USA Statutes : nevada
Title : Title 55 - BANKS AND RELATED ORGANIZATIONS
Chapter : CHAPTER 666A - FOREIGN BANKS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 666A.020
to 666A.070 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1995, 1537)
“Agency” means an office or other
place of business of a foreign bank located in this state at which credit
balances are maintained incidental to or arising out of the exercise of
banking powers, checks are paid or money is loaned, but at which deposits
are not accepted from citizens or residents of the United States.
(Added to NRS by 1995, 1537)
“Branch” of a foreign bank means
an office or other place of business located in this state at which
deposits are received.
(Added to NRS by 1995, 1537)
“Federal” when used to modify the
word “agency” or “branch” or the term “representative office” means
licensed by the Comptroller of the Currency.
(Added to NRS by 1995, 1537)
“Foreign” means organized under
the law of a foreign country or a colony, dependency or possession of a
foreign country, or of Puerto Rico, Guam, American Samoa, the Virgin
Islands or a territory of the United States.
(Added to NRS by 1995, 1537)
“Representative
office” means an office of a foreign bank which is not a federal or state
branch or agency or a subsidiary of a foreign bank.
(Added to NRS by 1995, 1537)
“State” when used to modify the
word “agency” or “branch” or the term “representative office” means
licensed pursuant to the provisions of this chapter.
(Added to NRS by 1995, 1537)
LICENSING
1. Except as otherwise provided in subsection 2, a foreign bank
shall not transact business in this state except at a state branch or
agency for which it has been issued a license pursuant to this chapter.
2. A foreign bank:
(a) Which maintains a federal branch or agency in this state may
transact business authorized under federal law or regulation in that
branch or agency.
(b) Which does not maintain a state branch or agency may make loans
in this state secured by real property in this state.
(c) Organized under the law of a territory of the United States,
Puerto Rico, Guam, American Samoa or the Virgin Islands may operate an
interstate branch in this state as if it were a state bank.
3. Transaction of business by a subsidiary of a foreign bank does
not constitute transaction of business by the parent bank.
(Added to NRS by 1995, 1537)
1. A foreign bank which desires to obtain a license under this
chapter to establish and maintain a state branch or agency shall submit
an application to the Commissioner pursuant to NRS 666.315 . The application must contain:
(a) The same information as required by the Board of Governors of
the Federal Reserve System for an application to establish a branch or
agency, as the case may be, in the United States; and
(b) The information required pursuant to NRS 666.315 ,
Ê and must be accompanied by the fee required by that section.
2. A foreign bank which is licensed under this chapter to
establish and maintain a state branch or agency may not concurrently
maintain a federal branch or agency in this State. A foreign bank which
maintains a federal branch or agency in this State may not concurrently
be licensed under this chapter to maintain a state branch or agency.
3. 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 1995, 1538; A 2005, 1847 )
1. A foreign bank which is licensed to establish and maintain a
state branch or agency shall secure an amended license if it changes its
corporate name, changes the duration of its corporate existence or
desires to pursue in this state other or additional purposes than those
set forth in its previous application under this chapter for a license,
by making application therefor to the Commissioner.
2. The requirements with respect to the form and contents of an
application under subsection 1, the manner of its execution, the filing
of duplicate originals thereof with the Commissioner, the issuance of an
amended license and the effect thereof are the same as in the case of an
initial application for a license to establish and maintain a state
branch or agency.
(Added to NRS by 1995, 1543)
1. No foreign bank may establish or maintain a state
representative office unless the foreign bank is licensed by the
Commissioner to maintain a state representative office.
2. A foreign bank that maintains a federal agency or branch in
this state may establish or maintain one or more federal representative
offices in this state.
(Added to NRS by 1995, 1540)
1. The application for a license to establish and maintain a state
representative office must be made in writing under oath and be in such
form and contain such information as the Commissioner may require. The
application must be accompanied by a fee of not more than $400. A fee of
not more than $200 must be paid annually to renew the license.
2. The Commissioner shall require a foreign bank to include as
part of its application to establish and maintain a state representative
office an instrument irrevocably appointing the Commissioner and his
successors in office to be the foreign bank’s agent to receive service of
any lawful process in any proceeding against the foreign bank or any of
its successors which arises out of a transaction with its state
representative office, with the same force and validity as if served on
the foreign bank or its successor, as the case may be. The appointment
must be in such form and contain such information as the Commissioner may
require.
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 1995, 1540; A 2005, 1848 )
1. A foreign bank making an application for a license to establish
and maintain a state representative office must deliver to the
Commissioner two duplicate originals of the application.
2. The Commissioner shall issue a license to a foreign bank to
establish and maintain a state representative office if he finds that:
(a) The foreign bank is of good character and sound financial
standing;
(b) The management of the foreign bank and the proposed management
of the state representative office are adequate; and
(c) The convenience and needs of persons to be served by the
proposed state representative office will be advantageously served.
3. If the Commissioner determines to issue a license to a foreign
bank to establish and maintain a state representative office, he shall,
when all fees have been paid as required by this chapter, issue the
license.
4. Each license issued to a foreign bank to establish and maintain
a state representative office must state fully the name of the foreign
bank to which the license is issued, the address or addresses at which
the state representative office is to be located and such other
information as the Commissioner may require.
(Added to NRS by 1995, 1540)
1. Each foreign bank which is licensed to establish and maintain a
state branch, agency or representative office shall post its license in a
conspicuous place at such branch, agency or office.
2. A license issued by the Commissioner pursuant to this chapter
is not transferable or assignable.
(Added to NRS by 1995, 1541)
OPERATION
1. Except as otherwise provided in this chapter or in regulations
adopted by the Commissioner, a foreign bank operating at a state branch
or agency has the same rights, privileges and powers as a Nevada bank at
the same location, including the eligibility to exercise fiduciary
powers, and is subject to the same duties, restrictions, penalties,
liabilities, conditions and limitations that would apply under the laws
of this state to a Nevada bank doing business at the same location, but:
(a) A state branch may not accept from citizens or residents of the
United States deposits other than credit balances that are incidental to
or arise out of its exercise of other lawful banking powers, but it may
accept deposits from persons who are not citizens or residents of the
United States;
(b) A state agency may not accept any deposits from citizens or
residents of the United States other than credit balances that are
incidental to or arise out of its exercise of other lawful banking
powers, but it may accept deposits from persons who are not citizens or
residents of the United States; and
(c) A state branch or agency is not required to maintain federal
deposit insurance and the Commissioner may, by regulation or order,
exclude or exempt uninsured state branches or agencies from, or otherwise
modify the applicability to uninsured state branches or agencies of, any
law or regulation of this state that is generally applicable to insured
Nevada banks, or that would otherwise be applicable to an insured Nevada
bank doing business at the same location, taking into account applicable
limitations on the privileges of state branches and agencies and on their
power to take retail deposits.
2. Any limitation or restriction based on the stockholders’ or
members’ equity of a Nevada bank shall be deemed to refer, as applied to
a state branch or agency, to the dollar equivalent of the stockholders’
or members’ equity of the foreign bank, and if the foreign bank has more
than one state branch or agency in this state, the business transacted by
all the state branches and agencies must be aggregated in determining
compliance with the limitation.
3. The Commissioner may adopt such additional, or modify the
applicability of any existing, standards, conditions or requirements, by
regulation, as he deems necessary to ensure the safety and soundness and
the protection of creditors of the operations of branches and agencies of
foreign banks in this state.
(Added to NRS by 1995, 1538; A 1997, 1003)
1. No foreign bank which is licensed to establish and maintain a
state branch or agency may engage in fiduciary activities at that office
unless the foreign bank first obtains a certificate of authority from the
Commissioner to engage in fiduciary activities there.
2. An application to obtain a certificate of authority to engage
in fiduciary activities must be in such form and contain such information
as the Commissioner may require and must be accompanied by a fee of not
more than $1,000. The Commissioner shall issue a certificate of authority
to engage in fiduciary activities to a foreign bank making an application
under this section if he finds that the foreign bank will exercise
fiduciary powers in accordance with the laws and regulations of this
State.
3. A foreign bank which holds a certificate of authority issued
pursuant to this section may engage at its state branch or agency in
fiduciary activities to the same extent and in the same manner as if the
foreign bank were a Nevada bank.
4. A foreign bank which holds a certificate of authority issued
pursuant to this section shall file reports and be subject to examination
and supervision to the same extent and in the same manner as if the
foreign bank were a Nevada bank.
5. The Commissioner may suspend or revoke a certificate to engage
in fiduciary activities issued pursuant to this section if he finds that:
(a) Conditions exist which would authorize him to revoke or suspend
the foreign bank’s license to establish and maintain a state branch or
agency; or
(b) Any fact or condition exists which, if it had existed at the
time of the foreign bank’s original application to obtain a certificate
of authority to engage in fiduciary activities, would have resulted in
his refusing to issue the certificate of authority.
6. The Commissioner shall adopt regulations establishing the
amount of the application fee required pursuant to this section.
(Added to NRS by 1995, 1539; A 2005, 1848 )
1. A state branch of a foreign bank licensed under this chapter
may receive deposits and renew time deposits, and a state branch or
agency of such a bank may close loans, service loans and receive payments
on loans and other obligations, as an agent for any depository
institution affiliated with the foreign bank, including branches,
agencies and other offices of the same foreign bank located in other
states, generally in accordance with the same terms, conditions,
procedures and requirements that are applicable under the laws and
regulations of this state to such activities as an agent which may be
conducted by Nevada banks.
2. A state branch or agency of a foreign bank acting in this state
as an agent in accordance with the provisions of this section must not be
considered a branch of the affiliated depository institution, but no
state branch or agency may act as agent for a branch or agency of an
affiliated foreign bank other than the foreign bank which has been
licensed to transact business in this state pursuant to this chapter.
3. A state branch or agency of a foreign bank licensed under this
chapter may not:
(a) Conduct any activity as an agent under this section which that
office is prohibited from conducting as a principal under any applicable
federal or state law, including the acceptance of impermissible deposits;
or
(b) As a principal, have an agent conduct any activity under this
section which that office is prohibited from conducting under any
applicable federal or state law, including the acceptance of
impermissible deposits.
4. A state branch or agency of a foreign bank licensed under this
chapter may act as an agent for a depository institution affiliated with
the foreign bank only on terms that are consistent with safe and sound
banking practices and all applicable regulations of the Commissioner.
5. A state branch may receive deposits or renew time deposits, and
a state branch or agency may close loans, service loans or receive
payments on loans and other obligations, as an agent for persons other
than those for whom such agency activities are specifically authorized by
this section, if the Commissioner so authorizes by regulation.
(Added to NRS by 1995, 1539)
A foreign bank which is licensed to
establish and maintain a state branch or agency shall have and
continuously maintain in this state:
1. A registered office which may be, but need not be, the same as
its place of business in this state; and
2. A registered agent, who may be a natural person who resides in
this state and maintains a business office at the registered office or a
corporation authorized to transact business in this state which maintains
a business office at the registered office.
(Added to NRS by 1995, 1541)
1. A foreign bank which is licensed to establish and maintain a
state branch or agency may from time to time change the address of its
registered office, and shall change its registered agent if:
(a) The registered agent ceases to act for any reason;
(b) The registered agent becomes disqualified or incapacitated to
act; or
(c) It revokes the appointment of its registered agent.
2. Any change of registered office or registered agent under this
section may be effected by filing within 10 business days after the
change two duplicate originals of a statement setting forth the details
with respect to the change and the effective date thereof, in such form
and containing such information as the Commissioner may require.
(Added to NRS by 1995, 1542)
If the articles of incorporation of a foreign bank which
is licensed to maintain a state branch or agency are amended, the foreign
bank shall forthwith file in the Office of the Commissioner a copy of the
amendment authenticated by the proper officer of the country of the
foreign bank’s organization, but the filing thereof does not of itself
enlarge or alter the purpose or purposes which the foreign bank is
authorized to pursue in the transaction of its business in this state,
nor authorize the foreign bank to transact business in this state under
any name other than the name set forth in its license, nor extend the
duration of its corporate existence.
(Added to NRS by 1995, 1542)
1. Each foreign bank which is licensed to establish and maintain a
state branch or agency in this state shall keep the assets of its
business in this state separate from the assets of its business outside
this state.
2. The creditors of the business in this state conducted by a
foreign bank at and recorded on the books of its state branch or agency
are entitled to absolute priority over other creditors with respect to
the assets of the foreign bank’s offices in this state.
(Added to NRS by 1995, 1544)
Each foreign bank which is
licensed to establish and maintain a state branch or agency shall, in a
manner established by the Commissioner, give notice that deposits and
credit balances in that office are not insured by the Federal Deposit
Insurance Corporation.
(Added to NRS by 1995, 1544)
A foreign bank which is licensed to establish and
maintain a state branch or agency is subject to the same limitations with
respect to the payment of interest on deposits as a state bank which is a
member of the Federal Reserve System.
(Added to NRS by 1995, 1544)
1. Each foreign bank which is licensed to establish and maintain a
state branch or agency shall keep on deposit, in accordance with such
regulations as the Commissioner may adopt, with unaffiliated Nevada banks
which the foreign bank designates and the Commissioner approves,
interest-bearing bonds, notes, debentures or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed by
the United States, or of this state, or of a city, county, town, school
district, or instrumentality of this state or guaranteed by this state,
or dollar deposits, or obligations of the International Bank for
Reconstruction and Development, or obligations issued by the
Inter-American Development Bank, or obligations of the Asian Development
Bank, or obligations issued by the African Development Bank, or such
other assets as the Commissioner by regulation permits, to an aggregate
amount to be determined by the Commissioner, based upon principal amount
or market value, whichever is lower, in the case of the above-described
securities, and subject to such limitations as he prescribes.
2. The Commissioner may from time to time require that the assets
deposited pursuant to this section be maintained by the foreign bank in
such amount, in such form and subject to such conditions as he deems
necessary or desirable for the maintenance of a sound financial
condition, the protection of depositors and the public interest, and to
maintain public confidence in the business of the state branch or agency.
The Commissioner may give credit to reserves required to be maintained
with a federal reserve bank in or outside this state pursuant to federal
law, in accordance with such regulations as he may adopt.
3. So long as it continues business in the ordinary course, a
foreign bank is entitled to collect interest on securities deposited
pursuant to this section and from time to time exchange, examine and
compare the securities.
(Added to NRS by 1995, 1545)
1. Each foreign bank which is licensed to establish and maintain a
state branch or agency shall hold in this state currency, bonds, notes,
debentures, drafts, bills of exchange or other evidence of indebtedness,
including loan participation agreements or certificates, or other
obligations payable in the United States or in United States money or,
with the prior approval of the Commissioner, in money freely convertible
into United States money, or such other assets as the Commissioner by
regulation permits, in an amount which bears such relationship as the
Commissioner prescribes to liabilities of the foreign bank payable at or
through its state branch or agency, including acceptances, but excluding
amounts due and other liabilities to other offices, agencies or branches
of, and wholly owned, except for a nominal number of directors’ shares,
subsidiaries of, the foreign bank and such other liabilities as the
Commissioner determines.
2. For the purposes of this section, the Commissioner shall value
marketable securities at principal amount or market value, whichever is
lower, may determine the value of any nonmarketable bond, note,
debenture, draft, bill of exchange, other evidence of indebtedness,
including agreements for or certificates of participation in loans, or of
any other asset or obligation held or owed to the foreign bank or its
state branch or agency in this state, and in determining the amount of
assets for the purpose of computing the ratio of assets to liabilities,
may by regulation exclude in whole or in part any particular asset.
3. If, by reason of the existence or the potential occurrence of
unusual and extraordinary circumstances, the Commissioner deems it
necessary or desirable for the maintenance of a sound financial
condition, the protection of depositors, creditors and the public
interest, and to maintain public confidence in the business of a state
branch or agency, he may, subject to such terms and conditions as he may
prescribe, require a foreign bank to deposit the assets required to be
held in this state pursuant to this section with such Nevada banks or
credit unions as he may designate.
4. The assets held to satisfy the relationship of assets to
liabilities prescribed by the Commissioner pursuant to this section may
include obligations of any person for money borrowed from a foreign bank
holding a license to establish and maintain a state branch or agency only
to the extent that the total of such obligations of any person are not
more than 10 percent of the assets considered for purposes of this
section.
(Added to NRS by 1995, 1545; A 1999, 1543 )
1. Except as otherwise provided in subsection 2, a foreign bank
which is licensed to establish and maintain a state branch shall at all
times maintain a reserve against the deposits of the state branch as may
from time to time be required to be maintained, pursuant to regulations
issued by the Board of Governors of the Federal Reserve System, by a
Nevada bank which is a member of the Federal Reserve System. The reserve
must be maintained with a Nevada bank or national bank which the foreign
bank designates and the commissioner approves.
2. A foreign bank which is required to maintain reserves pursuant
to the authority granted the Board of Governors of the Federal Reserve
System in section 7(a)(1)(B) of the federal International Banking Act (12
U.S.C. § 3105(a)(1)(b)) is exempt from the requirements of this section.
(Added to NRS by 1995, 1546)
1. A foreign bank which is licensed to establish and maintain a
state representative office may, subject to such regulations as the
Commissioner may prescribe:
(a) Solicit loans and in connection therewith assemble information
concerning credit, inspect and appraise property, secure information on
titles, prepare applications for loans and make recommendations with
respect to action thereon, solicit investors to purchase loans from the
foreign bank and search for investors to contract with the foreign bank
for servicing of loans;
(b) Solicit new business;
(c) Conduct research; and
(d) Perform administrative functions.
Ê Any other activity, except as provided in subsection 2, which the
foreign bank seeks to conduct at the office is subject to the prior
written approval of the Commissioner.
2. A state representative office may approve credit if the foreign
bank:
(a) Gives 45 days’ prior written notice to the Commissioner; and
(b) The Commissioner does not object within the 45-day period to
that activity by the state representative office.
(Added to NRS by 1995, 1541)
Each foreign bank which is licensed to establish and maintain a state
branch, agency or representative office shall make, keep and preserve at
the office all such books, accounts and other records relating to the
business of the office in such form, in such manner and for such time as
the Commissioner may provide.
(Added to NRS by 1995, 1544)
A
foreign bank which is licensed to establish and maintain a state branch,
agency or representative office shall file with the Commissioner a
notice, in such form and containing such information as the Commissioner
may prescribe, no later than 14 calendar days after the foreign bank
becomes aware of any acquisition of control of the foreign bank or merges
with another foreign bank.
(Added to NRS by 1995, 1543)
1. No foreign bank which is licensed to establish and maintain a
state branch, agency or representative office may relocate the office
unless the Commissioner first approves the relocation and issues an
amended license authorizing the foreign bank to maintain the office at
the new site.
2. An application by a foreign bank under this section must be in
such form and contain such information as the Commissioner requires.
3. If an application made by a foreign bank pursuant to this
section is approved and all conditions precedent to the issuance of an
amended license authorizing the foreign bank to maintain the office at
the new site have been fulfilled, the Commissioner shall issue an amended
license.
4. Promptly after a foreign bank which is licensed to maintain a
state branch, agency or representative office relocates the office, the
foreign bank shall surrender to the Commissioner its previous license for
the office.
(Added to NRS by 1995, 1543)
1. No foreign bank which is licensed to establish and maintain a
state branch, agency or representative office may close that office
without obtaining the prior written approval of the Commissioner. An
application by a foreign bank under this section must be in such form and
include such information as the Commissioner requires.
2. If the Commissioner finds that the closing of the office will
not be substantially detrimental to the public convenience and advantage,
he shall approve the application.
3. If an application by a foreign bank under this section is
approved and all conditions precedent to the closing have been fulfilled,
the foreign bank may close the office and shall promptly thereafter
surrender to the Commissioner the license which authorized it to maintain
the office.
(Added to NRS by 1995, 1546)
SUPERVISION AND CONTROL
1. The Commissioner has all of the powers granted to him by the
laws of this state to the same extent and in the same manner as if a
state branch, agency or representative office were a Nevada bank.
2. If, after notice and a hearing, the Commissioner finds that any
person has violated any provision of this chapter or of any regulation or
order issued under this chapter, he may, in addition to any other remedy
or action available to him under the laws of this state, order the
violator to pay to him a civil penalty in such a manner and in such an
amount as he determines by regulation, consistent with the penalties
provided for Nevada banks.
3. To carry out the purposes of this chapter, the Commissioner may:
(a) Enter into cooperative, coordinating or information-sharing
agreements with any other bank supervisory agency or any organization
affiliated with or representing one or more bank supervisory agencies;
(b) With respect to periodic examination or other supervision of a
foreign bank that maintains a state branch, agency or representative
office, accept reports of examinations performed by, and reports
submitted to, other bank supervisory agencies in lieu of conducting
examinations, or of receiving reports, as might otherwise be required
under this chapter; and
(c) Enter into joint examinations or joint enforcement actions with
any other bank or supervisory agency having concurrent jurisdiction over
any foreign bank, but the Commissioner may at any time take any such
actions independently if he determines that such actions are necessary or
appropriate to carry out his responsibilities under this chapter and to
ensure compliance with the laws of this state.
(Added to NRS by 1995, 1543)
1. A state branch, agency or representative office is subject to
examination by the Commissioner to the same extent and in the same manner
as if the state branch, agency or representative office were a Nevada
bank.
2. In conducting an examination pursuant to this section, the
Commissioner:
(a) Is entitled to full access to the offices, books, accounts,
papers, records, files, safes and vaults of each office; and
(b) May require the attendance of and examine under oath all
persons whose testimony may be required relative to the activities of the
office.
3. A foreign bank which is licensed to establish and maintain a
state branch, agency or representative office shall pay a fee for
conducting the examination and the expenses of preparing and typing the
report of the examination at the rate established pursuant to NRS 658.101
.
(Added to NRS by 1995, 1543)
1. Each foreign bank which is licensed to establish and maintain a
state branch, agency or representative office shall file with the
Commissioner such reports, at such times, as he may by regulation require.
2. Each report filed with the Commissioner under this chapter or
under any regulation adopted under this chapter must be in such form and
contain such information, be signed in such manner and be verified in
such manner as he may require.
(Added to NRS by 1995, 1544)
If, after notice and a hearing, the
Commissioner finds any of the following with respect to a foreign bank
which is licensed to establish and maintain a state branch or agency, he
may issue an order suspending or revoking the license of the foreign bank:
1. The foreign bank has violated any provision of this chapter or
of any regulation or order issued under this chapter or any provision of
any other applicable law, regulation or order;
2. The foreign bank is transacting activities in this state or
elsewhere in an unsafe or unsound manner;
3. The foreign bank or any of its state branches or agencies is in
an unsafe or unsound condition;
4. The foreign bank has ceased to operate any of its offices in
this state without the prior approval of the Commissioner in accordance
with this chapter;
5. The foreign bank is insolvent in that it has ceased to pay its
debts in the ordinary course of business, it cannot pay its debts as they
become due or its liabilities exceed its assets;
6. The foreign bank has suspended payment of its obligations, has
made an assignment for the benefit of its creditors or has admitted in
writing its inability to pay its debts as they become due;
7. The foreign bank has applied for an adjudication of bankruptcy,
reorganization, arrangement or other relief under any foreign or domestic
law on bankruptcy, reorganization, insolvency or moratorium, or any
person has applied for any such relief under such a law against the
foreign bank and the foreign bank has by any affirmative act approved of
or consented to the action or the relief has been granted;
8. A receiver, liquidator or conservator has been appointed for
the foreign bank or any proceeding for such an appointment or any similar
proceeding has been initiated in the country of the foreign bank’s
organization;
9. The existence of the foreign bank or the authority of the
foreign bank to transact banking business under the laws of the country
of the foreign bank’s organization has been suspended or terminated; or
10. Any fact or condition exists which, if it had existed at the
time when the foreign bank applied for its license to transact business
in this state, would have been a ground for denying the application.
(Added to NRS by 1995, 1546)
1. If the Commissioner finds that any of the factors set forth in
NRS 666A.350 are true with respect to
any foreign bank which is licensed to maintain a state branch or agency
and that it is necessary for the protection of the interests of creditors
of the foreign bank’s business in this state or, in any case, for the
protection of the public interest that he immediately suspend or revoke
the license of the foreign bank, he may issue an order suspending or
revoking the license of the foreign bank.
2. Within 30 days after an order is issued pursuant to subsection
1, the foreign bank to which the order is issued may file with the
Commissioner a request for a hearing on the order. If the Commissioner
fails to commence the hearing within 15 business days after the request
is filed with him, or within such longer period as the foreign bank
consents to, the order shall be deemed rescinded. Within 30 days after
the hearing, the Commissioner shall affirm, modify or rescind the order.
Otherwise, the order shall be deemed rescinded.
3. The right of any foreign bank to which an order is issued
pursuant to subsection 1 to petition for judicial review of the order is
not affected by the failure of the foreign bank to petition the
commissioner for a hearing on the order pursuant to subsection 2.
(Added to NRS by 1995, 1547)
1. If the Commissioner finds that any of the factors set forth in
NRS 666A.350 are true with respect to
any foreign bank which is licensed to establish and maintain a state
branch or agency and that it is necessary for the protection of the
interests of the creditors of the foreign bank’s business in this state
or for the protection of the public interest that he take immediate
possession of the property and business of the foreign bank, he may by
order take possession of the property and business of the foreign bank in
this state and retain possession until the foreign bank resumes business
in this state or is finally liquidated. The foreign bank may, with the
consent of the Commissioner, resume business in this state upon such
conditions as the Commissioner may prescribe.
2. If the Commissioner takes possession of the property and
business of a foreign bank pursuant to subsection 1, the foreign bank
may, within 10 days, apply to the district court in the county in which
the primary office of the foreign bank in this state is located to enjoin
further proceedings. The court may, after citing the Commissioner to show
cause why further proceedings should not be enjoined and after a hearing,
dismiss the application or enjoin the Commissioner from further
proceedings and order him to surrender the property and business of the
foreign bank to the foreign bank or make further order as may be just.
3. The Commissioner or the foreign bank may appeal from the
judgment of the court having jurisdiction over any proceedings under
subsection 2 in the manner provided by law for appeals from the judgment
of a district court. If the Commissioner appeals from the judgment of the
district court, the appeal operates as a stay of the judgment and the
Commissioner need not post any bond.
4. If the Commissioner takes possession of the property and
business of a foreign bank pursuant to subsection 1, he shall conserve or
liquidate the property and business of the foreign bank pursuant to the
laws of this state as if the foreign bank were a Nevada bank, with
absolute priority given to the creditors of the business in this state
conducted by the foreign bank at and recorded on the books of its state
branch or agency.
5. When the Commissioner has completed the liquidation of the
property and business of a foreign bank, he shall transfer any remaining
assets to the foreign bank in accordance with such orders as the court
may issue. However, if the foreign bank has an office in another state of
the United States which is in liquidation and the assets of that office
appear to be insufficient to pay in full the creditors of that office,
the court shall order the Commissioner to transfer to the liquidator of
that office such amount of any such remaining assets as appears to be
necessary to cover the insufficiency. If there are two or more such
offices and the amount of remaining assets is less than the aggregate
amount of insufficiencies with respect to the offices, the court shall
order the Commissioner to distribute the remaining assets among the
liquidators of those offices in such manner as the court finds equitable.
(Added to NRS by 1995, 1547)
The Commissioner, after notice and opportunity for a hearing, may revoke
a license to establish and maintain a state representative office if he
finds that:
1. The foreign bank has violated any provision of this chapter or
any other law or regulation of this state; or
2. Any fact or condition exists which, if it had existed at the
time of the foreign bank’s original application for the license, would
have been a ground for refusing to issue the license.
(Added to NRS by 1995, 1541)
MISCELLANEOUS PROVISIONS
1. In the case of a foreign bank which is licensed to establish
and maintain a state branch or agency, service of process in any suit,
action or proceeding or service of any notice or demand required or
permitted by law to be served on a foreign corporation may be made on the
foreign bank by service thereof on the registered agent of the foreign
bank in this state. If a foreign bank fails to appoint or maintain a
registered agent upon whom service of legal process or service of any
such notice or demand may be had, or if the registered agent cannot with
reasonable diligence be found at the registered office of the foreign
bank, or if the license of the foreign bank’s state branch or agency is
revoked, the Commissioner by operation of law is irrevocably authorized
as the agent of the foreign bank to accept service of any process or
service of any notice or demand required or permitted by law to be served
on the foreign bank.
2. In the case of a foreign bank which is licensed to establish
and maintain a state representative office, service of process in any
suit, action or proceeding or service of any notice or demand required or
permitted by law to be served on a foreign corporation may be made on the
foreign bank by service thereof on the Commissioner.
3. Service on the Commissioner in accordance with this section of
any process, notice or demand against a foreign bank must be made by
delivering to and leaving with him, or with any official having charge of
his office, duplicate copies of the process, notice or demand. If any
process, notice or demand is served on the Commissioner, he shall
immediately cause a copy thereof to be forwarded by certified mail
addressed to the foreign bank at its principal office as the address
appears in his records. Any service so had on the Commissioner is
returnable in not less than 30 days.
4. This chapter does not limit or affect the right to serve any
process, notice or demand required or permitted by law to be served upon
a foreign corporation in any other manner permitted by law.
5. The Commissioner shall keep a record of all processes, notices
and demands served upon him under this section and shall record therein
the time of service and his action with reference thereto.
(Added to NRS by 1995, 1542)
1. Except as otherwise provided in subsection 2, an out-of-state
foreign bank may establish an interstate Nevada branch in the same
manner, including by merger or other transaction under section 44 of the
Federal Deposit Insurance Act and comparable provisions of the laws of
this State, with Nevada banks or other institutions, as, and subject to
the same criteria, standards, conditions, requirements and procedures
applicable to the establishment of interstate branches in this State by,
an out-of-state bank having the same home state in the United States.
2. The Commissioner:
(a) Shall apply to the establishment of an initial interstate
branch, and subsequent intrastate state branches, of any out-of-state
foreign bank the same criteria, standards, conditions, requirements and
procedures applicable under this chapter or regulations adopted
thereunder to the establishment of an initial state branch, and of
subsequent intrastate Nevada branches, respectively by other foreign
banks;
(b) May apply any other criterion, standard, condition, requirement
or provision of the laws or regulations of this State that he determines
to be substantially equivalent to or consistent with a criterion,
standard, condition, requirement or provision of federal law or
regulation generally applicable to the establishment of branches in the
United States by foreign banks or specifically applicable to the
establishment of a branch in the United States by the applicant foreign
bank; and
(c) May by regulation allow an out-of-state foreign bank:
(1) To acquire or merge with another foreign bank
maintaining a state branch or agency and thereafter continue such
operations as its own; and
(2) To acquire or establish an interstate Nevada branch
through any other means not inconsistent with section 5 of the federal
International Banking Act (12 U.S.C. § 3103).
3. As used in this section, the words and terms defined in NRS
666.006 and 666.008 have the meanings ascribed to them in those
sections.
(Added to NRS by 1995, 1548)
