a) Issues or puts forth a deposit;

      (b) Draws a draft, bill of exchange or mortgage;

or

      (c) Otherwise uses his or her position or

employment with a licensee; or

      5.  Knowingly aids or abets the commission

of an act prohibited by this section,

Ê is guilty of

a category C felony and shall be punished as provided in NRS 193.130, or by a fine of not more than

$50,000, or by both fine and the punishment provided in NRS 193.130. In addition to any other

penalty, the court shall order the person to pay restitution.

      (Added to NRS by 1975, 1845; A 1983, 1829; 1985, 2210; 1987, 2012; 1995, 1317)

      NRS 677.820  Fraudulent insolvency; malfeasance of directors.  Every director of a licensee who:

      1.  In case of the fraudulent insolvency of

such company, participated in such fraud; or

      2.  Willfully does any act as such director

which is expressly forbidden by law or willfully omits to perform any duty

imposed upon him or her as such director by law,

Ê is guilty of

a misdemeanor. The insolvency of a licensee is fraudulent for the purposes of this

section, unless its affairs appear upon investigation to have been administered

clearly, legally and with the same care and diligence that agents receiving a

compensation for their services are bound by law to observe.

      (Added to NRS by 1975, 1845)

      NRS 677.830  Making loan or purchasing contract in violation of chapter.  A director, officer or employee of a licensee

who concurs in any vote or act by which it is intended to make a loan or

purchase a contract in violation of this chapter is guilty of a misdemeanor.

      (Added to NRS by 1975, 1846)

      NRS 677.840  Deposit of company’s money on condition of loan or advance.  Any director, officer or employee of any

licensee who makes or maintains, or attempts to make or maintain, a deposit of

such company’s funds with any other person on condition, or with the

understanding, express or implied, that the person receiving such deposit make

a loan or advance, directly or indirectly, to any director, officer or employee

of the licensee so making or maintaining or attempting to make or maintain such

deposit, is guilty of a misdemeanor.

      (Added to NRS by 1975, 1846)

      NRS 677.850  Accepting deposits with knowledge of insolvency of company or

violation of chapter.  Each officer

or employee of any company who accepts deposits knowing:

      1.  That the company is insolvent; or

      2.  That the acceptance violates any

provision of this chapter or any order or regulation of the Commissioner,

Ê is guilty of

a category D felony and shall be punished as provided in NRS 193.130.

      (Added to NRS by 1975, 1846; A 1983, 1829; 1985, 2211; 1987, 2012; 1995, 1318)

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