USA Statutes : nevada
Title : Title 55 - BANKS AND RELATED ORGANIZATIONS
Chapter : CHAPTER 657 - GENERAL PROVISIONS
As used in this title, unless the
context otherwise requires, the words and terms defined in NRS 657.016
to 657.085 , inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1971, 965; A 1985, 737, 2148; 1987, 1897; 1995,
1549; 1997, 974)
“Bank,” “commercial bank,” “banking
company” or “banking corporation” means a corporation or
limited-liability company that is chartered by this State, another state
or the United States and conducts the business of receiving money as
demand deposits or otherwise carries on a banking or banking and trust
business. The terms do not include a thrift company engaged in business
pursuant to chapter 677 of NRS.
(Added to NRS by 1971, 965; A 1985, 737; 1989, 2031; 1995, 473,
1549; 1997, 974)
“Commissioner” means the
Commissioner of Financial Institutions.
(Added to NRS by 1987, 1897)
“Demand deposits” means
all deposits the immediate withdrawal of which can be legally required
upon a proper written request for such payment.
(Added to NRS by 1971, 965)
“Depository
institution” means any bank, savings and loan association, savings bank,
thrift company, credit union or other institution, whether chartered by
this State, another state or the Federal Government, which:
1. Holds or receives deposits, savings or share accounts;
2. Issues certificates of deposit; or
3. Provides to its customers other depository accounts which are
subject to withdrawal by checks, drafts or other instruments or by
electronic means to effect payment to a third party.
(Added to NRS by 1985, 2147; A 1989, 2032; 1995, 1549)
“Division of Financial Institutions” means the Division of Financial
Institutions of the Department of Business and Industry.
(Added to NRS by 1983, 1721; A 1993, 1894)
“Insolvency” means one or more
of the following:
1. When a bank cannot meet its deposit liabilities as they become
due in the regular course of business.
2. When the actual cash market value of a bank’s assets is
insufficient to pay its liabilities to depositors and other creditors.
3. When a bank’s reserve falls under the amount required by this
title, and it fails to make good such reserve within 30 days after being
required to do so by the Commissioner.
4. When the undivided profits and surplus are inadequate to cover
losses of the bank and the stockholders’ or members’ equity of the bank
has been reduced below the requirements of law.
(Added to NRS by 1971, 965; A 1983, 1721; 1987, 1897; 1997, 974)
“Net earnings” means the
excess of the gross earnings of any bank over the expenses and losses
chargeable against such earnings.
(Added to NRS by 1971, 965)
“Nevada” when used to modify:
1. The word “bank” or the term “depository institution” means
organized under the laws of this State; and
2. The term “national bank” means having its headquarters within
this State.
(Added to NRS by 1995, 1549)
“Savings deposit” means a
deposit or account:
1. With respect to which the depository institution may require
the depositor to give written notice of withdrawal not less than 7 days
before a withdrawal, but from which the depositor may otherwise make
withdrawals without giving written notice; and
2. Which is not payable on a specific date or at the expiration of
a specified time after the date of deposit.
(Added to NRS by 1985, 737)
“Stockholders’ equity” or “members’ equity” means the capital, surplus
and retained earnings of a bank.
(Added to NRS by 1997, 974)
“Surplus” means a fund created
pursuant to the provisions of this title by a bank from payments by
stockholders or members or from the bank’s net earnings or undivided
profits which, to the amount specified and by any additions thereto set
apart and designated as such, is not available for the payment of
dividends and cannot be used for the payment of expenses or losses while
the bank has undivided profits.
(Added to NRS by 1971, 965; A 1995, 473)
“Time deposit” means a
deposit which:
1. The depositor does not have a right to withdraw for a period of
7 days or more after the date of deposit; and
2. Is payable at the expiration of a specified time not less than
7 days after the date of deposit.
(Added to NRS by 1971, 965; A 1985, 737)
The provisions of chapters 78 , 86 and 92A of NRS that are not in conflict with this title
are hereby adopted as a part of this title.
(Added to NRS by 1971, 966; A 1995, 473; 1997, 975)
MISCELLANEOUS
1. The powers, privileges, duties and restrictions conferred and
imposed upon any corporation, company, association or natural person,
existing and doing business under the laws of this State, are hereby
abridged, enlarged or modified, as each particular case may require, to
conform to the provisions of this title, notwithstanding anything to the
contrary in its respective articles of incorporation, articles of
organization or charter.
2. As used in this section, “doing business under the laws of this
State” does not include the lending of money to a person who is not a
resident of this State, whether or not the bank which extended the credit
or serviced the loan is located in this State.
(Added to NRS by 1971, 966; A 1989, 2032; 1995, 473)
1. A financial institution may impose and collect a fee or charge,
not to exceed an amount specified in or limited by specific statute, for
any service it provides to a customer, if the fee or charge is clearly
and conspicuously disclosed in writing to the customer before the
customer receives the service. A financial institution must provide a
customer with written notice of any increase in the fee or charge at
least 10 days before the increase becomes effective.
2. A fee or charge for the presentation for payment, on a single
business day, of multiple checks drawn by a customer on an account for
which there is an insufficient balance to pay all the checks, must be
determined as if the checks drawn in a single series or class were
presented:
(a) In the order the checks were written;
(b) From the lowest check number to the highest check number; or
(c) In order of ascending amounts, the check for the smallest sum
being presented first.
3. As used in this section, “financial institution” means an
institution licensed pursuant to the provisions of this title or title 56
or chapter 645B , 645E or 649 of NRS, or a
similar institution chartered or licensed pursuant to federal law.
(Added to NRS by 1989, 566; A 1999, 3809 )
1. As used in this section, unless the context otherwise requires:
(a) “Committee to review compliance” means one or more persons
assigned or engaged by a financial institution to test, review or
evaluate its conduct, transactions or potential transactions, policies or
procedures for the purpose of monitoring and improving or enforcing
compliance with state and federal statutes and regulations requiring
safe, sound and fair lending practices, including, without limitation,
acts concerning equal credit opportunity, fair housing, fair lending,
flood zone protection, housing and financial discrimination, truth in
lending and financial reporting to federal or state regulatory agencies.
(b) “Financial institution” means an institution licensed pursuant
to the provisions of this title or title 56 or chapter 645B or 645E of NRS, or a
similar institution chartered or licensed pursuant to federal law. The
term includes, without limitation, a holding company, affiliate or
subsidiary of such an institution.
2. Except as otherwise voluntarily authorized by the financial
institution:
(a) A document prepared for or created by a committee to review
compliance is confidential and privileged, and is not subject to
discovery or admissible in evidence in a civil action of this State, even
if it has been submitted to a governmental or regulatory agency of this
State, the United States or a foreign government.
(b) A member of a committee to review compliance or a person who
acted under the direction of the committee cannot be required to testify
in a civil action concerning the contents of a document described in
paragraph (a) or concerning the discussions or conclusions of, or the
actions taken by, the committee.
(Added to NRS by 1995, 1784; A 1999, 3809 )
1. Except as otherwise provided in subsection 2, a financial
institution shall not include in any loan agreement a provision that
allows the financial institution to recover, take, appropriate or
otherwise apply as a setoff against any debt or liability owing to the
financial institution under the loan agreement money from an account
unrelated to the loan agreement to the extent the money is exempt from
execution pursuant to paragraph (x) of subsection 1 of NRS 21.090 .
2. The provisions of subsection 1 do not apply to a provision in a
loan agreement that specifically authorizes automatic withdrawals from an
account.
3. The provisions of this section may not be varied by agreement
and the rights conferred by this section may not be waived. Any provision
included in an agreement that conflicts with this section is void.
4. As used in this section:
(a) “An account unrelated to the loan agreement” includes, without
limitation, an account pledged as security under the loan agreement,
unless the specific account pledged as security is conspicuously
described in the loan agreement.
(b) “Financial institution” means an institution licensed pursuant
to the provisions of this title or title 56 or chapter 645B , 645E or 649 of NRS, or a similar institution chartered or
licensed pursuant to federal law.
(Added to NRS by 2005, 382 )
FINANCIAL INSTITUTIONS
As used in NRS 657.150 to 657.210 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 657.160 and 657.170
have the meanings ascribed to them in
those sections.
(Added to NRS by 2005, 1841 )
“Financial
institution” means a depository institution or any other institution
regulated pursuant to this title. The term includes, without limitation,
a holding company, affiliate or subsidiary of such an institution.
(Added to NRS by 2005, 1841 )
“License” means any license,
certificate, registration, permit or similar type of authorization.
(Added to NRS by 2005, 1841 )
1. In addition to any other requirements set forth by specific
statute, each person who applies for a license to operate a financial
institution and each person who will serve as a director, officer,
manager or member acting in a managerial capacity for such a financial
institution must submit:
(a) Proof satisfactory to the Commissioner that the person:
(1) Has a good reputation for honesty, trustworthiness and
integrity and is competent to transact the business of the financial
institution in a manner which protects the interests of the general
public.
(2) Has not made a false statement of material fact on the
application.
(3) Has not committed any of the acts specified in
subsection 2.
(4) Has not had a license to operate a financial institution
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 fingerprints and written permission
authorizing the Division of Financial Institutions 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 operate a financial institution if the
person who applies for the license or any person who will serve as a
director, officer, manager or member acting in a managerial capacity for
the financial institution:
(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 to operate a financial
institution 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 to operate a financial institution.
(d) Has falsified any of the information submitted to the
Commissioner in support of the application for the license.
(Added to NRS by 2005, 1841 )
In addition to any other lawful reasons, the
Commissioner may suspend or revoke a license to operate a financial
institution if the person who holds the license or any person who serves
as a director, officer, manager or member acting in a managerial capacity
for the financial institution has engaged in any act that would be
grounds for denying a license pursuant to NRS 657.180 .
(Added to NRS by 2005, 1842 )
1. A financial institution must obtain the approval of the
Commissioner before using or changing a business name.
2. A financial institution shall not:
(a) Use any business name which is identical or similar to a
business name used by another financial institution 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, 1842 )
1. For the purpose of discovering violations of this title or of
securing information lawfully required under this title, the Commissioner
or his duly authorized representatives may at any time investigate the
business and examine the books, accounts, papers and records used therein
of:
(a) Any licensee;
(b) Any other person engaged in an activity for which a license is
required pursuant to the provisions of this title; and
(c) Any person whom the Commissioner has reasonable cause to
believe is violating or is about to violate any provision of this title,
whether or not the person claims to be within the authority or beyond the
scope of this title.
2. For the purpose of examination, the Commissioner or his
authorized representatives must have and be given free access to the
offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and
examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the
provisions of this title; or
(b) The subject matter of any audit, examination, investigation or
hearing.
(Added to NRS by 2005, 1842 )
