1. For the purpose of carrying into effect the provisions of this
title, the Commissioner shall provide the necessary forms for all
examinations and reports as required in this title.
2. All reports received by the Commissioner must be preserved in
his office.
(Added to NRS by 1971, 994; A 1983, 1743; 1987, 1920)
EXAMINATIONS
The
Commissioner shall make a thorough examination of and into the affairs of
every bank doing business under this title, as often as the Commissioner
may deem necessary, but at least once within each 18-month period. In
lieu thereof, the Commissioner may accept any or all of a report of an
examination of a bank made by a federal regulatory agency. If the
Commissioner accepts any part of such a report in one 18-month period, he
shall examine the bank to which the report pertains in the succeeding
18-month period.
(Added to NRS by 1971, 994; A 1979, 955; 1981, 706; 1983, 1744;
1987, 1920)
1. The results of the examinations and inquiries must be reduced
to a written report and signed by the Commissioner or his deputies.
2. The report must contain a true and detailed statement of the
condition of a bank, and must also contain:
(a) A full statement of any violation of any of the provisions of
this title.
(b) A description of and comment on all assets and liabilities
which in the opinion of the Commissioner may be subject to criticism.
(c) A classification of assets showing which are of doubtful
collectibility.
(Added to NRS by 1971, 994; A 1983, 1744; 1987, 1920)
Upon the preparation of the report as provided
in NRS 665.035 , the Commissioner shall
forthwith serve a copy thereof on the president or secretary of the board
of directors of the banking corporation or a manager of the banking
company, and may make copies available to each member of the board of
directors or each manager. If, in the judgment of the Commissioner, the
report discloses any violation of the provisions of this title on the
part of the bank, or if it appears from the report that there are certain
conditions existing which should be corrected by the bank, the
Commissioner may, in writing, call the matter to the attention of each
member of the board of directors, or each manager, with instructions to
correct the condition.
(Added to NRS by 1971, 994; A 1983, 1744; 1987, 1921; 1995, 489)
1. The report of examination made by an examiner of the Division
of Financial Institutions is designed for use in the supervision of the
bank. The bank’s copy of the report is the property of the Commissioner
and is furnished to the bank solely for its confidential use.
2. The bank’s directors or managers, in keeping with their
responsibilities both to depositors and to stockholders or members, shall
thoroughly review the report. Under no circumstances may the bank, or any
of its directors, managers, officers or employees disclose or make public
in any manner the report or any portion thereof. The report must not be
made available to other banking institutions in connection with proposed
transactions such as mergers and consolidations. The report must not be
made available to a clearing house association, but a bank may
voluntarily disclose information concerning its affairs to a clearing
house association where a disclosure is through reports prepared by the
bank or by others at the request of the bank.
(Added to NRS by 1971, 995; A 1983, 1745; 1987, 1921; 1995, 489)
If the Commissioner finds that it is in the
public interest and necessary to protect the depositors and other
customers of a depository institution he may:
1. Examine the books and records of the holding company which
controls that depository institution and require the holding company to
furnish such reports as he considers appropriate for the proper
supervision of the company’s subsidiaries which are depository
institutions; and
2. After notice and opportunity for hearing, require the holding
company to take any action he finds reasonable and necessary to protect
the interest of depositors, other customers and creditors of any
subsidiary depository institution, to maintain its solvency or to prevent
its failure.
(Added to NRS by 1985, 2148; A 1987, 1921)
In all civil
actions in the courts of this state wherein any of the records of the
Commissioner are involved as evidence or otherwise, a certified copy of
such a record signed and sealed by the Commissioner, is admissible in
evidence to the same effect as if produced in court at trial by the
proper custodian of the records.
(Added to NRS by 1971, 995; A 1983, 1746; 1987, 1922)
REPORTS
1. Every bank shall make at least four reports each year to the
Commissioner at the same times and substantially in the form of similar
reports required by the Comptroller of the Currency, the Federal Reserve
Bank or the Federal Deposit Insurance Corporation.
2. The bank shall make additional reports within 10 days after the
receipt of a request therefor from the Commissioner.
3. The reports must be prepared by the cashier or by any competent
person approved by the Commissioner and be verified by the oath or
affirmation of the president or vice president, or a manager, and the
cashier, the person by whom the reports were prepared, and by at least
three of the directors or two other managers.
4. Each report must:
(a) Exhibit in detail, and under the appropriate heads, the
resources and liabilities and a profit and loss account of the bank at
the close of business on any past day specified by the Commissioner.
(b) Be published in condensed form, according to the requirements
of the Commissioner, within 10 days after the report is made, in a
newspaper published in the county in which the bank is established, for
one insertion, at the expense of the bank. Such proof of publication must
be furnished within 5 days after the date of publication as may be
required by the Commissioner.
5. The Commissioner may call for special reports, which need not
be published, from any bank whenever, in his judgment, the reports are
necessary in order to gain complete knowledge of its condition.
(Added to NRS by 1971, 996; A 1983, 272, 1746; 1987, 1922; 1995,
489)
1. Every bank which fails to make and transmit or to publish any
report required under this title is subject to a penalty of $50 for each
day after the period mentioned in NRS 665.105 that it delays to make and transmit its report
or proof of publication.
2. Whenever any bank delays or refuses to pay the penalty imposed
in this section for a failure to make and transmit or to publish a
report, the Commissioner may maintain an action, in the name of the
State, against the delinquent bank for the recovery of such penalty. All
sums collected by such action must be paid into the State Permanent
School Fund.
(Added to NRS by 1971, 996; A 1983, 1747)
MISCELLANEOUS PROVISIONS
1. The examiners of financial institutions shall verify all
reports made to the Commissioner by the officers and directors of any
banking corporation, as required by this title or by the Commissioner.
2. The officers of every bank shall submit and surrender its
books, assets, papers and concerns to the examiners appointed by the
Commissioner, who shall retain the custody and possession of such books,
assets, papers and concerns for such length of time as may be required
for the purpose of making an examination as required by this title.
3. If any officer refuses to surrender such books, assets, papers
and concerns, or refuses to be examined under oath touching the affairs
of such bank, the Commissioner may forthwith take possession of the
property and business of the bank and liquidate its affairs in accordance
with the provisions of this title.
(Added to NRS by 1971, 996; A 1983, 1747; 1987, 1922)
The Commissioner shall receive and
place on file in his office all reports required by law and shall certify
all reports required to be published. The reports filed with or prepared
by the Division of Financial Institutions and other information obtained
from a depository institution are not public records and may not be
disclosed, except information concerning financial institutions which by
specific statute is made generally available to the public.
(Added to NRS by 1985, 2148; A 1987, 1922; 1995, 1552)
1. The records and information described in NRS 665.130 may be disclosed to:
(a) An agency of the Federal Government or of another state which
regulates the financial institution which is the subject of the records
or information;
(b) The Director of the Department of Business and Industry for his
confidential use;
(c) The State Board of Finance for its confidential use, if the
report or other information is necessary for the State Board of Finance
to perform its duties under this title;
(d) The Department of Taxation for its use in carrying out the
provisions of chapter 363A of NRS;
(e) An entity which insures or guarantees deposits;
(f) A public officer authorized to investigate criminal charges in
connection with the affairs of the depository institution;
(g) A person preparing a proposal for merging with or acquiring an
institution or holding company, but only after notice of the disclosure
has been given to the institution or holding company;
(h) Any person to whom the subject of the report has authorized the
disclosure;
(i) Any other person if the Commissioner determines, after notice
and opportunity for hearing, that disclosure is in the public interest
and outweighs any potential harm to the depository institution and its
stockholders, members, depositors and creditors; and
(j) Any court in a proceeding initiated by the Commissioner
concerning the financial institution.
2. All the reports made available pursuant to this section remain
the property of the Division of Financial Institutions, and no person,
agency or authority to whom the reports are made available, or any
officer, director or employee thereof, may disclose any of the reports or
any information contained therein, except in published statistical
material that does not disclose the affairs of any natural person or
corporation.
(Added to NRS by 1985, 2148; A 1987, 1923; 1993, 1895; 1995, 1552;
1997, 993; 2003, 20th Special Session, 225 )
In making the examinations required by this
title, the Commissioner and any appointed examiner may administer oaths
to examine any officer, director, manager, agent, employee, customer,
depositor, stockholder or member of the bank, or any other person
touching the affairs and business of the bank being examined. Any
examiner may summon in writing any officer, director, manager, agent,
employee, customer, depositor, stockholder or member, or any other person
who is a resident of this state, to appear before him and testify in
relation to the affairs and business of the bank.
(Added to NRS by 1971, 997; A 1983, 1747; 1987, 1923; 1995, 490;
1997, 994)
Each official communication
directed by the Commissioner or any examiner of financial institutions to
any bank, or to any officer or manager thereof, relating to an
examination or investigation conducted or made by the Commissioner or
containing suggestions or recommendations as to the conduct of the bank
must, if required by the authority directing it, be submitted by the
officer, manager or director receiving it to the executive committee, if
there is one, or board of directors or the other managers of the bank and
noted in the minutes of the meeting. The receipt and submission of the
notice to the executive committee, board of directors, or other managers
must be certified to the Commissioner, within such time as he may
require, by three members of the committee or board or two other managers.
(Added to NRS by 1971, 997; A 1983, 1748; 1987, 1924; 1995, 490)
1. If any assets of a bank are of a doubtful or disputed value,
the Commissioner may have an appraisal of such assets made. In making
such appraisal, the Commissioner shall designate one agent as an
appraiser; the bank shall designate one agent as an appraiser; and the
two chosen appraisers shall designate a third.
2. The selected appraisers shall make an appraisal of the assets
designated as doubtful or disputed, and file a written report of their
appraisal with the bank and with the Commissioner. In making such
appraisal, the appraisers shall determine the actual cash market value of
such assets. The appraisal, when made, must be accepted as the value of
such assets for the purpose of examination or for the purpose of
determining the actual cash market value of such assets.
3. The appraisers must not be interested in any way, either in the
bank or as an employee of the Commissioner, and all expenses of such
appraisal must be paid by the bank whose assets are appraised.
4. If any bank fails to appoint an appraiser within 10 days after
the date on which the Commissioner designates an appraiser pursuant to
subsection 1, the Commissioner may apply to the district court of the
county in which the bank is located for the appointment of such an
appraiser, and the court shall make the appointment for the bank.
(Added to NRS by 1971, 997; A 1983, 1748; 1987, 1924)
1. Every state bank shall retain its business records for such
periods as are or may be prescribed by or in accordance with the terms of
this section.
2. Each state bank shall retain permanently the minute books of
meetings of its stockholders and directors, any analogous formal
proceedings of its members or managers, its stock ledger and stock
certificate ledger or stubs, its general ledger, its investment ledger,
its copies of bank examination reports, and all records which the
Commissioner in accordance with this section requires to be retained
permanently.
3. All other bank records must be retained for such periods as the
Commissioner may in accordance with this section prescribe.
4. The Commissioner shall, from time to time, adopt regulations
classifying all records kept by state banks and prescribe the period for
which records in each class must be retained. The periods may be
permanent or for a lesser term of years. The Commissioner shall keep such
regulations current and shall review them at least once every 3 years. In
issuing and revising such regulations, the Commissioner shall consider:
(a) Actions at law and administrative proceedings in which the
production of bank records may be necessary or desirable.
(b) State and federal statutes of limitation applicable to such
actions or proceedings.
(c) The availability of information contained in bank records from
other sources.
(d) Such other matters as the Commissioner deems pertinent to
ensure that the regulations will require banks to retain their records
for as short a period as is commensurate with the interests of bank
customers and stockholders or members and of the people of this state in
having bank records available.
5. Any state bank may dispose of any record which has been
retained for the period prescribed by or in accordance with the terms of
this section for retention of records of its class, and thereafter is
under no duty to produce the record in any action or proceeding.
6. Any state bank may cause any or all records required to be kept
pursuant to this section to be reproduced by the microphotographic
process, optical disc imaging or any other equivalent technique designed
to ensure an accurate reproduction of the original. Any such reproduction
has the same effect as the original. Upon completion of such a
duplication, the original of any record may be destroyed.
7. To the extent that they are not in contravention of any law of
the United States, the provisions of this section apply to all banks
doing business in this state.
(Added to NRS by 1971, 997; A 1983, 1748; 1987, 1924; 1995, 136,
490, 497; 1997, 994)
The Commissioner may require the immediate removal from office of any
officer, director, manager or employee of any bank doing business under
this title who is found to be dishonest, incompetent or reckless in the
management of the affairs of the bank, or who persistently violates the
laws of this state or the lawful orders, instructions and regulations
issued by the Commissioner.
(Added to NRS by 1971, 998; A 1983, 1749; 1987, 1925; 1995, 491)
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