2005 Nevada Revised Statutes - Chapter 673 — Savings and Loan Associations
Title 56 - OTHER FINANCIAL INSTITUTIONS
CHAPTER 673 - SAVINGS AND LOAN ASSOCIATIONS
GENERAL PROVISIONS
NRS 673.001 Definitions.
NRS 673.002 Associationdefined.
NRS 673.005 Combinationhome and business structure defined.
NRS 673.0054 Commissionerdefined.
NRS 673.0056 Cooperativehousing corporation defined.
NRS 673.0057 Depositdefined.
NRS 673.0065 Directordefined.
NRS 673.007 Dividenddefined.
NRS 673.008 Foreigndefined.
NRS 673.009 Grossincome defined.
NRS 673.011 Homedefined.
NRS 673.012 Homeloan defined.
NRS 673.013 Homeproperty defined.
NRS 673.014 Impairedcondition defined.
NRS 673.015 Improvedreal estate defined.
NRS 673.016 Insuredassociation defined.
NRS 673.0165 Interestdefined.
NRS 673.017 Investmentcertificate defined.
NRS 673.0185 Mergerdefined.
NRS 673.019 Netearnings defined.
NRS 673.021 Netearnings available for dividends defined.
NRS 673.022 Operatingexpenses defined.
NRS 673.023 Operatingincome defined.
NRS 673.024 Otherreal estate loan defined.
NRS 673.025 Realestate expenses defined.
NRS 673.026 Realestate income defined.
NRS 673.027 Realestate loan defined.
NRS 673.031 Savingsaccount defined.
NRS 673.032 Savingsliability defined.
NRS 673.0321 Serviceoffice defined.
NRS 673.034 Withdrawalvalue defined.
ADMINISTRATION AND ENFORCEMENT
NRS 673.035 Administrationof chapter.
NRS 673.03531 Certainrelationships between employees of Division of Financial Institutions andassociation prohibited; termination of prohibited relationship.
NRS 673.039 Recordsof Commissioner.
NRS 673.040 Commissionerto supervise and make policy.
NRS 673.042 Biennialreport of Commissioner: Contents; distribution.
NRS 673.043 Regulations.
NRS 673.0435 Commissionermay secure injunctions and restraining orders.
NRS 673.044 Notices.
NRS 673.045 Amendmentor alteration of license by Commissioner; appeal.
NRS 673.046 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue license.
NRS 673.048 Suspensionor revocation of license: Additional grounds.
NRS 673.050 Proceedingsin court to test validity of action by Commissioner or Director.
NRS 673.060 Depositof money in State Treasury; payment of expenses; exceptions.
FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES
NRS 673.070 Incorporationof domestic associations: Procedure; applicability of
NRS 673.080 Articlesto be approved by Commissioner; application; permission to organize; fees;conditions; regulations; withdrawal of application.
NRS 673.090 Provisionsof chapter abridge and enlarge powers and privileges of foreign and domesticassociations.
NRS 673.110 Procedurefor removing and loan from name of domestic association.
NRS 673.112 Branchoffices: Definition; establishment and regulation; revocation of approval byCommissioner; advertisement; fees; regulations.
NRS 673.113 Suretybond of association.
NRS 673.114 Serviceoffices: Approval of Commissioner required; revocation of approval.
NRS 673.115 Restrictionson advertising.
NRS 673.117 Useor change of business name; prohibitions.
OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS
NRS 673.207 Directors:Number; filling of vacancies; amendment of bylaws.
NRS 673.208 Personsrequiring Commissioners approval to serve as director.
NRS 673.209 Removalof director, officer or employee on objection of Commissioner.
NRS 673.211 Removalof director for cause.
NRS 673.212 Fiduciaryrelationship of directors and officers to association.
NRS 673.213 Directors:Compensation and expenses.
NRS 673.214 Officers:Election; salaries.
NRS 673.215 Directors:Meetings; quorum.
NRS 673.216 Officialcommunication from Commissioner: Read at next board meeting and made part ofminutes.
NRS 673.217 Statementof purchases and sales of real estate and loans made or purchased to beconsidered at regular meeting and made part of minutes.
NRS 673.2176 Notificationof change in ownership of stock; application required after certainacquisitions; investigation; costs; waiver.
NRS 673.218 Pensionsand retirement plans for officers and employees.
NRS 673.219 Directors:Approval of depositary for money of association.
NRS 673.221 Unlawfulacts; penalty.
NRS 673.2211 Liabilityof directors, officers or other persons.
NRS 673.222 Actionsagainst officers, directors or employees: Payment of expenses of defendingaction by association; settlements.
POWERS AND PRIVILEGES OF STATE ASSOCIATIONS
NRS 673.225 Certainstate associations possess same powers and privileges as federally charteredassociations.
NRS 673.227 Landand office buildings of association; limitation on costs.
NRS 673.228 Trusteeand custodial powers of association.
STOCKS AND CERTIFICATES
NRS 673.250 Licensesfor issuance or sale of stock; contents and conditions of licenses.
NRS 673.260 Annuallicense: Fees; renewal; penalty; regulations.
NRS 673.270 Licensingof salesmen and solicitors; fees; regulations; withdrawal of application.
NRS 673.273 Stock,surplus, undivided profits and reserves to include percentage of value of outstandinginvestment certificates; dividends on permanent stock; stock dividends.
NRS 673.274 Actsprohibited when stock, surplus, undivided profits and reserves below amountspecified.
NRS 673.275 Impairmentof stock; levy of assessment to repair deficiency; reduction of stock.
NRS 673.2755 Investmentcertificates: Rights and liabilities of holders; types of certificates;limitation on approval.
RESERVE FOR LOSSES
NRS 673.2758 Requirements.
INVESTMENTS AND BORROWING
NRS 673.276 Permissibleinvestments.
NRS 673.2765 Investmentsin related service corporations.
NRS 673.2766 Investmentsin real property for subdivision or residential development.
NRS 673.278 Purchasesof loans.
NRS 673.279 Purchasesof real property contracts; conditions.
NRS 673.280 Certainfederal obligations are legal investments.
NRS 673.281 Restrictionson transfer or encumbrance of note and other obligations held by association.
NRS 673.300 Associationmay become member and stockholder of Federal Home Loan Bank, borrow money andinvest in bonds.
NRS 673.301 Associationmay issue capital notes; voting rights of holders.
NRS 673.302 Limitationon borrowing.
NRS 673.310 Loansand advances of credit insured by Federal Housing Administrator or Departmentof Veterans Affairs.
NRS 673.315 Investmentin Federal National Mortgage Association.
NRS 673.316 Loansand investments not limited.
APPRAISALS
NRS 673.317 Approvalof appraiser by Commissioner required; limitations; revocation; notice oftermination of services.
NRS 673.3171 Appraisalof real estate required before granting loan; requirements.
NRS 673.318 Appraisalof real estate at time of acquisition.
NRS 673.319 Specificloss reserve; determination of values by Commissioner.
NRS 673.3191 Reservefor uncollected interest.
INSURANCE OF ACCOUNTS
NRS 673.320 Associationsempowered to insure accounts.
LOANS
NRS 673.324 Permissibleloans.
NRS 673.3244 Loansto corporations or partnerships.
NRS 673.3255 Loansto finance interest in cooperative housing corporation; first securityinterests.
NRS 673.3271 Loansto one borrower.
NRS 673.3272 Paymentof charges by association for protection of its investments; required advancemonthly payments.
NRS 673.330 Limitationon charge for prepayment of loan.
NRS 673.331 Loansprohibited on security of associations own stock.
NRS 673.332 Propertyacquired by foreclosure or developed by association; real-estate-ownedaccounts; subsidiary ledger records.
INTEREST AND DIVIDENDS
NRS 673.333 Apportionmentof earnings and payment of interest; determination of percentage rate ofdeclaration; classes of savings accounts; notice of change in method ofcalculating interest.
NRS 673.336 Restrictionson declaration of dividends.
INVESTORS
NRS 673.340 Minorsand married women; payment as valid discharge of association.
NRS 673.360 Administrators,executors, guardians and trustees; payment as valid discharge of association.
NRS 673.370 Paymentto beneficiary on death of trustee; payment as valid discharge of association.
SAFE-DEPOSIT BOXES
NRS 673.373 Noticeof overdue rental; opening of box; retention of contents in general vaults;delivery of contents to State Treasurer.
WITHDRAWALS
NRS 673.377 Minimumrequired available cash, deposits and securities; making and purchasing loansprohibited when minimum not met.
NRS 673.380 Procedurewhen requests for withdrawals exceed amount available.
NRS 673.390 Orderof payment of withdrawals.
NRS 673.420 Noticeto Commissioner of inability to pay request for withdrawal on file more than 60days.
REPORTS, EXAMINATIONS AND AUDITS
NRS 673.430 Annualreports: Filing; form and contents; fees; penalty; regulations.
NRS 673.440 Commissionermay require further information.
NRS 673.450 Hearings,investigations and examinations by Commissioner; powers of Commissioner;biennial examination required.
NRS 673.451 Authorizationof Commissioner to investigate business; free access required; compellingattendance of witnesses.
NRS 673.453 Enforcementof subpoena by district court.
NRS 673.455 Examinationof holding companies.
NRS 673.460 Examinationsoutside State; fees and traveling expenses; regulations.
NRS 673.470 Otherexaminations acceptable in lieu of examination by Commissioner.
NRS 673.480 Authorityof Commissioner to make information available to other officers and agencies.
NRS 673.483 Auditof books and accounts.
NRS 673.4835 Independentaudit and examination: Payment of assessment; cooperation.
SUSPENSION AND REVOCATION OF CHARTERS
NRS 673.484 Grounds;notice and hearing.
REORGANIZATION; MERGER; CONSOLIDATION
NRS 673.4845 Procedure;approval by association and Commissioner; fee; regulations.
CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP
NRS 673.485 Authorityof Commissioner to order discontinuance of unlawful or unsafe practices;special meetings of directors concerning noncompliance.
NRS 673.495 Conservator:Appointment by Commissioner; district court confirmation.
NRS 673.497 Powersof conservator; limitations; expenses; compensation.
NRS 673.499 Receiver:Appointment by Commissioner; court confirmation; powers and authority;compensation.
NRS 673.515 Appealfrom judgment enjoining Commissioner or dismissing action to enjoin; bond.
NRS 673.525 Penaltyfor failure to comply with Commissioners demand for possession of property,business and assets.
NRS 673.535 Enforcementby sheriff of demand for possession of property, business and assets; writtendemand for assistance; duty to enforce.
NRS 673.545 Deliveryof schedule of property, assets and collateral to Commissioner; examination ofdirectors, officers or employees by Commissioner.
NRS 673.555 Authorityof Commissioner to issue subpoenas and require attendance of parties.
NRS 673.565 Appointmentof custodian; bond.
NRS 673.575 Collectionof money; preservation of assets.
NRS 673.576 Powersof Commissioner when in possession of business, property and assets.
NRS 673.577 Claimsfor damages from disaffirmance of executory contract or lease.
NRS 673.580 Procedureupon taking possession of insured association: Federal Deposit InsuranceCorporation as liquidator or coliquidator.
NRS 673.590 Deliveryof remaining assets to stockholders.
FOREIGN ASSOCIATIONS
NRS 673.595 Activitiesfor which license not required; solicitation or acceptance of depositsprohibited; exception; fee.
NRS 673.597 Conflictof laws; report to Commissioner of forbidden course or act.
CONVERSION INTO FEDERAL ASSOCIATION
NRS 673.600 Conversionauthorized.
NRS 673.610 Noticeof stockholders meeting: Service and proof of service.
NRS 673.620 Majorityapproval of resolution at stockholders meeting required; filing of minuteswith Commissioner.
NRS 673.630 Filingof charter or certificate with Commissioner; fee; taxation; regulations.
NRS 673.640 Whenstate supervision ceases; when property and assets vest in association undernew name and style; enjoyment of property by converted association.
CONVERSION OF FEDERAL ASSOCIATION
NRS 673.650 Conversionauthorized; votes necessary.
NRS 673.660 Timefor election of directors after conversion; time directors to hold office.
NRS 673.670 Filingof verified minutes of stockholders meeting.
NRS 673.680 Verifiedcopy of minutes as presumptive evidence of holding meeting and action taken.
NRS 673.690 Federalassociation and directors to take necessary action to incorporate as stateassociation; no minimum amount of capital required.
NRS 673.700 Inclusionof statement of conversion in articles permissible.
NRS 673.710 Timefor filing articles of incorporation with Federal Home Loan Bank; number of copies;certification by Secretary of State.
NRS 673.720 Timeof associations cessation as federal association; time of vesting of propertyin association under new name and style.
NRS 673.730 Enjoymentof property by converted association; association as continuation of previousfederal association.
NRS 673.740 Actspermitted executors, administrators and fiduciaries without obtaining courtapproval.
POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS
NRS 673.750 Powersand privileges same as domestic association; conditions.
UNLAWFUL ACTS; PENALTIES
NRS 673.810 Makingfalse statement concerning financial condition of savings and loan association.
NRS 673.820 Violationof chapter or fraudulent misrepresentation of contract or securities byassociation; administrative fines.
NRS 673.830 Violationof chapter or sale of securities through fraudulent misrepresentation.
NRS 673.840 Saleor offer to sell securities without license or for failure to secure license orpay fee or penalty.
NRS 673.850 Effectof revocation of license.
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GENERAL PROVISIONS
NRS
(Added to NRS by 1959, 537; A 1969, 966; 1979, 710;1983, 1771; 1987, 1956)
NRS
(Added to NRS by 1959, 537; A 1977, 488)
NRS
(Added to NRS by 1959, 537; A 1977, 509)
NRS
(Added to NRS by 1987, 1956)
NRS
(Added to NRS by 1979, 710)
NRS
(Added to NRS by 1969, 961)
NRS
(Added to NRS by 1963, 683; A 1993, 1896)
NRS
(Added to NRS by 1959, 537; A 1969, 967)
NRS
(Added to NRS by 1959, 538)
NRS
1. Operating income.
2. Real estate income.
3. All profits actually received during suchaccounting period from the sale of securities, real estate or other property.
4. Other nonrecurring income.
(Added to NRS by 1959, 538)
NRS
1. A dwelling on a farm.
2. A dwelling unit of a cooperative housingcorporation.
3. A mobile home as defined in
(Added to NRS by 1959, 538; A 1977, 509; 1979, 710,1289)
NRS
(Added to NRS by 1959, 538)
NRS
(Added to NRS by 1959, 538)
NRS
(Added to NRS by 1959, 538; A 1977, 488)
NRS
(Added to NRS by 1959, 538; A 1967, 1014)
NRS
(Added to NRS by 1959, 538; A 1993, 2806)
NRS
(Added to NRS by 1969, 961)
NRS
1. Investment certificate means any certificate orcontract, either paid up or purchasable on an installment basis, which isissued for the purpose of providing a means of investment or savings.
2. An accumulative investment certificate is aninvestment certificate, not full-paid and without an expressed date ofmaturity, upon which the holder has the option of making payments at such timesand in such amounts as the holder elects and as the association permits.
3. A full-paid investment certificate is an investmentcertificate, with or without an expressed date of maturity, for which theassociation has received the principal amount thereof at or prior to the timeof the issuance of the certificate.
4. A minimum term investment certificate is aninvestment certificate for which the association has received a single paymentequal to the principal amount thereof and which has a date expressed thereinbefore which notice of intention to withdraw cannot be given, or which requireswritten notice from the holder to the association for a period specifiedtherein before the expiration of which period notice of intention to withdrawcannot be given. On and after such date, or upon and after the expiration ofthe specified period following such written notice, each such certificateceases to be a minimum term investment certificate and becomes a full-paidinvestment certificate, subject to the same withdrawal rights and restrictionsas a full-paid investment certificate.
(Added to NRS by 1959, 538; A 1963, 457; 1969, 967)
NRS
(Added to NRS by 1969, 961)
NRS
1. Operating expenses.
2. Real estate expenses.
3. All losses actually sustained during suchaccounting 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 borrowedmoney.
5. Other nonrecurring charges.
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
1. Operating expenses means all expenses actuallypaid, 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 notapportionable to the period may be excluded from operating expenses, in whichevent operating expenses for future periods shall include that portion of suchprepaid expenses apportionable thereto.
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539)
NRS
(Added to NRS by 1959, 539; A 1969, 967; 1977, 488)
NRS
(Added to NRS by 1959, 540; A 1969, 967)
NRS
(Added to NRS by 1967, 1019; A 1983, 1771; 1987,1956)
NRS
(Added to NRS by 1959, 540)
ADMINISTRATION AND ENFORCEMENT
NRS
(Added to NRS by 1961, 763; A 1963, 1076; 1969, 967;1981, 505; 1983, 1771; 1987, 1956)
NRS
1. Except as provided in subsections 3 and 4, anofficer or employee of the Division of Financial Institutions shall not:
(a) Be directly or indirectly interested in or act onbehalf of any association;
(b) Receive, directly or indirectly, any payment froman association;
(c) Be indebted to any association;
(d) Engage in the negotiation of loans for others withany association; or
(e) Obtain credit or services from an associationconditioned upon a fraudulent practice or undue or unfair preference over othercustomers.
2. An employee of the Division in the unclassifiedservice of the State shall not obtain new extensions of credit from anassociation while in office.
3. Any officer or employee of the Division ofFinancial Institutions may be indebted to an association on the same terms asare 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 ofFinancial Institutions may establish and maintain savings deposits withassociations to the greatest amount insured, receive interest on those depositsand borrow money secured by a pledge of those deposits.
5. If an officer or employee of the Division ofFinancial Institutions has a service, a preferred consideration, an interest ora relationship prohibited by this section at the time of his appointment oremployment, or obtains it during his employment, he shall terminate it within120 days after the date of his appointment or employment or the discovery ofthe prohibited act.
(Added to NRS by 1963, 472; A 1977, 509; 1983, 1771)
NRS
1. Keep in his office:
(a) For no less than 5 years, every report made by anassociation.
(b) The original application of every association in apermanent file.
(c) Other administrative documents in the mannerprovided by law or by appropriate regulations.
2. Provide a complete stenographic record of everyhearing and proceeding conducted by his office and maintain, for no less than 5years, a transcript of the hearing or proceeding, together with any regulation,order, decision, determination or consent entered in connection with thehearing or proceeding.
(Added to NRS by 1961, 764; A 1963, 683; 1969, 968;1971, 811; 1983, 1772; 1987, 1956)
NRS
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL 970.21](NRSA 1961, 762; 1963, 1076; 1983, 1773; 1987, 1957)
NRS
1. The Commissioner shall, before September 1 of eacheven-numbered year for the biennium ending June 30 of that year, report to theGovernor. The report must:
(a) Show the condition of all associations reporting toor examined by the Commissioner.
(b) Be accompanied by a detailed statement of all moneyreceived by the Commissioner since his last report and the disposition of thatmoney.
2. Copies of the reports must be furnished to eachassociation 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 maybe reasonable or necessary to carry out the purposes of this chapter.
2. The regulations as originally drafted, and asamended from time to time, must be printed and distributed by the Commissionerto all associations, and become effective not earlier than 30 days from thedate of issuance, but before the regulations become effective and within that30-day period any association may appeal to the Director as to thereasonableness 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)
NRS
(Added to NRS by 1969, 962; A 1983, 1773; 1987, 1957)
NRS
(Added to NRS by 1963, 472; A 1983, 1774; 1987, 1957)
NRS
(Added to NRS by 1957, 762; A 1961, 764; 1983, 1774;1987, 1957)
NRS
1. In addition to any other requirements set forth inthis chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that theapplicant:
(1) Has a good reputation for honesty,trustworthiness and integrity and is competent to transact the business forwhich the applicant seeks to be licensed in a manner which protects theinterests of the general public.
(2) Has not made a false statement of materialfact on the application for the license.
(3) Has not committed any of the acts specifiedin subsection 2.
(4) Has not had a license issued pursuant tothis chapter suspended or revoked within the 10 years immediately preceding thedate of the application.
(5) Has not been convicted of, or entered a pleaof nolo contendere to, a felony or any crime involving fraud, misrepresentationor moral turpitude.
(b) A complete set of his fingerprints and writtenpermission authorizing the Division of Financial Institutions of the Departmentof Business and Industry to forward the fingerprints to the Central Repositoryfor Nevada Records of Criminal History for submission to the Federal Bureau ofInvestigation for its report.
2. In addition to any other lawful reasons, theCommissioner may refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, ifcommitted or done by a holder of a license, would be grounds for the suspensionor revocation of the license.
(b) Has previously been refused a license pursuant tothis chapter or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis forthe refusal or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted tothe Commissioner in support of the application for the license.
(Added to NRS by
NRS
(Added to NRS by
NRS
[22.3:51:1931; added 1955, 589](NRS A 1961, 765;1981, 505, 1314; 1983, 1774; 1987, 1958)
NRS
1. All fees, charges for expenses, assessments andother money collected under the provisions of this chapter from foreign anddomestic associations, companies and corporations governed by this chapter mustbe deposited in the State Treasury pursuant to the provisions of
2. The compensation provided for by this chapter andall expenses incurred under this chapter must be paid from the money depositedin the State Treasury pursuant to the provisions of
[30:51:1931; 1931 NCL 970.30](NRS A 1959, 121,541; 1961, 765; 1963, 684; 1965, 1135; 1983, 1321;
FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES
NRS
1. Savings and loan associations, except banks, trustcompanies, licensed brokers, small loan companies, thrift companies and creditunions, whose principal and primary business is to borrow, loan and investmoney, shall be incorporated under the provisions of this chapter. For thatpurpose all of the provisions of chapter 78 ofNRS (Private Corporations) which are not in conflict with this chapter arehereby adopted as parts of this chapter, and all the rights, privileges andpowers and all the duties and obligations of such domestic corporations and ofthe officers and stockholders thereof shall be as provided in
2. A person, firm, partnership, association orcorporation except a savings and loan association incorporated under thischapter shall not conduct or carry on the business of soliciting or advertisingfor savings deposits and loaning of such savings. This subsection does notapply to banks, trust companies, licensed brokers, thrift companies, creditunions and licensees under chapter 675 of NRS.
[Part 1:51:1931; A 1933, 78; 1931 NCL 970](NRS A1963, 460; 1975, 372; 1977, 488)
NRS
1. The Secretary of State shall not issue anycertificate to an association or company authorizing it to do business untilthe articles of association, agreement or incorporation are approved by theCommissioner.
2. No amendment to the articles of the organizationmay be filed by the Secretary of State without the written approval of thearticles by the Commissioner.
3. No association may sell, offer for sale, negotiatefor the sale of, take subscriptions for, or issue any of its common orpreferred stock until it has first applied for and secured from theCommissioner approval of an application for permission to organize as providedfor in this section.
4. Persons who desire to organize an association inaccordance with this chapter shall first execute in triplicate an application,in the form prescribed by the Commissioner, for permission to organize anassociation before taking any other action in connection with the organization.Upon execution of an application for permission to organize by sevenresponsible citizens, referred to in this section as applicants, the originaland two copies of the application must be submitted to the Commissioner. Theapplicants shall submit with their application the names and addresses of theapplicants, the location of the proposed office, an itemized account of thefinancial condition of the proposed association and of the applicants, theamount and character of the proposed stock, statements, exhibits, maps and suchadditional information as the Commissioner requires, together with an affidavitthat the representations made thereby are consistent with the facts to the bestof the applicants information and belief. This data must be sufficientlydetailed and comprehensive to enable the Commissioner to pass upon theapplication as to:
(a) The character and responsibility of the applicants;
(b) The need for the association in the community to beserved;
(c) The reasonable probability of its usefulness andsuccess; and
(d) Whether such an association can be establishedwithout undue injury to any properly conducted existing savings and loaninstitutions.
5. If the Commissioner approves the application heshall, within 30 days, notify all associations within 100 miles of thecommunity where the applicant intends to establish an association. Anyassociation so notified may, within 20 days, protest in writing the granting ofthe application. Within 30 days after receipt by the Commissioner of a writtenprotest, the Commissioner shall fix a date for a hearing upon the protest, andthe hearing must be held not earlier than 30 days nor more than 60 days afterthe date of receipt of written notice by registered or certified mail by theparties. The Commissioner shall approve or deny the application within 90 daysafter the date of the conclusion of the hearing and give all parties writtennotice of his decision on or before that date.
6. If the Commissioner approves the application, heshall establish as conditions to be met before the issuance of a charterrequirements as to:
(a) The minimum number of shares of common or preferredstock to be subscribed to the associations permanent capital;
(b) The minimum amount of paid-in surplus;
(c) The minimum amount of investment certificates to bepaid into the associations savings accounts upon issuance of a charter to it;and
(d) Such other requirements as he deems necessary ordesirable.
At least 75percent of the capital must be subscribed by bona fide residents of this Stateor a depository institution or holding company qualified pursuant to the provisionsof chapter 666 of NRS or
7. The charter expires 180 days after issuance,unless, within that time, the association has obtained insurance of accountsfrom the Federal Deposit Insurance Corporation. The Commissioner may, for goodcause, extend the time of the conditional expiration of the charter for anadditional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue any of itspermanent stock until it has first applied for and secured from theCommissioner a license authorizing it to operate as a savings and loanassociation pursuant to the laws of this State and until it has applied for andsecured insurance of accounts in accordance with the regulations of the FederalDeposit Insurance Corporation. This insurance of accounts must be maintained atall times.
9. The Commissioner may extend the time for anyhearing 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 additionalexpenses incurred in the process of investigation as the Commissioner deemsnecessary. All money received by the Commissioner pursuant to this paragraphmust be placed in the Investigative Account created by
(b) If the license is approved for issuance, not morethan $2,000 for the principal office before issuance.
11. The Commissioner may impose conditions requiringthe impoundment of proceeds from the sale of any stock, limiting the expense inconnection with the sale of stock, and such other conditions as are reasonableand necessary or advisable to insure the disposition of the proceeds from thesale of the stock in the manner and for the purposes provided in the permissionto organize.
12. Every permission to organize issued by theCommissioner must recite in bold type that its issuance is permissive only anddoes not constitute a recommendation or endorsement of the organization or ofthe stock permitted to be issued.
13. Any corporation applying pursuant to this sectionor authorized to organize or authorized to establish a savings and loanassociation shall provide for a minimum par value of its permanent capitalstock of at least $1 in its articles of incorporation. Par value of permanentcapital stock may not be reduced below $1 without written permission of theCommissioner.
14. The removal of the home office or of any branchoffice of an association to any other location from its then existing locationrequires prior approval of the Commissioner. An application seeking approvalmust be delivered to the Commissioner, together with a fee to cover expensesattendant upon the investigation required for the approval, which must be notless than $200. All money received by the Commissioner pursuant to thissubsection must be placed in the Investigative Account created by
15. An association shall not pay any commissions orother compensation for the subscription to or sale of the original issue of itsstock.
16. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.
17. The Commissioner shall consider an application tobe withdrawn if the Commissioner has not received all information and feesrequired to complete the application within 12 months after the date theapplication is first submitted to the Commissioner or within such later periodas the Commissioner determines in accordance with any existing policies ofjoint regulatory partners. If an application is deemed to be withdrawn pursuantto this subsection or if the applicant otherwise withdraws the application, theCommissioner may not issue a license to the applicant unless the applicantsubmits a new application and pays any required fees.
[Part 1:51:1931; A 1933, 78; 1931 NCL 970](NRS A1957, 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;
NRS
[3:51:1931; 1931 NCL 970.02]
NRS
[15.1:51:1931; added 1955, 589](NRS A 1961, 766;1963, 464; 1983, 1776; 1987, 1960)
NRS
1. A branch office is a legally established place ofbusiness of an association, other than the home office, which is authorized bythe board of directors and approved by the Commissioner and at which any of theassociations business may be conducted.
2. All branch offices are subject to direction fromthe home office.
3. No association may establish or maintain a branchoffice without prior written approval of the Commissioner. Each application forapproval of the establishment and maintenance of a branch office must:
(a) State the proposed location thereof, the needtherefor, the functions to be performed therein, the estimated annual expensethereof and the mode of payment therefor.
(b) Be accompanied by a budget of the association forthe current semiannual period and for the next succeeding semiannual period,which reflects the estimated additional expense of the maintenance of thebranch office.
4. After receipt of an application the Commissionershall determine:
(a) Whether the establishment and maintenance of thebranch office will unduly injure any properly conducted existing association inthe community where the branch office is proposed to be established or in anyneighboring community; and
(b) Whether or not the establishment and maintenance ofthe 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 radiusof 100 miles of the principal place of business of the applicant, and within aradius of 100 miles of the proposed branch office. Any association so notifiedmay, within 20 days, protest in writing the granting of the application. Within30 days after receipt by the Commissioner of a written protest, theCommissioner shall fix a date for a hearing upon the protest. The hearing mustbe held not earlier than 60 days nor more than 90 days after the date ofreceipt of written notice by registered or certified mail by the parties.
6. If the Commissioner finds that no undue injury islikely to result, that the establishment and maintenance of the branch officeis advisable and will serve the public interest, he may approve theapplication.
7. Approval of an associations application for abranch office charter permits the association to establish an operating officein a temporary or a permanent building, if the building is placed on or erectedat 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 branchoffice. Failure to establish a branch office in the manner and within the timepermitted under this section constitutes a good cause for revocation, unless aprior, written request for a waiver of the time limitation is sought by theassociation and an extension, in writing, is granted by the Commissioner.
9. An association which maintains one or more branchoffices shall give each branch office a specific designation by name andinclude in the designation the word branch and shall prominently display thedesignation at the place of business of the branch. When an association isoperating a branch office, all advertising of or by the branch office muststate 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 additionalexpenses incurred in the process of investigation as the Commissioner deemsnecessary. All money received by the Commissioner pursuant to this subsectionmust be placed in the Investigative Account created by
(b) If the license is approved for issuance, not morethan $200 for each branch office before issuance.
11. The Commissioner shall adopt regulationsestablishing 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;
NRS
1. Every association shall maintain bond coverage witha bonding company which is acceptable to the Commissioner and the FederalDeposit Insurance Corporation for an amount to be determined by theCommissioner 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 operatinghazards that are normally covered under the bond. The bond must be in the formknown as Standard Form No. 22, its equivalent or some other form which may beacceptable to the Federal Deposit Insurance Corporation and the Commissioner.The bond coverage may allow for a deductible amount or provision adopted underTitle 12, Code of Federal Regulations, Section 563.19(a), (b) and (c), and underany subsequent amendments thereto.
2. A true copy of the surety bond must be placed inthe custody of the Commissioner and the original maintained in the office ofthe association at all times.
3. The surety bond must provide that a cancellationthereof, either by the surety company or by the insured, does not becomeeffective 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 associationshall provide a duplicate copy of the invoice showing that the bond premium hasbeen paid or satisfied.
5. The face amount of the surety bond must comply withthe 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)
NRS
1. No association may open, maintain or conduct aservice office without approval from the Commissioner.
2. For good cause, and after notice to theassociation, the Commissioner may revoke his approval for the maintenance of aservice office.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987,1962)
NRS
1. An association shall not issue or publish, or causeor permit to be issued or published, any advertisement that it is doing or ispermitted to do any business which is prohibited by law to an association, orwhich misrepresents the nature of its stock, investment certificates, savingsdeposits or the right of investors or depositors in respect thereto.
2. An association may set forth in any of itsadvertisements any of the purposes for which it is organized.
3. An association shall not issue, circulate orpublish any advertisement after notice in writing from the Commissioner that inhis opinion the advertisement is unauthorized, false, misleading or likely todeceive the public.
4. An association shall not:
(a) State in any advertisement that it is under statesupervision or control.
(b) Include in any advertisement or in any instrumentused by it a replica of the Great Seal of the State of Nevada.
(c) State or imply in any advertisement that money maybe invested with the association at any place other than the principal officeor branch of the association.
(d) Use the word deposit or deposits in any form ofadvertising, unless the use of that word is authorized in the advertising of afederal savings and loan association pursuant to federal law.
5. No association may offer or deliver any gift orpremium to any investor or saver of an investment certificate or to any savingsdepositor 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)
NRS
1. Except as otherwise provided in
2. A licensee shall not:
(a) Use any business name which is identical or similarto a business name used by another licensee under this chapter or which maymislead or confuse the public.
(b) Use any printed forms which may mislead or confusethe public.
(Added to NRS by
OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS
NRS
1. The business and affairs of every association mustbe managed and controlled by a board of not less than five nor more than 25directors, of which not more than a minority, but not more than three, may befull-time officers of the association. The persons designated in the articlesof incorporation are the first directors.
2. Vacancies in the board of directors must be filledby vote of the stockholders at the annual meetings or at a special meetingcalled for that purpose. The board of directors may fill vacancies occurring onthe board, such appointees to serve until the next annual meeting of thestockholders.
3. The board of directors of any association may amendthe bylaws of the association.
(Added to NRS by 1967, 1020; A 1969, 961; 1975, 372;1981, 61)
NRS
1. Has been adjudicated a bankrupt or has taken thebenefit of any assignment for the benefit of creditors or has suffered ajudgment recovered against him for a sum of money to remain unsatisfied ofrecord or not safeguarded by supersedeas bond on appeal for a period of morethan 3 months.
2. Is a director, officer or employee of any othersavings and loan association.
3. Is an officer or employee of a commercial bank inthis state.
4. Is not an investor in the association, owning inhis 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 ofat least $1,000. For the purpose of this chapter, a person who owns stock orinvestment certificates as a joint tenant with one other person shall be deemedto own, in his own right, one-half of the stock or investment certificates.
5. Sells or hypothecates all the stock or investmentcertificates owned by him, or so much thereof that he ceases to be the owner,free from encumbrances, of the amount of stock or investment certificatesrequired by subsection 4.
(Added to NRS by 1967, 1020; A 1983, 1779; 1987,1963)
NRS
(Added to NRS by 1967, 1020; A 1983, 1780; 1987,1963)
NRS
1. Any director may be removed from office, if he hasbecome ineligible pursuant to NRS 673.209,by an affirmative vote of two-thirds of the members of the board of directorsat any regular meeting of the board of directors or at any special meetingcalled for that purpose. Such action shall be ratified at the next meeting ofthe stockholders.
2. No such vote upon removal of a director may betaken until he has been advised of the reasons therefor and has had opportunityto submit to the board of directors his statement relative thereto, either oralor written. If the director affected is present at the meeting, he shall retireafter his statement has been submitted and prior to the vote upon the matter ofhis removal.
(Added to NRS by 1967, 1020; A 1977, 492)
NRS
(Added to NRS by 1967, 1021; A 1997, 1623)
NRS
(Added to NRS by 1967, 1021)
NRS
1. The board of directors of the association shallelect the officers named in the bylaws of the association, which officers shallserve at the pleasure of the board of directors.
2. The principal officers salaries shall be set bythe board of directors.
(Added to NRS by 1967, 1021)
NRS
1. The board of directors of each association shallhold a regular meeting at least once each quarter, at a time to be designatedby it in accordance with its bylaws.
2. Special meetings of the board of directors may beheld upon notice to each director sufficient to permit his attendance. Thepresident or any three members of the board of directors may call a meeting ofthe board of directors by giving notice to all of the directors.
3. At any meeting of the board of directors, amajority of the members constitutes a quorum for the transaction of business.
(Added to NRS by 1967, 1021; A 1983, 354)
NRS
(Added to NRS by 1967, 1021; A 1983, 1780; 1987,1964)
NRS
(Added to NRS by 1967, 1021)
NRS
1. An association shall immediately notify theCommissioner of any change or proposed change in ownership of the associationsstock which would result in any person, including a business trust, obtaining 5percent or more of the associations outstanding capital stock.
2. An application must be submitted to theCommissioner, pursuant to NRS 673.080,by a person who acquires:
(a) At least 25 percent of an associations outstandingstock; or
(b) Any outstanding stock of an association if thechange will result in a change in the control of the association.
Except asotherwise provided in subsection 4, the Commissioner shall conduct aninvestigation to determine whether the character and responsibility of theapplicant is such as to command the confidence of the community in which theassociation is located. If the Commissioner denies the application, he mayforbid the applicant from participating in the business of the association.
3. The association with which the applicant isaffiliated shall pay such a portion of the cost of the investigation as theCommissioner requires. All money received by the Commissioner pursuant to thissection must be placed in the Investigative Account created by
4. A savings and loan association may submit a writtenrequest to the Commissioner to waive an investigation pursuant to subsection 1.The Commissioner may grant a waiver if the applicant has undergone a similarinvestigation by a state or federal agency in connection with the licensing ofor his employment with a financial institution.
(Added to NRS by 1985, 1346; A 1987, 1964; 1991,1814)
NRS
(Added to NRS by 1967, 1022)
NRS
(Added to NRS by 1967, 1022)
NRS
1. It is unlawful for an officer, director, employeeor capital stockholder of an association:
(a) To solicit, accept or agree to accept, directly orindirectly, from any person other than the association, any gratuity,compensation or other personal benefit for any action taken by the associationor for endeavoring to procure any such action.
(b) To have any interest, direct or indirect, in thepurchase at less than its face value of any evidence of a savings account orother indebtedness issued by the association, excluding stock certificates andjunior capital notes.
2. It is unlawful for any stockholder with more than 5percent of the outstanding capital stock of an association, or any director orprincipal officer, to have any interest, direct or indirect, in the proceeds ofa 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 ofthe board of directors of the association. The resolution must be approved by avote of at least two-thirds of all the directors of the association, and aninterested director may not take part in the vote. The loan must also conformto federal regulations for the insurance of accounts.
3. Any violation of the provisions of this section isa misdemeanor.
(Added to NRS by 1961, 782; A 1967, 1014; 1977, 510;1979, 1291)
NRS
(Added to NRS by 1967, 1024; A 1977, 492)
NRS
1. An association shall pay on behalf of or reimbursean officer, director or employee for the expenses of defending an actionbrought on behalf of the association or the savings account holders, othercreditors or borrowers thereof, founded upon any act or acts performed oromitted by such person acting as such officer, director or employee under thefollowing conditions:
(a) If the person is adjudicated to be not liable, thenall reasonable expenses of such litigation shall be paid by the association.
(b) If the person is held to be liable on certain itemsand not liable on others, the association shall pay the proportion of the totalreasonable expense of the litigation which the items on which he is held to benot liable bear to all the items alleged.
2. If, in the opinion of the association, any suchperson is not liable upon the substantive issues alleged, the association isauthorized to compromise and settle such claim or litigation in its discretionand to pay the entire expense thereof, including the compromise settlement, ifthe expense is reasonable. Any action taken by the association under thissubsection requires approval by a vote of at least two-thirds of all thedirectors of the association (an interested director taking no part in thevote), or by a majority vote of the stockholders.
(Added to NRS by 1961, 783; A 1977, 492)
POWERS AND PRIVILEGES OF STATE ASSOCIATIONS
NRS
1. Notwithstanding any other provision of thischapter, every company, association or corporation licensed under theprovisions of this chapter whose accounts are insured by the Federal DepositInsurance Corporation or its successor, or which is a member of a Federal HomeLoan Bank or its successor as an insured association, has the same rights,powers, privileges, immunities and exceptions which are possessed by anyfederally chartered association unless expressly denied by the Commissioner.
2. Whenever additional rights, powers, privileges orexceptions are granted to any federally chartered association, every company,association or corporation licensed under the provisions of this chapter whoseaccounts are federally insured has those additional rights, powers, privilegesor exceptions unless expressly denied by the Commissioner.
(Added to NRS by 1961, 780; A 1969, 973; 1981, 847;1983, 1780; 1987, 1964; 1993, 2809)
NRS
1. An association may purchase or lease property forits office buildings or construct its office buildings on property purchased orleased by it, if the total cost of land and improvements does not exceed 70percent of the sum of the associations capital, surplus and reserves.
2. With the approval of the Commissioner, seniorcapital notes of the Federal Deposit Insurance Corporation may be included incapital for the purposes of this section.
(Added to NRS by 1963, 465; A 1967, 1015; 1971, 628;1983, 1781; 1987, 1965; 1993, 2809)
NRS
1. An association may act as a trustee or custodian asprovided by the Federal Employee Retirement Security Act of 1974, as amended orsupplemented.
2. An association subscribing to trustee and custodialpower authorized by this section shall be required to segregate all funds heldin such fiduciary capacity from the general assets of the association and keepa separate set of books and records showing in proper detail all transactionsengaged in under the authority of this section.
3. If individual records are kept of each selfemployedindividual retirement plan, all funds held in such trust or custodial capacityby the association may be commingled for appropriate purposes of investment.
4. No funds held in such fiduciary capacity may beused by the association in the conduct of its business, although such funds maybe invested in the savings accounts of the institution if the trust orcustodial retirement plan does not prohibit the investment.
(Added to NRS by 1963, 465; A 1977, 492)
STOCKS AND CERTIFICATES
NRS
1. No association may sell or issue any of its commonor preferred stock until it has first applied for and secured from theCommissioner a license authorizing it so to do as provided in
2. Every license must recite in bold type that theissuance of the license is permissive only and does not constitute arecommendation or endorsement of the stock permitted to be issued.
3. Before the sale of, or option to buy, anyadditional authorized but unissued common or preferred stock, the associationmust have the written approval of the Commissioner.
4. The Commissioner may impose conditions requiringthe impoundment of the proceeds from the sale of any stock, limiting theexpense in connection with the sale and such other conditions as are reasonableand necessary or advisable to ensure the disposition of the proceeds from thesale 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)
NRS
1. The license specified in
2. For the issuing of any license provided for in
(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 renewalapplication. A penalty of 10 percent of the fee payable must be charged foreach month or part thereof that the fees are not paid after June 30 of eachyear.
4. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section. All sumsreceived by the Commissioner pursuant to this section must be deposited in theState Treasury pursuant to the provisions of NRS658.091.
[Part 15:51:1931; 1931 NCL 970.14] + [Part17:51:1931; A 1955, 589](NRS A 1959, 542; 1961, 767; 1963, 465; 1965, 1138;1967, 978; 1973, 730; 1983, 1781; 1987, 1965, 2226;
NRS
1. No person may, as a soliciting agent, solicitingrepresentative or employee of any foreign or domestic company, association orcorporation, or in any other capacity, sell or solicit sales for any securitiessuch as investment certificates or savings accounts or contract for the sale ofsecurities until he is first licensed as a salesman or solicitor for sales ofthose securities by the Commissioner.
2. No person may be licensed for a period of more than1 year, and he may not be licensed until he has satisfied the requirements setforth in NRS 673.046.
3. For the issuing of any license provided for in thissection and for any renewal thereof, the fee of the Commissioner must not bemore than $10.
4. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section. All sumsreceived by the Commissioner pursuant to this section must be deposited in theState Treasury pursuant to the provisions of NRS658.091.
5. Tellers or other employees of an insured savingsand loan association are exempt from the licensing requirements unless theiremployment entails soliciting sales outside their respective offices ascommission salesmen.
6. The Commissioner shall consider an application tobe withdrawn if the Commissioner has not received all information and feesrequired to complete the application within 12 months after the date theapplication is first submitted to the Commissioner or within such later periodas the Commissioner determines in accordance with any existing policies of jointregulatory partners. If an application is deemed to be withdrawn pursuant tothis subsection or if the applicant otherwise withdraws the application, theCommissioner may not issue a license to the applicant unless the applicantsubmits 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;
NRS
1. Except as permitted by subsection 6, the totalcommon stock and any preferred stock subscribed and paid plus the total of thesurplus, undivided profits and all reserves available for losses must not atany time be less than 5 percent of the aggregate certificate value of theoutstanding investment certificates of the association after the 11thanniversary of the date of insurance of accounts. The stock surplus, undividedprofits and reserves must be at least equal to the percentage of outstandinginvestment certificates on each prior anniversary as stated below:
Date of insurance of accounts................................................................ 3.00percent
Second anniversary of date ofinsurance of accounts....................... 3.20 percent
Third anniversary of date ofinsurance of accounts........................... 3.40 percent
Fourth anniversary of date ofinsurance of accounts......................... 3.60 percent
Fifth anniversary of date of insuranceof accounts............................ 3.80 percent
Sixth anniversary of date ofinsurance of accounts............................ 4.00 percent
Seventh anniversary of date ofinsurance of accounts...................... 4.20 percent
Eighth anniversary of date ofinsurance of accounts......................... 4.40 percent
Ninth anniversary of date of insuranceof accounts........................... 4.60 percent
Tenth anniversary of date ofinsurance of accounts.......................... 4.80 percent
2. No dividends may be declared on common or preferredstock until the total of the common stock, preferred stock, surplus, undividedprofits and all reserves available for losses is equal to the percentagerequired by subsection 1 of the outstanding investment certificates and ifpayment of those dividends would reduce the capital structure to an amountbelow that percentage.
3. Subject to the provisions of this chapter, commonstock 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 boardof directors at any time, payable only from otherwise unallocated surplus and undividedprofits.
4. No stock dividend may be declared and paid for anyperiod in which the association has not declared and paid interest upon itswithdrawable accounts.
5. The liability of an association on account of anycapital notes which are subordinated to all outstanding investment certificatesshall be deemed a reserve available for losses for the purposes of subsection 1and of NRS 673.274, but no dividends maybe declared on common or preferred stock while the capital notes areoutstanding, without the written permission of the Commissioner.
6. The Commissioner may approve a lower ratio of thetotal common stock and any preferred stock, undivided profits and all reserveswhich must be available for losses to the aggregate of outstanding investmentcertificates. The Commissioner shall not approve any ratio which would impairthe insurance of the associations accounts by the Federal Deposit InsuranceCorporation.
(Added to NRS by 1957, 758; A 1959, 543; 1961, 768;1963, 466; 1965, 1466; 1967, 1015; 1983, 652, 1782; 1987, 1966; 1993, 2809)
NRS
1. No association whose stock, surplus, undividedprofits and reserves are less than the amount specified in
(a) Issue investment certificates or withdrawalaccounts except in lieu of investment certificates or withdrawal accountstheretofore issued.
(b) Receive additional money upon investmentcertificates or withdrawal accounts other than installment investmentcertificates or installment withdrawal accounts.
2. The provisions of this section do not prohibit theassociation from crediting to investment certificates the interest earned thereon,or crediting to withdrawable accounts the interest thereon, if the payment ofthe interest is not otherwise prohibited by the provisions of this chapter.
(Added to NRS by 1959, 540; A 1969, 974; 1983, 653;1987, 1967)
NRS
1. If the Commissioner, as a result of any examinationor from any report made to him, finds that the common or preferred stock of anyassociation is impaired, he shall notify the association that the impairmentexists and shall require the association to make good the impairment within 90days after the date of the notice.
2. If the amount of the impairment as determined bythe Commissioner is questioned by the association, then upon application filedwithin 10 days after the notice from the Commissioner that the impairmentexists, the association may have the value of the assets in question bedetermined by appraisals made by independent appraisers acceptable to theCommissioner and the association.
3. The directors of the association upon which thenotice has been served shall levy a pro rata assessment upon the common and anypreferred stock to make good the impairment. They shall cause notice of therequirement of the Commissioner and of the levy to be given in writing to eachstockholder of the association, and the amount of assessment which he must payfor the purpose of making good the impairment. In lieu of making theassessment, the impairment may be made good, without the consent of the Commissioner,by reduction of the common or preferred stock. Any stockholder who does notmake payment under the assessment shall transfer sufficient stock to theassociation to pay his pro rata share of the assessment, and there is nofurther liability to the stockholder.
(Added to NRS by 1957, 758; A 1961, 769; 1983, 654,1783; 1987, 1967)
NRS
1. An association may issue investment certificates,with or without passbooks. The holders of investment certificates are notliable for debts or assessments, and are entitled upon liquidation of anassociation to receive payment in full before any payment or distribution ismade to stockholders. The holders of investment certificates have no right toparticipate in the profits of the association.
2. Investment certificates may be issued as fully paidinvestment certificates, accumulative investment certificates, minimum terminvestment certificates or other types of certificates approved by theCommissioner. The Commissioner shall not approve any certificates whoseissuance would impair the insurance of the associations accounts by theFederal Deposit Insurance Corporation.
(Added to NRS by 1963, 458; A 1977, 493; 1983, 654,1784; 1987, 1968; 1993, 2810)
RESERVE FOR LOSSES
NRS
(Added to NRS by 1969, 962)
INVESTMENTS AND BORROWING
NRS
1. Without limit, obligations of, or obligationsguaranteed 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 theassociation is eligible to be a member.
4. Any obligations or consolidated obligations of anyFederal Home Loan Bank or Banks.
5. Stock or obligations of the Federal DepositInsurance Corporation.
6. Stock or obligations of a national mortgageassociation or any successor or successors thereto, including the FederalNational Mortgage Association.
7. Demand, time or savings deposits with any bank,credit union or trust company whose deposits are insured by the Federal DepositInsurance Corporation, the National Credit Union Share Insurance Fund or aprivate insurer approved pursuant to NRS678.755.
8. Stock or obligations of any corporation or agencyof the United States or any state, or in deposits therewith to the extent thatsuch a corporation or agency assists in furthering or facilitating theassociations purposes or powers.
9. Savings accounts of any insured associationlicensed by the State and of any federal savings and loan association, if theaccounts of the savings and loan association are insured by the Federal DepositInsurance Corporation.
10. Bonds, notes or other evidences of indebtednesswhich are general obligations of any city, town, county, school district orother municipal corporation or political subdivision of any state.
11. Capital stock and other securities of:
(a) A state development corporation organized under theprovisions of chapter 670 of NRS.
(b) A corporation for economic revitalization anddiversification organized under the provisions of chapter670A of NRS, if the association is a member of the corporation, and to theextent of its loan limit established under NRS670A.200.
12. Any other investment at the discretion of theassociations directors if, after the investment is made, the associationsaccounts 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;
NRS
1. An association may invest in the capital stock,obligations or other securities of a related service corporation organizedunder the laws of this state, except a corporation organized for the underwritingor sale of insurance, subject to any regulations concerning the insurability ofthe associations accounts by the Federal Deposit Insurance Corporation and towhatever regulations the Commissioner may impose in this regard, if the entirecapital stock of the corporation is available for purchase by associationsorganized under the laws of this state only.
2. No association may make the investment if itsaggregate, outstanding investments, pursuant to subsection 1, would then be inexcess of 1 percent of its assets.
(Added to NRS by 1969, 960; A 1983, 656, 1784; 1987,1968; 1993, 2811)
NRS
1. Any investment in real property for purposes ofsubdivision or for residential development must not exceed the market value orappraisal valuation as evidenced by an appraisal report prepared within 120days of the investment by a member of the American Institute of Real EstateAppraisers, the Society of Real Estate Appraisers, or the Independent FeeAppraisers Society, or by such other appraiser as may be approved by theCommissioner.
2. Within 30 days after the investment is made, theassociation shall provide the Commissioner with a certified copy of one or moreappraisal reports on the real property involved and with a title insurancecompany report, reflecting the chain of title for a period of at least 3 yearsand the amount of consideration, as available, given for each title transferthat may have occurred during the reported period.
3. The Commissioner may require a statement from theassociation disclosing whether any director, officer or employee of theassociation has a direct or indirect interest in the real property involved orhas had an interest at any time during the past 3 years. Stock ownership in aninterested corporation may be considered the direct or indirect interest of theinvestor. Failure to make a required disclosure is unlawful.
(Added to NRS by 1969, 962; A 1983, 1784; 1985, 2250;1987, 1968)
NRS
1. The power to purchase loans of any type that theassociation may make.
2. The power to make loans upon the security of loansof any type that the association may make.
(Added to NRS by 1957, 761; A 1959, 543)
NRS
1. That it must acquire the merchantable title to theproperty covered by such contracts.
2. That the type of property be such as would beeligible for a mortgage or deed of trust loan under this chapter.
3. Before making any such purchase, the property shallbe 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)
NRS
[Part 1:61:1935; 1931 NCL 3695.01](NRS A 1959, 32;1973, 1093; 1977, 494; 1991, 496)
NRS
1. No association may sell, exchange, transfer,pledge, hypothecate or otherwise dispose of or encumber any notes or otherobligations held by it, evidencing any loan made or purchased by it, or themortgages, trust deeds or other security therefor, that has been on the booksof the association for 3 years or longer, without the approval of thecommissioner. All loans sold must be sold without recourse and, if under acontract to service them, then on a basis to provide sufficient compensation tothe association to reimburse it for expenses incurred under its servicecontract.
2. This section does not apply to loans sold in whichthe association retains a participating interest, nor to loans pledged assecurity for borrowing as provided in NRS673.300 and 673.302.
(Added to NRS by 1967, 1022; A 1983, 1785; 1987,1969)
NRS
1. Any savings and loan association which may now orhereafter be eligible to become a member of any Federal Home Loan Bankaccording 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 suchFederal Home Loan Bank, and become a member thereof.
(b) Borrow money from any Federal Home Loan Bankpursuant 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 andconform to the provisions of the Federal Home Loan Bank Act, and to the rulesand regulations from time to time fixed and prescribed either by the FederalHome Loan Bank Board or the Federal Home Loan Bank of which it is a member.
(e) Perform any acts and execute any instrumentsauthorized or required by the Federal Home Loan Bank Act, as amended orsupplemented, or by rules and regulations adopted pursuant to the Act.
2. All acts authorized by subsection 1 performed priorto 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)
NRS
(Added to NRS by 1967, 1022)
NRS
(Added to NRS by 1967, 1022; A 1983, 656, 1785; 1987,1969; 1993, 2812)
NRS
1. Subject to such regulations as may be prescribed bythe Federal Housing Administrator or Department of Veterans Affairs, savingsand loan associations may:
(a) Make such loans and advances of credit, andpurchases of obligations representing the loans and advances of credit, as areeligible for insurance by the Federal Housing Administrator or are guaranteedby the Department of Veterans Affairs, and to obtain such insurance.
(b) Make such loans secured by mortgages on realproperty as are eligible for insurance by the Federal Housing Administrator orare guaranteed by the Department of Veterans Affairs, and to obtain suchinsurance.
(c) Purchase, invest in and dispose of notes or bondssecured by mortgages insured by the Federal Housing Administrator or guaranteedby the Department of Veterans Affairs, securities of national mortgageassociations, and debentures issued by the Department of Veterans Affairs orthe Federal Housing Administrator.
2. No law of this State, nor any articles ofincorporation or bylaws of any savings and loan associations, prescribing thenature, amount or form of security or requiring security upon which loans oradvances of credit may be made, prescribing or limiting interest rates uponloans or advances of credit, or prescribing or limiting the period for whichloans or advances of credit may be made, applies to loans, advances of creditor purchases made pursuant to subsection 1.
3. All loans, advances of credit, and purchases ofobligations described in this section made and insured pursuant to the terms ofthe National Housing Act or Servicemens Readjustment Act of 1944 are herebyvalidated 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)
NRS
(Added to NRS by 1957, 527; A 1977, 495)
NRS
1. Nothing in this chapter requires any association tosell, transfer or dispose of any investment or loan made or purchased by theassociation before March 30, 1959. Any association may:
(a) Renew, extend the time of payment of, or rewriteany loan made before that date.
(b) Make additional advances or loans for the purposeof preserving the security of the loan or for the purpose of protecting theproperty securing the loan.
(c) Make any renewal, extension, advance or loan to theborrower or to any successor in interest in the property securing the loan.
(d) Make loans on property sold by an association orextend credit thereon for the purpose of facilitating the sale of the propertyregardless of any other provision of this chapter.
2. No advance or loan may be made under the provisionsof this section if the advance or loan would increase the total liability tothe association making the advance or loan to more than 2 percent of totalassets, except with the approval of the Commissioner.
3. For the purpose of preserving the security of anyloan or of protecting the property securing any loan made in compliance withthis chapter, an association may make additional advances or loans to theborrower or any successor in interest in the property securing the loan. Regardlessof any other provision of this chapter an association may make loans or extendcredit for the purpose of facilitating the sale of property acquired byrepossession, foreclosure or conveyance in lieu of foreclosure if that activityconforms to generally accepted accounting practices.
(Added to NRS by 1959, 540; A 1963, 467; 1983, 656,1785; 1987, 1969)
APPRAISALS
NRS
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468;1983, 1786; 1987, 1970)
NRS
(Added to NRS by 1967, 1022)
NRS
(Added to NRS by 1959, 540; A 1961, 770; 1963, 468;1965, 1139; 1983, 1786; 1987, 1970;
NRS
1. The Commissioner may require each association toestablish and maintain a specific loss reserve for the amount by which the bookvalue of any asset exceeds the Commissioners appraisal of the asset.
2. In determining the values of the securityproperties for a group of loans, the Commissioner may use his appraisal of eachproperty or his estimate of the total value of the properties based upon hisappraisal of a reasonable sample thereof. If any association contests thevalidity of the estimate based upon a sample, it may have an appraisal, at itsown expense, by an appraiser approved by the Commissioner, of all the groupfrom which the sample was drawn, or of a larger sample of the group than wasrecommended by the Commissioner.
3. If the Commissioner has directed an association tocarry a specific loss reserve on its books, the amount so designated for thispurpose by the Commissioner cannot be reduced or changed in any manner withouthis written approval.
4. The provisions of subsections 2 and 3 are effectiveon July 1, 1967, but must not be applied retroactively.
(Added to NRS by 1959, 541; A 1961, 770; 1967, 1017;1983, 1786; 1987, 1970)
NRS
(Added to NRS by 1967, 1022)
INSURANCE OF ACCOUNTS
NRS
[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 theassociation;
(d) Is unsecured;
(e) Is made to the United States, its agencies or anygovernmental agency of the State of Nevada; or
(f) Is made at the discretion of the associationsdirectors, if the loan will not impair the insurability of the associationsaccounts 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 ofthis chapter.
(Added to NRS by 1957, 759; A 1969, 975; 1977, 496;1983, 657; 1993, 2812)
NRS
1. No association may make any loans to a:
(a) Corporation if the majority of the stock is ownedor 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 adirector, officer or the majority owner of the association,
unless theloan is expressly authorized by this chapter or by a resolution of the board ofdirectors of the association. The resolution must be approved by a vote of atleast two-thirds of all the disinterested directors of the association.
2. An association may make loans to any corporation orpartnership in which a director or officer of the association is a minoritystockholder or partner if the loan is authorized or confirmed, at a meetingheld within 30 days after the loan is made, by the affirmative vote of all thedisinterested directors of the association present at the meeting and if theaffirmative vote constitutes a majority of all the directors of theassociation. The interested director or officer shall not vote or participatein any manner in the action of the board of directors upon the loan. Theauthorization or confirmation must be entered in the minutes of theassociation. The loan must in all other respects comply with the provisionscovering the granting of loans.
3. If a loan is made to a corporation or partnershipas set forth in subsection 2, and if the director or officer of the associationowns more than 10 percent of the paid-in capital of the corporation, or if anytwo or more officers or directors own more than 20 percent of the paid-incapital of the corporation or if any one or more of the directors is a generalpartner, the association shall file reports with the Commissioner showing thefollowing:
(a) The fact of making the loan.
(b) The names of the directors authorizing orconfirming the loan.
(c) The corporate or partnership name of the borrower.
(d) The name of each director or officer of theassociation who is a stockholder, officer, director or partner of thecorporation or partnership to which the loan was made.
(e) The amount of stock held by the officer or directorin the corporation.
(f) The amount of the loan, the rate of interestthereon, the time when the loan becomes due, the amount, character and value ofthe security given therefor, and the fact of final payment when made.
4. All officers, directors or stockholders holdingmore than 10 percent of the paid-in capital of the association shall discloseannually to the Commissioner their investments in any partnership orcorporation 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)
NRS
1. An association may invest any of its money in aloan to finance a borrowers interest in or to refinance his existing interestin a cooperative housing corporation if the loan is secured by:
(a) A first security interest in stock or a certificateof membership in the cooperative housing corporation; and
(b) An assignment of or lien on the borrowers interestin the lease or other right of tenancy to a dwelling unit of the cooperativehousing corporation.
2. A first security interest may exist even though amortgage or deed of trust encumbers the property owned by the cooperativehousing corporation if the stock or certificate of membership in thecorporation and the borrowers lease or other right of tenancy are notencumbered with a prior security interest. For purposes of this chapter,additional loans or advances on the same interest in a cooperative housingcorporation, without intervening liens, shall be deemed to be first security interests.For purposes of this chapter, the interest in a cooperative housing corporationwhich is encumbered by a security interest shall be deemed to be real propertyand security interest shall be deemed to be a mortgage on real property.
(Added to NRS by 1983, 660)
NRS
1. An association shall not make at one time loans toany one borrower, or under any one transaction, or applicable to any oneproject, or tract, if the loans in the aggregate are in excess of whichever ofthe following is the lesser:
(a) Ten percent of its total savings accounts, unlessthat 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 andsuch other reserves as the Commissioner may prescribe.
2. For the purpose of this section, the term oneborrower means:
(a) Any person or entity that is, or that upon themaking of a loan will become, obligor on a loan.
(b) Nominees of the obligor.
(c) All persons, trusts, partnerships, syndicates andcorporations of which the obligor is a nominee or a beneficiary, partner,member, or stockholder of record or beneficial interest stockholder owning 10percent or more of the capital stock of any corporation.
(d) If the obligor is a trust, partnership, syndicateor corporation, all trusts, partnerships, syndicates and corporations of whichany beneficiary, partner, member, or stockholder of record or beneficialinterest stockholder owning 10 percent or more of the capital stock is also abeneficiary, partner, member or stockholder of record or beneficial intereststockholder owning 10 percent or more of the capital stock of the association.
3. For the purpose of this section, the term loans toany one borrower means the amount of the new loan plus the total balances ofall outstanding loans owed to the association by the borrower. Notwithstandingany other limitations of this section, the loan may be made if the new loanwhen added to the total balances of all outstanding loans owed to theassociation by the borrower does not exceed $250,000.
4. For the purpose of this section, the term balancesof all outstanding loans means the original amounts loaned by the associationplus any additional advances and interest due and unpaid, less repayments andparticipating interests sold and exclusive of any loan on the security of realestate the title to which has been conveyed to a bona fide purchaser of thereal estate.
5. If an association makes a loan to any one borrowerin an amount which, when added to the total balances of all outstanding loansowed to the association by the borrower, exceeds $250,000, the records of theassociation with respect to the loan must include documentation showing thatthe loan was made within the limitations of this chapter. For the purpose ofthat documentation, the association may require, and may accept in good faith,a certification by the borrower identifying the persons, entities and interestsdescribed 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)
NRS
1. An association may pay:
(a) Current or past-due taxes or assessments leviedupon secured property;
(b) Insurance premiums;
(c) Life insurance premiums on policies that anassociation may require to be assigned as additional collateral; or
(d) Other similar charges required for the protectionof its investments.
Suchpayments shall be added to the unpaid loan balance and shall have the samesecured status under the deed of trust provisions as the loan itself. Noassociation may require, as a condition of loan approval or in the extension ofany other service, that any kind of insurance coverage be purchased from orthrough the association or from any agency in which a director or officer ofthe corporation has any interest.
2. An association may require advance monthly paymentson:
(a) Principal.
(b) Interest.
(c) Taxes.
(d) Assessments.
(e) Insurance premiums.
(f) Other statutory charges accruing upon the securedproperty.
Each suchpayment may be equivalent to one-twelfth of the estimated annual amount due.Monthly charges may be adjusted to provide a reasonable method for the paymentof estimated taxes, assessments, insurance premiums and other charges. Uponreceipt thereof such payments may be carried in a separate trust account orthey may be applied to the loan account as a credit upon receipt and debit whendisbursed.
(Added to NRS by 1969, 962)
NRS
[20:51:1931; 1931 NCL 970.19](NRS A 1957, 756;1961, 770; 1975, 1794; 1983, 660)
NRS
(Added to NRS by 1963, 470)
NRS
1. An association may hold, manage and convey realproperty, including apartments and other buildings:
(a) Acquired by foreclosure or a conveyance in lieu offoreclosure; or
(b) Developed or built by the association.
Unless theassociation has received a written waiver from the Commissioner, the total ofmoney which it has advanced or committed for property which it has developed orbuilt may not exceed twice the sum of its capital, surplus, undivided profits,loan reserve, federal insurance reserve and any other reserves specified by theCommissioner.
2. When an association acquires title to any realproperty pursuant to subsection 1, the document representing the transactionmust be recorded immediately. This subsection does not require recordation ofthe evidences of any transfer of stock resulting from foreclosure of aninterest in a cooperative housing corporation.
3. An appropriate real-estate-owned account must beset up for the property acquired and a separate subsidiary ledger or otherappropriate record must be maintained therefor. The amount carried in theaccount must be the sum of the unpaid principal balance of the loan plusforeclosure costs, less any advance payments and any money held in theloans-in-process account at the time of acquisition, together with:
(a) Any amounts paid after acquisition for realproperty taxes which have accrued before acquisition;
(b) Assessments due or delinquent at the time ofacquisition; and
(c) Necessary acquisition costs and costs of insurancepremiums.
4. The subsidiary ledger record or other appropriaterecord on each property acquired must indicate:
(a) The type and character of the property acquired.
(b) All capitalized items of investment with relatedcosts.
(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
NRS
1. The apportionment of earnings or payment ofinterest by declaration of the board of directors must be made semiannually onJune 30 and December 31 of each year, or quarterly on those dates, and on March31 and September 30 of each year.
2. The percentage rate of the declaration must bedetermined by the board of directors as it deems expedient for the safety andsecurity of all savings depositors, but if the percentage rate is excessive,unjust or inequitable, it is subject to disapproval of, and reduction by theCommissioner. The association may appeal any disapproval or reduction by theCommissioner to the Director.
3. No association may be required to pay or creditinterest on accounts of $10 or less which show no entries of debit or creditfor 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 thebeginning of the interest period, plus payments on the account made during theinterest period, less amounts withdrawn, which for interest purposes must bededucted from the latest previous payments on the account, computed at the ratefor the time invested, determined as provided in this section.
5. The date of investment is the date of actualreceipt 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 dateof investment on which interest is computed. A date later than the 10th may beset if it is permissible for federal associations. If permitted by federalregulations, as amended, the board of directors may permit investments toreceive interest calculated from the date of actual receipt.
6. In addition to the classes of savings accountsprovided for in this chapter, an association may, with the approval of itsboard of directors, authorize additional classes of savings accounts which willconform to those types or classes, which have been established by the FederalHome Loan Bank Board by regulation or which may be authorized by it.
7. Except when prescribed for all associations byfederal regulation, any association which changes its method of calculatinginterest on its savings accounts so as to decrease the effective yield of thataccount shall notify each account holder affected by the change by mail within15 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)
NRS
(Added to NRS by 1957, 759)
INVESTORS
NRS
1. Any savings and loan association and any federalsavings and loan association operating in this state may issue savings accountsor 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 anyrights thereunder, to a minor of the age of 14 years or over, or to a marriedwoman, or a receipt or acquittance signed by the minor and parent, trustee orguardian or by a married woman who holds such savings accounts or investmentcertificates, is a valid and sufficient release and discharge of theassociation for any such payment or delivery.
[1:116:1939; 1931 NCL 974.10](NRS A 1977, 497)
NRS
1. A savings account or investment certificate of anyassociation, including a federal savings and loan association, may be purchasedand held by any person as administrator, executor, guardian, or as trustee orother fiduciary, in trust for a named beneficiary or beneficiaries.
2. Any person holding a savings account as a fiduciarymay make payments upon, and withdraw, in whole or in part, the savings accountor investment certificate.
3. The withdrawal value of any such savings account orinvestment certificate and interest thereon, or other rights relating thereto,may be paid or delivered to the fiduciary, and the payment or delivery to thefiduciary or a receipt or acquittance signed by the fiduciary, to whom any paymentor delivery of rights is made, is a valid and sufficient release and dischargeof the association for the payment or delivery so made.
[Part 2:116:1939; 1931 NCL 974.11](NRS A 1969,977; 1977, 498)
NRS
1. Whenever a person holding a savings account orinvestment certificates as trustee or other fiduciary, in trust for a namedbeneficiary or beneficiaries, dies, and no written notice of the revocation ortermination of the trust relationship shall have been given to any suchassociation or company, the withdrawal value of such savings account orinvestment certificates, and interest thereon, or other rights relatingthereto, may, at the option of the association or company, be paid ordelivered, in whole or in part, to the named beneficiary or beneficiaries ofsuch trust.
2. The payment or delivery to any such beneficiary orbeneficiaries, or a receipt or acquittance signed by any such beneficiary orbeneficiaries for any such payment or delivery, shall be a valid and sufficientrelease and discharge of any such association or company for the payment ordelivery so made.
[Part 2:116:1939; 1931 NCL 974.11](NRS A 1969,978)
SAFE-DEPOSIT BOXES
NRS
1. If the rental due on a safe-deposit box has notbeen paid for 90 days, the lessor may send a notice by registered or certifiedmail to the last known address of the lessee stating that the safe-deposit boxwill be opened and its contents stored at the expense of the lessee unlesspayment of the rental is made within 30 days. If the rental is not paid within30 days after the mailing of the notice, the box may be opened in the presenceof any officer of the lessor and a notary public. The contents must be sealedin a package by the notary public, who shall write on the outside the name ofthe 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 nameof 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 certificatemust be sent by registered or certified mail to the last known address of thelessee. If the contents of the safe-deposit box have been unclaimed by theowner for 3 years or less, the package must then be placed in the general vaultsof the lessor at a rental not exceeding the rental previously charged for thebox, until such time that the contents will have been unclaimed by the ownerfor more than 3 years, at which time the lessor shall deliver the package tothe State Treasurer in his capacity as the Administrator of Unclaimed Propertypursuant to the provisions of chapter 120Aof NRS.
2. If the contents of a safe-deposit box that has beenopened pursuant to subsection 1 have been unclaimed by the owner for more than3 years, the lessor shall deliver the package to the State Treasurer in hiscapacity as the Administrator of Unclaimed Property pursuant to the provisionsof chapter 120A of NRS.
(Added to NRS by 1985, 2248; A 1995, 283;
WITHDRAWALS
NRS
1. Every association shall have on hand at all timesin available money, deposits in banks and credit unions, United StatesGovernment bonds, certificates of insured savings and loan associations,Federal Home Loan Bank evidences of indebtedness, time certificates of insuredfederal and state banks, time certificates of insured credit unions or anyindebtedness of any United States Government instrumentality which is bystatute fully guaranteed, a sum not less than 5 percent of the aggregate ofsavings accounts and investment certificates to enable it to pay withdrawals inexcess of receipts and to meet accruing expenses. The Commissioner mayprescribe 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 associationunder the control or the possession of appropriate supervisory authority mustnot be considered as cash. Except for deposits in a Federal Home Loan Bank, atime deposit established hereafter, whether or not time deposit-open account ordeposit evidenced by a certificate of deposit, must not be considered as cashfor such purposes unless:
(a) The member itself made the deposit in question;
(b) The deposit, together with all other time depositsof the association in the same bank or credit union, does not exceed the greaterof:
(1) One-quarter of 1 percent of the totaldeposits of the bank or credit union as of the last published statement ofcondition of the bank or credit union; or
(2) Fifteen thousand dollars; and
(c) No consideration was received from a third party inconnection 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 timewhen its liquidity drops below the required level. For the purpose of thissection, a loan is deemed to have been made as of the date the borrowerexecuted the security instrument, and a loan is deemed to have been purchasedas of the date of the payment therefor.
(Added to NRS by 1957, 762; A 1967, 1019; 1977, 498;1983, 1791; 1985, 2250; 1987, 1974;
NRS
1. Whenever an association has on file more withdrawalrequests than can be met in full from current funds, it shall apply to thewithdrawals one-half of the monthly receipts, after first deducting the amountnecessary to pay the actual and reasonable expenses incurred in the operationof the association and the protection of its assets and reserves set up by itfor interest on its savings accounts or certificates.
2. Should the one-half of the monthly receipts fail toretire at least 5 percent of the aggregate withdrawal requests, then suchportion of the other one-half of the monthly receipts shall be applied as isnecessary to retire 5 percent of the total amount on withdrawal order.
3. For purposes of this section, receipts means allmoney coming into the hands of the association except borrowed money. Borrowedmoney shall not be considered receipts for the payment of withdrawals; but allmoney borrowed from the Federal Home Loan Bank or from any other federal loanagency for the purpose of paying withdrawals may be used for such purpose andshall not be considered as receipts.
[Part 12:51:1931; A 1933, 78; 1955, 589](NRS A 1977,499)
NRS
1. Except as provided in this section, withdrawalsmust be paid in the order of their filing, and no loans or investments may bemade, except by permission of the Commissioner, when any withdrawal request ororder has remained on file unpaid for a period of more than 30 days. Anyforeign or domestic association, company or corporation may, without thenecessity of obtaining permission of the Commissioner, make or purchase loansor investments not exceeding the principal amount of money borrowed by anassociation, company or corporation from a Federal Home Loan Bank or otherfederal loan agency. Any such request or order which is not legally payable forreasons other than the restrictions of this section may not be considered as onfile.
2. Whenever applications for withdrawals reach such anamount that in the opinion of the Commissioner, it would be inexpedient to paysuch applications in the order of their filing, then, with the writtenpermission of the Commissioner first obtained, so much as may be directed bythe Commissioner of the money available to pay withdrawals may, each month, beprorated 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)
NRS
[13:51:1931; 1931 NCL 970.12](NRS A 1961, 772;1983, 1792; 1987, 1975)
REPORTS, EXAMINATIONS AND AUDITS
NRS
1. Each association doing business in this State shallfile annually with the Commissioner on or before March 1, a sworn statement intwo sections.
2. One section of the annual report must contain, insuch form and detail as the Commissioner may prescribe, the following:
(a) The amount of authorized capital by classes and thepar value of each class of stock.
(b) A statement of its assets, liabilities and capitalaccounts as of the immediately preceding December 31.
(c) Any other facts which the Commissioner requires.
This sectionmust be furnished in duplicate, one certified copy to be returned forpublication at least two times in a newspaper having a general circulation ineach county in which the association maintains an office. Publication must becompleted on or before May 1, and proof of publication must be filed in theOffice of the Commissioner.
3. One section of the annual report must contain suchother information as the Commissioner may require to be furnished. This sectionneed not be published and must be treated as confidential by the Commissioner.
4. The Commissioner may impose and collect a fee ofnot more than $10 for each day the annual report is overdue. The Commissionershall adopt regulations establishing the amount of the fee that may be imposedpursuant to this subsection. Every association shall pay to the Commissionerfor supervision and examination a fee based on the rate established pursuant toNRS 658.101.
5. All sums received by the Commissioner pursuant tothis section must be deposited in the State Treasury pursuant to the provisionsof 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;
NRS
[Part 21:51:1931; 1931 NCL 970.20](NRS A 1961,773; 1983, 1793; 1987, 1976)
NRS
1. The Commissioner may conduct or cause to beconducted such hearings, investigations or examinations of the books andrecords, wherever they may be, relating to the affairs of such organizations ashe may deem expedient and in aid of the proper administration of the provisionsof this chapter.
2. In connection with the conduct of any hearing,investigation or examination, the Commissioner or other person designated byhim to conduct it may:
(a) Compel the attendance of any person by subpoena.
(b) Administer oaths.
(c) Examine any person under oath concerning thebusiness and conduct of affairs of any association subject to the provisions ofthis chapter, and require the production of any books, papers, records, moneyand securities relevant to the inquiry. Any willful false swearing is perjuryand is punishable as such.
3. The Commissioner shall conduct at least once every2 years an examination of the books and records of each association licensedunder 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)
NRS
1. For the purpose of discovering violations of thischapter or of securing information lawfully required under this chapter, theCommissioner or his duly authorized representatives may at any time investigatethe business and examine the books, accounts, papers and records used thereinof:
(a) Any association;
(b) Any other person engaged in an activity regulatedpursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonablecause 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 scopeof this chapter.
2. For the purpose of examination, the Commissioner orhis authorized representatives must have and be given free access to theoffices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of anyperson and examine him under oath regarding:
(a) Any transaction or business regulated pursuant tothe provisions of this chapter; or
(b) The subject matter of any audit, examination,investigation or hearing.
(Added to NRS by
NRS
1. In case of the refusal of any person to attend ortestify or produce any papers required by the subpoena directed to be servedunder the provision of NRS 673.450, theCommissioner may report to the district court in and for the county in whichthe examination, hearing or investigation is pending by petition, setting forththat:
(a) Due notice has been given of the time and place ofattendance of the person or the production of the books and papers;
(b) The person has been subpoenaed in the mannerprescribed in this chapter; and
(c) The person has failed and refused to attend orproduce the papers required by subpoena before the Commissioner in theexamination, hearing or investigation named in the subpoena, or has refused toanswer questions propounded to him in the course of such examination, hearingor investigation,
and askingan order of the court compelling the person to attend and testify or producethe books or papers before the Commissioner.
2. The court, upon petition of the Commissioner, shallenter an order directing the person to appear before the court at a time andplace to be fixed by the court in such order, the time to be not more than 10days from the date of the order, and then and there show cause why he has notattended 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 tothe court that the subpoena was regularly issued by the Commissioner, the courtshall thereupon enter an order that the person appear before the Commissionerat the time and place fixed in the order and testify or produce the requiredbooks or papers; and upon failure to obey the order the person shall be dealtwith as for contempt of court.
(Added to NRS by 1969, 964; A 1983, 1794; 1987, 1977)
NRS
1. The Commissioner may, at the time of examining asavings and loan association, inspect the books, ledgers and minutes of anycorporation which is registered or required to be registered under section 408of the National Housing Act as a holding company whenever, in his discretion,he considers it advisable to ascertain facts which may relate to transactionsbetween the holding company and the affiliated association. The provisions of
2. Upon making findings to that end, the Commissionermay order the discontinuance of borrowing or lending, selling or buying ofassets, extending credit or guaranteeing obligations of the holding companywhich has been undertaken without the written approval of the Commissioner.
3. No unreasonable supervisory fees may be imposed uponany association by a holding company which controls an association.
(Added to NRS by 1969, 963; A 1983, 1794; 1987, 1977)
NRS
1. Whenever in connection with an examination it isnecessary or expedient that the Commissioner or his deputy, or both, leave thisState, there must be assessed against the organization under examination a feeof not more than $50 per day for each person while without the State inconnection with an examination, together with all actual and necessaryexpenses.
2. The fee charged must be remitted to theCommissioner, who shall deposit the fees in the State Treasury pursuant to theprovisions of NRS 658.091.
3. The Commissioner shall adopt regulationsestablishing 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;
NRS
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL 970.21](NRS A 1961, 774; 1983, 1795; 1987, 1978; 1993, 2812)
NRS
[Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL 970.21](NRS A 1961, 774; 1983, 1795; 1987, 1978)
NRS
1. Each association shall, at least once each year,cause its books and accounts to be audited at its own expense by a certifiedpublic accountant or firm of such accountants selected by the association andapproved by the Commissioner.
2. The Commissioner may prescribe the scope of theaudit.
3. A certified copy of the audit, including themanagement and internal control letters relating to the audit, must befurnished to the Commissioner.
(Added to NRS by 1963, 471; A 1977, 513; 1983, 1795;1987, 1978)
NRS
(Added to NRS by 1987, 827)
SUSPENSION AND REVOCATION OF CHARTERS
NRS
1. Repeated failure to abide by the provisions of thischapter or the regulations adopted thereunder.
2. Failure to pay a tax as required pursuant to theprovisions 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
NRS
1. An association may reorganize, merge or consolidatewith another state or federal association, if the reorganization, merger orconsolidation is based upon a plan which has been adopted by the board ofdirectors and approved at a regular or special stockholders meeting which hasbeen called to consider the action. The approval must rest on a favorable voteof a majority of the voting power of the association as established by itsarticles.
2. Any such plan for reorganization, merger orconsolidation must be approved by the Commissioner, who shall satisfy himselfthat the plan, if approved, would be equitable for the stockholders of theaffected association or associations and would not impair the usefulness orsuccess of other properly conducted associations in the community. Insubmitting an application for approval of any such plan, each associationproposing to reorganize, merge or consolidate must provide a comprehensivereview of its present financial statement and a projected view of the financialstatement of the reorganized, merged or consolidated association.
3. Unless its action is specifically authorized by ortaken in conformity with this chapter, no association may, directly orindirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or otherliabilities of any financial institution or any other organization, person orentity.
(c) Transfer assets to any financial institution or anyother organization, person or entity in consideration of the transferees assumptionof liability for any portion of the transferors savings accounts, deposits orother liability.
(d) Acquire the assets of any financial institution orany other organization, person or entity.
4. Each application which is made under this section mustbe accompanied by a fee payment of not more than $300. The responsibility forpayment of the fee must be shared equally by the associations participating ineach proposed plan.
5. The Commissioner shall adopt regulationsestablishing 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;
CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP
NRS
1. If the Commissioner finds as the result of anyexamination or from any report made to him or to any association doing businessin this state or from any report made to any of its investors that theassociation is violating the provisions of its articles of incorporation,charter, bylaws, or any law of this state, or is conducting its business in anunsafe or injurious manner, he may by an order addressed to such associationdirect a discontinuance of such violations or unsafe or injurious practices anda 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 directorsmeeting to consider the matter of noncompliance.
3. The meeting must be held no later than 60 daysafter issuance of the order to hold the meeting, unless otherwise restrained bycourt order or by the board. The business of the meeting must be limited to thematter of noncompliance and remedies therefor and the notice of such meetingmust set forth in detail the Commissioners discontinuance order and order tocall a directors meeting.
4. Action taken at the meeting is binding upon theofficers of the association.
(Added to NRS by 1957, 763; A 1961, 774; 1969, 979;1983, 1796; 1987, 1979)
NRS
1. The Commissioner may, with the prior approval ofthe board, appoint a conservator for an association if any of the followingoccur:
(a) The association does not comply with any ordergiven pursuant to NRS 673.485, withinthe time specified therein.
(b) It appears to the Commissioner that the associationis in an unsafe condition or is conducting its business in an unsafe orinjurious manner such as to render its further proceeding hazardous to thepublic or to any or all of its investors.
(c) The Commissioner finds that the associationsassets are impaired to such an extent that, after deducting all liabilitiesother than to its investors they do not equal or exceed the sum of the value ofits outstanding savings accounts and investment certificates and the par valueof its outstanding stock.
(d) The association refuses to submit its books, papersand accounts to the inspection of the Commissioner or any of his examiners,deputies or assistants.
(e) Any officer of the association refuses to beexamined upon oath concerning the affairs of the association.
(f) It appears to the Commissioner that false reportshave been filed with his office.
2. The conservator may be the Commissioner, his deputyor any person qualified for such appointment.
3. Immediately upon appointment, the conservator shallpetition the district court of the county in which the home office of theassociation is located for confirmation of his appointment. The court hasexclusive jurisdiction to determine the issues and all related matters and itshall give precedence to such conservatorship proceedings and expedite theproceedings in every way.
(Added to NRS by 1957, 763; A 1959, 546; 1961, 774;1969, 980; 1983, 1797; 1987, 1980)
NRS
1. The conservator confirmed or appointed by the courthas all the power expressed in the court order and the following:
(a) All the rights, powers and privileges possessed bythe directors, officers and stockholders.
(b) The power to request the resignation of or removeany director, officer or employee for cause and upon written notice, which mustshow the Commissioners approval of the action.
(c) The power to accept new savings accounts andadditions to existing accounts, which must become segregated accounts andamounts, if the Commissioner so orders in writing, not subject to offset andnot available for liquidating any indebtedness of an association existing atthe time the conservator was appointed.
2. The conservator may not:
(a) Retain special counsel or other experts withoutprior approval of the court;
(b) Incur any expenses other than normal operatingexpenses; or
(c) Liquidate assets except in the normal course ofoperations or for the preservation of existing asset values.
3. All expenses of the association during theconservatorship must be paid by the association.
4. The amount of compensation for the conservator mustbe determined by the court and paid by the association. When either theCommissioner or his deputy has been appointed conservator, the compensationmust be paid to the State Treasurer.
5. During the conservatorship, debtors to theassociation shall continue to make payments to the association as may berequired under the terms of their respective contracts.
6. Savings account depositors may, with the approvalof the conservator, withdraw all or any part of their savings accounts underthe provisions of this chapter or under such regulations as the Commissionermay prescribe.
7. The conservator shall return the association to theboard of directors if the conditions complained of by the Commissioner havebeen removed within 12 months after his appointment. If no change has beeneffected within that time, a receiver may be appointed by the Commissioner asprovided in this chapter.
(Added to NRS by 1969, 964; A 1975, 373; 1977, 501;1983, 1798; 1987, 1980)
NRS
1. If the Commissioner finds that any association:
(a) Is in an impaired condition;
(b) Is engaging in practices which threaten to resultin an impaired condition; or
(c) Is in violation of an order or injunction, asprovided in NRS 673.495, which hasbecome final in that the time to appeal has expired without appeal or a finalorder entered from which there can be no appeal,
theCommissioner may appoint a receiver for the association, which may be theCommissioner, his deputy or any other person, and upon such appointment shall applyimmediately to a court of general jurisdiction in the county in which the homeoffice of the association is located for confirmation of the appointment. Thecourt has exclusive jurisdiction to determine the issues and all relatedmatters. Such proceedings must be given precedence over other cases pending inthe court, and must in every way be expedited. The court shall confirm theappointment if it finds that one or more grounds exist, and a certified copy ofthe order of the court confirming the appointment is evidence thereof. In thecase of an insured association, the appointment by the Commissioner of a receiverunder this section constitutes an official determination of a public authorityof this state pursuant to which a receiver is appointed for the purpose ofliquidation as contemplated by and within the meaning of section 406 of theNational Housing Act of 1934, as amended, if, within 10 days after the date theapplication of the Commissioner is filed, confirmation of such appointment ordenial of confirmation has not been issued by the court. The receiver has allthe powers and authority of a conservator plus the power to liquidate, and hassuch 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 shallreceive no additional compensation, but if another person is appointed, thenthe compensation of the receiver, as determined by the court, must be paid fromthe assets of the association.
2. If the association is an institution insured by theFederal Deposit Insurance Corporation, the Federal Deposit Insurance Corporationmust be tendered appointment as receiver or coreceiver. If it accepts suchappointment, it may, nevertheless, make loans on the security of or purchase atpublic or private sale any part or all of the assets of the association ofwhich it is receiver or coreceiver, if the loan or purchase is approved by thecourt.
3. The procedure in such receivership action must bein all other respects in accordance with the practice in the court, includingall rights of appeal and review. The directors, officers and attorneys of anassociation in office at the time of the initiation of any proceeding underthis section or under NRS 673.495 areexpressly authorized to contest any such proceeding and must be reimbursed forreasonable expenses and attorney fees by the association or from its assets.Any court having any such proceeding before it shall allow and order paidreasonable expenses and attorney fees for such directors, officers and attorneys.
(Added to NRS by 1969, 965; A 1983, 1798; 1987, 1981;1993, 2812)
NRS
(Added to NRS by 1957, 764; A 1961, 775; 1983, 1800;1987, 1982)
NRS
(Added to NRS by 1957, 764; A 1961, 775; 1967, 648;1983, 1800; 1987, 1982)
NRS
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800;1987, 1982)
NRS
(Added to NRS by 1957, 764; A 1961, 776; 1983, 1800;1987, 1983)
NRS
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800;1987, 1983)
NRS
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1800;1987, 1983)
NRS
(Added to NRS by 1957, 765; A 1961, 776; 1983, 1801;1987, 1983)
NRS
1. Pay and discharge any secured claims against theassociation. No secured claim may be paid in an amount larger than the value ofthe security at the time of payment.
2. Pay administrative or current expenses incurredbefore the taking of possession which are necessary or convenient to theorderly or economic liquidation or preservation of the assets, and pay allwages or salaries, in amounts not exceeding such amounts as are normally paidto officers and employees. No salary increases may be proposed or consented toby the Commissioner, conservator or receiver. The number of staff members whichare required or needed for the operation of the association must be determinedby the Commissioner.
3. Disaffirm any executory contracts, includingleases, to which the association is a party, and disaffirm any partiallyexecuted contracts, including leases, to the extent that they remain executory.The disaffirmance must be made within 6 months after obtaining knowledge of theexistence of the contract or lease.
(Added to NRS by 1957, 765; A 1961, 776; 1969, 981;1983, 1801; 1987, 1983)
NRS
(Added to NRS by 1957, 765; A 1961, 777; 1983, 1801;1987, 1984)
NRS
1. The Commissioner may, if he takes possession of anyassociation whose savings accounts are to any extent insured by the FederalDeposit Insurance Corporation, tender to the Federal Deposit InsuranceCorporation the appointment as statutory liquidator of the association. If hedoes not make a tender as sole statutory liquidator, he shall tender to theFederal Deposit Insurance Corporation the appointment as statutory coliquidatorto act jointly with the Commissioner. The coliquidatorship may not exist formore than 1 year from the date of tender, at the expiration of which time theCommissioner becomes the sole liquidator except as otherwise provided by thissection. The Commissioner shall tender to the Federal Deposit InsuranceCorporation the appointment as sole statutory liquidator of the associationwhenever the corporation has become subrogated to the rights of 90 percent ofthe liability of the association on savings accounts. If the Federal DepositInsurance Corporation becomes subrogated as to all the savings accounts in theassociation, it may then exercise all the powers and privileges conferred uponit by this chapter without court approval.
2. If the Federal Deposit Insurance Corporationaccepts the appointment as sole liquidator, it possesses all the powers andprivileges of the Commissioner as statutory liquidator of a possessed savingsand loan association and is subject to all duties of the Commissioner as soleliquidator, except insofar as the powers and privileges or duties are inconflict with federal laws, and except as otherwise provided in this chapter,unless the association resumes business pursuant to the provisions of thischapter. If the Federal Deposit Insurance Corporation accepts the appointmentas coliquidator, it possesses all the powers and privileges jointly with theCommissioner and is subject to the duties jointly with the Commissioner.
3. If the Federal Deposit Insurance Corporationaccepts the appointment as coliquidator or liquidator, it shall file itsacceptance with the Commissioner and the clerk of the district court. Thecorporation may act without bond. Upon filing its acceptance of appointment assole liquidator, the possession of and title to all the assets, business andproperty of the association vests in the Federal Deposit Insurance Corporationwithout the execution of any conveyance, assignment, transfer or endorsement.Upon filing its acceptance of appointment as coliquidator, the possession andtitle vests in the Commissioner and the corporation jointly. If the Federal DepositInsurance Corporation does not qualify as sole liquidator at or before the timeprovided for the expiration of the coliquidatorship, the corporation must be whollydivested of the joint title and possession, and the sole title and possessionvests in the Commissioner. The vesting of title and possession of the propertyof the association does not render the property subject to any claims by thefederal corporation, except those which are encumbered by it with respect tothe association and its property. Whether or not it serves as liquidator orcoliquidator, the corporation may make loans on the security of or may purchasewith 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 whichare to any extent insured by it. In the event of a purchase, the corporationshall pay a reasonable price.
4. Whether or not the Federal Deposit InsuranceCorporation serves as liquidator, whenever it pays or makes available forpayment the savings accounts of any association in liquidation which areinsured by it, it is subrogated upon the surrender and transfer to it of thesavings accounts. The surrender and transfer do not affect any right which thetransferor has in any savings accounts which are not paid or made available forpayment or any right to participate in the distribution of the net proceedsremaining from the disposition of the assets of the association. The rights ofthe investors and creditors of the association must be determined in accordancewith 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)
NRS
1. Whenever, in the case of any association which hasissued common or preferred stock, the Commissioner or the Federal DepositInsurance Corporation has fully liquidated all claims other than claims of thestockholders, and has made due provision for all known or unclaimedliabilities, excepting claims of stockholders, and has paid all expenses ofliquidation, the Commissioner shall call a meeting of the stockholders of thesavings and loan association.
2. Notice of the meeting must be given by:
(a) Five publications in a 30-day period in one or morenewspapers published in the county in which the principal office of theassociation is located; and
(b) Letter to each stockholder mailed to his last knownaddress.
3. At the meeting the Commissioner shall deliver tothe stockholders all the property and effects of the association remaining inhis possession except its records, which must be retained by him as part of therecords of his office. Upon transfer and delivery he is discharged from anyfurther liability to the association or its creditors, and thereafter theassociation is in the same position as though it had never been authorized totransact 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
NRS
1. A foreign association whose activities are limitedto any one or more of those enumerated in NRS80.015 need not be licensed under this chapter.
2. Except as otherwise provided in
(Added to NRS by 1969, 962; A 1979, 1297; 1983, 1325,1803; 1985, 2158; 1989, 627; 1991, 1317; 1995, 1564)
NRS
1. If any association, company or corporationorganized or incorporated under the laws of any governing body other than theState of Nevada is doing business in this state under the provisions of thischapter, and the laws of the other governing body conflict with any of the provisionsof this chapter, the provisions of the laws of this governing body prevail asto each conflict.
2. Whenever any foreign organization follows a courseor performs any act which is forbidden to any domestic organization under theterms of this chapter, it shall report to the Commissioner all of the factsrelating 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
NRS
[Part 1:60:1935; 1931 NCL 973.01](NRS A 1977, 503)
NRS
1. A meeting of the stockholders shall be held uponnot less than 10 days written notice to each stockholder, served eitherpersonally or by mail, postage prepaid, directed to him at his last known postoffice address and containing a statement of the time, place and the purposefor which the meeting is called.
2. Proof by affidavit of due service of the noticeshall be filed in the office of the corporation before or at the time of themeeting.
[Part 1:60:1935; 1931 NCL 973.01](NRS A 1977, 503)
NRS
1. At a meeting of the stockholders held as providedin NRS 673.610, the stockholders may, bythe affirmative vote of the majority of the stockholders present, in person orby 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 bythe affidavit of the president or vice president and the secretary of themeeting, must be filed in the Office of the Commissioner within 10 days afterthe date of the meeting. The sworn copy of the proceedings of the meeting, whenso 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)
NRS
1. After the holding of the meeting of stockholders,the state company, association or corporation shall take such action, in themanner prescribed or authorized by the laws of the United States or the rulesand regulations promulgated pursuant thereto, as shall make it a federalsavings and loan association, and there shall thereupon be filed in the Officeof the Commissioner a copy of the charter of authorization issued to theassociation by the supervising federal regulatory body or a certificate showingthe organization of the association as a federal savings and loan association,certified by the supervising federal regulatory body. Upon filing with theCommissioner, the association ceases to be a state savings and loanassociation, but retains all rights, privileges and exemptions of a domesticassociation of the same kind and character.
2. A fee of not more than $40 must accompany the copyof the charter of authorization.
3. Federal associations so converted and their membersare subject to the same form of taxation and on the same basis as stateassociations and their stockholders.
4. The Commissioner shall adopt regulationsestablishing 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;
NRS
1. At the time when the conversion becomes effective,the company, association or corporation shall cease to be supervised by thisstate, but shall continue as a body corporate converted pursuant to theprovisions of the Home Owners Loan Act of 1933 and subject to examination andregulation pursuant to that act.
2. All the property of the state company, associationor corporation, including all its right, title and interest in and to allproperty of whatever kind, whether real, personal or mixed, and things inaction, and every right, privilege, interest and asset of any conceivable valueof benefit then existing, belonging or pertaining to it, or which would inureto 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 thefederal savings and loan association. The federal savings and loan associationshall have, hold and enjoy the same in its own right as fully and to the sameextent as the same was possessed, held and enjoyed by the state company, associationor corporation.
3. The federal savings and loan association as of thetime 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
NRS
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1977,504)
NRS
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1977,504)
NRS
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1961,780; 1983, 1805; 1987, 1987)
NRS
[Part 1:140:1939; 1931 NCL 974.30]
NRS
1. After the meeting, the federal association shalltake such action in the manner prescribed and authorized by the laws of thisstate as shall make it a savings and loan association of this state, and thedirectors elected at the meeting shall file such documents and follow suchprocedures as are required by the laws of this state in the case of theoriginal incorporation of a savings and loan association.
2. A savings and loan association incorporated byconversion from a federal savings and loan association shall not be required tocomply with any of the provisions of law or any regulation adopted by theCommissioner relating to the minimum amounts of capital required to besubscribed in connection with the original incorporation of a savings and loanassociation under the laws of this state.
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1961,780; 1977, 505; 1983, 1805; 1987, 1987)
NRS
[Part 1:140:1939; 1931 NCL 974.30]
NRS
[Part 1:140:1939; 1931 NCL 974.30]
NRS
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1977,505)
NRS
[Part 1:140:1939; 1931 NCL 974.30](NRS A 1977,505)
NRS
1. Vote in person or by proxy in favor of converting afederal savings and loan association into a savings and loan association, ormay approve the determination so to convert.
2. Exchange any shares, share accounts or other rightsor claims for securities issued by the savings and loan association, and maycontinue 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 LOANASSOCIATIONS
NRS
[1:129:1939; 1931 NCL 974.20](NRS A 1963, 472;1977, 506)
UNLAWFUL ACTS; PENALTIES
NRS
[31:51:1931; 1931 NCL 970.21](NRS A 1967, 649;1977, 506)
NRS
1. Any association which violates any provisions ofthis chapter or fraudulently misrepresents the terms of any contract or of anysecurities, and thereby secures a sale therefor, shall be punished by anadministrative fine of not more than $10,000 and forfeiture and revocation ofall licenses issued to it under the provisions of this chapter.
2. The Commissioner may impose an administrative fineof not more than $10,000 upon a person who:
(a) Without a license, conducts any business oractivity for which a license is required pursuant to the provisions of thischapter; or
(b) Violates any provision of this chapter or anyregulation adopted pursuant thereto.
[Part 18:51:1931; 1931 NCL 970.17](NRS A 1967,649; 1977, 506; 2005,1880)
NRS
[Part 18:51:1931; 1931 NCL 970.17](NRS A 1967,649)
NRS
1. Sells or offers for sale within this state anysecurities of any company, association or corporation which has not receivedthe license provided for in NRS 673.080and 673.250;
2. Fails to secure the license provided for in
3. Fails to pay a fee or penalty as provided in
is guilty ofa misdemeanor for each such violation.
[Part 18:51:1931; 1931 NCL 970.17](NRS A 1963,472; 1967, 649; 1989, 922)
NRS
[Part 18:51:1931; 1931 NCL 970.17](NRS A 1977,506)
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