The
Commissioner and the Division of Financial Institutions shall administer
the provisions of this title, subject to administrative supervision by
the Director of the Department of Business and Industry.
(Added to NRS by 1971, 966; A 1983, 1721; 1987, 1898; 1993, 1894)
The Commissioner:
1. Must be a person who has had practical experience in banking,
savings and loan associations or other financial institutions.
2. Except as otherwise provided in NRS 284.143 , shall devote his entire time and attention to
the business of his office and shall not pursue any other business or
occupation or hold any other office of profit.
(Added to NRS by 1983, 1721; A 1987, 1898; 1995, 2318)
The Commissioner must not, either directly or
indirectly, be interested in any bank or corporation to which this title
is applicable, except as a depositor, nor engage in business as a
personal loan broker.
(Added to NRS by 1971, 966; A 1983, 1721; 1987, 1898)
After appointment and before
entering upon the discharge of the duties of his office, the Commissioner
shall take and subscribe to an official oath.
(Added to NRS by 1971, 966; A 1975, 351; 1983, 1722; 1987, 1898)
The Division of Financial Institutions must
be furnished with suitable offices for the performance of its duties.
(Added to NRS by 1971, 966; A 1983, 1722)
1. The Commissioner may appoint deputy commissioners of financial
institutions, examiners, assistants, clerks, stenographers and other
employees necessary to assist him in the performance of his duties
pursuant to this title, title 56 of NRS or any other law. These employees
shall perform such duties as are assigned to them by the Commissioner.
2. The Commissioner shall employ a certified public accountant to
review and conduct independent audits and examinations of financial
institutions. The Commissioner shall levy an assessment upon each
licensed financial institution to cover all of the costs related to the
employment of the certified public accountant and the performance of the
audits and examinations.
3. Assessments collected by the Commissioner pursuant to
subsection 2 must be deposited in the State Treasury for credit to the
Account for Auditing Financial Institutions, which is hereby created in
the State General Fund. The Commissioner shall use the money in the
Account, and may advance money from the Account, for the purposes
specified in subsection 2.
(Added to NRS by 1971, 966; A 1983, 1722; 1985, 447; 1987, 826,
1898; 1989, 919; 1991, 1806)
Every deputy
commissioner of financial institutions shall, before entering upon the
discharge of his duties, take and subscribe to the constitutional oath of
office.
(Added to NRS by 1971, 966; A 1983, 1722; 1987, 1898)
The
State Board of Finance shall act in an advisory capacity to the Division
of Financial Institutions in the administration of the provisions of this
title and perform such other functions as are required by those
provisions.
(Added to NRS by 1971, 966; A 1983, 1722)
1. Except as otherwise provided by law, any money appropriated to
the Commissioner or the Division of Financial Institutions and any money
collected by the Commissioner or Division pursuant to law:
(a) Must be deposited in the State Treasury and accounted for
separately in the State General Fund; and
(b) May only be used to:
(1) Carry out the programs and laws administered by the
Commissioner and the Division; and
(2) Pay the expenses related to the operations of the
Commissioner and the Division.
2. Except as otherwise provided by law, any money that remains in
the account at the end of the fiscal year does not revert to the State
General Fund, and the balance of the account must be carried forward to
the next fiscal year.
3. The Commissioner shall administer the account. Any interest or
income earned on the money in the account must be credited to the
account, after deducting any applicable charges. Any claims against the
account must be paid as other claims against the State are paid.
(Added to NRS by 2003, 3225 )
1. The Commissioner shall charge and collect the following fees in
connection with his official duties:
(a) For licensing of state banks:
(1) A fee of not more than $400 for each parent bank,
payable on June 30 of each year.
(2) A fee of not more than $200 for each branch bank or
trust office, payable on June 30 of each year.
Ę The fees must accompany the application for renewal of the license. A
penalty of 10 percent of the fee must be charged for each month or part
of a month that the fees are not paid after June 30 of each year.
(b) For applications for new branch banks or trust offices, a
nonrefundable fee of not more than $400 for the application and survey,
to be paid by the applicant at the time of making the application. The
applicant must 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 for Financial Institutions created by NRS 232.545
.
(c) For examinations and the examination of trust departments of
state banks or trust offices, a fee for conducting the examination and
for preparing and typing the report of the examination at the rate
established pursuant to NRS 658.101 .
2. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
3. Except as otherwise provided in paragraph (b) of subsection 1,
all money collected pursuant to this section must be deposited in the
State Treasury pursuant to the provisions of NRS 658.091 .
4. As used in this section, “trust office” has the meaning
ascribed to it in subsection 4 of NRS 662.239 .
(Added to NRS by 1971, 967; A 1979, 955; 1981, 754; 1983, 1315,
1722; 1987, 1898, 2223; 1989, 2032; 1991, 1806; 1999, 839 ; 2003, 3226 ; 2005, 1842 )
1. On a quarterly or other regular basis, the Commissioner shall
collect an assessment pursuant to this section from each:
(a) Check-cashing service or deferred deposit loan service that is
supervised pursuant to chapter 604A of NRS;
(b) Collection agency that is supervised pursuant to chapter 649
of NRS;
(c) Bank that is supervised pursuant to chapters 657 to 668 , inclusive, of
NRS;
(d) Trust company that is supervised pursuant to chapter 669 of NRS;
(e) Development corporation that is supervised pursuant to chapter
670 of NRS;
(f) Corporation for economic revitalization and diversification
that is supervised pursuant to chapter 670A
of NRS;
(g) Person engaged in the business of selling or issuing checks or
of receiving for transmission or transmitting money or credits that is
supervised pursuant to chapter 671 of NRS;
(h) Savings and loan association that is supervised pursuant to
chapter 673 of NRS;
(i) Person engaged in the business of lending that is supervised
pursuant to chapter 675 of NRS;
(j) Person engaged in the business of debt adjusting that is
supervised pursuant to chapter 676 of NRS;
(k) Thrift company that is supervised pursuant to chapter 677
of NRS; and
(l) Credit union that is supervised pursuant to chapter 678 of NRS.
2. The Commissioner shall determine the total amount of all
assessments to be collected from the entities identified in subsection 1,
but that amount must not exceed the amount necessary to recover the cost
of legal services provided by the Attorney General to the Commissioner
and to the Division of Financial Institutions. The total amount of all
assessments collected must be reduced by any amounts collected by the
Commissioner from an entity for the recovery of the costs of legal
services provided by the Attorney General in a specific case.
3. The Commissioner shall collect from each entity identified in
subsection 1 an assessment that is based on:
(a) A portion of the total amount of all assessments as determined
pursuant to subsection 2, such that the assessment collected from an
entity identified in subsection 1 shall bear the same relation to the
total amount of all assessments as the total assets of that entity bear
to the total of all assets of all entities identified in subsection 1; or
(b) Any other reasonable basis adopted by the Commissioner.
4. The assessment required by this section is in addition to any
other assessment, fee or cost required by law to be paid by an entity
identified in subsection 1.
5. Money collected by the Commissioner pursuant to this section
must be deposited in the State Treasury pursuant to the provisions of NRS
658.091 .
(Added to NRS by 2003, 3225 ; A 2003, 20th Special Session, 261 ; 2005, 1712 )
1. The Commissioner shall establish by regulation rates to be paid
by banks and other financial institutions for supervision and
examinations by the Commissioner or the Division of Financial
Institutions.
2. In establishing a rate pursuant to subsection 1, the
Commissioner shall consider:
(a) The complexity of the various examinations to which the rate
applies;
(b) The skill required to conduct the examinations;
(c) The expenses associated with conducting the examination and
preparing a report; and
(d) Any other factors the Commissioner deems relevant.
(Added to NRS by 1987, 2222)
In addition to the other
powers conferred upon him by this title, the Commissioner:
1. Is charged with the enforcement of the provisions of this
title, subject to administrative supervision by the Director of the
Department of Business and Industry;
2. May make and publish regulations for the governing of banks
doing business under the provisions of this title; and
3. May require banks to furnish him with an audited financial
statement prepared by an independent certified public accountant licensed
to do business in Nevada.
(Added to NRS by 1971, 967; A 1983, 1723; 1987, 1899; 1989, 2032;
1993, 1894)
1. The Commissioner shall make summary orders in writing as
provided in subsections 2 to 5, inclusive.
2. If a bank, a member of its board of directors or any manager,
officer, employee, member or stockholder violates the articles of
incorporation or organization of the bank or any law related to banking,
or, in the opinion of the Commissioner, is conducting its business in an
unauthorized or unsafe manner, the Commissioner shall forthwith issue an
order, in writing, directing the discontinuance of the unauthorized or
unsafe practices.
3. If it appears to the Commissioner that the stockholders’ or
members’ equity of any bank has been reduced below the requirements of
law, or that the articles of incorporation of the bank have been
unlawfully amended to reduce the authorized stock of the bank in
violation of NRS 661.035 , he shall
forthwith issue an order directing the bank to make good the deficiency
forthwith or within a time specified in the order.
4. If it appears to the Commissioner that the total reserves or
reserves on hand of any bank are below the amount required by law to be
maintained, or that a bank is not keeping its reserves on hand as
required by this title, he shall forthwith issue an order directing the
bank to make good its reserves forthwith, or within the time specified
within the order, or that it keep its reserves on hand as required by
this title.
5. If it appears to the Commissioner that any bank to which this
title is applicable does not keep its books or accounts in such a manner
as to enable the Commissioner readily to ascertain its true condition, he
shall issue an order requiring the bank, or the officers or managers
thereof, or any of them, to open and keep its books or accounts as he
may, in his discretion, determine and prescribe for the purpose of
keeping accurate and convenient records of the transactions and accounts
of the bank.
(Added to NRS by 1971, 967; A 1983, 1723; 1985, 737; 1987, 1899;
1995, 473; 1997, 975)
Any bank aggrieved
by any decision or order issued by the Commissioner or any member of his
staff must appeal to the State Board of Finance if a review of the
decision or order is desired. The appeal must be made within 15 days
after the decision or order is issued.
(Added to NRS by 1971, 968; A 1983, 1724; 1985, 738; 1987, 1900)
All
licenses, orders and certificates issued by the Commissioner must be
attested by the seal of the Division of Financial Institutions and by the
signature of the Commissioner.
(Added to NRS by 1971, 968; A 1983, 1724; 1987, 1900)
1. The Commissioner may offer, under such conditions as he may
deem proper, rewards not to exceed the sum of $500 in any one case for
the arrest and conviction of any officer, director, agent or employee of
any bank charged with violating any of the laws of this State relating to
banks and banking for which a criminal penalty is provided, or for the
arrest and conviction of any person charged with stealing, with or
without force, any money, property or thing of value of any bank.
2. The Commissioner shall pay out of the money deposited to the
State Treasury pursuant to the provisions of NRS 658.091 all such rewards.
(Added to NRS by 1971, 968; A 1983, 1724; 1987, 1900; 2003, 3227
)
1. The Commissioner may forthwith take possession of the business
and property of any depository institution to which this title or title
56 of NRS applies when it appears that the depository institution:
(a) Has violated its charter or any laws applicable thereto.
(b) Is conducting its business in an unauthorized or unsafe manner.
(c) Is in an unsafe or unsound condition to transact its business.
(d) Has an impairment of its stockholders’ or members’ equity.
(e) Has refused to pay its depositors in accordance with the terms
on which such deposits were received, or has refused to pay its holders
of certificates of indebtedness or investment in accordance with the
terms upon which those certificates of indebtedness or investment were
sold.
(f) Has become otherwise insolvent.
(g) Has neglected or refused to comply with the terms of a lawful
order of the Commissioner.
(h) Has refused, upon proper demand, to submit its records, affairs
and concerns for inspection and examination of an appointed or authorized
examiner of the Commissioner.
(i) Has made a voluntary assignment of its assets to trustees.
(j) Has failed to pay a tax as required pursuant to the provisions
of chapter 363A of NRS.
2. The Commissioner also may forthwith take possession of the
business and property of any depository institution to which this title
or title 56 of NRS applies when it appears that the officers of the
depository institution have refused to be examined upon oath regarding
its affairs.
(Added to NRS by 1971, 1001; A 1983, 1754; 1985, 2155; 1987, 1900;
1997, 975; 2003, 20th Special Session, 225 )
Any member of the State Board of Finance, the Commissioner or any member
of his staff, who willfully neglects to perform any duty required by this
title, or who knowingly makes any false statement concerning any bank, or
any injurious statement concerning any bank, except in the exercise of
his duty, or who is guilty of malfeasance or corruption in office, is
guilty of a category D felony and shall be punished as provided in NRS
193.130 .
(Added to NRS by 1971, 968; A 1979, 1491; 1983, 1724; 1987, 1901;
1995, 1315)
1. Except as otherwise provided in subsections 3 and 4, an officer
or employee of the Division of Financial Institutions shall not be
directly or indirectly interested in or act on behalf of any bank
chartered by this State, receive, directly or indirectly, any payment
from any such bank, be indebted to any state bank, engage in the
negotiation of loans for others with any such bank or obtain credit or
services from a state bank conditioned upon a fraudulent practice or
undue or unfair preference over other customers.
2. An employee of the Division of Financial Institutions in the
unclassified service of the State shall not obtain new extensions of
credit from a state bank while in office.
3. Any officer or employee of the Division of Financial
Institutions may be indebted to a bank on the same terms as are available
to the public generally upon:
(a) A mortgage loan upon his 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 deposits with banks 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 appointment or
employment, or obtains it during his employment, he shall terminate it
within 120 days after the date of his appointment or employment or the
discovery of the prohibited act.
(Added to NRS by 1971, 968; A 1975, 934; 1977, 1114; 1983, 1725;
1997, 1623)
Notwithstanding any other provisions of this title, the State
Board of Finance, in the exercise of its authority to review the action
of the Commissioner, is bound by the requirements, conditions and
limitations imposed by this title on the Commissioner as to the
certification of new banks or the establishment of branch banks.
(Added to NRS by 1971, 969; A 1983, 1725; 1987, 1901)
In addition to the
express powers, duties and functions given to the Commissioner by this
title, the Commissioner has such other powers and rights as may be
necessary or incident to the proper discharge of his duties.
(Added to NRS by 1971, 969; A 1983, 1725; 1987, 1901)
1. The Commissioner may sue and prosecute or defend in any action
or proceeding in any court of this State or any other state and in any
court of the United States for the enforcement or protection of any right
or pursuit of any remedy necessary or proper in connection with the
subjects committed to him for administration or in connection with any
bank or the rights, liabilities, property or assets thereof, under his
supervision.
2. The Commissioner is not liable to be sued except as other
departments and agencies of the State may be liable under the general law.
(Added to NRS by 1971, 969; A 1983, 1726; 1987, 1901)
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