1. One or more persons who desire to form a bank and engage in the
business of establishing, maintaining and operating banks of discount and
deposit, savings, time and demand deposits, or in the business of
establishing, maintaining and operating offices of loan and deposits, or
to operate a bank doing a trust and fiduciary business, must organize as
a banking corporation or company in the manner provided in this title.
2. An existing corporation, including, but not limited to, a
corporation licensed to engage in business pursuant to chapter 677 of NRS, or a limited-liability company that desires
to form a bank and engage in the activities described in subsection 1
must:
(a) Dissolve and reorganize as a banking corporation or company in
the manner provided in this title; or
(b) Amend its articles of incorporation or organization in such a
manner that it is organized as a banking corporation or company in the
manner provided in this title.
(Added to NRS by 1971, 969; A 1995, 474; 1997, 976)
The articles of incorporation or organization must, in addition to the
requirements prescribed in chapters 78 and 86
of NRS, set forth the nature of the business
of the corporation or limited-liability company.
(Added to NRS by 1971, 969; A 1995, 474; 1997, 976)
1. If the proposed bank is not an existing corporation or
limited-liability company, the articles of incorporation or organization
for the proposed bank must be delivered to the Secretary of State for
filing.
2. If the proposed bank is an existing corporation or
limited-liability company, a certificate of amendment of the articles of
incorporation or organization must be delivered to the Secretary of State
for filing.
3. The Secretary of State shall forthwith transmit to the
Commissioner a copy of the articles or certificate of amendment and shall
not file the articles or certificate of amendment until authorized to do
so by the Commissioner.
(Added to NRS by 1971, 969; A 1983, 1726; 1985, 1223; 1987, 1901;
1995, 475; 1997, 976)
1. Upon receipt of a copy of the articles of incorporation or
organization or the certificate of amendment of the articles of
incorporation or organization of the proposed bank, the Commissioner
shall at once examine all of the facts connected with the formation of
the proposed banking corporation or company, including its location and
proposed stockholders or members. If it appears that the bank, if formed,
will be lawfully entitled to commence the business of banking, the
Commissioner shall so certify to the Secretary of State, unless upon
examination and investigation he finds that:
(a) The proposed bank is formed for any other than legitimate
banking business;
(b) The character, general fitness and responsibility of the
persons proposed as stockholders, directors, officers, members or
managers of the bank are not such as to command the confidence of the
community in which the bank is proposed to be located;
(c) The probable volume of business and reasonable public demand in
such community is not sufficient to assure and maintain the solvency of
the new bank and of the bank or banks existing in the community at that
time;
(d) The name of the proposed banking corporation or company does
not comply with the provisions of NRS 657.200 .
2. The Commissioner shall not make the certification to the
Secretary of State until he has ascertained that the establishment of the
bank will meet the needs and promote the convenience of the community to
be served by the bank.
3. A nonrefundable fee of not more than $6,000 for the application
and survey must be submitted to the Commissioner upon filing the articles
or certificate of amendment with the Secretary of State. The proposed
banking corporation or company 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
section must be placed in the Investigative Account created by NRS
232.545 .
4. The Commissioner shall adopt regulations establishing the
amount of the application fee required pursuant to this section.
(Added to NRS by 1971, 970; A 1983, 1316, 1726; 1987, 1902; 1991,
1806; 1995, 475; 1997, 977; 2005, 1843 )
Each bank 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, 826)
Any person
aggrieved by any decision of the Commissioner made under NRS 659.045
may appeal to the State Board of
Finance if a review of the decision is desired. The appeal must be made
within 15 days after the Commissioner makes his decision. If an appeal is
taken, the State Board of Finance shall conduct a full hearing.
(Added to NRS by 1971, 970; A 1977, 95; 1983, 1727; 1985, 738;
1987, 1902)
1. Upon receipt of the certification from the Commissioner, the
Secretary of State shall, if the articles of incorporation or
organization are, or the certificate of amendment of the articles of
incorporation or organization is, in accordance with law, file the
articles or the certificate of amendment and cause the articles or
certificate of amendment to be recorded in his office. The Secretary of
State shall, upon the payment of the organization fees, certify under his
official seal a copy of the original or amended articles. The certified
copy of the original or amended articles must be filed in the Office of
the Commissioner.
2. Upon completion of the requirements of subsection 1, the
banking corporation or company is legally constituted under the name
stated in the articles.
3. The articles, or a copy thereof, certified by the Secretary of
State or the Commissioner, under their respective seals, are admissible
as evidence in all courts and places, and are, in all judicial
proceedings, prima facie evidence of the complete organization and
incorporation of the banking corporation purporting to have been
established by the articles.
4. The articles of a bank become void if the bank fails to
complete its organization and open for business to the public within 6
months after the date of the filing of its articles or a certificate of
amendment of its articles by the Secretary of State. The Commissioner may
extend this limitation for good cause.
(Added to NRS by 1971, 970; A 1983, 1727; 1987, 1902; 1995, 475;
1997, 977)
1. Subject to subsection 2, the initial stockholders’ or members’
equity of a bank must be fully paid in, in cash, before it is authorized
by the Commissioner to commence business. The full payment in cash must
be certified to the Commissioner under oath by the president or manager
of the bank.
2. Except for any commission or fee not otherwise prohibited by
this subsection, the stock sold by or contributions to any bank in the
process of organization must be accounted for to the bank in the full
amount paid. No commission or fee may be paid to any person, association
or corporation for selling the stock of or soliciting contributions to
any bank in the process of organization. The Commissioner shall refuse
such a bank the authority to commence business if commissions or fees
have been paid, or have been contracted to be paid by the bank, or by
anyone in its behalf, to any person, association or corporation for
securing subscriptions for, or selling stock in, or procuring
contributions to, the bank.
(Added to NRS by 1971, 971; A 1983, 1727; 1987, 1903; 1991, 616;
1995, 476; 1997, 978)
Before the banking
corporation or company begins business, it shall file with the
Commissioner:
1. A statement, under oath by the president or a manager,
containing the names of all the directors, managers and officers, with
the date of their election or appointment, terms of office, residences
and post office address of each, the amount of stock of which each is the
owner in good faith and the amount of money paid in on account of the
stock, or the contribution made. Nothing may be received in payment of
stock or contribution except money.
2. Proof that the bank is a member of the Federal Deposit
Insurance Corporation.
(Added to NRS by 1971, 971; A 1983, 1728; 1987, 1903; 1995, 476;
1997, 978)
1. Upon filing of the statement and proof by the banking
corporation or company as required by NRS 659.085 , the Commissioner shall examine its affairs,
ascertain especially the amount of the initial stockholders’ or members’
equity, the name and place of residence of each director, the amount of
stock of which each is the owner in good faith or the amount of his
contribution, and whether the banking corporation or company has complied
with all the provisions of law required to entitle it to engage in
business.
2. If upon the examination the Commissioner finds that the banking
corporation or company is lawfully entitled to commence business, he
shall give to it a certificate signed by the Commissioner that it has
complied with all the provisions of law required before commencing
business and that it is authorized to commence business.
(Added to NRS by 1971, 971; A 1983, 1728; 1987, 1904; 1995, 477;
1997, 979)
No banking
corporation or company may transact any business except such as is
incidental and necessarily preliminary to its organization until it has
been authorized to do so by the Commissioner.
(Added to NRS by 1971, 972; A 1983, 1728; 1987, 1904; 1995, 477)
1. No person, except a bank maintaining an office in this State
and doing business under the laws of the United States, may solicit or
accept deposits in this State or otherwise engage in the banking business
in this State without first obtaining from the Commissioner, as provided
in this section, a license authorizing it, as a banking corporation or
company, to use the name and transact the business of a bank. The
transacting of any banking business without such authority is a gross
misdemeanor.
2. For the purposes of this section “solicits deposits” has the
meaning ascribed to it in NRS 80.016 .
(Added to NRS by 1971, 972; A 1983, 1728; 1987, 1904; 1989, 626;
1991, 372, 1317; 1995, 477)
1. A business entity may not be organized under the laws of this
State with the words “bank” or “banking” as part of its name except
corporations or limited-liability companies subject to regulation
pursuant to chapters 657 to 668 , inclusive, of NRS, or corporations under the
regulation of the Commissioner of Insurance. A corporate or company name
must not be amended to include the words “bank” or “banking” unless the
corporation or company is under such regulation.
2. Except as otherwise provided in subsections 3 and 4, a natural
person, association, firm or corporation domiciled within this State,
except a national bank or a banking corporation subject to regulation
pursuant to chapters 657 to 668 , inclusive, of NRS, or under the regulation of the
Commissioner of Insurance, may not advertise or put forth any sign as
bank, banking or banker or use the word “bank,” “banking” or “banker” as
part of its name and title.
3. A savings and loan association subject to the provisions of
chapter 673 of NRS may use the words “savings
bank” or “bank” as part of its name and title if the use of those words
is permitted by the Federal Home Loan Bank Board.
4. A thrift company subject to the provisions of chapter 677
of NRS may use the words “savings bank” as
part of its name if its deposits are federally insured.
5. Any person who violates any of the provisions of this section
shall be fined not more than $500 for each offense.
(Added to NRS by 1971, 972; A 1983, 1729; 1985, 315, 738; 1987,
1627; 1989, 1101; 1995, 477)
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