USA Statutes : nevada
Title : Title 56 - OTHER FINANCIAL INSTITUTIONS
Chapter : CHAPTER 673 - SAVINGS AND LOAN ASSOCIATIONS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 673.002
to 673.034 , inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1959, 537; A 1969, 966; 1979, 710; 1983, 1771;
1987, 1956)
“Association” means a savings
and loan association subject to the provisions of this chapter.
(Added to NRS by 1959, 537; A 1977, 488)
“Combination home and business structure” means a building or buildings,
including residences for not more than four families, which are used in
part for business purposes, if the residential use of such a building is
substantial and permanent, not merely transitory. The business use may
predominate.
(Added to NRS by 1959, 537; A 1977, 509)
“Commissioner” means the
Commissioner of Financial Institutions.
(Added to NRS by 1987, 1956)
“Cooperative housing corporation” means a corporation organized under
the laws of this state for the purpose of the cooperative ownership of
real estate whereby each of the stockholders or members is entitled,
through ownership of stock or a certificate of membership in the
corporation, to occupy a house, apartment or other dwelling unit on real
estate owned by the corporation.
(Added to NRS by 1979, 710)
“Deposit” means that part of the
savings liability of an association which is credited to the account of
the holder thereof.
(Added to NRS by 1969, 961)
“Director” means the Director of
the Department of Business and Industry.
(Added to NRS by 1963, 683; A 1993, 1896)
“Dividend” means that part of the
net earnings of an association which is declared payable by the board of
directors to the holders of permanent capital stock.
(Added to NRS by 1959, 537; A 1969, 967)
“Foreign,” used in connection with
an association, company or corporation, means an association, company or
corporation organized or incorporated under the laws of some government
other than that of the State of Nevada.
(Added to NRS by 1959, 538)
“Gross income” means the sum
for an accounting period of the following:
1. Operating income.
2. Real estate income.
3. All profits actually received during such accounting period
from the sale of securities, real estate or other property.
4. Other nonrecurring income.
(Added to NRS by 1959, 538)
“Home” means a dwelling or dwellings
for not more than four families, the principal use of which is for
residential purposes. The term includes:
1. A dwelling on a farm.
2. A dwelling unit of a cooperative housing corporation.
3. A mobile home as defined in NRS 489.120 , with the wheels removed and skirting added,
when set on a foundation located on land which the owner of the home owns
or occupies pursuant to a tenancy with a term of 40 years or more.
(Added to NRS by 1959, 538; A 1977, 509; 1979, 710, 1289)
“Home loan” means a real estate
loan the security for which is home property.
(Added to NRS by 1959, 538)
“Home property” means real
estate on which there is located or will be located, pursuant to a home
loan, a home or a combination home and business structure.
(Added to NRS by 1959, 538)
“Impaired condition”
means a condition in which the assets of an association do not have an
aggregate value equal to the aggregate amount of liabilities of the
association to its creditors, including its savings depositors and all
other persons.
(Added to NRS by 1959, 538; A 1977, 488)
“Improved real
estate” means real estate on which there is a structure, or building lots
or sites which, by reason of installations and improvements that have
been completed, are building lots or sites ready for building
construction thereon.
(Added to NRS by 1959, 538; A 1967, 1014)
“Insured association”
means an association the savings accounts of which are insured wholly or
in part by the Federal Deposit Insurance Corporation.
(Added to NRS by 1959, 538; A 1993, 2806)
“Interest” means that part of
the net earnings of an association which is declared payable from time to
time on savings accounts or investment certificates by the board of
directors and which represents the primary cost of securing and
maintaining savings funds for an association.
(Added to NRS by 1969, 961)
1. “Investment certificate” means any certificate or contract,
either paid up or purchasable on an installment basis, which is issued
for the purpose of providing a means of investment or savings.
2. An accumulative investment certificate is an investment
certificate, not full-paid and without an expressed date of maturity,
upon which the holder has the option of making payments at such times and
in such amounts as the holder elects and as the association permits.
3. A full-paid investment certificate is an investment
certificate, with or without an expressed date of maturity, for which the
association has received the principal amount thereof at or prior to the
time of the issuance of the certificate.
4. A minimum term investment certificate is an investment
certificate for which the association has received a single payment equal
to the principal amount thereof and which has a date expressed therein
before which notice of intention to withdraw cannot be given, or which
requires written notice from the holder to the association for a period
specified therein before the expiration of which period notice of
intention to withdraw cannot be given. On and after such date, or upon
and after the expiration of the specified period following such written
notice, each such certificate ceases to be a minimum term investment
certificate and becomes a full-paid investment certificate, subject to
the same withdrawal rights and restrictions as a full-paid investment
certificate.
(Added to NRS by 1959, 538; A 1963, 457; 1969, 967)
“Merger” means that consolidation
of corporate structures which results in the uniting of substantially all
the assets and liabilities of one state-chartered association with those
of another such association or with those of a federal association.
(Added to NRS by 1969, 961)
“Net earnings” means gross
income for an accounting period less the aggregate of the following:
1. Operating expenses.
2. Real estate expenses.
3. All losses actually sustained during such accounting period
from the sale of securities, real estate or other property, or such
portion of such losses as shall not have been charged to reserves,
pursuant to the provisions of this chapter.
4. All interest paid, or due but unpaid, on borrowed money.
5. Other nonrecurring charges.
(Added to NRS by 1959, 539)
“Net
earnings available for dividends” means net earnings for an accounting
period less amounts referred to reserves as provided in this chapter.
(Added to NRS by 1959, 539)
1. “Operating expenses” means all expenses actually paid, or due
but unpaid, by an association during an accounting period, excluding the
following:
(a) Real estate expenses.
(b) Interest on borrowed money.
(c) Other nonrecurring charges.
2. That portion of prepaid expenses which is not apportionable to
the period may be excluded from operating expenses, in which event
operating expenses for future periods shall include that portion of such
prepaid expenses apportionable thereto.
(Added to NRS by 1959, 539)
“Operating income” means
all income actually received by an association during an accounting
period, excluding foreclosed real estate income.
(Added to NRS by 1959, 539)
“Other real estate
loan” means a real estate loan the security for which is improved real
estate other than home property.
(Added to NRS by 1959, 539)
“Real estate
expenses” means all expenses actually paid, or due but unpaid, in
connection with the ownership, maintenance and sale of real estate, other
than office building or buildings and real estate held for investment, by
an association during an accounting period, excluding capital
expenditures and losses on the sale of real estate.
(Added to NRS by 1959, 539)
“Real estate income”
means all income actually received by an association during an accounting
period from real estate owned, other than from office building or
buildings and real estate held for investment, excluding profit from
sales of real estate.
(Added to NRS by 1959, 539)
“Real estate loan” means
any loan or other obligation secured by real estate, whether in fee or in
a leasehold extending or renewable automatically for a period of at least
50 years, or any transaction out of which a lien or claim is created
against such real estate.
(Added to NRS by 1959, 539)
“Savings account” means
that part of the savings liability of the association which is credited
to the account of the depositor thereof.
(Added to NRS by 1959, 539; A 1969, 967; 1977, 488)
“Savings liability”
means the aggregate amount of savings accounts, including interest
credited to such accounts, less withdrawals.
(Added to NRS by 1959, 540; A 1969, 967)
“Service office” means any
office or other place of business in this state operated by one or more
savings and loan associations other than the principal office or a branch
of an association, where activities are confined to processing and
storing data and records, accounting, printing, storing of supplies, and
such other activities as the commissioner approves which involve no
personal contact with the public. At a service office, payment on account
of savings or loan may be processed, but the association shall have all
payments which are initially received at a service office, rather than at
the principal office or branch of the association, made by mail only and
directed to a post office box and not to the address or location of the
service office. The Commissioner may require that an association’s name
not be displayed at or near a service office.
(Added to NRS by 1967, 1019; A 1983, 1771; 1987, 1956)
“Withdrawal value” means
the amount credited to a savings account, less lawful deductions
therefrom, as shown by the records of the association.
(Added to NRS by 1959, 540)
ADMINISTRATION AND ENFORCEMENT
The Commissioner shall
administer the provisions of this chapter, subject to administrative
supervision by the Director. He shall make the decisions, determinations
and enter the consents and orders necessary or reasonably appropriate to
accomplish the purposes of this chapter.
(Added to NRS by 1961, 763; A 1963, 1076; 1969, 967; 1981, 505;
1983, 1771; 1987, 1956)
1. Except as provided in subsections 3 and 4, an officer or
employee of the Division of Financial Institutions shall not:
(a) Be directly or indirectly interested in or act on behalf of any
association;
(b) Receive, directly or indirectly, any payment from an
association;
(c) Be indebted to any association;
(d) Engage in the negotiation of loans for others with any
association; or
(e) Obtain credit or services from an association conditioned upon
a fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division in the unclassified service of the
State shall not obtain new extensions of credit from an association while
in office.
3. Any officer or employee of the Division of Financial
Institutions may be indebted to an association 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 savings deposits with
associations 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 1963, 472; A 1977, 509; 1983, 1771)
The Commissioner shall:
1. Keep in his office:
(a) For no less than 5 years, every report made by an association.
(b) The original application of every association in a permanent
file.
(c) Other administrative documents in the manner provided by law or
by appropriate regulations.
2. Provide a complete stenographic record of every hearing and
proceeding conducted by his office and maintain, for no less than 5
years, a transcript of the hearing or proceeding, together with any
regulation, order, decision, determination or consent entered in
connection with the hearing or proceeding.
(Added to NRS by 1961, 764; A 1963, 683; 1969, 968; 1971, 811;
1983, 1772; 1987, 1956)
The
Commissioner shall supervise and make all policy with regard to all
foreign and domestic associations, companies and corporations governed by
this chapter and doing business in this state.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A
1961, 762; 1963, 1076; 1983, 1773; 1987, 1957)
1. The Commissioner shall, before September 1 of each
even-numbered year for the biennium ending June 30 of that year, report
to the Governor. The report must:
(a) Show the condition of all associations reporting to or examined
by the Commissioner.
(b) Be accompanied by a detailed statement of all money received by
the Commissioner since his last report and the disposition of that money.
2. Copies of the reports must be furnished to each association or
company licensed under the provisions of this chapter.
(Added to NRS by 1963, 472; A 1969, 1460; 1973, 264; 1983, 1773;
1987, 1957)
1. The Commissioner may adopt such regulations as may be
reasonable or necessary to carry out the purposes of this chapter.
2. The regulations as originally drafted, and as amended from time
to time, must be printed and distributed by the Commissioner to all
associations, and become effective not earlier than 30 days from the date
of issuance, but before the regulations become effective and within that
30-day period any association may appeal to the Director as to the
reasonableness and necessity of any of or all of the regulations.
(Added to NRS by 1957, 763; A 1961, 764; 1977, 1261; 1983, 1773;
1987, 1957)
The Commissioner may cause appropriate legal action to be taken
in the district court of any county to secure an injunction or order
restraining a violation of any provision of this chapter.
(Added to NRS by 1969, 962; A 1983, 1773; 1987, 1957)
All notices must be in writing. All notices
issued or required to be issued by the Commissioner must be sent by
registered or certified mail and become effective upon their deposit in
the mails.
(Added to NRS by 1963, 472; A 1983, 1774; 1987, 1957)
The Commissioner may, for reasonable cause and upon 15 days’
notice, amend or alter any license issued by him, but the association may
appeal the order of the Commissioner in the manner provided in this
chapter.
(Added to NRS by 1957, 762; A 1961, 764; 1983, 1774; 1987, 1957)
1. In addition to any other requirements set forth in this
chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and
integrity and is competent to transact the business for which the
applicant seeks to be licensed in a manner which protects the interests
of the general public.
(2) Has not made a false statement of material fact on the
application for the license.
(3) Has not committed any of the acts specified in subsection
2.
(4) Has not had a license issued pursuant to this chapter
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 of the Department of
Business and Industry 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 an applicant if the applicant:
(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 pursuant to this chapter
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 pursuant to this chapter.
(d) Has falsified any of the information submitted to the
Commissioner in support of the application for the license.
(Added to NRS by 2005, 1873 )
In addition to any other lawful reasons, the Commissioner may
suspend or revoke a license if the licensee has engaged in any act that
would be grounds for denying a license pursuant this chapter.
(Added to NRS by 2005, 1873 )
A person affected by any order, ruling,
proceeding, act or action of the Commissioner or any person acting on his
behalf and at his instance, or the Director or any person acting on his
behalf and at his instance, may test the validity of the action in any
court of competent jurisdiction through injunction, appeal, error or
other proper process or proceeding, mandatory or otherwise.
[22.3:51:1931; added 1955, 589]—(NRS A 1961, 765; 1981, 505, 1314;
1983, 1774; 1987, 1958)
Except as otherwise provided in NRS 673.080 , 673.112 and
673.595 :
1. All fees, charges for expenses, assessments and other money
collected under the provisions of this chapter from foreign and domestic
associations, companies and corporations governed by this chapter must be
deposited in the State Treasury pursuant to the provisions of NRS 658.091
.
2. The compensation provided for by this chapter and all expenses
incurred under this chapter must be paid from the money deposited in the
State Treasury pursuant to the provisions of NRS 658.091 .
[30:51:1931; 1931 NCL § 970.30]—(NRS A 1959, 121, 541; 1961, 765;
1963, 684; 1965, 1135; 1983, 1321; 2003, 3232 )
FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES
1. Savings and loan associations, except banks, trust companies,
licensed brokers, small loan companies, thrift companies and credit
unions, whose principal and primary business is to borrow, loan and
invest money, shall be incorporated under the provisions of this chapter.
For that purpose all of the provisions of chapter 78 of NRS (Private Corporations) which are not in
conflict with this chapter are hereby adopted as parts of this chapter,
and all the rights, privileges and powers and all the duties and
obligations of such domestic corporations and of the officers and
stockholders thereof shall be as provided in chapter 78 of NRS except as otherwise provided in this chapter.
2. A person, firm, partnership, association or corporation except
a savings and loan association incorporated under this chapter shall not
conduct or carry on the business of soliciting or advertising for savings
deposits and loaning of such savings. This subsection does not apply to
banks, trust companies, licensed brokers, thrift companies, credit unions
and licensees under chapter 675 of NRS.
[Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A 1963, 460;
1975, 372; 1977, 488)
1. The Secretary of State shall not issue any certificate to an
association or company authorizing it to do business until the articles
of association, agreement or incorporation are approved by the
Commissioner.
2. No amendment to the articles of the organization may be filed
by the Secretary of State without the written approval of the articles by
the Commissioner.
3. No association may sell, offer for sale, negotiate for the sale
of, take subscriptions for, or issue any of its common or preferred stock
until it has first applied for and secured from the Commissioner approval
of an application for permission to organize as provided for in this
section.
4. Persons who desire to organize an association in accordance
with this chapter shall first execute in triplicate an application, in
the form prescribed by the Commissioner, for permission to organize an
association before taking any other action in connection with the
organization. Upon execution of an application for permission to organize
by seven responsible citizens, referred to in this section as
“applicants,” the original and two copies of the application must be
submitted to the Commissioner. The applicants shall submit with their
application the names and addresses of the applicants, the location of
the proposed office, an itemized account of the financial condition of
the proposed association and of the applicants, the amount and character
of the proposed stock, statements, exhibits, maps and such additional
information as the Commissioner requires, together with an affidavit that
the representations made thereby are consistent with the facts to the
best of the applicants’ information and belief. This data must be
sufficiently detailed and comprehensive to enable the Commissioner to
pass upon the application as to:
(a) The character and responsibility of the applicants;
(b) The need for the association in the community to be served;
(c) The reasonable probability of its usefulness and success; and
(d) Whether such an association can be established without undue
injury to any properly conducted existing savings and loan institutions.
5. If the Commissioner approves the application he shall, within
30 days, notify all associations within 100 miles of the community where
the applicant intends to establish an association. Any association so
notified may, within 20 days, protest in writing the granting of the
application. Within 30 days after receipt by the Commissioner of a
written protest, the Commissioner shall fix a date for a hearing upon the
protest, and the hearing must be held not earlier than 30 days nor more
than 60 days after the date of receipt of written notice by registered or
certified mail by the parties. The Commissioner shall approve or deny the
application within 90 days after the date of the conclusion of the
hearing and give all parties written notice of his decision on or before
that date.
6. If the Commissioner approves the application, he shall
establish as conditions to be met before the issuance of a charter
requirements as to:
(a) The minimum number of shares of common or preferred stock to be
subscribed to the association’s permanent capital;
(b) The minimum amount of paid-in surplus;
(c) The minimum amount of investment certificates to be paid into
the association’s savings accounts upon issuance of a charter to it; and
(d) Such other requirements as he deems necessary or desirable.
Ê At least 75 percent of the capital must be subscribed by bona fide
residents of this State or a depository institution or holding company
qualified pursuant to the provisions of chapter 666 of NRS or NRS 666A.010 to 666A.400 , inclusive. Approval of an application for
permission to organize an association does not in any manner obligate the
Commissioner to issue a charter, except that when all requirements of
this chapter and of the Commissioner have been fulfilled, he shall issue
a charter.
7. The charter expires 180 days after issuance, unless, within
that time, the association has obtained insurance of accounts from the
Federal Deposit Insurance Corporation. The Commissioner may, for good
cause, extend the time of the conditional expiration of the charter for
an additional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue any of its permanent
stock until it has first applied for and secured from the Commissioner a
license authorizing it to operate as a savings and loan association
pursuant to the laws of this State and until it has applied for and
secured insurance of accounts in accordance with the regulations of the
Federal Deposit Insurance Corporation. This insurance of accounts must be
maintained at all times.
9. The Commissioner may extend the time for any hearing provided
for in this section, to the time agreed upon by the parties.
10. The filing fees are:
(a) For filing an original application, not more than $4,000 for
the principal office. The applicant 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
paragraph must be placed in the Investigative Account created by NRS
232.545 .
(b) If the license is approved for issuance, not more than $2,000
for the principal office before issuance.
11. The Commissioner may impose conditions requiring the
impoundment of proceeds from the sale of any stock, limiting the expense
in connection with the sale of stock, and such other conditions as are
reasonable and necessary or advisable to insure the disposition of the
proceeds from the sale of the stock in the manner and for the purposes
provided in the permission to organize.
12. Every permission to organize issued by the Commissioner must
recite in bold type that its issuance is permissive only and does not
constitute a recommendation or endorsement of the organization or of the
stock permitted to be issued.
13. Any corporation applying pursuant to this section or
authorized to organize or authorized to establish a savings and loan
association shall provide for a minimum par value of its permanent
capital stock of at least $1 in its articles of incorporation. Par value
of permanent capital stock may not be reduced below $1 without written
permission of the Commissioner.
14. The removal of the home office or of any branch office of an
association to any other location from its then existing location
requires prior approval of the Commissioner. An application seeking
approval must be delivered to the Commissioner, together with a fee to
cover expenses attendant upon the investigation required for the
approval, which must be not less than $200. All money received by the
Commissioner pursuant to this subsection must be placed in the
Investigative Account created by NRS 232.545 .
15. An association shall not pay any commissions or other
compensation for the subscription to or sale of the original issue of its
stock.
16. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
17. 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.
[Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A 1957, 755;
1959, 56, 541; 1961, 765; 1963, 460; 1965, 1136; 1969, 95, 969; 1977,
489; 1979, 1289; 1983, 650, 1322, 1774; 1985, 2155; 1987, 1958; 1991,
1810; 1993, 2806; 1995, 1561; 2005, 1874 )
The powers, privileges,
duties and restrictions conferred and imposed upon any such association,
company or corporation, whether foreign or domestic, existing or 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 chapter, notwithstanding anything to the contrary in
their respective articles of incorporation or charters.
[3:51:1931; 1931 NCL § 970.02]
Any domestic association, which has the words
“savings and loan” in its name, may, by filing with the commissioner
written notice thereof authorized by its board of directors and by
complying otherwise with its articles of incorporation, remove the words
“and loan” from its name.
[15.1:51:1931; added 1955, 589]—(NRS A 1961, 766; 1963, 464; 1983,
1776; 1987, 1960)
1. A branch office is a legally established place of business of
an association, other than the home office, which is authorized by the
board of directors and approved by the Commissioner and at which any of
the association’s business may be conducted.
2. All branch offices are subject to direction from the home
office.
3. No association may establish or maintain a branch office
without prior written approval of the Commissioner. Each application for
approval of the establishment and maintenance of a branch office must:
(a) State the proposed location thereof, the need therefor, the
functions to be performed therein, the estimated annual expense thereof
and the mode of payment therefor.
(b) Be accompanied by a budget of the association for the current
semiannual period and for the next succeeding semiannual period, which
reflects the estimated additional expense of the maintenance of the
branch office.
4. After receipt of an application the Commissioner shall
determine:
(a) Whether the establishment and maintenance of the branch office
will unduly injure any properly conducted existing association in the
community where the branch office is proposed to be established or in any
neighboring community; and
(b) Whether or not the establishment and maintenance of the branch
office will serve the public interest.
5. Before issuance of a charter for a branch office, the
Commissioner shall notify all associations doing business within a radius
of 100 miles of the principal place of business of the applicant, and
within a radius of 100 miles of the proposed branch office. Any
association so notified may, within 20 days, protest in writing the
granting of the application. Within 30 days after receipt by the
Commissioner of a written protest, the Commissioner shall fix a date for
a hearing upon the protest. The hearing must be held not earlier than 60
days nor more than 90 days after the date of receipt of written notice by
registered or certified mail by the parties.
6. If the Commissioner finds that no undue injury is likely to
result, that the establishment and maintenance of the branch office is
advisable and will serve the public interest, he may approve the
application.
7. Approval of an association’s application for a branch office
charter permits the association to establish an operating office in a
temporary or a permanent building, if the building is placed on or
erected at the approved location within 12 months after the approval.
8. For good cause and after notice to the association, the
Commissioner may revoke his approval for the maintenance of a branch
office. Failure to establish a branch office in the manner and within the
time permitted under this section constitutes a good cause for
revocation, unless a prior, written request for a waiver of the time
limitation is sought by the association and an extension, in writing, is
granted by the Commissioner.
9. An association which maintains one or more branch offices shall
give each branch office a specific designation by name and include in the
designation the word “branch” and shall prominently display the
designation at the place of business of the branch. When an association
is operating a branch office, all advertising of or by the branch office
must state clearly the location of the principal office of the
association.
10. The filing fees are:
(a) For filing an original application, not more than $400 for each
branch office. The applicant 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
subsection must be placed in the Investigative Account created by NRS
232.545 .
(b) If the license is approved for issuance, not more than $200 for
each branch office before issuance.
11. The Commissioner shall adopt regulations establishing the
amount of the filing fees required pursuant to this section.
(Added to NRS by 1961, 780; A 1963, 464; 1967, 1014; 1969, 95, 971;
1981, 1314; 1983, 1324, 1777; 1987, 1960; 1991, 1813; 2005, 1876 )
1. Every association shall maintain bond coverage with a bonding
company which is acceptable to the Commissioner and the Federal Deposit
Insurance Corporation for an amount to be determined by the Commissioner
not to exceed 5 percent of the total assets of the association, nor for
an amount greater than $3,000,000, covering all directors, officers,
employees, agents, data processing service firms and all other operating
hazards that are normally covered under the bond. The bond must be in the
form known as Standard Form No. 22, its equivalent or some other form
which may be acceptable to the Federal Deposit Insurance Corporation and
the Commissioner. The bond coverage may allow for a deductible amount or
provision adopted under Title 12, Code of Federal Regulations, Section
563.19(a), (b) and (c), and under any subsequent amendments thereto.
2. A true copy of the surety bond must be placed in the custody of
the Commissioner and the original maintained in the office of the
association at all times.
3. The surety bond must provide that a cancellation thereof,
either by the surety company or by the insured, does not become effective
until 10 days’ notice in writing is first given to the Commissioner, or
unless he earlier approves the cancellation in writing.
4. When requested by the Commissioner, the association shall
provide a duplicate copy of the invoice showing that the bond premium has
been paid or satisfied.
5. The face amount of the surety bond must comply with the
requirements of the Federal Deposit Insurance Corporation.
(Added to NRS by 1957, 757; A 1959, 542; 1961, 766; 1969, 972;
1983, 1778; 1987, 1962; 1993, 2808)
1. No association may open, maintain or conduct a service office
without approval from the Commissioner.
2. For good cause, and after notice to the association, the
Commissioner may revoke his approval for the maintenance of a service
office.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1962)
1. An association shall not issue or publish, or cause or permit
to be issued or published, any advertisement that it is doing or is
permitted to do any business which is prohibited by law to an
association, or which misrepresents the nature of its stock, investment
certificates, savings deposits or the right of investors or depositors in
respect thereto.
2. An association may set forth in any of its advertisements any
of the purposes for which it is organized.
3. An association shall not issue, circulate or publish any
advertisement after notice in writing from the Commissioner that in his
opinion the advertisement is unauthorized, false, misleading or likely to
deceive the public.
4. An association shall not:
(a) State in any advertisement that it is under state supervision
or control.
(b) Include in any advertisement or in any instrument used by it a
replica of the Great Seal of the State of Nevada.
(c) State or imply in any advertisement that money may be invested
with the association at any place other than the principal office or
branch of the association.
(d) Use the word “deposit” or “deposits” in any form of
advertising, unless the use of that word is authorized in the advertising
of a federal savings and loan association pursuant to federal law.
5. No association may offer or deliver any gift or premium to any
investor or saver of an investment certificate or to any savings
depositor in excess of basic cost to the association of $2.50.
(Added to NRS by 1957, 762; A 1961, 767; 1969, 973; 1977, 491;
1983, 1779; 1987, 1962)
1. Except as otherwise provided in NRS 673.110 , a licensee must obtain the approval of the
Commissioner before using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a
business name used by another licensee under this chapter 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, 1873 )
OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS
1. The business and affairs of every association must be managed
and controlled by a board of not less than five nor more than 25
directors, of which not more than a minority, but not more than three,
may be full-time officers of the association. The persons designated in
the articles of incorporation are the first directors.
2. Vacancies in the board of directors must be filled by vote of
the stockholders at the annual meetings or at a special meeting called
for that purpose. The board of directors may fill vacancies occurring on
the board, such appointees to serve until the next annual meeting of the
stockholders.
3. The board of directors of any association may amend the bylaws
of the association.
(Added to NRS by 1967, 1020; A 1969, 961; 1975, 372; 1981, 61)
No person is eligible to serve as a director of an association
without the written permission of the Commissioner if he:
1. Has been adjudicated a bankrupt or has taken the benefit of any
assignment for the benefit of creditors or has suffered a judgment
recovered against him for a sum of money to remain unsatisfied of record
or not safeguarded by supersedeas bond on appeal for a period of more
than 3 months.
2. Is a director, officer or employee of any other savings and
loan association.
3. Is an officer or employee of a commercial bank in this state.
4. Is not an investor in the association, owning in his own right
or in a representative capacity as an executor, administrator, guardian
or trustee stock in the association of the par value of at least $1,000,
or full-paid investment certificates in the association of the value of
at least $1,000. For the purpose of this chapter, a person who owns stock
or investment certificates as a joint tenant with one other person shall
be deemed to own, in his own right, one-half of the stock or investment
certificates.
5. Sells or hypothecates all the stock or investment certificates
owned by him, or so much thereof that he ceases to be the owner, free
from encumbrances, of the amount of stock or investment certificates
required by subsection 4.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1963)
If the Commissioner notifies the board of directors of
any association, in writing, that he has information that any director,
officer or employee of the association is failing in the performance of
his duties, the board of directors shall meet and consider the matter
forthwith. The Commissioner must have notice of the time and place of the
meeting. If the board of directors finds the Commissioner’s objection to
be well founded, the director, officer or employee shall be removed
immediately.
(Added to NRS by 1967, 1020; A 1983, 1780; 1987, 1963)
1. Any director may be removed from office, if he has become
ineligible pursuant to NRS 673.209 , by
an affirmative vote of two-thirds of the members of the board of
directors at any regular meeting of the board of directors or at any
special meeting called for that purpose. Such action shall be ratified at
the next meeting of the stockholders.
2. No such vote upon removal of a director may be taken until he
has been advised of the reasons therefor and has had opportunity to
submit to the board of directors his statement relative thereto, either
oral or written. If the director affected is present at the meeting, he
shall retire after his statement has been submitted and prior to the vote
upon the matter of his removal.
(Added to NRS by 1967, 1020; A 1977, 492)
Directors and officers of an association shall be deemed to
stand in a fiduciary relation to the association and shall discharge the
duties of their respective positions in good faith and with the
diligence, care and skill which ordinary, prudent persons would exercise
under similar circumstances in a similar position.
(Added to NRS by 1967, 1021; A 1997, 1623)
The directors
of an association shall not charge or receive, directly or indirectly,
any pay or emolument for their services as directors. This provision
shall not prevent the payment of compensation and expenses to officers of
the association who are also directors, nor the payment of compensation
and expenses to directors for attendance upon meetings of the board of
directors, or for special services performed by directors for the
association. All such compensation and expenses shall be approved by the
board of directors.
(Added to NRS by 1967, 1021)
1. The board of directors of the association shall elect the
officers named in the bylaws of the association, which officers shall
serve at the pleasure of the board of directors.
2. The principal officers’ salaries shall be set by the board of
directors.
(Added to NRS by 1967, 1021)
1. The board of directors of each association shall hold a regular
meeting at least once each quarter, at a time to be designated by it in
accordance with its bylaws.
2. Special meetings of the board of directors may be held upon
notice to each director sufficient to permit his attendance. The
president or any three members of the board of directors may call a
meeting of the board of directors by giving notice to all of the
directors.
3. At any meeting of the board of directors, a majority of the
members constitutes a quorum for the transaction of business.
(Added to NRS by 1967, 1021; A 1983, 354)
Every official communication by
the Commissioner directed to the board of directors of an association
must be read at the next meeting of the board of directors and made a
part of the minutes of the meeting.
(Added to NRS by 1967, 1021; A 1983, 1780; 1987, 1964)
The board of directors, by resolution recorded in the
minutes, shall designate an officer whose duty it shall be to prepare and
submit, at each regular meeting of the board of directors, a written
statement of all the purchases and sales of real estate and securities,
and of every loan or contract made or purchased since the last regular
meeting of the board of directors, describing the collateral securing
such loan. The statement, certified by the designated officer to be
correct as of the date of the meeting at which submitted, shall be
considered by the board of directors at such meeting and be filed as a
part of the minute records.
(Added to NRS by 1967, 1021)
1. An association shall immediately notify the Commissioner of any
change or proposed change in ownership of the association’s stock which
would result in any person, including a business trust, obtaining 5
percent or more of the association’s outstanding capital stock.
2. An application must be submitted to the Commissioner, pursuant
to NRS 673.080 , by a person who
acquires:
(a) At least 25 percent of an association’s outstanding stock; or
(b) Any outstanding stock of an association if the change will
result in a change in the control of the association.
Ê Except as otherwise provided in subsection 4, the Commissioner shall
conduct an investigation to determine whether the character and
responsibility of the applicant is such as to command the confidence of
the community in which the association is located. If the Commissioner
denies the application, he may forbid the applicant from participating in
the business of the association.
3. The association with which the applicant is affiliated shall
pay such a portion of the cost of the investigation as the Commissioner
requires. All money received by the Commissioner pursuant to this section
must be placed in the Investigative Account created by NRS 232.545 .
4. A savings and loan association may submit a written request to
the Commissioner to waive an investigation pursuant to subsection 1. The
Commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the
licensing of or his employment with a financial institution.
(Added to NRS by 1985, 1346; A 1987, 1964; 1991, 1814)
An association may provide for pensions, retirement plans and
other benefits for its officers and employees, and may contribute to the
cost thereof in accordance with the plan adopted by its board of
directors.
(Added to NRS by 1967, 1022)
The board of directors shall approve the depositary or
depositaries for funds of the association.
(Added to NRS by 1967, 1022)
1. It is unlawful for an officer, director, employee or capital
stockholder of an association:
(a) To solicit, accept or agree to accept, directly or indirectly,
from any person other than the association, any gratuity, compensation or
other personal benefit for any action taken by the association or for
endeavoring to procure any such action.
(b) To have any interest, direct or indirect, in the purchase at
less than its face value of any evidence of a savings account or other
indebtedness issued by the association, excluding stock certificates and
junior capital notes.
2. It is unlawful for any stockholder with more than 5 percent of
the outstanding capital stock of an association, or any director or
principal officer, to have any interest, direct or indirect, in the
proceeds of a loan or of a purchase or sale made by the association,
unless the loan, purchase or sale is authorized expressly by this chapter
or by a resolution of the board of directors of the association. The
resolution must be approved by a vote of at least two-thirds of all the
directors of the association, and an interested director may not take
part in the vote. The loan must also conform to federal regulations for
the insurance of accounts.
3. Any violation of the provisions of this section is a
misdemeanor.
(Added to NRS by 1961, 782; A 1967, 1014; 1977, 510; 1979, 1291)
Any association director, officer or other person who knowingly and
willingly participates in any violation of the laws of this state
relative to savings and loan associations is liable for all damage which
the savings and loan association, its stockholders, savings depositors or
creditors sustain in consequence of such violation.
(Added to NRS by 1967, 1024; A 1977, 492)
1. An association shall pay on behalf of or reimburse an officer,
director or employee for the expenses of defending an action brought on
behalf of the association or the savings account holders, other creditors
or borrowers thereof, founded upon any act or acts performed or omitted
by such person acting as such officer, director or employee under the
following conditions:
(a) If the person is adjudicated to be not liable, then all
reasonable expenses of such litigation shall be paid by the association.
(b) If the person is held to be liable on certain items and not
liable on others, the association shall pay the proportion of the total
reasonable expense of the litigation which the items on which he is held
to be not liable bear to all the items alleged.
2. If, in the opinion of the association, any such person is not
liable upon the substantive issues alleged, the association is authorized
to compromise and settle such claim or litigation in its discretion and
to pay the entire expense thereof, including the compromise settlement,
if the expense is reasonable. Any action taken by the association under
this subsection requires approval by a vote of at least two-thirds of all
the directors of the association (an interested director taking no part
in the vote), or by a majority vote of the stockholders.
(Added to NRS by 1961, 783; A 1977, 492)
POWERS AND PRIVILEGES OF STATE ASSOCIATIONS
1. Notwithstanding any other provision of this chapter, every
company, association or corporation licensed under the provisions of this
chapter whose accounts are insured by the Federal Deposit Insurance
Corporation or its successor, or which is a member of a Federal Home Loan
Bank or its successor as an insured association, has the same rights,
powers, privileges, immunities and exceptions which are possessed by any
federally chartered association unless expressly denied by the
Commissioner.
2. Whenever additional rights, powers, privileges or exceptions
are granted to any federally chartered association, every company,
association or corporation licensed under the provisions of this chapter
whose accounts are federally insured has those additional rights, powers,
privileges or exceptions unless expressly denied by the Commissioner.
(Added to NRS by 1961, 780; A 1969, 973; 1981, 847; 1983, 1780;
1987, 1964; 1993, 2809)
1. An association may purchase or lease property for its office
buildings or construct its office buildings on property purchased or
leased by it, if the total cost of land and improvements does not exceed
70 percent of the sum of the association’s capital, surplus and reserves.
2. With the approval of the Commissioner, senior capital notes of
the Federal Deposit Insurance Corporation may be included in capital for
the purposes of this section.
(Added to NRS by 1963, 465; A 1967, 1015; 1971, 628; 1983, 1781;
1987, 1965; 1993, 2809)
1. An association may act as a trustee or custodian as provided by
the Federal Employee Retirement Security Act of 1974, as amended or
supplemented.
2. An association subscribing to trustee and custodial power
authorized by this section shall be required to segregate all funds held
in such fiduciary capacity from the general assets of the association and
keep a separate set of books and records showing in proper detail all
transactions engaged in under the authority of this section.
3. If individual records are kept of each selfemployed individual
retirement plan, all funds held in such trust or custodial capacity by
the association may be commingled for appropriate purposes of investment.
4. No funds held in such fiduciary capacity may be used by the
association in the conduct of its business, although such funds may be
invested in the savings accounts of the institution if the trust or
custodial retirement plan does not prohibit the investment.
(Added to NRS by 1963, 465; A 1977, 492)
STOCKS AND CERTIFICATES
1. No association may sell or issue any of its common or preferred
stock until it has first applied for and secured from the Commissioner a
license authorizing it so to do as provided in NRS 673.080 .
2. Every license must recite in bold type that the issuance of the
license is permissive only and does not constitute a recommendation or
endorsement of the stock permitted to be issued.
3. Before the sale of, or option to buy, any additional authorized
but unissued common or preferred stock, the association must have the
written approval of the Commissioner.
4. The Commissioner may impose conditions requiring the
impoundment of the proceeds from the sale of any stock, limiting the
expense in connection with the sale and such other conditions as are
reasonable and necessary or advisable to ensure the disposition of the
proceeds from the sale of the stock in the manner and for the purposes
provided in the license.
[14:51:1931; 1931 NCL § 970.13]—(NRS A 1957, 754; 1959, 57; 1961,
767; 1963, 465; 1979, 1292; 1983, 652, 1781; 1987, 1965)
1. The license specified in NRS 673.250 authorizes the company, association or
corporation to whom it is issued to sell its approved securities and
contracts within this State for the remainder of the fiscal year ending
on June 30 next succeeding. Each license is renewable, under like
restrictions, annually thereafter.
2. For the issuing of any license provided for in NRS 673.250
and for any renewal thereof, the fee of
the Commissioner is:
(a) For each home office, not more than $400; and.
(b) For each branch office, not more than $200.
3. The fees must accompany the license renewal application. A
penalty of 10 percent of the fee payable must be charged for each month
or part thereof that the fees are not paid after June 30 of each year.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section. All sums received
by the Commissioner pursuant to this section must be deposited in the
State Treasury pursuant to the provisions of NRS 658.091 .
[Part 15:51:1931; 1931 NCL § 970.14] + [Part 17:51:1931; A 1955,
589]—(NRS A 1959, 542; 1961, 767; 1963, 465; 1965, 1138; 1967, 978; 1973,
730; 1983, 1781; 1987, 1965, 2226; 2003, 3232 ; 2005, 1877 )
1. No person may, as a soliciting agent, soliciting representative
or employee of any foreign or domestic company, association or
corporation, or in any other capacity, sell or solicit sales for any
securities such as investment certificates or savings accounts or
contract for the sale of securities until he is first licensed as a
salesman or solicitor for sales of those securities by the Commissioner.
2. No person may be licensed for a period of more than 1 year, and
he may not be licensed until he has satisfied the requirements set forth
in NRS 673.046 .
3. For the issuing of any license provided for in this section and
for any renewal thereof, the fee of the Commissioner must not be more
than $10.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section. All sums received
by the Commissioner pursuant to this section must be deposited in the
State Treasury pursuant to the provisions of NRS 658.091 .
5. Tellers or other employees of an insured savings and loan
association are exempt from the licensing requirements unless their
employment entails soliciting sales outside their respective offices as
commission salesmen.
6. 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.
[Part 15:51:1931; 1931 NCL § 970.14] + [16:51:1931; 1931 NCL §
970.15] + [Part 17:51:1931; A 1955, 589]—(NRS A 1959, 542; 1961, 768;
1965, 1138; 1969, 974; 1983, 1782; 1987, 1966; 2003, 3233 ; 2005, 1878 )
1. Except as permitted by subsection 6, the total common stock and
any preferred stock subscribed and paid plus the total of the surplus,
undivided profits and all reserves available for losses must not at any
time be less than 5 percent of the aggregate certificate value of the
outstanding investment certificates of the association after the 11th
anniversary of the date of insurance of accounts. The stock surplus,
undivided profits and reserves must be at least equal to the percentage
of outstanding investment certificates on each prior anniversary as
stated below:
Date of insurance of
accounts................................................................
3.00 percent
Second anniversary of date of insurance of
accounts....................... 3.20 percent
Third anniversary of date of insurance of
accounts........................... 3.40 percent
Fourth anniversary of date of insurance of
accounts......................... 3.60 percent
Fifth anniversary of date of insurance of
accounts............................ 3.80 percent
Sixth anniversary of date of insurance of
accounts............................ 4.00 percent
Seventh anniversary of date of insurance of
accounts...................... 4.20 percent
Eighth anniversary of date of insurance of
accounts......................... 4.40 percent
Ninth anniversary of date of insurance of
accounts........................... 4.60 percent
Tenth anniversary of date of insurance of
accounts.......................... 4.80 percent
2. No dividends may be declared on common or preferred stock until
the total of the common stock, preferred stock, surplus, undivided
profits and all reserves available for losses is equal to the percentage
required by subsection 1 of the outstanding investment certificates and
if payment of those dividends would reduce the capital structure to an
amount below that percentage.
3. Subject to the provisions of this chapter, common stock and any
preferred stock is entitled to the rate of dividend, if earned, fixed by
the board of directors. Stock dividends may be declared by the board of
directors at any time, payable only from otherwise unallocated surplus
and undivided profits.
4. No stock dividend may be declared and paid for any period in
which the association has not declared and paid interest upon its
withdrawable accounts.
5. The liability of an association on account of any capital notes
which are subordinated to all outstanding investment certificates shall
be deemed a reserve available for losses for the purposes of subsection 1
and of NRS 673.274 , but no dividends
may be declared on common or preferred stock while the capital notes are
outstanding, without the written permission of the Commissioner.
6. The Commissioner may approve a lower ratio of the total common
stock and any preferred stock, undivided profits and all reserves which
must be available for losses to the aggregate of outstanding investment
certificates. The Commissioner shall not approve any ratio which would
impair the insurance of the association’s accounts by the Federal Deposit
Insurance Corporation.
(Added to NRS by 1957, 758; A 1959, 543; 1961, 768; 1963, 466;
1965, 1466; 1967, 1015; 1983, 652, 1782; 1987, 1966; 1993, 2809)
1. No association whose stock, surplus, undivided profits and
reserves are less than the amount specified in NRS 673.273 or approved by the Commissioner may:
(a) Issue investment certificates or withdrawal accounts except in
lieu of investment certificates or withdrawal accounts theretofore issued.
(b) Receive additional money upon investment certificates or
withdrawal accounts other than installment investment certificates or
installment withdrawal accounts.
2. The provisions of this section do not prohibit the association
from crediting to investment certificates the interest earned thereon, or
crediting to withdrawable accounts the interest thereon, if the payment
of the interest is not otherwise prohibited by the provisions of this
chapter.
(Added to NRS by 1959, 540; A 1969, 974; 1983, 653; 1987, 1967)
1. If the Commissioner, as a result of any examination or from any
report made to him, finds that the common or preferred stock of any
association is impaired, he shall notify the association that the
impairment exists and shall require the association to make good the
impairment within 90 days after the date of the notice.
2. If the amount of the impairment as determined by the
Commissioner is questioned by the association, then upon application
filed within 10 days after the notice from the Commissioner that the
impairment exists, the association may have the value of the assets in
question be determined by appraisals made by independent appraisers
acceptable to the Commissioner and the association.
3. The directors of the association upon which the notice has been
served shall levy a pro rata assessment upon the common and any preferred
stock to make good the impairment. They shall cause notice of the
requirement of the Commissioner and of the levy to be given in writing to
each stockholder of the association, and the amount of assessment which
he must pay for the purpose of making good the impairment. In lieu of
making the assessment, the impairment may be made good, without the
consent of the Commissioner, by reduction of the common or preferred
stock. Any stockholder who does not make payment under the assessment
shall transfer sufficient stock to the association to pay his pro rata
share of the assessment, and there is no further liability to the
stockholder.
(Added to NRS by 1957, 758; A 1961, 769; 1983, 654, 1783; 1987,
1967)
1. An association may issue investment certificates, with or
without passbooks. The holders of investment certificates are not liable
for debts or assessments, and are entitled upon liquidation of an
association to receive payment in full before any payment or distribution
is made to stockholders. The holders of investment certificates have no
right to participate in the profits of the association.
2. Investment certificates may be issued as fully paid investment
certificates, accumulative investment certificates, minimum term
investment certificates or other types of certificates approved by the
Commissioner. The Commissioner shall not approve any certificates whose
issuance would impair the insurance of the association’s accounts by the
Federal Deposit Insurance Corporation.
(Added to NRS by 1963, 458; A 1977, 493; 1983, 654, 1784; 1987,
1968; 1993, 2810)
RESERVE FOR LOSSES
A reserve for losses shall be
maintained by each association, which shall allow for the write-down of
assets to their fair market value in accordance with generally accepted
accounting principles.
(Added to NRS by 1969, 962)
INVESTMENTS AND BORROWING
An association may invest in:
1. Without limit, obligations of, or obligations guaranteed as to
principal and interest by, the United States or any state.
2. Obligations of the United States Postal Service, whether or not
guaranteed as to principal and interest by the United States.
3. Stock of a Federal Home Loan Bank of which the association is
eligible to be a member.
4. Any obligations or consolidated obligations of any Federal Home
Loan Bank or Banks.
5. Stock or obligations of the Federal Deposit Insurance
Corporation.
6. Stock or obligations of a national mortgage association or any
successor or successors thereto, including the Federal National Mortgage
Association.
7. Demand, time or savings deposits with any bank, credit union or
trust company whose deposits are insured by the Federal Deposit Insurance
Corporation, the National Credit Union Share Insurance Fund or a private
insurer approved pursuant to NRS 678.755 .
8. Stock or obligations of any corporation or agency of the United
States or any state, or in deposits therewith to the extent that such a
corporation or agency assists in furthering or facilitating the
association’s purposes or powers.
9. Savings accounts of any insured association licensed by the
State and of any federal savings and loan association, if the accounts of
the savings and loan association are insured by the Federal Deposit
Insurance Corporation.
10. Bonds, notes or other evidences of indebtedness which are
general obligations of any city, town, county, school district or other
municipal corporation or political subdivision of any state.
11. Capital stock and other securities of:
(a) A state development corporation organized under the provisions
of chapter 670 of NRS.
(b) A corporation for economic revitalization and diversification
organized under the provisions of chapter 670A of NRS, if the association is a member of the
corporation, and to the extent of its loan limit established under NRS
670A.200 .
12. Any other investment at the discretion of the association’s
directors if, after the investment is made, the association’s accounts
remain insurable by the Federal Deposit Insurance Corporation.
(Added to NRS by 1961, 782; A 1963, 467; 1967, 1016; 1969, 974;
1971, 272; 1975, 1827; 1977, 493; 1979, 710, 1292; 1981, 281; 1983, 655,
1279; 1985, 2249; 1993, 2811; 1999, 1449 )
1. An association may invest in the capital stock, obligations or
other securities of a related service corporation organized under the
laws of this state, except a corporation organized for the underwriting
or sale of insurance, subject to any regulations concerning the
insurability of the association’s accounts by the Federal Deposit
Insurance Corporation and to whatever regulations the Commissioner may
impose in this regard, if the entire capital stock of the corporation is
available for purchase by associations organized under the laws of this
state only.
2. No association may make the investment if its aggregate,
outstanding investments, pursuant to subsection 1, would then be in
excess of 1 percent of its assets.
(Added to NRS by 1969, 960; A 1983, 656, 1784; 1987, 1968; 1993,
2811)
1. Any investment in real property for purposes of subdivision or
for residential development must not exceed the market value or appraisal
valuation as evidenced by an appraisal report prepared within 120 days of
the investment by a member of the American Institute of Real Estate
Appraisers, the Society of Real Estate Appraisers, or the Independent Fee
Appraisers Society, or by such other appraiser as may be approved by the
Commissioner.
2. Within 30 days after the investment is made, the association
shall provide the Commissioner with a certified copy of one or more
appraisal reports on the real property involved and with a title
insurance company report, reflecting the chain of title for a period of
at least 3 years and the amount of consideration, as available, given for
each title transfer that may have occurred during the reported period.
3. The Commissioner may require a statement from the association
disclosing whether any director, officer or employee of the association
has a direct or indirect interest in the real property involved or has
had an interest at any time during the past 3 years. Stock ownership in
an interested corporation may be considered the direct or indirect
interest of the investor. Failure to make a required disclosure is
unlawful.
(Added to NRS by 1969, 962; A 1983, 1784; 1985, 2250; 1987, 1968)
The power of an association to
make loans shall include:
1. The power to purchase loans of any type that the association
may make.
2. The power to make loans upon the security of loans of any type
that the association may make.
(Added to NRS by 1957, 761; A 1959, 543)
An
association may invest its funds in the purchase of real property
contracts under the following conditions only:
1. That it must acquire the merchantable title to the property
covered by such contracts.
2. That the type of property be such as would be eligible for a
mortgage or deed of trust loan under this chapter.
3. Before making any such purchase, the property shall be
appraised and the purchase approved, as in the case of deed of trust
loans, by the board or the executive committee of the association.
(Added to NRS by 1957, 761)
Any savings and loan association may invest its funds, or money in its
custody, in the bonds of the Home Owners’ Loan Corporation or in the
bonds of any Federal Home Loan Bank, or in consolidated Federal Home Loan
Bank bonds, debentures or notes, or in farm loan bonds, consolidated farm
loan bonds, debentures, consolidated debentures and other obligations
issued by federal land banks and federal intermediate credit banks under
the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to
1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act
of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or
supplemented, and the bonds, debentures, consolidated debentures and
other obligations issued by banks for cooperatives under the authority of
the Farm Credit Act, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and
the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as
amended or supplemented.
[Part 1:61:1935; 1931 NCL § 3695.01]—(NRS A 1959, 32; 1973, 1093;
1977, 494; 1991, 496)
1. No association may sell, exchange, transfer, pledge,
hypothecate or otherwise dispose of or encumber any notes or other
obligations held by it, evidencing any loan made or purchased by it, or
the mortgages, trust deeds or other security therefor, that has been on
the books of the association for 3 years or longer, without the approval
of the commissioner. All loans sold must be sold without recourse and, if
under a contract to service them, then on a basis to provide sufficient
compensation to the association to reimburse it for expenses incurred
under its service contract.
2. This section does not apply to loans sold in which the
association retains a participating interest, nor to loans pledged as
security for borrowing as provided in NRS 673.300 and 673.302 .
(Added to NRS by 1967, 1022; A 1983, 1785; 1987, 1969)
1. Any savings and loan association which may now or hereafter be
eligible to become a member of any Federal Home Loan Bank according to
the terms of the Federal Home Loan Bank Act of 1932, 12 U.S.C. §§ 1421 to
1449, inclusive, as amended or supplemented, may:
(a) Subscribe for, purchase, own and hold stock in such Federal
Home Loan Bank, and become a member thereof.
(b) Borrow money from any Federal Home Loan Bank pursuant to the
Federal Home Loan Bank Act, as amended or supplemented.
(c) Invest in the bonds of any Federal Home Loan Bank.
(d) Give its obligations and pledge securities and conform to the
provisions of the Federal Home Loan Bank Act, and to the rules and
regulations from time to time fixed and prescribed either by the Federal
Home Loan Bank Board or the Federal Home Loan Bank of which it is a
member.
(e) Perform any acts and execute any instruments authorized or
required by the Federal Home Loan Bank Act, as amended or supplemented,
or by rules and regulations adopted pursuant to the Act.
2. All acts authorized by subsection 1 performed prior to March
18, 1935, are hereby validated and confirmed.
[Part 1:59:1935; 1931 NCL § 972.01] + [2:59:1935; 1931 NCL §
972.02]—(NRS A 1977, 494)
The power of an association to borrow money and contract debts
shall include the power to issue capital notes evidencing such borrowings
and to subordinate the same to investment certificates and other
liabilities. An association may confer upon the holders of any capital
notes, issued or to be issued by the association, such rights to vote in
the election of directors and on any other matters as shall be stated and
expressed in the articles of incorporation, or in any amendment thereto.
(Added to NRS by 1967, 1022)
The aggregate amount of all
borrowings of any association in force at any one time, excluding
borrowings from the Federal Home Loan Banks, the Federal Deposit
Insurance Corporation or other similar federal agencies, must not exceed
5 percent of the total assets of the association without the approval of
the Commissioner. The Commissioner shall not approve any borrowing which
would impair the insurance of the association’s accounts by the Federal
Deposit Insurance Corporation.
(Added to NRS by 1967, 1022; A 1983, 656, 1785; 1987, 1969; 1993,
2812)
1. Subject to such regulations as may be prescribed by the Federal
Housing Administrator or Department of Veterans Affairs, savings and loan
associations may:
(a) Make such loans and advances of credit, and purchases of
obligations representing the loans and advances of credit, as are
eligible for insurance by the Federal Housing Administrator or are
guaranteed by the Department of Veterans Affairs, and to obtain such
insurance.
(b) Make such loans secured by mortgages on real property as are
eligible for insurance by the Federal Housing Administrator or are
guaranteed by the Department of Veterans Affairs, and to obtain such
insurance.
(c) Purchase, invest in and dispose of notes or bonds secured by
mortgages insured by the Federal Housing Administrator or guaranteed by
the Department of Veterans Affairs, securities of national mortgage
associations, and debentures issued by the Department of Veterans Affairs
or the Federal Housing Administrator.
2. No law of this State, nor any articles of incorporation or
bylaws of any savings and loan associations, prescribing the nature,
amount or form of security or requiring security upon which loans or
advances of credit may be made, prescribing or limiting interest rates
upon loans or advances of credit, or prescribing or limiting the period
for which loans or advances of credit may be made, applies to loans,
advances of credit or purchases made pursuant to subsection 1.
3. All loans, advances of credit, and purchases of obligations
described in this section made and insured pursuant to the terms of the
National Housing Act or Servicemen’s Readjustment Act of 1944 are hereby
validated and confirmed.
[Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL § 3652.01] + [Part
2:58:1935; 1931 NCL § 3652.02] + [3:58:1935; 1931 NCL § 3652.03]—(NRS A
1959, 544; 1977, 495; 1995, 1100)
Notwithstanding any other provision of law, any savings and loan
association organized under the laws of this State, which has as one of
its principal purposes the making or purchasing of loans secured by real
property mortgages, is authorized to sell such mortgage loans to the
Federal National Mortgage Association, a corporation chartered by an Act
of Congress, or any successor thereof, and in connection therewith to
make payments of any capital contributions, required pursuant to law, in
the nature of subscriptions for stock of the Federal National Mortgage
Association or any successor thereof, to receive stock evidencing such
capital contributions, and to hold or dispose of such stock.
(Added to NRS by 1957, 527; A 1977, 495)
1. Nothing in this chapter requires any association to sell,
transfer or dispose of any investment or loan made or purchased by the
association before March 30, 1959. Any association may:
(a) Renew, extend the time of payment of, or rewrite any loan made
before that date.
(b) Make additional advances or loans for the purpose of preserving
the security of the loan or for the purpose of protecting the property
securing the loan.
(c) Make any renewal, extension, advance or loan to the borrower or
to any successor in interest in the property securing the loan.
(d) Make loans on property sold by an association or extend credit
thereon for the purpose of facilitating the sale of the property
regardless of any other provision of this chapter.
2. No advance or loan may be made under the provisions of this
section if the advance or loan would increase the total liability to the
association making the advance or loan to more than 2 percent of total
assets, except with the approval of the Commissioner.
3. For the purpose of preserving the security of any loan or of
protecting the property securing any loan made in compliance with this
chapter, an association may make additional advances or loans to the
borrower or any successor in interest in the property securing the loan.
Regardless of any other provision of this chapter an association may make
loans or extend credit for the purpose of facilitating the sale of
property acquired by repossession, foreclosure or conveyance in lieu of
foreclosure if that activity conforms to generally accepted accounting
practices.
(Added to NRS by 1959, 540; A 1963, 467; 1983, 656, 1785; 1987,
1969)
APPRAISALS
No loan may
be made upon the appraisement of, nor may compensation for any
appraisement be paid to any appraiser, officer or member of any committee
who has not been first approved in writing by the Commissioner for the
association. The approval is subject to such limitations as the
Commissioner provides, and may be revoked for cause by the Commissioner,
after giving due notice to the appraiser and the association and holding
a hearing. The association shall give notice in writing to the
Commissioner of the termination of the services of any appraiser within
15 days of the termination.
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468; 1983, 1786;
1987, 1970)
Every association shall appraise each parcel of real
estate prior to the granting of a loan. The appraisal shall be in ink or
typed, be dated and identify the security, specify separate valuations
for land and improvements, show the fair market value, and be signed in
ink. The appraised value shall be the value of the land and the permanent
improvements thereon. If the appraisal covers land only, it shall show
that the appraisal covers unimproved land, or covers building lots or
sites which by reason of installations and improvements are ready for the
construction of buildings thereon. The appraisal shall be reviewed by the
board of directors, or by a loan committee designated by the board of
directors, in which case all actions of the loan committee shall be
affirmed at the next board of directors meeting.
(Added to NRS by 1967, 1022)
Every association shall appraise each parcel of real estate at the time
of acquisition thereof. The report of each appraisal must be submitted in
writing to the board of directors and must be kept in the records of the
association. The Commissioner may require the appraisal of real estate
securing loans by an appraiser selected by the Commissioner. The
association whose securities are appraised under this section shall pay
the expense of the appraisal to the Commissioner upon demand. Money so
received must be deposited in the State Treasury pursuant to the
provisions of NRS 658.091 . Copies of
appraisals must be furnished to the association.
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468; 1965, 1139;
1983, 1786; 1987, 1970; 2003, 3233 )
1. The Commissioner may require each association to establish and
maintain a specific loss reserve for the amount by which the book value
of any asset exceeds the Commissioner’s appraisal of the asset.
2. In determining the values of the security properties for a
group of loans, the Commissioner may use his appraisal of each property
or his estimate of the total value of the properties based upon his
appraisal of a reasonable sample thereof. If any association contests the
validity of the estimate based upon a sample, it may have an appraisal,
at its own expense, by an appraiser approved by the Commissioner, of all
the group from which the sample was drawn, or of a larger sample of the
group than was recommended by the Commissioner.
3. If the Commissioner has directed an association to carry a
specific loss reserve on its books, the amount so designated for this
purpose by the Commissioner cannot be reduced or changed in any manner
without his written approval.
4. The provisions of subsections 2 and 3 are effective on July 1,
1967, but must not be applied retroactively.
(Added to NRS by 1959, 541; A 1961, 770; 1967, 1017; 1983, 1786;
1987, 1970)
A reserve for
uncollected interest shall be maintained equivalent to all interest which
has been due for 90 days or more and which is carried as income on the
books of the association.
(Added to NRS by 1967, 1022)
INSURANCE OF ACCOUNTS
Any
association, company or corporation which may be eligible so to do under
the terms of the National Housing Act, approved June 27, 1934, which act
is also designated as 12 U.S.C. §§ 1701 to 1743, inclusive, is authorized
and empowered to insure, pursuant to Title IV of the National Housing
Act, any and all of its accounts as such accounts now or hereafter may be
defined under Title IV of the National Housing Act and to do and perform
all things necessary or convenient to effect such insurance.
[1:63:1935; 1931 NCL § 3653.01]
LOANS
1. An association may make any loan which:
(a) Is secured by real property;
(b) Is secured by personal property;
(c) Results from a credit card issued by the association;
(d) Is unsecured;
(e) Is made to the United States, its agencies or any governmental
agency of the State of Nevada; or
(f) Is made at the discretion of the association’s directors, if
the loan will not impair the insurability of the association’s accounts
by the Federal Deposit Insurance Corporation.
2. Additional loans or advances on the same property, without
intervening liens, shall be deemed to be first liens for the purpose of
this chapter.
(Added to NRS by 1957, 759; A 1969, 975; 1977, 496; 1983, 657;
1993, 2812)
1. No association may make any loans to a:
(a) Corporation if the majority of the stock is owned or controlled
individually or collectively by any one or more of the directors,
officers or majority stockholders of the association; or
(b) Partnership if the limited or general partner is a director,
officer or the majority owner of the association,
Ê unless the loan is expressly authorized by this chapter or by a
resolution of the board of directors of the association. The resolution
must be approved by a vote of at least two-thirds of all the
disinterested directors of the association.
2. An association may make loans to any corporation or partnership
in which a director or officer of the association is a minority
stockholder or partner if the loan is authorized or confirmed, at a
meeting held within 30 days after the loan is made, by the affirmative
vote of all the disinterested directors of the association present at the
meeting and if the affirmative vote constitutes a majority of all the
directors of the association. The interested director or officer shall
not vote or participate in any manner in the action of the board of
directors upon the loan. The authorization or confirmation must be
entered in the minutes of the association. The loan must in all other
respects comply with the provisions covering the granting of loans.
3. If a loan is made to a corporation or partnership as set forth
in subsection 2, and if the director or officer of the association owns
more than 10 percent of the paid-in capital of the corporation, or if any
two or more officers or directors own more than 20 percent of the paid-in
capital of the corporation or if any one or more of the directors is a
general partner, the association shall file reports with the Commissioner
showing the following:
(a) The fact of making the loan.
(b) The names of the directors authorizing or confirming the loan.
(c) The corporate or partnership name of the borrower.
(d) The name of each director or officer of the association who is
a stockholder, officer, director or partner of the corporation or
partnership to which the loan was made.
(e) The amount of stock held by the officer or director in the
corporation.
(f) The amount of the loan, the rate of interest thereon, the time
when the loan becomes due, the amount, character and value of the
security given therefor, and the fact of final payment when made.
4. All officers, directors or stockholders holding more than 10
percent of the paid-in capital of the association shall disclose annually
to the Commissioner their investments in any partnership or corporation
to which a loan is made. If any changes in those investments occur, the
Commissioner must be notified.
(Added to NRS by 1967, 1022; A 1983, 658, 1787; 1987, 1971)
1. An association may invest any of its money in a loan to finance
a borrower’s interest in or to refinance his existing interest in a
cooperative housing corporation if the loan is secured by:
(a) A first security interest in stock or a certificate of
membership in the cooperative housing corporation; and
(b) An assignment of or lien on the borrower’s interest in the
lease or other right of tenancy to a dwelling unit of the cooperative
housing corporation.
2. A first security interest may exist even though a mortgage or
deed of trust encumbers the property owned by the cooperative housing
corporation if the stock or certificate of membership in the corporation
and the borrower’s lease or other right of tenancy are not encumbered
with a prior security interest. For purposes of this chapter, additional
loans or advances on the same interest in a cooperative housing
corporation, without intervening liens, shall be deemed to be first
security interests. For purposes of this chapter, the interest in a
cooperative housing corporation which is encumbered by a security
interest shall be deemed to be real property and security interest shall
be deemed to be a mortgage on real property.
(Added to NRS by 1983, 660)
1. An association shall not make at one time loans to any one
borrower, or under any one transaction, or applicable to any one project,
or tract, if the loans in the aggregate are in excess of whichever of the
following is the lesser:
(a) Ten percent of its total savings accounts, unless that
requirement is waived by written approval of the Commissioner.
(b) An amount equal to the sum of its capital, surplus, undivided
profits, loan reserve, federal insurance reserve, capital notes and such
other reserves as the Commissioner may prescribe.
2. For the purpose of this section, the term “one borrower” means:
(a) Any person or entity that is, or that upon the making of a loan
will become, obligor on a loan.
(b) Nominees of the obligor.
(c) All persons, trusts, partnerships, syndicates and corporations
of which the obligor is a nominee or a beneficiary, partner, member, or
stockholder of record or beneficial interest stockholder owning 10
percent or more of the capital stock of any corporation.
(d) If the obligor is a trust, partnership, syndicate or
corporation, all trusts, partnerships, syndicates and corporations of
which any beneficiary, partner, member, or stockholder of record or
beneficial interest stockholder owning 10 percent or more of the capital
stock is also a beneficiary, partner, member or stockholder of record or
beneficial interest stockholder owning 10 percent or more of the capital
stock of the association.
3. For the purpose of this section, the term “loans to any one
borrower” means the amount of the new loan plus the total balances of all
outstanding loans owed to the association by the borrower.
Notwithstanding any other limitations of this section, the loan may be
made if the new loan when added to the total balances of all outstanding
loans owed to the association by the borrower does not exceed $250,000.
4. For the purpose of this section, the term “balances of all
outstanding loans” means the original amounts loaned by the association
plus any additional advances and interest due and unpaid, less repayments
and participating interests sold and exclusive of any loan on the
security of real estate the title to which has been conveyed to a bona
fide purchaser of the real estate.
5. If an association makes a loan to any one borrower in an amount
which, when added to the total balances of all outstanding loans owed to
the association by the borrower, exceeds $250,000, the records of the
association with respect to the loan must include documentation showing
that the loan was made within the limitations of this chapter. For the
purpose of that documentation, the association may require, and may
accept in good faith, a certification by the borrower identifying the
persons, entities and interests described in the definition of one
borrower in subsection 2.
(Added to NRS by 1967, 1023; A 1969, 976; 1977, 511; 1983, 659,
1788; 1987, 1972)
1. An association may pay:
(a) Current or past-due taxes or assessments levied upon secured
property;
(b) Insurance premiums;
(c) Life insurance premiums on policies that an association may
require to be assigned as additional collateral; or
(d) Other similar charges required for the protection of its
investments.
Ê Such payments shall be added to the unpaid loan balance and shall have
the same secured status under the deed of trust provisions as the loan
itself. No association may require, as a condition of loan approval or in
the extension of any other service, that any kind of insurance coverage
be purchased from or through the association or from any agency in which
a director or officer of the corporation has any interest.
2. An association may require advance monthly payments on:
(a) Principal.
(b) Interest.
(c) Taxes.
(d) Assessments.
(e) Insurance premiums.
(f) Other statutory charges accruing upon the secured property.
Ê Each such payment may be equivalent to one-twelfth of the estimated
annual amount due. Monthly charges may be adjusted to provide a
reasonable method for the payment of estimated taxes, assessments,
insurance premiums and other charges. Upon receipt thereof such payments
may be carried in a separate trust account or they may be applied to the
loan account as a credit upon receipt and debit when disbursed.
(Added to NRS by 1969, 962)
Associations shall not charge for the privilege of prepayment in part or
in full of any loan an amount greater than 180 days’ interest on the
amount prepaid.
[20:51:1931; 1931 NCL § 970.19]—(NRS A 1957, 756; 1961, 770; 1975,
1794; 1983, 660)
No association shall loan any of its funds upon the security of
its own stock.
(Added to NRS by 1963, 470)
1. An association may hold, manage and convey real property,
including apartments and other buildings:
(a) Acquired by foreclosure or a conveyance in lieu of foreclosure;
or
(b) Developed or built by the association.
Ê Unless the association has received a written waiver from the
Commissioner, the total of money which it has advanced or committed for
property which it has developed or built may not exceed twice the sum of
its capital, surplus, undivided profits, loan reserve, federal insurance
reserve and any other reserves specified by the Commissioner.
2. When an association acquires title to any real property
pursuant to subsection 1, the document representing the transaction must
be recorded immediately. This subsection does not require recordation of
the evidences of any transfer of stock resulting from foreclosure of an
interest in a cooperative housing corporation.
3. An appropriate real-estate-owned account must be set up for the
property acquired and a separate subsidiary ledger or other appropriate
record must be maintained therefor. The amount carried in the account
must be the sum of the unpaid principal balance of the loan plus
foreclosure costs, less any advance payments and any money held in the
loans-in-process account at the time of acquisition, together with:
(a) Any amounts paid after acquisition for real property taxes
which have accrued before acquisition;
(b) Assessments due or delinquent at the time of acquisition; and
(c) Necessary acquisition costs and costs of insurance premiums.
4. The subsidiary ledger record or other appropriate record on
each property acquired must indicate:
(a) The type and character of the property acquired.
(b) All capitalized items of investment with related costs.
(c) Former loan or contract of sale account numbers.
(Added to NRS by 1969, 963; A 1979, 711; 1981, 512; 1983, 1789;
1987, 1973)
INTEREST AND DIVIDENDS
1. The apportionment of earnings or payment of interest by
declaration of the board of directors must be made semiannually on June
30 and December 31 of each year, or quarterly on those dates, and on
March 31 and September 30 of each year.
2. The percentage rate of the declaration must be determined by
the board of directors as it deems expedient for the safety and security
of all savings depositors, but if the percentage rate is excessive,
unjust or inequitable, it is subject to disapproval of, and reduction by
the Commissioner. The association may appeal any disapproval or reduction
by the Commissioner to the Director.
3. No association may be required to pay or credit interest on
accounts of $10 or less which show no entries of debit or credit for a
period of 2 years, except for accumulated interest credits.
4. Except as otherwise provided in this chapter, interest must be
declared on the participation value of each account at the beginning of
the interest period, plus payments on the account made during the
interest period, less amounts withdrawn, which for interest purposes must
be deducted from the latest previous payments on the account, computed at
the rate for the time invested, determined as provided in this section.
5. The date of investment is the date of actual receipt by the
association, except that the board of directors may fix a date, which may
not be later than the 10th day of the month, for determining the date of
investment on which interest is computed. A date later than the 10th may
be set if it is permissible for federal associations. If permitted by
federal regulations, as amended, the board of directors may permit
investments to receive interest calculated from the date of actual
receipt.
6. In addition to the classes of savings accounts provided for in
this chapter, an association may, with the approval of its board of
directors, authorize additional classes of savings accounts which will
conform to those types or classes, which have been established by the
Federal Home Loan Bank Board by regulation or which may be authorized by
it.
7. Except when prescribed for all associations by federal
regulation, any association which changes its method of calculating
interest on its savings accounts so as to decrease the effective yield of
that account shall notify each account holder affected by the change by
mail within 15 days before the proposed effective date of the change.
(Added to NRS by 1957, 759; A 1961, 771; 1963, 470; 1969, 976;
1977, 496; 1979, 1295; 1983, 1789; 1987, 1973)
No board of
directors of a savings and loan association shall knowingly declare to
its stockholders a greater dividend than has actually been earned by the
association after providing adequate reserves to meet any other
contingent liabilities.
(Added to NRS by 1957, 759)
INVESTORS
1. Any savings and loan association and any federal savings and
loan association operating in this state may issue savings accounts or
investment certificates to minors with the written consent of their
parents, trustees or guardians, and to married women, each in their own
right.
2. Any payment thereon, or delivery thereof, or of any rights
thereunder, to a minor of the age of 14 years or over, or to a married
woman, or a receipt or acquittance signed by the minor and parent,
trustee or guardian or by a married woman who holds such savings accounts
or investment certificates, is a valid and sufficient release and
discharge of the association for any such payment or delivery.
[1:116:1939; 1931 NCL § 974.10]—(NRS A 1977, 497)
1. A savings account or investment certificate of any association,
including a federal savings and loan association, may be purchased and
held by any person as administrator, executor, guardian, or as trustee or
other fiduciary, in trust for a named beneficiary or beneficiaries.
2. Any person holding a savings account as a fiduciary may make
payments upon, and withdraw, in whole or in part, the savings account or
investment certificate.
3. The withdrawal value of any such savings account or investment
certificate and interest thereon, or other rights relating thereto, may
be paid or delivered to the fiduciary, and the payment or delivery to the
fiduciary or a receipt or acquittance signed by the fiduciary, to whom
any payment or delivery of rights is made, is a valid and sufficient
release and discharge of the association for the payment or delivery so
made.
[Part 2:116:1939; 1931 NCL § 974.11]—(NRS A 1969, 977; 1977, 498)
1. Whenever a person holding a savings account or investment
certificates as trustee or other fiduciary, in trust for a named
beneficiary or beneficiaries, dies, and no written notice of the
revocation or termination of the trust relationship shall have been given
to any such association or company, the withdrawal value of such savings
account or investment certificates, and interest thereon, or other rights
relating thereto, may, at the option of the association or company, be
paid or delivered, in whole or in part, to the named beneficiary or
beneficiaries of such trust.
2. The payment or delivery to any such beneficiary or
beneficiaries, or a receipt or acquittance signed by any such beneficiary
or beneficiaries for any such payment or delivery, shall be a valid and
sufficient release and discharge of any such association or company for
the payment or delivery so made.
[Part 2:116:1939; 1931 NCL § 974.11]—(NRS A 1969, 978)
SAFE-DEPOSIT BOXES
1. If the rental due on a safe-deposit box has not been paid for
90 days, the lessor may send a notice by registered or certified mail to
the last known address of the lessee stating that the safe-deposit box
will be opened and its contents stored at the expense of the lessee
unless payment of the rental is made within 30 days. If the rental is not
paid within 30 days after the mailing of the notice, the box may be
opened in the presence of any officer of the lessor and a notary public.
The contents must be sealed in a package by the notary public, who shall
write on the outside the name of the lessee and the date of the opening
of the box in the presence of the officer. The notary public and the
officer shall execute a certificate reciting the name of the lessee, the
date of the opening of the box and a list of its contents. The
certificate must be included in the package, and a copy of the
certificate must be sent by registered or certified mail to the last
known address of the lessee. If the contents of the safe-deposit box have
been unclaimed by the owner for 3 years or less, the package must then be
placed in the general vaults of the lessor at a rental not exceeding the
rental previously charged for the box, until such time that the contents
will have been unclaimed by the owner for more than 3 years, at which
time the lessor shall deliver the package to the State Treasurer in his
capacity as the Administrator of Unclaimed Property pursuant to the
provisions of chapter 120A of NRS.
2. If the contents of a safe-deposit box that has been opened
pursuant to subsection 1 have been unclaimed by the owner for more than 3
years, the lessor shall deliver the package to the State Treasurer in his
capacity as the Administrator of Unclaimed Property pursuant to the
provisions of chapter 120A of NRS.
(Added to NRS by 1985, 2248; A 1995, 283; 2001, 1651 , 2929 )
WITHDRAWALS
1. Every association shall have on hand at all times in available
money, deposits in banks and credit unions, United States Government
bonds, certificates of insured savings and loan associations, Federal
Home Loan Bank evidences of indebtedness, time certificates of insured
federal and state banks, time certificates of insured credit unions or
any indebtedness of any United States Government instrumentality which is
by statute fully guaranteed, a sum not less than 5 percent of the
aggregate of savings accounts and investment certificates to enable it to
pay withdrawals in excess of receipts and to meet accruing expenses. The
Commissioner may prescribe from time to time different amounts required
for liquidity purposes, but the amounts must not be less than 4 percent
or more than 8 percent.
2. A deposit in a bank, credit union or association under the
control or the possession of appropriate supervisory authority must not
be considered as cash. Except for deposits in a Federal Home Loan Bank, a
time deposit established hereafter, whether or not time deposit-open
account or deposit evidenced by a certificate of deposit, must not be
considered as cash for such purposes unless:
(a) The member itself made the deposit in question;
(b) The deposit, together with all other time deposits of the
association in the same bank or credit union, does not exceed the greater
of:
(1) One-quarter of 1 percent of the total deposits of the
bank or credit union as of the last published statement of condition of
the bank or credit union; or
(2) Fifteen thousand dollars; and
(c) No consideration was received from a third party in connection
with the making of the deposit.
3. An association must not make or purchase any loan, other than
advances on the sole security of its savings accounts, at any time when
its liquidity drops below the required level. For the purpose of this
section, a loan is deemed to have been made as of the date the borrower
executed the security instrument, and a loan is deemed to have been
purchased as of the date of the payment therefor.
(Added to NRS by 1957, 762; A 1967, 1019; 1977, 498; 1983, 1791;
1985, 2250; 1987, 1974; 1999, 1450 )
1. Whenever an association has on file more withdrawal requests
than can be met in full from current funds, it shall apply to the
withdrawals one-half of the monthly receipts, after first deducting the
amount necessary to pay the actual and reasonable expenses incurred in
the operation of the association and the protection of its assets and
reserves set up by it for interest on its savings accounts or
certificates.
2. Should the one-half of the monthly receipts fail to retire at
least 5 percent of the aggregate withdrawal requests, then such portion
of the other one-half of the monthly receipts shall be applied as is
necessary to retire 5 percent of the total amount on withdrawal order.
3. For purposes of this section, “receipts” means all money coming
into the hands of the association except borrowed money. Borrowed money
shall not be considered receipts for the payment of withdrawals; but all
money borrowed from the Federal Home Loan Bank or from any other federal
loan agency for the purpose of paying withdrawals may be used for such
purpose and shall not be considered as receipts.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1977, 499)
1. Except as provided in this section, withdrawals must be paid in
the order of their filing, and no loans or investments may be made,
except by permission of the Commissioner, when any withdrawal request or
order has remained on file unpaid for a period of more than 30 days. Any
foreign or domestic association, company or corporation may, without the
necessity of obtaining permission of the Commissioner, make or purchase
loans or investments not exceeding the principal amount of money borrowed
by an association, company or corporation from a Federal Home Loan Bank
or other federal loan agency. Any such request or order which is not
legally payable for reasons other than the restrictions of this section
may not be considered as on file.
2. Whenever applications for withdrawals reach such an amount that
in the opinion of the Commissioner, it would be inexpedient to pay such
applications in the order of their filing, then, with the written
permission of the Commissioner first obtained, so much as may be directed
by the Commissioner of the money available to pay withdrawals may, each
month, be prorated upon the amounts of all applications for withdrawals
on file, irrespective of the order of filing.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1961, 772; 1983,
1792; 1987, 1975)
Any such foreign or domestic
association, company or corporation or its secretary or manager shall
immediately notify the Commissioner of its inability to pay a withdrawal
request or order which has been on file for a period of more than 60 days.
[13:51:1931; 1931 NCL § 970.12]—(NRS A 1961, 772; 1983, 1792; 1987,
1975)
REPORTS, EXAMINATIONS AND AUDITS
1. Each association doing business in this State shall file
annually with the Commissioner on or before March 1, a sworn statement in
two sections.
2. One section of the annual report must contain, in such form and
detail as the Commissioner may prescribe, the following:
(a) The amount of authorized capital by classes and the par value
of each class of stock.
(b) A statement of its assets, liabilities and capital accounts as
of the immediately preceding December 31.
(c) Any other facts which the Commissioner requires.
Ê This section must be furnished in duplicate, one certified copy to be
returned for publication at least two times in a newspaper having a
general circulation in each county in which the association maintains an
office. Publication must be completed on or before May 1, and proof of
publication must be filed in the Office of the Commissioner.
3. One section of the annual report must contain such other
information as the Commissioner may require to be furnished. This section
need not be published and must be treated as confidential by the
Commissioner.
4. The Commissioner may impose and collect a fee of not more than
$10 for each day the annual report is overdue. The Commissioner shall
adopt regulations establishing the amount of the fee that may be imposed
pursuant to this subsection. Every association shall pay to the
Commissioner for supervision and examination a fee based on the rate
established pursuant to NRS 658.101 .
5. All sums received by the Commissioner pursuant to this section
must be deposited in the State Treasury pursuant to the provisions of NRS
658.091 .
[Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1957, 757; 1961, 773;
1963, 470; 1965, 1139; 1967, 979; 1969, 978; 1973, 728; 1977, 499; 1979,
1296; 1983, 1792; 1987, 1975, 2226; 1989, 921; 2003, 3233 ; 2005, 1878 )
Each
such foreign or domestic association, company or corporation shall cause
to be supplied to the Commissioner at any time, upon his demand, any
information which he may require as to its condition, affairs or methods.
[Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1961, 773; 1983, 1793;
1987, 1976)
1. The Commissioner may conduct or cause to be conducted such
hearings, investigations or examinations of the books and records,
wherever they may be, relating to the affairs of such organizations as he
may deem expedient and in aid of the proper administration of the
provisions of this chapter.
2. In connection with the conduct of any hearing, investigation or
examination, the Commissioner or other person designated by him to
conduct it may:
(a) Compel the attendance of any person by subpoena.
(b) Administer oaths.
(c) Examine any person under oath concerning the business and
conduct of affairs of any association subject to the provisions of this
chapter, and require the production of any books, papers, records, money
and securities relevant to the inquiry. Any willful false swearing is
perjury and is punishable as such.
3. The Commissioner shall conduct at least once every 2 years an
examination of the books and records of each association licensed under
this chapter.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A
1961, 773; 1969, 979; 1979, 1297; 1983, 1793; 1987, 1976)
1. For the purpose of discovering violations of this chapter or of
securing information lawfully required under this chapter, 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 association;
(b) Any other person engaged in an activity regulated pursuant to
the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to
believe is violating or is about to violate any provision of this
chapter, whether or not the person claims to be within the authority or
beyond the scope of this chapter.
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 chapter; or
(b) The subject matter of any audit, examination, investigation or
hearing.
(Added to NRS by 2005, 1873 )
1. In case of the refusal of any person to attend or testify or
produce any papers required by the subpoena directed to be served under
the provision of NRS 673.450 , the
Commissioner may report to the district court in and for the county in
which the examination, hearing or investigation is pending by petition,
setting forth that:
(a) Due notice has been given of the time and place of attendance
of the person or the production of the books and papers;
(b) The person has been subpoenaed in the manner prescribed in this
chapter; and
(c) The person has failed and refused to attend or produce the
papers required by subpoena before the Commissioner in the examination,
hearing or investigation named in the subpoena, or has refused to answer
questions propounded to him in the course of such examination, hearing or
investigation,
Ê and asking an order of the court compelling the person to attend and
testify or produce the books or papers before the Commissioner.
2. The court, upon petition of the Commissioner, shall enter an
order directing the person to appear before the court at a time and place
to be fixed by the court in such order, the time to be not more than 10
days from the date of the order, and then and there show cause why he has
not attended or testified or produced the books or papers before the
Commissioner. A certified copy of the order must be served upon the
person. If it appears to the court that the subpoena was regularly issued
by the Commissioner, the court shall thereupon enter an order that the
person appear before the Commissioner at the time and place fixed in the
order and testify or produce the required books or papers; and upon
failure to obey the order the person shall be dealt with as for contempt
of court.
(Added to NRS by 1969, 964; A 1983, 1794; 1987, 1977)
1. The Commissioner may, at the time of examining a savings and
loan association, inspect the books, ledgers and minutes of any
corporation which is registered or required to be registered under
section 408 of the National Housing Act as a holding company whenever, in
his discretion, he considers it advisable to ascertain facts which may
relate to transactions between the holding company and the affiliated
association. The provisions of NRS 673.450 apply to the examination of such corporation.
2. Upon making findings to that end, the Commissioner may order
the discontinuance of borrowing or lending, selling or buying of assets,
extending credit or guaranteeing obligations of the holding company which
has been undertaken without the written approval of the Commissioner.
3. No unreasonable supervisory fees may be imposed upon any
association by a holding company which controls an association.
(Added to NRS by 1969, 963; A 1983, 1794; 1987, 1977)
1. Whenever in connection with an examination it is necessary or
expedient that the Commissioner or his deputy, or both, leave this State,
there must be assessed against the organization under examination a fee
of not more than $50 per day for each person while without the State in
connection with an examination, together with all actual and necessary
expenses.
2. The fee charged must be remitted to the Commissioner, who shall
deposit the fees in the State Treasury pursuant to the provisions of NRS
658.091 .
3. The Commissioner shall adopt regulations establishing the
amount of the fee required pursuant to this section.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A
1959, 545; 1961, 774; 1965, 1140; 1983, 1795; 1987, 1978; 2003, 3234
; 2005, 1879 )
In lieu of making any examination, the Commissioner may
accept any examination of any association made by the Federal Home Loan
Bank Board, any Federal Home Loan Bank, or the Federal Deposit Insurance
Corporation, or may examine any such institution in conjunction with the
Federal Home Loan Bank Board, a Federal Home Loan Bank, or the Federal
Deposit Insurance Corporation.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A
1961, 774; 1983, 1795; 1987, 1978; 1993, 2812)
The Commissioner, his agents
and employees may furnish to the Federal Home Loan Bank Board, or to any
Federal Home Loan Bank, or to examiners appointed by the Federal Home
Loan Bank Board or any Federal Home Loan Bank, or to any federal loan
agency, copies of any instruments concerning, and may disclose any
information with reference to, the conditions or affairs of any such
foreign or domestic association, company or corporation.
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A
1961, 774; 1983, 1795; 1987, 1978)
1. Each association shall, at least once each year, cause its
books and accounts to be audited at its own expense by a certified public
accountant or firm of such accountants selected by the association and
approved by the Commissioner.
2. The Commissioner may prescribe the scope of the audit.
3. A certified copy of the audit, including the management and
internal control letters relating to the audit, must be furnished to the
Commissioner.
(Added to NRS by 1963, 471; A 1977, 513; 1983, 1795; 1987, 1978)
Each association 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, 827)
SUSPENSION AND REVOCATION OF CHARTERS
The Commissioner may
after notice and hearing suspend or revoke the charter of any association
for:
1. Repeated failure to abide by the provisions of this chapter or
the regulations adopted thereunder.
2. Failure to pay a tax as required pursuant to the provisions of
chapter 363A of NRS.
(Added to NRS by 1967, 980; A 1977, 96; 1983, 1796; 1987, 1978;
2003, 20th Special Session, 226 )
REORGANIZATION; MERGER; CONSOLIDATION
1. An association may reorganize, merge or consolidate with
another state or federal association, if the reorganization, merger or
consolidation is based upon a plan which has been adopted by the board of
directors and approved at a regular or special stockholders’ meeting
which has been called to consider the action. The approval must rest on a
favorable vote of a majority of the voting power of the association as
established by its articles.
2. Any such plan for reorganization, merger or consolidation must
be approved by the Commissioner, who shall satisfy himself that the plan,
if approved, would be equitable for the stockholders of the affected
association or associations and would not impair the usefulness or
success of other properly conducted associations in the community. In
submitting an application for approval of any such plan, each association
proposing to reorganize, merge or consolidate must provide a
comprehensive review of its present financial statement and a projected
view of the financial statement of the reorganized, merged or
consolidated association.
3. Unless its action is specifically authorized by or taken in
conformity with this chapter, no association may, directly or indirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or other liabilities
of any financial institution or any other organization, person or entity.
(c) Transfer assets to any financial institution or any other
organization, person or entity in consideration of the transferee’s
assumption of liability for any portion of the transferor’s savings
accounts, deposits or other liability.
(d) Acquire the assets of any financial institution or any other
organization, person or entity.
4. Each application which is made under this section must be
accompanied by a fee payment of not more than $300. The responsibility
for payment of the fee must be shared equally by the associations
participating in each proposed plan.
5. The Commissioner shall adopt regulations establishing the
amount of the fee required pursuant to this section.
(Added to NRS by 1969, 966; A 1977, 500, 1262; 1981, 1316; 1983,
1796; 1987, 1978; 2005, 1879 )
CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP
1. If the Commissioner finds as the result of any examination or
from any report made to him or to any association doing business in this
state or from any report made to any of its investors that the
association is violating the provisions of its articles of incorporation,
charter, bylaws, or any law of this state, or is conducting its business
in an unsafe or injurious manner, he may by an order addressed to such
association direct a discontinuance of such violations or unsafe or
injurious practices and a conformity with all the requirements of law.
2. If an association does not comply with such order, the
Commissioner may order the corporate secretary to call a special
directors’ meeting to consider the matter of noncompliance.
3. The meeting must be held no later than 60 days after issuance
of the order to hold the meeting, unless otherwise restrained by court
order or by the board. The business of the meeting must be limited to the
matter of noncompliance and remedies therefor and the notice of such
meeting must set forth in detail the Commissioner’s discontinuance order
and order to call a directors’ meeting.
4. Action taken at the meeting is binding upon the officers of the
association.
(Added to NRS by 1957, 763; A 1961, 774; 1969, 979; 1983, 1796;
1987, 1979)
1. The Commissioner may, with the prior approval of the board,
appoint a conservator for an association if any of the following occur:
(a) The association does not comply with any order given pursuant
to NRS 673.485 , within the time
specified therein.
(b) It appears to the Commissioner that the association is in an
unsafe condition or is conducting its business in an unsafe or injurious
manner such as to render its further proceeding hazardous to the public
or to any or all of its investors.
(c) The Commissioner finds that the association’s assets are
impaired to such an extent that, after deducting all liabilities other
than to its investors they do not equal or exceed the sum of the value of
its outstanding savings accounts and investment certificates and the par
value of its outstanding stock.
(d) The association refuses to submit its books, papers and
accounts to the inspection of the Commissioner or any of his examiners,
deputies or assistants.
(e) Any officer of the association refuses to be examined upon oath
concerning the affairs of the association.
(f) It appears to the Commissioner that false reports have been
filed with his office.
2. The conservator may be the Commissioner, his deputy or any
person qualified for such appointment.
3. Immediately upon appointment, the conservator shall petition
the district court of the county in which the home office of the
association is located for confirmation of his appointment. The court has
exclusive jurisdiction to determine the issues and all related matters
and it shall give precedence to such conservatorship proceedings and
expedite the proceedings in every way.
(Added to NRS by 1957, 763; A 1959, 546; 1961, 774; 1969, 980;
1983, 1797; 1987, 1980)
1. The conservator confirmed or appointed by the court has all the
power expressed in the court order and the following:
(a) All the rights, powers and privileges possessed by the
directors, officers and stockholders.
(b) The power to request the resignation of or remove any director,
officer or employee for cause and upon written notice, which must show
the Commissioner’s approval of the action.
(c) The power to accept new savings accounts and additions to
existing accounts, which must become segregated accounts and amounts, if
the Commissioner so orders in writing, not subject to offset and not
available for liquidating any indebtedness of an association existing at
the time the conservator was appointed.
2. The conservator may not:
(a) Retain special counsel or other experts without prior approval
of the court;
(b) Incur any expenses other than normal operating expenses; or
(c) Liquidate assets except in the normal course of operations or
for the preservation of existing asset values.
3. All expenses of the association during the conservatorship must
be paid by the association.
4. The amount of compensation for the conservator must be
determined by the court and paid by the association. When either the
Commissioner or his deputy has been appointed conservator, the
compensation must be paid to the State Treasurer.
5. During the conservatorship, debtors to the association shall
continue to make payments to the association as may be required under the
terms of their respective contracts.
6. Savings account depositors may, with the approval of the
conservator, withdraw all or any part of their savings accounts under the
provisions of this chapter or under such regulations as the Commissioner
may prescribe.
7. The conservator shall return the association to the board of
directors if the conditions complained of by the Commissioner have been
removed within 12 months after his appointment. If no change has been
effected within that time, a receiver may be appointed by the
Commissioner as provided in this chapter.
(Added to NRS by 1969, 964; A 1975, 373; 1977, 501; 1983, 1798;
1987, 1980)
1. If the Commissioner finds that any association:
(a) Is in an impaired condition;
(b) Is engaging in practices which threaten to result in an
impaired condition; or
(c) Is in violation of an order or injunction, as provided in NRS
673.495 , which has become final in that
the time to appeal has expired without appeal or a final order entered
from which there can be no appeal,
Ê the Commissioner may appoint a receiver for the association, which may
be the Commissioner, his deputy or any other person, and upon such
appointment shall apply immediately to a court of general jurisdiction in
the county in which the home office of the association is located for
confirmation of the appointment. The court has exclusive jurisdiction to
determine the issues and all related matters. Such proceedings must be
given precedence over other cases pending in the court, and must in every
way be expedited. The court shall confirm the appointment if it finds
that one or more grounds exist, and a certified copy of the order of the
court confirming the appointment is evidence thereof. In the case of an
insured association, the appointment by the Commissioner of a receiver
under this section constitutes an official determination of a public
authority of this state pursuant to which a receiver is appointed for the
purpose of liquidation as contemplated by and within the meaning of
section 406 of the National Housing Act of 1934, as amended, if, within
10 days after the date the application of the Commissioner is filed,
confirmation of such appointment or denial of confirmation has not been
issued by the court. The receiver has all the powers and authority of a
conservator plus the power to liquidate, and has such other powers and
authority as may be expressed in the order of the court. If the
Commissioner, or his deputy, or examiner is appointed receiver, he shall
receive no additional compensation, but if another person is appointed,
then the compensation of the receiver, as determined by the court, must
be paid from the assets of the association.
2. If the association is an institution insured by the Federal
Deposit Insurance Corporation, the Federal Deposit Insurance Corporation
must be tendered appointment as receiver or coreceiver. If it accepts
such appointment, it may, nevertheless, make loans on the security of or
purchase at public or private sale any part or all of the assets of the
association of which it is receiver or coreceiver, if the loan or
purchase is approved by the court.
3. The procedure in such receivership action must be in all other
respects in accordance with the practice in the court, including all
rights of appeal and review. The directors, officers and attorneys of an
association in office at the time of the initiation of any proceeding
under this section or under NRS 673.495
are expressly authorized to contest any such proceeding and must be
reimbursed for reasonable expenses and attorney fees by the association
or from its assets. Any court having any such proceeding before it shall
allow and order paid reasonable expenses and attorney fees for such
directors, officers and attorneys.
(Added to NRS by 1969, 965; A 1983, 1798; 1987, 1981; 1993, 2812)
An appeal from a judgment enjoining
the Commissioner from further proceedings and directing him to surrender
the business, property and assets to the association does not operate as
a stay of the judgment, unless the trial court in its discretion so
orders. If an appeal from the judgment is taken by the Commissioner no
bond need be given. If the judgment dismisses the action an appeal
therefrom does not operate as a stay of the judgment but the court
rendering such judgment may, in its discretion, enjoin the Commissioner,
pending the appeal, from further proceedings and direct him, pending the
appeal, to surrender such business, property and assets to the
association, if a bond is given in an amount not less than 10 percent of
the cash on hand or on deposit.
(Added to NRS by 1957, 764; A 1961, 775; 1983, 1800; 1987, 1982)
Whenever the
Commissioner demands possession of the property, business and assets of
any association, pursuant to NRS 673.485 to 673.577 ,
inclusive, the refusal of any officer, agent, employee or director of
such association to comply with the demand is a misdemeanor.
(Added to NRS by 1957, 764; A 1961, 775; 1967, 648; 1983, 1800;
1987, 1982)
If the demand of the Commissioner for the possession of the
property, business and assets is not complied with within 24 hours after
service of the demand, the Commissioner may call to his assistance the
sheriff of the county in which the principal place of business of an
association is located, by giving the sheriff written demand. The sheriff
shall enforce the demands of the Commissioner.
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1982)
When the Commissioner takes possession of the
property, business and assets of any association, the president and
secretary of an association shall make a schedule of all its property,
assets and collateral held by it as security for loans and make an oath
that such schedule sets forth all such property, assets and collateral.
The president and secretary shall deliver the schedule, and the
possession of all property, assets and collateral not previously
delivered to the Commissioner. The Commissioner may at any time examine
under oath any president, secretary, officer, director, agent or employee
of the association, to determine whether or not all the property, assets
or collateral have been transferred and delivered into his possession.
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1983)
The Commissioner may issue subpoenas and
require the attendance of parties for examination.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)
When the Commissioner
takes possession of the business, property and assets of an association,
he may appoint a custodian. The Commissioner may require a good and
sufficient bond from the custodian and place him in charge as his
representative.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)
When the
Commissioner takes possession of the property, business and assets of an
association, he may collect all money due to such association and give
receipt therefor. The Commissioner may do such other acts as are
necessary or expedient to collect, conserve or protect the association’s
business, property and assets.
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1801; 1987, 1983)
If the Commissioner is in possession of the
business, property and assets of an association, whether or not he is
liquidating the affairs of the association, the Commissioner may:
1. Pay and discharge any secured claims against the association.
No secured claim may be paid in an amount larger than the value of the
security at the time of payment.
2. Pay administrative or current expenses incurred before the
taking of possession which are necessary or convenient to the orderly or
economic liquidation or preservation of the assets, and pay all wages or
salaries, in amounts not exceeding such amounts as are normally paid to
officers and employees. No salary increases may be proposed or consented
to by the Commissioner, conservator or receiver. The number of staff
members which are required or needed for the operation of the association
must be determined by the Commissioner.
3. Disaffirm any executory contracts, including leases, to which
the association is a party, and disaffirm any partially executed
contracts, including leases, to the extent that they remain executory.
The disaffirmance must be made within 6 months after obtaining knowledge
of the existence of the contract or lease.
(Added to NRS by 1957, 765; A 1961, 776; 1969, 981; 1983, 1801;
1987, 1983)
Claims for damages resulting from the disaffirmance
of an executory contract or lease by the Commissioner may be filed and
allowed. No claim of a landlord for damages resulting from the
disaffirmance of an unexpired lease of real property or under any
covenant of the lease may be allowed in an amount exceeding the rent
reserved by the lease, without acceleration, for the year succeeding the
date of the surrender of the premises plus the amount of any unpaid
accrued rent without acceleration. Any such claim must be filed within 30
days of the date of the disaffirmance.
(Added to NRS by 1957, 765; A 1961, 777; 1983, 1801; 1987, 1984)
1. The Commissioner may, if he takes possession of any association
whose savings accounts are to any extent insured by the Federal Deposit
Insurance Corporation, tender to the Federal Deposit Insurance
Corporation the appointment as statutory liquidator of the association.
If he does not make a tender as sole statutory liquidator, he shall
tender to the Federal Deposit Insurance Corporation the appointment as
statutory coliquidator to act jointly with the Commissioner. The
coliquidatorship may not exist for more than 1 year from the date of
tender, at the expiration of which time the Commissioner becomes the sole
liquidator except as otherwise provided by this section. The Commissioner
shall tender to the Federal Deposit Insurance Corporation the appointment
as sole statutory liquidator of the association whenever the corporation
has become subrogated to the rights of 90 percent of the liability of the
association on savings accounts. If the Federal Deposit Insurance
Corporation becomes subrogated as to all the savings accounts in the
association, it may then exercise all the powers and privileges conferred
upon it by this chapter without court approval.
2. If the Federal Deposit Insurance Corporation accepts the
appointment as sole liquidator, it possesses all the powers and
privileges of the Commissioner as statutory liquidator of a possessed
savings and loan association and is subject to all duties of the
Commissioner as sole liquidator, except insofar as the powers and
privileges or duties are in conflict with federal laws, and except as
otherwise provided in this chapter, unless the association resumes
business pursuant to the provisions of this chapter. If the Federal
Deposit Insurance Corporation accepts the appointment as coliquidator, it
possesses all the powers and privileges jointly with the Commissioner and
is subject to the duties jointly with the Commissioner.
3. If the Federal Deposit Insurance Corporation accepts the
appointment as coliquidator or liquidator, it shall file its acceptance
with the Commissioner and the clerk of the district court. The
corporation may act without bond. Upon filing its acceptance of
appointment as sole liquidator, the possession of and title to all the
assets, business and property of the association vests in the Federal
Deposit Insurance Corporation without the execution of any conveyance,
assignment, transfer or endorsement. Upon filing its acceptance of
appointment as coliquidator, the possession and title vests in the
Commissioner and the corporation jointly. If the Federal Deposit
Insurance Corporation does not qualify as sole liquidator at or before
the time provided for the expiration of the coliquidatorship, the
corporation must be wholly divested of the joint title and possession,
and the sole title and possession vests in the Commissioner. The vesting
of title and possession of the property of the association does not
render the property subject to any claims by the federal corporation,
except those which are encumbered by it with respect to the association
and its property. Whether or not it serves as liquidator or coliquidator,
the corporation may make loans on the security of or may purchase with
the approval of the court, except as otherwise provided in this chapter,
all or any part of the assets of any association, the savings accounts of
which are to any extent insured by it. In the event of a purchase, the
corporation shall pay a reasonable price.
4. Whether or not the Federal Deposit Insurance Corporation serves
as liquidator, whenever it pays or makes available for payment the
savings accounts of any association in liquidation which are insured by
it, it is subrogated upon the surrender and transfer to it of the savings
accounts. The surrender and transfer do not affect any right which the
transferor has in any savings accounts which are not paid or made
available for payment or any right to participate in the distribution of
the net proceeds remaining from the disposition of the assets of the
association. The rights of the investors and creditors of the association
must be determined in accordance with the applicable provisions of the
laws of this state.
[Part 22.2:51:1931; added 1955, 589]—(NRS A 1961, 777; 1977, 501;
1983, 1801; 1987, 1984; 1993, 2813)
1. Whenever, in the case of any association which has issued
common or preferred stock, the Commissioner or the Federal Deposit
Insurance Corporation has fully liquidated all claims other than claims
of the stockholders, and has made due provision for all known or
unclaimed liabilities, excepting claims of stockholders, and has paid all
expenses of liquidation, the Commissioner shall call a meeting of the
stockholders of the savings and loan association.
2. Notice of the meeting must be given by:
(a) Five publications in a 30-day period in one or more newspapers
published in the county in which the principal office of the association
is located; and
(b) Letter to each stockholder mailed to his last known address.
3. At the meeting the Commissioner shall deliver to the
stockholders all the property and effects of the association remaining in
his possession except its records, which must be retained by him as part
of the records of his office. Upon transfer and delivery he is discharged
from any further liability to the association or its creditors, and
thereafter the association is in the same position as though it had never
been authorized to transact a savings and loan business.
[22.4:51:1931; added 1955, 589]—(NRS A 1959, 57; 1961, 779; 1977,
503; 1983, 660, 1803; 1987, 1985; 1993, 2814)
FOREIGN ASSOCIATIONS
1. A foreign association whose activities are limited to any one
or more of those enumerated in NRS 80.015 need not be licensed under this chapter.
2. Except as otherwise provided in chapter 666 of NRS and NRS 666A.010 to 666A.400 , inclusive, a foreign association may not
solicit or accept deposits in this state, but if it was licensed before
July 1, 1985, under the provisions of this section then in force, it may
renew that license annually subject to all the provisions, and upon
payment of the fee, then in force.
(Added to NRS by 1969, 962; A 1979, 1297; 1983, 1325, 1803; 1985,
2158; 1989, 627; 1991, 1317; 1995, 1564)
1. If any association, company or corporation organized or
incorporated under the laws of any governing body other than the State of
Nevada is doing business in this state under the provisions of this
chapter, and the laws of the other governing body conflict with any of
the provisions of this chapter, the provisions of the laws of this
governing body prevail as to each conflict.
2. Whenever any foreign organization follows a course or performs
any act which is forbidden to any domestic organization under the terms
of this chapter, it shall report to the Commissioner all of the facts
relating thereto.
[Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1959, 57; 1961,
772; 1969, 978; 1983, 1792; 1985, 2251; 1987, 1986)
CONVERSION INTO FEDERAL ASSOCIATION
Any savings and loan
association eligible to become a member of the Federal Home Loan Bank,
may convert itself into a federal savings and loan association pursuant
to the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468,
inclusive, with the same effect as though originally incorporated under
that act, and the proceedings to effect the conversion shall be as
outlined in NRS 673.610 to 673.640
, inclusive.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)
1. A meeting of the stockholders shall be held upon not less than
10 days’ written notice to each stockholder, served either personally or
by mail, postage prepaid, directed to him at his last known post office
address and containing a statement of the time, place and the purpose for
which the meeting is called.
2. Proof by affidavit of due service of the notice shall be filed
in the office of the corporation before or at the time of the meeting.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)
1. At a meeting of the stockholders held as provided in NRS
673.610 , the stockholders may, by the
affirmative vote of the majority of the stockholders present, in person
or by proxy, declare by resolution the determination to convert the state
company, association or corporation into a federal savings and loan
association.
2. A copy of the minutes of the meeting, verified by the affidavit
of the president or vice president and the secretary of the meeting, must
be filed in the Office of the Commissioner within 10 days after the date
of the meeting. The sworn copy of the proceedings of the meeting, when so
filed, is presumptive evidence of the holding and the action of the
meeting.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779; 1977, 504;
1983, 1804; 1987, 1986)
1. After the holding of the meeting of stockholders, the state
company, association or corporation shall take such action, in the manner
prescribed or authorized by the laws of the United States or the rules
and regulations promulgated pursuant thereto, as shall make it a federal
savings and loan association, and there shall thereupon be filed in the
Office of the Commissioner a copy of the charter of authorization issued
to the association by the supervising federal regulatory body or a
certificate showing the organization of the association as a federal
savings and loan association, certified by the supervising federal
regulatory body. Upon filing with the Commissioner, the association
ceases to be a state savings and loan association, but retains all
rights, privileges and exemptions of a domestic association of the same
kind and character.
2. A fee of not more than $40 must accompany the copy of the
charter of authorization.
3. Federal associations so converted and their members are subject
to the same form of taxation and on the same basis as state associations
and their stockholders.
4. The Commissioner shall adopt regulations establishing the
amount of the fee required pursuant to this section.
[Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779; 1969, 981;
1977, 504; 1983, 1804; 1987, 1986; 2005, 1880 )
1. At the time when the conversion becomes effective, the company,
association or corporation shall cease to be supervised by this state,
but shall continue as a body corporate converted pursuant to the
provisions of the Home Owners’ Loan Act of 1933 and subject to
examination and regulation pursuant to that act.
2. All the property of the state company, association or
corporation, including all its right, title and interest in and to all
property of whatever kind, whether real, personal or mixed, and things in
action, and every right, privilege, interest and asset of any conceivable
value of benefit then existing, belonging or pertaining to it, or which
would inure to it, shall immediately by operation of law, and without any
conveyance or transfer, and without any further act or deed be vested in
and become the property of the federal savings and loan association. The
federal savings and loan association shall have, hold and enjoy the same
in its own right as fully and to the same extent as the same was
possessed, held and enjoyed by the state company, association or
corporation.
3. The federal savings and loan association as of the time of
taking effect of such conversion shall succeed to all the rights,
obligations and relations of the state company, association or
corporation.
[2:60:1935; 1931 NCL § 973.02]
CONVERSION OF FEDERAL ASSOCIATION
Any federal
savings and loan association may convert itself into a savings and loan
association under the laws of this State upon a vote of 51 percent or
more of the votes of members of the federal savings and loan association
cast at any regular or special meeting called to consider the action.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 504)
At the meeting the members shall also vote
upon the directors who shall be the directors of the savings and loan
association after conversion takes effect, to hold office until the next
annual meeting and until their successors are elected and qualified.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 504)
Copies of the minutes of the proceedings of the meeting, verified by the
affidavit of the president or vice president and the secretary or an
assistant secretary, must be filed in the Office of the Commissioner and,
in duplicate, with the Federal Home Loan Bank of which the association is
a member, within 10 days after the meeting.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961, 780; 1983, 1805;
1987, 1987)
The verified copies of the minutes of
the meeting, when filed as required by NRS 673.670 , shall be presumptive evidence of the holding
and action of such meeting.
[Part 1:140:1939; 1931 NCL § 974.30]
1. After the meeting, the federal association shall take such
action in the manner prescribed and authorized by the laws of this state
as shall make it a savings and loan association of this state, and the
directors elected at the meeting shall file such documents and follow
such procedures as are required by the laws of this state in the case of
the original incorporation of a savings and loan association.
2. A savings and loan association incorporated by conversion from
a federal savings and loan association shall not be required to comply
with any of the provisions of law or any regulation adopted by the
Commissioner relating to the minimum amounts of capital required to be
subscribed in connection with the original incorporation of a savings and
loan association under the laws of this state.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961, 780; 1977, 505;
1983, 1805; 1987, 1987)
The directors may, if they so desire, insert in the
articles of incorporation the following statement: “This association
(company or corporation) is incorporated by conversion from a federal
savings and loan association.”
[Part 1:140:1939; 1931 NCL § 974.30]
Within 10 days after the filing of the articles of incorporation with
the Secretary of State, there shall be filed with the Federal Home Loan
Bank of which such association is a member two copies of the articles of
incorporation, certified by the Secretary of State.
[Part 1:140:1939; 1931 NCL § 974.30]
Upon the filing of the articles of incorporation with the
Secretary of State, the association ceases to be a federal savings and
loan association and thereafter is a savings and loan association. All of
the property of the association, including all of its right, title and
interest in and to all property of every kind and character, whether
real, personal or mixed, immediately by operation of law, without any
conveyance or transfer and without any further act or deed, vests in the
association under its new name and style as a savings and loan
association, and under its new jurisdiction.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)
The savings
and loan association shall have, hold and enjoy the property mentioned in
NRS 673.720 in its own right as fully
and to the same extent as the property was possessed, held and enjoyed by
it as a federal savings and loan association, and the savings and loan
association continues to be responsible for all of the obligations of the
federal savings and loan association to the same extent as though the
conversion had not taken place. It is expressly declared that the savings
and loan association is merely a continuation of the federal savings and
loan association under a new name, a new jurisdiction and such revision
of its corporate structure as may be considered necessary for its proper
operation under the new jurisdiction.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)
Every executor,
administrator, trustee, guardian, receiver, fiduciary, public
corporation, political subdivision, public instrumentality, charitable,
educational and eleemosynary institution, bank, savings bank, trust
company, financial institution, insurance company, or cemetery
association, without the necessity of obtaining court approval, may:
1. Vote in person or by proxy in favor of converting a federal
savings and loan association into a savings and loan association, or may
approve the determination so to convert.
2. Exchange any shares, share accounts or other rights or claims
for securities issued by the savings and loan association, and may
continue to hold as a legal investment any securities so received.
[Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)
POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Every federal savings and loan association incorporated
under the provisions of the Home Owners’ Loan Act of 1933, 12 U.S.C. §§
1461 to 1468, inclusive, as amended or supplemented, having its principal
place of business in the State of Nevada, and the holders of shares or
share accounts issued by the association, respectively, have all the
rights, powers and privileges, and are entitled to the same exemptions
and immunities granted, respectively, to savings and loan associations
organized under the laws of this State and to the holders of savings
accounts, investment certificates or guaranty stock of state associations.
[1:129:1939; 1931 NCL § 974.20]—(NRS A 1963, 472; 1977, 506)
UNLAWFUL ACTS; PENALTIES
Any person who knowingly makes, utters,
circulates or transmits to another, or others, any statement untrue in
fact, derogatory to the financial condition of any such association doing
business in this state, with intent to injure the association, or who
counsels, aids, procures or induces another to originate, make, utter,
transmit or circulate any such statement or rumor, with like intent, is
guilty of a misdemeanor.
[31:51:1931; 1931 NCL § 970.21]—(NRS A 1967, 649; 1977, 506)
In
addition to any other remedy or penalty:
1. Any association which violates any provisions of this chapter
or fraudulently misrepresents the terms of any contract or of any
securities, and thereby secures a sale therefor, shall be punished by an
administrative fine of not more than $10,000 and forfeiture and
revocation of all licenses issued to it under the provisions of this
chapter.
2. The Commissioner may impose an administrative fine of not more
than $10,000 upon a person who:
(a) Without a license, conducts any business or activity for which
a license is required pursuant to the provisions of this chapter; or
(b) Violates any provision of this chapter or any regulation
adopted pursuant thereto.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967, 649; 1977, 506;
2005, 1880 )
Any person who shall violate any provision
of this chapter or sell any securities as the result of any fraudulent
misrepresentation shall be guilty of a misdemeanor, and the license
issued to him shall be forfeited and revoked.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967, 649)
Any person doing
business in this state, as described in NRS 673.070 , who:
1. Sells or offers for sale within this state any securities of
any company, association or corporation which has not received the
license provided for in NRS 673.080 and
673.250 ;
2. Fails to secure the license provided for in NRS 673.270 ; or
3. Fails to pay a fee or penalty as provided in NRS 673.430 ,
Ê is guilty of a misdemeanor for each such violation.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1963, 472; 1967, 649;
1989, 922)
The revocation of
any license issued under any of the provisions of this chapter shall,
from the date of such revocation, place the association to whom it was
issued in the same legal status and subject to the same prohibitions and
penalties as one to whom no license has been issued.
[Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1977, 506)
