NRS 678.275 Certainrelationships between employee of Division of Financial Institutions andlicensee prohibited; termination of prohibited relationship.

NRS 678.282 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue license.

NRS 678.284 Suspensionor revocation of license: Additional grounds.

NRS 678.286 Useor change of business name; prohibitions.

NRS 678.288 Authorizationof Commissioner to investigate business; free access required; compellingattendance of witnesses.

NRS 678.290 CreditUnion Advisory Council.

FORMATION

NRS 678.300 Requirementof incorporation; exceptions; applicability of NRS 81.410 to 81.540, inclusive; perpetual existence.

NRS 678.310 Procedurefor incorporation; fees set by regulation.

NRS 678.320 Amendmentof articles of incorporation; bylaws.

NRS 678.330 Offices;principal place of business.

NRS 678.340 Fiscalyear.

FOREIGN CREDIT UNIONS

NRS 678.342 Certificateof authority required.

NRS 678.343 Applicationfor certificate of authority: Filing; form; contents; withdrawal ofapplication.

NRS 678.3435 Feefor initial investigation; annual fees; costs for additional investigations;regulations.

NRS 678.344 Requirementsfor issuance of certificate.

NRS 678.345 Applicablelaw; filing of annual report.

NRS 678.3455 Applicationfor certificate of authority to open branch offices.

NRS 678.346 Examinationof records; revocation of certificate.

NRS 678.347 Applicabilityof provisions of chapter 80 of NRS.

DIRECTORS, OFFICERS AND COMMITTEES

NRS 678.350 Boardof directors: Number, election and terms of members; procedure for fillingvacancy.

NRS 678.360 Boardof directors: Responsibilities; meetings; executive committee.

NRS 678.370 Boardof directors: Duties.

NRS 678.380 Boardof directors: Powers.

NRS 678.390 Appointmentof audit committee: Duties; powers; suspension of member; employment ofcertified or registered public accountant.

NRS 678.400 Creditcommittee; loan officer.

NRS 678.410 Removalof director, officer or employee on objection of Commissioner.

NRS 678.420 Officers:Election; designation; bonds; terms; duties.

NRS 678.430 Listof directors, officers and committee members.

NRS 678.440 Fiduciaryrelationship of directors and officers.

NRS 678.450 Compensationand expenses of directors, officers and members.

POWERS AND PRIVILEGES

NRS 678.460 Generalpowers; waiver or modification of law by Commissioner.

NRS 678.470 Receivingand paying out deposits; borrowing, selling and purchasing assets.

NRS 678.480 Feesand assessments.

NRS 678.490 Membershipin other credit union or organization; performance of certain services.

NRS 678.500 Donationsand contributions.

MEMBERSHIP; ACCOUNTS

NRS 678.510 Eligibilityfor membership.

NRS 678.520 Eligibilityof minor; limitations.

NRS 678.530 Subscriptionto and transfer of shares; lien for sums due; reduction in shares.

NRS 678.540 Realand personal property subject to taxation.

NRS 678.550 Meetingsof members.

NRS 678.560 Savingsdeposits; special clubs and accounts.

NRS 678.570 Multiple-partyaccounts: Authorization; disbursement of money; limitations.

NRS 678.580 Presumptionsconcerning ownership of accounts.

NRS 678.590 Multiple-partyaccounts: Proportional ownership; tenancy in common.

NRS 678.600 Multiple-partyaccounts: Survivorship.

NRS 678.610 Trustaccounts.

NRS 678.620 Paymentas valid discharge of credit union.

NRS 678.630 Paymentof trust accounts.

NRS 678.640 Paymentof multiple-party accounts.

NRS 678.650 Rightto setoff against multiple-party accounts.

RESERVES; DIVIDENDS

NRS 678.670 Regularreserves.

NRS 678.680 Specialreserves.

NRS 678.690 Assetsqualified for reserves.

NRS 678.700 Dividends.

LOANS; INVESTMENTS

NRS 678.710 Loansto members: Application; approval; limitations; participation loans; payment.

NRS 678.720 Loansto members: Extension of previous maximum credit; review.

NRS 678.730 Loansto and guaranties by directors and members of committees.

NRS 678.740 Securityfor loans.

NRS 678.750 Insuranceof members and accounts.

NRS 678.755 Approvalof private insurer and contract of insurance; regulations; reserve.

NRS 678.760 Authorizedinvestments.

NRS 678.765 Limitationon investment in fixed assets.

RECORDS AND REPORTS; EXAMINATIONS

NRS 678.780 Annualfinancial report.

NRS 678.790 Examinationsand audits; exceptions; fees.

NRS 678.795 Independentaudit and examination: Payment of assessment; cooperation.

MERGER; CONVERSIONS

NRS 678.800 Merger;fees set by regulation; regulations.

NRS 678.810 Conversions;fee set by regulation.

DISSOLUTION AND LIQUIDATION

NRS 678.820 Voluntarydissolution.

NRS 678.830 Involuntarydissolution: Suspension of operations; corrective actions; declaration ofinsolvency; liquidation.

NRS 678.835 Involuntarydissolution: Appointment of liquidating agent for credit union closed bybankruptcy or insolvency.

NRS 678.840 Procedurefor liquidation.

CENTRAL CREDIT UNIONS

NRS 678.850 Organizationand operation; rights and powers.

NRS 678.860 Membership.

NRS 678.870 Votingrepresentatives.

NRS 678.875 Regularreserves.

PENALTIES

NRS 678.880 Useof words credit union or conducting business as credit union by person notorganized as credit union; spreading false report concerning management orfinances of credit union.

NRS 678.890 Administrativefines.

_________

GENERAL PROVISIONS

NRS 678.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS678.020 to 678.240, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1975, 376; A 1983, 1830; 1985, 784;1987, 2013)

NRS 678.020 Accountdefined. Account means a contract of depositof funds between a member and a credit union and includes deposits, member orshare accounts and other like arrangements regardless of whether they may becharacterized as refundable capital investments.

(Added to NRS by 1975, 376)

NRS 678.030 Beneficiarydefined. Beneficiary means any person towhom the deposits of an account are to be paid upon the occurrence of aspecified condition.

(Added to NRS by 1975, 376)

NRS 678.040 Boarddefined. Board means the board of directorsof a credit union formed pursuant to the provisions of this chapter.

(Added to NRS by 1975, 376)

NRS 678.050 Chairmandefined. Chairman means the chairman of theboard of a credit union.

(Added to NRS by 1975, 376)

NRS 678.061 Commissionerdefined. Commissioner means the Commissionerof Financial Institutions.

(Added to NRS by 1987, 2013)

NRS 678.070 Creditunion defined. Credit union means acooperative, nonprofit corporation, organized for the purposes of promotingthrift among its members and creating a source of credit for such members at afair and reasonable rate of interest.

(Added to NRS by 1975, 376)

NRS 678.080 Demanddefined. Demand means a request for withdrawalor payment in accordance with all conditions of the account and bylaws of thecredit union.

(Added to NRS by 1975, 376)

NRS 678.090 Departmentdefined. Department means the Department ofBusiness and Industry.

(Added to NRS by 1975, 376; A 1993, 1896)

NRS 678.100 Depositsdefined. Deposits means that part of thesavings liability of a credit union which is credited to the account of theholder thereof.

(Added to NRS by 1975, 377)

NRS 678.110 Directordefined. Director means the Director of theDepartment.

(Added to NRS by 1975, 377; A 1993, 1897)

NRS 678.120 Dividenddefined. Dividend means that part of the netearnings of an association which is declared payable by the board to theholders of record of permanent capital stock.

(Added to NRS by 1975, 377)

NRS 678.125 Fixedassets defined. Fixed assets means the realproperty which constitutes the premises of a credit union or any of itsoffices, and the furniture, fixtures and equipment of the credit union.

(Added to NRS by 1985, 783)

NRS 678.130 Immediatefamily defined. Immediate family includesany relative, by consanguinity or marriage, of a member living in the membershousehold and includes foster and adopted children.

(Added to NRS by 1975, 377)

NRS 678.140 Loanofficer defined. Loan officer means theofficer appointed by the board of directors or by the credit committee toprocess all applications for loans from the members of the credit union.

(Added to NRS by 1975, 377)

NRS 678.145 Memberdefined. Member means a person who has anaccount with a credit union and meets the qualifications for membershipspecified in the articles of incorporation and bylaws of the credit union.

(Added to NRS by 1985, 783)

NRS 678.150 Mergerdefined. Merger means that consolidation ofcorporate structures which results in the uniting of substantially all theassets and liabilities of one state-chartered corporation with those of anothersuch corporation or with those of a federal corporation.

(Added to NRS by 1975, 377)

NRS 678.160 Multiple-partyaccount defined.

1. Multiple-party account means:

(a) An account in the name of two or more persons, anyone or more of whom may make withdrawals;

(b) An account in the name of one or more persons astrustee for one or more beneficiaries;

(d) An account controlled by two or more persons as theduly authorized agents or trustees for a corporation, unincorporatedassociation, charitable or civil organization or any trust, except trusts ofdeposits evidenced solely by the form of the deposit.

2. At least one party to a multiple-party accountshall be a member of the credit union in which the account is established.

(Added to NRS by 1975, 377)

NRS 678.170 Netcontribution defined. Net contribution meansthe sum of all deposits which a party to a multiple-party account has madeadded to any dividends or interest due, less all withdrawals. It includes, inaddition, any deposit life insurance proceeds added to the account because ofthe death of a party whose net contribution is in question.

(Added to NRS by 1975, 377)

NRS 678.180 Partydefined. Party means any person who, by theterms of the account, has a present right of withdrawal in a multiple-partyaccount. Unless the context indicates otherwise, it includes a guardian,conservator-trustee, personal representative, assignee, an attaching creditorof a party or a trustee. This term does not include any named beneficiary.

(Added to NRS by 1975, 377)

NRS 678.190 Paymentdefined. Payment means the withdrawal andpayment of sums on deposit on the directive of a party.

(Added to NRS by 1975, 377)

NRS 678.210 Proofof death defined. Proof of death means adeath certificate or other statement issued by an appropriate official whichindicates that a named person is deceased.

(Added to NRS by 1975, 377)

NRS 678.220 Sumson deposit defined. Sums on deposit meansthe balance payable on a multiple-party account including interest, dividendsand any deposit life insurance proceeds added to the account because of thedeath of a party.

(Added to NRS by 1975, 377)

NRS 678.230 Trustaccount defined. Trust account means anyaccount which states that a party is a trustee for one or more identifiedpersons, including but not limited to minors.

(Added to NRS by 1975, 378)

NRS 678.240 Withdrawaldefined. Withdrawal means payment to a partyor a third person pursuant to a directive of a party.

(Added to NRS by 1975, 378)

ADMINISTRATION

NRS 678.250 Administrationof chapter; regulations of Commissioner. TheCommissioner shall administer the provisions of this chapter, subject to administrativesupervision by the Director and the Credit Union Advisory Council. He shallmake the decisions and determinations and adopt regulations which are necessaryor reasonably appropriate to accomplish the purposes of this chapter.

(Added to NRS by 1975, 378; A 1977, 96; 1983, 1830;1987, 2013)

NRS 678.260 Dutiesof Commissioner; regulations. The Commissionershall:

1. Adopt a regulation establishing the minimum suretybond required of credit unions in relation to the amount of property undertheir control.

2. Adopt a regulation that sets forth the records acredit union must keep and prescribes the period for which those records mustbe retained.

3. Maintain the original application of every creditunion in a permanent file.

4. Maintain for at least 6 years, every report filedby a credit union with the Division of Financial Institutions.

5. Except as otherwise provided in NRS 678.800 and 678.810, deposit all fees, charges forexpenses, assessments and other money which is collected pursuant to theprovisions of this chapter or any regulation adopted pursuant thereto in theState Treasury pursuant to the provisions of NRS658.091.

6. Prepare copies of articles of incorporation andbylaws consistent with the provisions of this chapter which may be used bypersons interested in organizing a credit union.

(Added to NRS by 1975, 378; A 1977, 102; 1983, 1328,1639, 1830, 2015; 1985, 784; 1987, 2013; 1989, 924; 1999, 1452; 2003, 3234)

NRS 678.270 Powersof Commissioner concerning regulations and legal actions. The Commissioner may:

1. Adopt regulations, subject to the advice andconsent of the Credit Union Advisory Council, establishing chartering,supervisory and examination fees; and

2. Cause appropriate legal action to be taken in thedistrict court of any county to secure an injunction or order restraining aviolation of this chapter.

(Added to NRS by 1975, 378; A 1983, 1831; 1987, 2013)

NRS 678.275 Certainrelationships between employee of Division of Financial Institutions andlicensee prohibited; termination of prohibited relationship.

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 credit union chartered by this state;

(b) Receive, directly or indirectly, any payment fromany such credit union;

(d) Engage in the negotiation of loans for others withany such credit union; or

(e) Obtain credit or services from a state credit unionconditioned 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 a statecredit union while in office.

3. Any officer or employee of the Division ofFinancial Institutions may be indebted to a credit union on the same terms asare available to the public generally upon:

(a) A mortgage loan on his own real property.

(b) A secured installment debt.

4. Any officer or employee of the Division ofFinancial Institutions may establish and maintain savings deposits or shareaccounts with credit unions to the greatest amount insured, receive interest onthose deposits or shares and borrow money secured by a pledge of those depositsor shares.

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 1983, 1829)

NRS 678.282 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue license.

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.

(d) Has falsified any of the information submitted tothe Commissioner in support of the application for the license.

(Added to NRS by 2005, 1889)

NRS 678.284 Suspensionor revocation of license: Additional grounds. Inaddition to any other lawful reasons, the Commissioner may suspend or revoke alicense if the licensee has engaged in any act that would be grounds fordenying a license pursuant this chapter.

(Added to NRS by 2005, 1890)

NRS 678.286 Useor change of business name; prohibitions.

1. A licensee must obtain the approval of theCommissioner before using or changing a business name.

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 2005, 1890)

NRS 678.288 Authorizationof Commissioner to investigate business; free access required; compellingattendance of witnesses.

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 credit union;

(b) Any other person engaged in an activity for which alicense is required pursuant 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 thischapter, whether or not the person claims to be within the authority or beyondthe scope of this chapter.

2. For the purpose of examination, the Commissioner orhis authorized representatives shall 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 2005, 1890)

NRS 678.290 CreditUnion Advisory Council.

1. The Credit Union Advisory Council, consisting offive members appointed by the Governor, is hereby created to consult with,advise and make recommendations to the Commissioner in all matters pertainingto credit unions.

2. The Governor shall appoint members who have testedcredit union experience from a list of recommended names submitted by theNevada Credit Union League.

3. After the initial terms, members serve terms of 4years, except when appointed to fill unexpired terms.

4. The Chairman of the Advisory Council must beelected annually by and from the members thereof.

5. The meetings of the Advisory Council may be held atsuch times and places as the Chairman or Commissioner determines and may beheld regularly at least once every 6 months.

6. Council members are entitled to receive a salary of$60 for each days attendance at a meeting of the Council.

(Added to NRS by 1975; 378; A 1977, 1263; 1981, 71,1996; 1983, 1449, 1831; 1985, 447; 1987, 2013)

FORMATION

NRS 678.300 Requirementof incorporation; exceptions; applicability of NRS 81.410to 81.540,inclusive; perpetual existence.

1. Except for a credit union organized under theFederal Credit Union Act or a foreign credit union which has been issued acertificate of authority by the Commissioner, any credit union whose principalbusiness is to borrow, loan and invest money on behalf of its members and whichissues membership certificates must be incorporated under the provisions ofthis chapter. For that purpose, the provisions of NRS 81.410 to 81.540, inclusive, which are not inconflict with the provisions of this chapter, apply to such corporations and tothe officers and stockholders thereof, except as otherwise provided in NRS 678.342 to 678.347, inclusive.

2. A credit union organized under the provisions ofthis chapter has perpetual existence, subject to dissolution as provided inthis chapter.

(Added to NRS by 1975, 379; A 1977, 890; 1983, 2015;1985, 315; 1987, 2014)

NRS 678.310 Procedurefor incorporation; fees set by regulation.

1. The Secretary of State shall not issue anycertificate of incorporation to any credit union authorizing it to do businessin this state until the articles of incorporation are approved by theCommissioner.

2. An amendment to the articles of incorporation maynot be filed by the Secretary of State without the written approval of theCommissioner.

3. Not less than seven persons who are residents ofNevada, have a common bond and are of legal age who desire to organize a creditunion under this chapter shall first execute in triplicate an application, uponforms to be issued by the Commissioner, for permission to organize anassociation. The applicants shall submit with or include in their application:

(a) A copy of the articles of incorporation which mustcomply with the provisions of NRS 81.440except where those provisions conflict with the provisions of this chapter.

(b) The par value of the shares, which must be $5 orsome multiple thereof.

(c) The names and addresses of the applicants and anitemized account of the financial condition of the applicants and the proposedcredit union.

(d) The name, which must include the words creditunion, and the principal place of business.

(e) Any additional information which the Commissionermay require to determine the character and responsibility of the applicants andthe need for a credit union in the community to be served.

Theincorporators shall submit a set of proposed bylaws to the Commissioner withtheir application and the bylaws when approved by the Commissioner areeffective upon filing the articles of incorporation. The Commissioner shallapprove or disapprove the application within 30 days following its receipt.

4. Every application for permission to organize, asprovided for in this section, must be accompanied by an application fee and afee payment to cover expenses attendant upon the investigation required forapproval. The amount of the fees must be established by regulation adopted bythe Commissioner.

5. The subscribers for a credit union charter shallnot transact any business until formal approval of the charter has beenreceived.

(Added to NRS by 1975, 379; A 1977, 890; 1983, 1639,1831, 2016; 1987, 2014)

NRS 678.320 Amendmentof articles of incorporation; bylaws.

1. The articles of incorporation or bylaws may beamended as provided in the bylaws. Any amendment to the articles ofincorporation or bylaws do not become effective until approved in writing bythe Commissioner.

2. The Commissioner shall not charge any fee forapproving amendments to the articles of incorporation or bylaws of any creditunion organized pursuant to this chapter.

(Added to NRS by 1975, 380; A 1977, 891; 1983, 1832;1987, 2015)

NRS 678.330 Offices;principal place of business.

1. A credit union may maintain, with the approval ofthe Commissioner, offices at locations other than its main office if themaintenance of the offices is reasonably necessary to furnish service to itsmembers.

2. A credit union may change its principal place ofbusiness within this state upon providing written notice to the Division ofFinancial Institutions.

3. A credit union may share office space with one ormore credit unions and contract with a corporation to provide facilities orpersonnel.

(Added to NRS by 1975, 380; A 1983, 1832; 1987, 2015)

NRS 678.340 Fiscalyear. The fiscal year of all credit unionsorganized under this chapter shall end on the last day of December.

(Added to NRS by 1975, 380)

FOREIGN CREDIT UNIONS

NRS 678.342 Certificateof authority required. No credit unionorganized under the laws of another state may commence or transact any businessor maintain an office in this state without first obtaining a certificate ofauthority from the Commissioner.

(Added to NRS by 1983, 2014; A 1983, 1645; 1987,2015)

NRS 678.343 Applicationfor certificate of authority: Filing; form; contents; withdrawal ofapplication. Each application for an initialcertificate of authority submitted by a foreign credit union must be filed withthe Commissioner on a form prescribed by him and must include:

1. A copy of the instrument or authority by which thecredit union was created and a copy of its bylaws.

2. A statement of its membership, if not contained inits bylaws.

3. A copy of the most recent report submitted by thecredit union to the authorized officer of the state in which it was organized.

4. Any other information required by the Commissioner.

5. 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.

(Added to NRS by 1983, 2014; A 1983, 1646; 1987, 177,2015; 2005, 1890)

NRS 678.3435 Feefor initial investigation; annual fees; costs for additional investigations;regulations.

1. The Commissioner shall charge and collect a fee ofnot more than $1,000 for an initial investigation from each foreign creditunion which applies for certification. The fee is not refundable. An annual feeof not more than $1,000 must be paid by each foreign credit union for itsinitial office and not more than $200 for each branch office. Costs foradditional examinations and investigations must be paid by the credit union atan hourly rate deemed reasonable by the Commissioner.

2. The Commissioner shall by regulation determine theamount of the fees required pursuant to this section.

(Added to NRS by 1987, 177; A 2005, 1891)

NRS 678.344 Requirementsfor issuance of certificate. The Commissionershall issue a certificate of authority to a foreign credit union if he issatisfied that:

1. The members of the credit union to be served inthis state are adequately protected by any form of security which is comparableto that required of credit unions organized under the provisions of thischapter.

2. The officer who supervises the credit union in thestate in which it was organized has authorized it to do business in Nevada andagrees to furnish, upon request, copies of reports relating to the creditunion.

3. The members to be served in this state have a needfor the service and adequate service is not available through existing creditunions.

4. A resident agent has been designated.

5. The state in which the credit union was organizedissues comparable authorization to credit unions organized under the provisionsof this chapter.

(Added to NRS by 1983, 2014; A 1983, 1646; 1985, 784;1987, 2015)

NRS 678.345 Applicablelaw; filing of annual report. A foreign creditunion which has been issued a certificate of authority shall:

1. Serve its members in this state in accordance withits bylaws and the laws of the state in which it was organized, except wherethose laws conflict with the provisions of this chapter.

2. File with the Commissioner a copy of its annualreport at the time it files a similar report with the officer of the state inwhich it was organized.

(Added to NRS by 1983, 2014; A 1983, 1646; 1987,2016)

NRS 678.3455 Applicationfor certificate of authority to open branch offices. Aforeign credit union which has been issued a certificate of authority may applyto the Commissioner for a certificate of authority to open one or more branchoffices in this state. Such an application must be made on a form prescribed bythe Commissioner.

(Added to NRS by 1987, 177)

NRS 678.346 Examinationof records; revocation of certificate. TheCommissioner may:

1. Examine the records of any foreign credit unionwhich holds a certificate of authority issued by the Commissioner at any timehe deems necessary.

2. Revoke a certificate of authority issued to acredit union if he finds that the credit union has violated any provision ofthis chapter or the regulations of the Commissioner.

(Added to NRS by 1983, 2015; A 1983, 1647; 1987,2016)

NRS 678.347 Applicabilityof provisions of chapter80 of NRS. The provisions of chapter 80 of NRS which are not in conflict withthe provisions of this chapter apply to any foreign credit union which holds acertificate of authority to transact business or maintain an office in thisState.

(Added to NRS by 1983, 2015)

DIRECTORS, OFFICERS AND COMMITTEES

NRS 678.350 Boardof directors: Number, election and terms of members; procedure for fillingvacancy.

1. The business affairs of a credit union shall bedirected by an odd-numbered board of not fewer than five directors to beelected at the annual meetings by and from the members, and an audit and creditcommittee if appointed by the board. The persons designated in the articles ofincorporation shall be the first directors.

2. All members of the board and such committees shallhold office for such terms as the bylaws may provide.

3. Vacancies in the board of directors shall be filledby vote of the members at the annual meeting or at a special meeting called forthat purpose. The board may fill any vacancies occurring in the board untilsuccessors elected at the annual meeting or special meeting have qualified. Theboard shall also fill vacancies in the credit and audit committees.

(Added to NRS by 1975, 380)

NRS 678.360 Boardof directors: Responsibilities; meetings; executive committee.

1. The board of directors is responsible for thegeneral direction of the affairs, funds and records of the credit union andshall meet as often as necessary to accomplish their duties, but not less thanonce a month.

2. The board may appoint an executive committee of notless than three directors who may be authorized, by a majority vote of thewhole board, to act for the board subject to any conditions or limitations theboard may prescribe.

(Added to NRS by 1975, 380)

NRS 678.370 Boardof directors: Duties. The directors of acredit union shall:

1. Purchase a blanket fidelity bond in accordance withthe regulations of the Commissioner which provides the credit union withprotection against losses from misappropriation, defalcation in breach oftrust, negligence, acts of God or nature, fire, burglary, robbery or othercause over which the bonded officers, employers and agents had no control;

2. Declare dividends in the manner prescribed in thebylaws;

3. Determine the interest rate to be charged on loans andpaid on deposits;

4. Limit the number of shares and the amount ofdeposits which may be owned by any member;

5. Establish the compensation of all employees andofficers;

6. Establish the maximum secured and unsecured loanwhich may be made to any one member;

7. Designate a depository or depositories for themoney of the credit union;

8. Suspend or remove any member who fails to performor negligently performs his assigned duties;

9. Establish compensation to be paid any employee,officer or other persons performing services on behalf of the credit union;

10. Determine from time to time the interest rate,consistent with the provisions of this chapter, which will be charged on loans;and

11. Authorize interest refunds to members from incomeearned and received in proportion to interest paid by them on such classes ofloans. Such refunds are subject to conditions imposed by the board.

(Added to NRS by 1975, 380; A 1983, 1833; 1987, 2016)

NRS 678.380 Boardof directors: Powers. The directors may:

1. Act upon applications for membership or appointmembership officers from the members of the credit union to act upon membershipapplications subject to conditions imposed by the board. If membership officersare appointed they shall submit at each board meeting a list of approved orpending applications for membership.

2. Invest surplus funds or designate an officer orcommittee to be responsible for making investments subject to rules andprocedures established by the board of directors.

3. Authorize the employment of persons necessary tocarry on the business of the credit union.

4. Authorize the conveyance of property.

5. Borrow or lend money to carry on the functions ofthe credit union.

6. Appoint any special committees which the boardfeels necessary to carry on the business of the credit union.

7. Perform or authorize any action not inconsistentwith this chapter and not specifically reserved by the bylaws for the members.

8. Employ a general manager to be in charge of operationsor, in lieu thereof, designate the treasurer to act as general manager and bein active charge of the affairs of the credit union.

9. Amend the bylaws of the credit union.

(Added to NRS by 1975, 381)

NRS 678.390 Appointmentof audit committee: Duties; powers; suspension of member; employment ofcertified or registered public accountant.

1. The board may appoint an audit committee to make anannual audit of the financial records of the credit union and any interimaudits as may be deemed necessary by the board or as may be directed by theCommissioner. A copy of the report must be submitted to the board and theCommissioner and a summary presented to the members at the next annual meeting.

2. The audit committee may by unanimous vote suspendany director, officer or member of the credit union following an audit, for anyviolation of this chapter, the charter or bylaws or for any other practicewhich the audit committee deems to be unsafe or unauthorized. In such cases,the audit committee shall call a special meeting of the members not less than 7nor more than 21 days following the suspension and the suspension must beratified or overturned by the members.

3. Any member of the audit committee may be suspendedby the board for the same reasons and in the same manner as provided insubsection 2.

4. The audit committee may by a majority vote call aspecial meeting of the members to consider any violation of this chapter, thecharter or bylaws or any practice of the credit union deemed by the auditcommittee to be unsafe or unauthorized.

5. The board of directors or the audit committee mayemploy the services of a certified public accountant or a registered publicaccountant to complete the necessary audit of the records of the credit union.

(Added to NRS by 1975, 381; A 1981, 1813; 1983, 1640,1833, 2016; 1987, 2017)

NRS 678.400 Creditcommittee; loan officer.

1. The board may appoint a:

(a) Credit committee consisting of an odd number ofmembers of the credit union, but not less than three members; or

(b) Loan officer.

2. If a credit committee is appointed by the board, itshall hold such meetings as the business of the credit union may require but itshall meet at least once a month to consider applications for loans. A loan maynot be made unless it is approved by a majority of the members of the committeewho are present at the meeting at which the application is considered.

3. The credit committee may appoint a loan officerfrom among its members and delegate to him the power to approve loans. Only onemember of the credit committee may be appointed as loan officer or assistantloan officer.

4. If a loan is not approved by a loan officer, the applicationfor the loan must be reviewed by the credit committee or the board ofdirectors, whomever appointed the loan officer. All the members of the creditcommittee or the board present at the review must approve the applicationbefore the loan may be made.

5. For purposes of internal control, a loan officermay not disburse funds of the credit union for any loan which has been approvedby him in his capacity as loan officer.

(Added to NRS by 1975, 382; A 1983, 2017)

NRS 678.410 Removalof director, officer or employee on objection of Commissioner. If the Commissioner notifies the board in writing that hehas information that any director, officer or employee of a credit union isfailing in the performance of his duties, the board shall meet and consider suchmatter forthwith. The Commissioner must have notice of the time and place ofthe meeting. If the board of directors finds the Commissioners objection to bewell founded, such director, officer or employee shall be removed immediately.

(Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

NRS 678.420 Officers:Election; designation; bonds; terms; duties.

1. At the organizational meeting and within 30 daysfollowing each annual meeting, the directors shall elect, from their ownnumber, the executive officers of the corporation. The officers must bedesignated as:

(a) Chairman of the board;

(b) Vice chairman of the board;

(d) Secretary.

Thetreasurer and secretary may be the same person.

2. The treasurer or general manager shall give afidelity bond with good and sufficient surety in an amount and character to bedetermined by the board in compliance with regulations prescribed by theCommissioner.

3. Each officer shall serve a term of 1 year or untilsuch time as successors are chosen and have qualified.

4. The duties of each office must be as prescribed inthe bylaws of the credit union.

(Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

NRS 678.430 Listof directors, officers and committee members. Within30 days following the election of the executive officers, the secretary shallsubmit to the Commissioner a list of the names and addresses of the directors,officers and committee members who have been elected or appointed.

(Added to NRS by 1975, 383; A 1983, 1834; 1987, 2018)

NRS 678.440 Fiduciaryrelationship of directors and officers. Directorsand officers of an association shall be deemed to stand in a fiduciary relationto the credit union and shall discharge the duties of their respectivepositions in good faith and with the diligence, care and skill which ordinary,prudent persons would exercise under similar circumstances in similarpositions.

(Added to NRS by 1975, 383; A 1997, 1623)

NRS 678.450 Compensationand expenses of directors, officers and members.

1. A director or committee member may not becompensated for his services except that he may be provided reasonable life,health, accident and similar insurance protection.

2. Any member of the credit union may be reimbursedfor necessary expenses incidental to the performance of credit union business.All such expenses shall be approved by the board.

3. Subsection 1 does not apply to officers of thecredit union who also serve as members of the board or a committee.

(Added to NRS by 1975, 383)

POWERS AND PRIVILEGES

NRS 678.460 Generalpowers; waiver or modification of law by Commissioner.Every credit union organized under the provisions of this chapter:

1. Has all the powers granted by NRS 81.500 that are not inconsistent withthe provisions of this chapter and in addition thereto, the powers enumeratedin NRS 678.470 to 678.500, inclusive; and

2. May exercise any authority and perform all actsthat a federal credit union may exercise or perform, with the consent andwritten approval of the Commissioner. The Commissioner may, by regulation,waive or modify a requirement of Nevada law if the corresponding requirementfor federal credit unions has been or is eliminated or modified.

(Added to NRS by 1975, 386; A 2001, 2050)

NRS 678.470 Receivingand paying out deposits; borrowing, selling and purchasing assets. A credit union may, subject to the regulations or approvalof the Commissioner:

1. Receive from its members or from the members ofanother credit union deposits which are payable on demand and honor requests forwithdrawals in the form of checks or drafts.

2. Receive deposits from the State Treasurer which arepayable on demand pursuant to the provisions of chapter356 of NRS.

3. Borrow from any source in accordance with thepolicy established by the board of directors and discount and sell any eligibleobligations.

4. Sell all or any part of its assets or purchase allor any part of the assets of another credit union.

(Added to NRS by 1975, 386; A 1981, 1368; 1983, 1835;1987, 2018)

NRS 678.480 Feesand assessments. A credit union may:

1. Require, at the discretion of the directors, thepayment of an entrance fee or annual membership fee of any person admitted tomembership;

2. Collect, receive and disburse moneys and charge afee for services rendered in connection with the sale of negotiable checks,money orders and other money-type instruments and for such other purposes asmay provide benefit or convenience to its members; and

3. Assess charges to members in accordance with thebylaws for failure to promptly meet their obligations to the credit union.

(Added to NRS by 1975, 387)

NRS 678.490 Membershipin other credit union or organization; performance of certain services. A credit union may:

1. Hold membership in other credit unions organizedunder this chapter, in the Nevada Credit Union League and in otherorganizations composed of credit unions;

2. Perform such tasks and missions as may be requestedby the Federal Government, the State of Nevada or any agency or politicalsubdivision thereof, including, without limitation, a city, county or schooldistrict, when approved by the board of directors and not inconsistent with theprovisions of this chapter;

3. Act as fiscal agent for and receive deposits fromthe Federal Government, the State of Nevada or an agency or politicalsubdivision thereof, including, without limitation, a city, county or schooldistrict; and

4. Perform trust services for its members, includingthe trust estates of deceased members, and act as a custodian of qualifiedpension funds of self-employed individuals under the provisions of 26 U.S.C. 861 et seq.

(Added to NRS by 1975, 387; A 1999, 1453)

NRS 678.500 Donationsand contributions. A credit union may:

1. Contribute to, support or participate in anynonprofit service facility whose services will benefit the credit union or itsmembership; and

2. Make donations or contributions to any nonprofitcivic, charitable or community organization as authorized by the board ofdirectors.

(Added to NRS by 1975, 387)

MEMBERSHIP; ACCOUNTS

NRS 678.510 Eligibilityfor membership.

1. The membership of a particular credit union shallbe limited to the subscribers to the articles of incorporation and such otherpersons who have:

(a) The common bond set forth in the bylaws;

(b) Paid the entrance fee provided in the bylaws;

(d) Complied with other requirements specified in thearticles of incorporation or bylaws.

2. The common bond required for membership in creditunions organized under the provisions of this chapter may include, but are notlimited to persons who:

(a) Have a similar occupation, association or interest;

(b) Reside within an identifiable neighborhood,community or rural district; or

and membersof the immediate families of such persons.

3. Any member of a credit union who loses the bondthat is characteristic of all other members may be permitted to retain hismembership in the credit union at the discretion of the board of directors.

(Added to NRS by 1975, 383)

NRS 678.520 Eligibilityof minor; limitations.

1. Shares may be issued to and deposits received froma minor and such minor may withdraw the shares and deposits, including thedividends and interest thereon. For purposes of making deposits, shareinvestments and withdrawals a minor shall be deemed of legal age.

2. A minor under 16 years of age is not entitled tovote in the meeting of the members either personally or through his parent orguardian. A person may not become a director until he has reached the age ofmajority.

(Added to NRS by 1975, 383)

NRS 678.530 Subscriptionto and transfer of shares; lien for sums due; reduction in shares.

1. Shares may be subscribed to, paid for andtransferred in such manner as the bylaws may prescribe. A certificate shall notbe issued to denote ownership of a share in a credit union.

2. The credit union may impress a lien on the shares,deposits, accumulated dividends or interest of a member in his individual,joint or trust account for any sum due the credit union from such member or forany loan endorsed by him.

3. If the losses of any credit union, resulting from adepreciation in value of its loans or investments or otherwise, exceed itsundivided earnings and reserve fund so that the estimated value of its assetsis less than the total amount due the shareholders, the credit union may, by amajority vote of the entire membership, order a reduction in the shares of eachof its shareholders to divide the loss proportionately among the members. Ifthereafter the credit union realizes from such assets a greater amount than wasfixed by the order of reduction, such excess shall be divided among theshareholders whose assets were reduced, but only to the extent of suchreduction.

(Added to NRS by 1975, 387)

NRS 678.540 Realand personal property subject to taxation. Thereal property and any tangible personal property owned by a credit unionorganized pursuant to this chapter or any other provision of law is subject totaxation to the same extent as other similar property is taxed.

(Added to NRS by 1975, 394; A 1985, 1182)

NRS 678.550 Meetingsof members.

1. The annual meeting and any special meetings of themembers of the credit union shall be held at the time and place and in themanner indicated in the bylaws.

2. A member may not vote by proxy, but a society,association, copartnership or corporation having membership in the credit unionmay be represented and vote by one of its members or shareholders if suchperson has been fully authorized by the governing body of the society,association, copartnership or corporation to represent it.

3. At all meetings a member has but one voteirrespective of his share holdings.

(Added to NRS by 1975, 386)

NRS 678.560 Savingsdeposits; special clubs and accounts.

1. A credit union may receive savings deposits fromits members, subject to such conditions and such return as may be establishedby the board.

2. Christmas clubs, vacation clubs and other thriftaccounts may be operated in accordance with the provisions of the bylaws.

(Added to NRS by 1975, 383)

NRS 678.570 Multiple-partyaccounts: Authorization; disbursement of money; limitations.

1. A credit union may enter into multiple-partyaccounts to the same extent that they may enter into single-party accounts. Anymultiple-party account may be paid, on demand, to any one or more of theparties unless the terms of the account expressly stipulate that jointsignatures are required.

2. A credit union is not required to inquire as to thesource of funds received for deposit to a multiple-party account or to inquireas to the proposed application of any sum withdrawn from an account.

3. A multiple-party account may be created with anyperson designated by the credit union member, but a joint tenant shall not bepermitted to vote, obtain loans or hold office unless he is a qualified member.

(Added to NRS by 1975, 385)

NRS 678.580 Presumptionsconcerning ownership of accounts.

1. The presumptions created by NRS 678.580 to 678.610, inclusive, concerning beneficialownership as between parties, or as between parties and beneficiaries, ofmultiple-party accounts are relevant only to controversies between these persons,their creditors or other successors, and do not affect the rights of withdrawalof such persons as determined by the terms of account contracts. Thepresumptions are based upon inferences of the intention of parties tomultiple-party accounts arising from the form of the account and the usualexpectations of people using these accounts. The presumptions are rebuttable byclear and convincing evidence of a different intention.

2. A presumption of survivorship is not subject tochange by will, but may be rebutted by a written order signed by a party andmade during his lifetime which directs the credit union to change the form ofthe account or directs that payment not be made in accordance with theprovisions of the account.

3. Any transfers resulting from the application ofthese presumptions are effective by reason of the account contracts involved inthis chapter and are not to be considered as testamentary or subject to theprobate laws.

(Added to NRS by 1975, 384)

NRS 678.590 Multiple-partyaccounts: Proportional ownership; tenancy in common.

1. A multiple-party account which provides that sumson deposit or in shares may be paid on demand to any one of two or more partiesis deemed to belong to the parties in proportion to their net contributions.

2. In the absence of satisfactory proof of netcontributions, those who are parties to a multiple-party account shall bedeemed to be tenants in common of the deposits.

3. The death of any party to a multiple-party accounthas no effect on the beneficial ownership of the account other than to transferthe decedents right to his estate unless the account is a trust or jointtenancy.

(Added to NRS by 1975, 384)

NRS 678.600 Multiple-partyaccounts: Survivorship.

1. A multiple-party account payable to two or morepersons, jointly or severally, which does not expressly provide that there isnot a right of survivorship, though there is no mention of survivorship orjoint tenancy, is a survivorship account. The right of survivorship continuesbetween survivors.

2. Where there are two or more survivors, theirrespective ownerships shall be in proportion to their previous netcontributions augmented by an equal share for each survivor of any interest thedecedent may have owned in the account immediately before his death, plus theproceeds of insurance on decedents life paid to the account.

(Added to NRS by 1975, 384; A 1977, 806)

NRS 678.610 Trustaccounts.

1. Except where there is evidence of a trust otherthan as provided by the form of the account, the account and any sums withdrawntherefrom are presumed to belong beneficially to the trustee until his death.At the death of the trustee or surviving trustee any sums remaining on depositare presumed to belong to the person or persons named as beneficiaries, ifliving, or the survivor of them if one or more have died before the trustee.The death thereafter of any beneficiary has no effect on the equal ownership ofall who survived the trustee, as survivorship is not presumed to attend the relationshipof several beneficiaries who survive a trustee. If no beneficiary survives thetrustee the sums are presumed to belong to the estate of the trustee or thelast trustee to die.

2. If two or more parties are named as trustees on theaccount, and there is no evidence of trust except as provided by the form ofthe account, the account is presumed to be a survivorship account betweentrustees.

(Added to NRS by 1975, 384)

NRS 678.620 Paymentas valid discharge of credit union.

1. Except for payments made by a credit union afterreceipt of written notice from a party who has a present right of withdrawal tothe effect that withdrawals in accordance with the terms of the account shouldnot be permitted, any payments made pursuant to NRS 678.630 and 678.640 discharges the credit union fromall claims for amounts so paid regardless of whether or not the payment wasconsistent with the beneficial ownership between parties, beneficiaries ortheir successors.

2. If a party to a multiple-party account giveswritten notice to a credit union that withdrawals in accordance with the termsof the account should not be permitted, unless the notice is withdrawn by suchparty his death does not permit withdrawal under the terms of the account andthe personal representative or heirs of the decedent must concur in any demandfor withdrawal by any other party.

(Added to NRS by 1975, 385)

NRS 678.630 Paymentof trust accounts.

1. Any account payable to a trustee for another personmay be paid to the trustee on demand.

2. Unless a credit union has received written noticeof the terms of any trust other than the form of the account, payment may bemade to the:

(a) Personal representative or heirs of a deceasedtrustee if proof of death is presented to the credit union showing that thedecedent was the survivor of all other persons named on the account either astrustee or beneficiary; or

(b) Beneficiary upon presentation to the credit unionof proof of death showing that such beneficiary or beneficiaries survived allpersons named as trustees.

3. The protection provided a credit union insubsections 1 and 2 has no bearing on the rights of parties in disputes betweenthemselves or their successors concerning the beneficial ownership of funds in,or withdrawn from, multiple-party accounts.

(Added to NRS by 1975, 385)

NRS 678.640 Paymentof multiple-party accounts.

1. Except as provided in subsection 2, if amultiple-party account does not include a condition requiring joint signaturesfor withdrawals a credit union may pay any sum in such account on the demand ofany party without regard to whether any other party is incompetent or deceasedat the time the payment is demanded.

2. If the account is deemed to be a survivorshipaccount pursuant to NRS 678.600, paymentmay not be made to the personal representative or heirs of a deceased partyunless proof of death is presented to the credit union showing that thedecedent was the last surviving party.

(Added to NRS by 1975, 386)

NRS 678.650 Rightto setoff against multiple-party accounts. Withoutqualifying any other statutory right to setoff or lien and subject to anycontractual provision, when a party to a multiple-party account is indebted toa credit union, the credit union has a right to setoff against the entireamount of the account.

(Added to NRS by 1975, 386)

RESERVES; DIVIDENDS

NRS 678.670 Regularreserves.

1. Before the payment of any dividend, the grossearnings of the credit union must be determined. From the gross earnings aregular reserve against losses must be set aside according to the followingschedule:

(a) Until the regular reserve equals 7.5 percent of theoutstanding loans and risk assets, all credit unions with assets of $500,000 orless shall withhold 10 percent of the gross earnings. Thereafter, 5 percent ofthe gross income must be withheld until the regular reserve reaches 10 percentof the outstanding loans and risk assets.

(b) Whenever a credit union has assets of more than$500,000 and has been in operation for at least 4 years, it shall maintain itsregular reserve as follows:

(1) Until the regular reserve equals 4 percentof the outstanding loans and risk assets, the credit union shall withhold 10percent of its gross earnings.

(2) Thereafter, until the regular reserve equals6 percent of its outstanding loan and risk assets, the credit union shallwithhold 5 percent of its gross earnings.

(c) Whenever the regular reserve falls below therequired levels, it must be replenished by regular contributions sufficient tomaintain the regular reserve at the levels required by paragraphs (a) and (b).

2. The regular reserve belongs to the credit union andmust not be distributed except on liquidation of the credit union or inaccordance with a plan approved by the Commissioner.

(Added to NRS by 1975, 387; A 1977, 891; 1983, 1641,1835, 2018; 1987, 2018)

NRS 678.680 Specialreserves. In addition to regular reserve,special reserves to protect the interest of members must be established when:

1. Required by regulations issued by the Commissioner;or

2. Directed by the board of the credit union.

(Added to NRS by 1975, 388; A 1983, 1835; 1987, 2019)

NRS 678.690 Assetsqualified for reserves. For the purpose ofestablishing the reserves required by NRS678.670 and 678.680, all assetsexcept the following are considered risk assets:

1. Cash on hand;

2. Deposits or shares in federal or state banks,savings and loan associations and credit unions;

3. Assets which are insured by, fully guaranteed as toprincipal and interest by, or due from the United States Government, itsagencies, the Federal National Mortgage Association or the Government NationalMortgage Association;

4. Loans to other credit unions;

5. Loans to members of the credit union which arefully secured by the shares of the member applying therefor;

6. Loans to students insured under the provisions ofthe Higher Education Act of 1965, 20 U.S.C. 1071 et seq., or similar state insuranceprograms;

7. Loans insured under the National Housing Act, asamended, 12 U.S.C. 1703, by the Federal Housing Administration;

8. Shares or deposits in central credit unionsorganized under the provisions of NRS678.850, or of any other state law or the Federal Credit Union Act of 1934,as amended, 12 U.S.C. 1751 et seq.;

9. Common trust investments which deal in investmentsauthorized by this chapter;

10. Prepaid expenses;

11. Accrued interest on nonrisk investments;

12. Furniture and equipment;

13. Land and buildings; and

14. A deposit for insurance for members accountsrequired pursuant to subsection 3 of NRS678.750.

(Added to NRS by 1975, 388; A 1981, 1814; 1999, 1453)

NRS 678.700 Dividends.

1. The board may, after provision for the requiredreserves, declare a dividend to be paid from the remaining net earnings at arate, interval and upon such shares as they determine. Dividends shall be paidon all paid-up shares outstanding at the close of the period for which thedividend is declared.

2. Shares which become fully paid-up during suchdividend period and are outstanding at the close of the period are entitled toa proportional part of such dividend.

3. Dividend credit for a month may be accrued onshares which are or become fully paid up during that month.

(Added to NRS by 1975, 388)

LOANS; INVESTMENTS

NRS 678.710 Loansto members: Application; approval; limitations; participation loans; payment.

1. A credit union may make loans to members inaccordance with the provisions of the bylaws upon receipt of approval by thecredit committee or loan officer at a rate of interest agreed upon by thecredit union and member.

2. Every application for a loan must be made inwriting upon a form furnished by the credit union which has been approved bythe board. The application must include the purpose for which the loan isdesired and the security, if any, offered.

3. A loan must not be made to any member in anaggregate amount in excess of 10 percent of the credit unions unimpairedcapital and surplus.

4. A credit union may participate with other creditunions, corporations or financial institutions in making loans to credit unionmembers.

5. A member may receive a loan in installments or inone sum and may pay the whole or any part of his loan on any day on which theoffice of the credit union is open for business.

(Added to NRS by 1975, 389; A 1981, 1596)

NRS 678.720 Loansto members: Extension of previous maximum credit; review.

1. The credit committee or loan officer may approve,at his own discretion or upon application by a member, an extension of themaximum credit any member had previously been allowed. If an extension ofcredit is permitted, applications for loans within the credit limitation needno further consideration so long as the aggregate obligation of the member doesnot exceed the credit limit.

2. The credit committee or loan officer shall, atleast once each year, review all extensions of credit and any extension ofcredit shall expire if the member becomes more than 90 days delinquent in hisobligations to the credit union.

(Added to NRS by 1975, 390)

NRS 678.730 Loansto and guaranties by directors and members of committees.

1. A credit union may make loans to its directors andto members of its committees, except that any loan or aggregate of loans to anyone director or member of a committee which is more than $30,000 plus pledgedshares must be approved by the board.

2. A credit union may permit its directors and membersof its committees to act as guarantor or endorser of loans to other members,except that when such a loan standing alone or when added to any outstandingloan to the guarantor is more than $30,000, approval of the board is required.

(Added to NRS by 1975, 390; A 1983, 2018; 1999, 1454)

NRS 678.740 Securityfor loans.

1. In addition to generally accepted types ofsecurity, the endorsement of a note by a guarantor or assignment of shares orwages, in a manner consistent with the laws of this state, shall be deemedsecurity within the meaning of this chapter.

2. The credit committee or loan officer, subject tothe provisions of this chapter and the bylaws, is responsible for determiningthe adequacy of security for any loans.

(Added to NRS by 1975, 390)

NRS 678.750 Insuranceof members and accounts.

1. A credit union may purchase insurance on the livesof its members in an amount equal to their respective shares, deposits andbalances on a loan or any of them.

2. A credit union may enter into cooperative marketingarrangements for its members covering such services as group life insurance,coverage for temporary disability, plans for health and accident and such otherprograms which are demonstrated to be in the interest of improving the economicand social conditions of the credit unions members.

3. A credit union must apply to the Commissioner forapproval of a plan of insurance for members accounts, either pursuant to theFederal Credit Union Act of 1934, as amended, (12 U.S.C. 1781 et seq.), orunder a contract of insurance issued by an insurer, which must be approved bythe Commissioner and the Commissioner of Insurance pursuant to NRS 678.755. The issuance of such acontract is not transacting insurance under title 57 of NRS.

4. The Commissioner shall make available reports ofthe financial condition of credit unions, reports of examinations made pursuantto NRS 678.790 and any other reportsthat may be required by the insurer and deemed appropriate by the Commissioner.

(Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836;1985, 785; 1987, 2019)

NRS 678.755 Approvalof private insurer and contract of insurance; regulations; reserve.

1. In determining whether a private insurer isacceptable to issue a contract for the insurance of deposits, the Commissionerand the Commissioner of Insurance must consider:

(a) The value of the insurers capital.

(b) The ratio of the insurers assets, includingreinsurance, which are readily available to cover any losses incurred bydepositors, to its insured deposits. This ratio must be adequate to reimbursedepositors for any losses which they may incur and may not be less than theratio maintained by the share insurance fund established under the FederalCredit Union Act of 1934, as amended, (12 U.S.C. 1781 et seq.).

(d) The insurers articles of incorporation and itsbylaws and all amendments thereto.

(e) The insurers policies for investments.

(f) The form of all insurance contracts entered into bythe insurer, including contracts for reinsurance.

(g) The insurers requirements for premiums ordeposits.

(h) The insurers policies for the management of risk.

(i) Such other considerations as the Commissioner mayprovide by regulation which are necessary to carry out the provisions of thisact.

2. The Commissioner and the Commissioner of Insuranceshall not approve a contract of insurance unless the protection affordedthereby to the depositors is substantially equivalent to the protectionafforded by the Federal Credit Union Act of 1934, as amended, (12 U.S.C. 1781 et seq.) to the depositors.

3. After a private insurer obtains the approval of theCommissioner and the Commissioner of Insurance, the Commissioner, afterconsultation with the Commissioner of Insurance may, for cause, require the insurerto establish and maintain for such a time as the Commissioner may require, areserve, in cash or United States treasury bills or notes, in an amount fixedby the Commissioner. If required, the reserve must be kept in an accountapproved by the Commissioner in a federally insured financial institutionlocated in this state.

(Added to NRS by 1985, 783; A 1987, 2019)

NRS 678.760 Authorizedinvestments. Money not used in loans to membersmay be invested in:

1. Securities, obligations, participations or otherinstruments of or issued by or fully guaranteed as to principal and interest bythe United States of America or any agency thereof or in any trust or trustsestablished for investing directly or collectively in these instruments;

2. Obligations of this state or any politicalsubdivision thereof, including, without limitation, a city, county or schooldistrict;

3. Certificates of deposit or passbook type accountsissued by a state or national bank, mutual savings bank or savings and loanassociation;

4. Loans to or shares or deposits of other creditunions as permitted by the bylaws;

5. Capital shares, obligations or preferred stockissues of any agency or association organized either as a stock company, mutualassociation or membership corporation if the membership or stockholdings, asthe case may be, of the agency or association are confined or restricted tocredit unions or organizations of credit unions, and the purposes for which theagency or association is organized are designed to service or otherwise assistcredit union operations;

6. Shares of a cooperative society organized under thelaws of this state or the United States in a total amount not exceeding 10percent of the shares, deposits and surplus of the credit union;

7. Capital stock and other securities of a corporationfor economic revitalization and diversification organized under the provisionsof chapter 670A of NRS, if the credit unionis a member of the corporation, and to the extent of its loan limit establishedunder NRS 670A.200;

8. Stocks and bonds of United States corporations to amaximum of 5 percent of unallocated reserves, except that such an investmentmust be limited to stocks or bonds yielding income which are approved by theCommissioner;

9. Loans to any credit union association, national orstate, of which the credit union is a member, except that such an investmentmust be limited to 1 percent of the shares, capital deposits and unimpairedsurplus of the credit union; and

10. Negotiable obligations of federal or state banks.

(Added to NRS by 1975, 389; A 1981, 1815; 1983, 1280,1641, 1836; 1987, 2020; 1989, 1675; 1999, 1454)

NRS 678.765 Limitationon investment in fixed assets. A credit unionmust not invest in fixed assets without the prior approval of the Commissionerif the aggregate value of the credit unions existing fixed assets exceeds 7percent of its total assets.

(Added to NRS by 1985, 783; A 1987, 2021)

RECORDS AND REPORTS; EXAMINATIONS

NRS 678.780 Annualfinancial report. Every credit union organizedunder this chapter shall submit an annual financial report for the calendaryear to the Commissioner on or before the 1st day of February on forms suppliedby him for that purpose.

(Added to NRS by 1975, 390; A 1983, 1328, 1837; 1987,2021)

NRS 678.790 Examinationsand audits; exceptions; fees.

1. The Commissioner shall make a thorough examinationof and into the affairs of each credit union organized under the provisions ofthis chapter, as often as the Commissioner may deem necessary, but at leastonce within each 18-month period. In lieu thereof, the Commissioner may acceptany or all of a report of an examination of a credit union made by a federalregulatory agency. If the Commissioner accepts any part of such a report in one18-month period, he shall examine the credit union to which the report pertainsin the succeeding 18-month period. For the purpose of performing theexamination, the Commissioner may:

(a) Subpoena witnesses and documents;

(b) Administer oaths; and

2. The report of the examination must contain commentsto the members relative to the management of the affairs of the credit unionand the general condition of the assets. Within 30 days following the receiptof the report, the directors shall call a general meeting of key personnel toconsider matters contained in the report.

3. The Commissioner shall forward a copy of the reportto the chairman of each credit union within 30 days after it is completed. Theboard of directors shall inform the members of the credit union of its generalcondition at the next annual meeting.

4. For each examination the credit union shall pay afee based on the rate established pursuant to NRS658.101.

5. The board of directors may engage a certifiedpublic accountant to perform such an examination in lieu of the Commissioner.In such cases, the examination must be equivalent to the type of examinationmade by the Commissioner and the expense must be borne by the credit unionbeing inspected.

6. The Commissioner shall determine whether anexamination performed by an accountant pursuant to subsection 5 is equivalentto an examination conducted by the Commissioner. The Commissioner may examineany area of the operation of a credit union if the Commissioner determines thatthe examination of that area is not equivalent to an examination conducted bythe Commissioner.

(Added to NRS by 1975, 391; A 1983, 2018; 1987, 2227;1989, 1676; 2005,1891)

NRS 678.795 Independentaudit and examination: Payment of assessment; cooperation. Each credit union shall pay the assessment levied pursuantto NRS 658.055 and cooperate fully withthe audits and examinations performed pursuant thereto.

(Added to NRS by 1987, 827)

MERGER; CONVERSIONS

NRS 678.800 Merger;fees set by regulation; regulations.

1. Any credit union may, with the approval of theCommissioner, merge with another credit union under the existing charter of theother credit union, pursuant to any plan agreed upon by the majority of theboard of each credit union joining in the merger and approved by theaffirmative vote of:

(a) A majority of the members of the merging creditunion present at a meeting called for that purpose; or

(b) A majority of the members of the merging creditunion voting by mail on the question.

2. After agreement by the directors of each credit unionand approval by the members of the merging credit union, the chairman andsecretary of each credit union shall execute a certificate of merger, whichmust set forth:

(a) The time and place of the meeting of the board ofdirectors at which the plan was agreed upon;

(b) The vote in favor of adoption of the plan;

(d) The circumstances of the vote in which the membersapproved the plan agreed upon, if a vote was required; and

(e) The vote by which the plan was approved by themembers, if a vote was required.

3. A copy of each of the certificates executedpursuant to subsection 2 and a copy of the plan of merger agreed upon by thecredit unions joining in the merger must be forwarded to the Division ofFinancial Institutions for certification and returned to the credit unionswithin 30 days.

4. After a merger is effected, all property, propertyrights and interest of the merged credit union vest in the surviving creditunion without deed, endorsement or other instrument of transfer, and all debts,obligations and liabilities of the merged credit union are deemed to be assumedby the surviving credit union under whose charter the merger was effected.

5. If the surviving credit union is to be a creditunion chartered in accordance with the laws of this state, the application forapproval of the merger must be accompanied by an application fee in an amountprescribed by regulation of the Commissioner. The applicant shall also pay suchadditional expenses incurred in the process of investigation as theCommissioner deems necessary. All money received by the Commissioner pursuantto this subsection must be placed in the Investigative Account created by NRS 232.545.

6. The Commissioner shall adopt regulations pursuantto which he may order any credit union chartered in accordance with theprovisions of this chapter to merge with:

(a) Another credit union chartered in accordance withthe provisions of this chapter; or

(b) A credit union chartered in accordance with thelaws of another state or of the United States, if a majority of the board ofthat credit union approves the merger,

when hedetermines that the merger is in the best interest of the members of themerging credit union.

7. This section is to be liberally construed to permita credit union chartered in accordance with this chapter to merge with a creditunion chartered in accordance with this chapter or any other provisions of law.

(Added to NRS by 1975, 392; A 1983, 1329, 1642, 1837,2019; 1987, 2021; 1991, 1816)

NRS 678.810 Conversions;fee set by regulation.

1. A credit union chartered in accordance with thelaws of this state may be converted to a credit union chartered in accordancewith the laws of any other state or the laws of the United States, subject toregulations adopted by the Commissioner.

2. A credit union chartered in accordance with thelaws of the United States or of any other state may convert to a credit unionchartered in accordance with the laws of this state. To effect such aconversion, a credit union must comply with all the requirements of theauthority under which it was originally chartered and the requirements of theCommissioner and file proof of such compliance with the Commissioner.

3. Every application for permission to convert to acredit union chartered in accordance with the laws of this state must beaccompanied by an application fee in an amount prescribed by regulation of theCommissioner. The applicant shall also pay such additional expenses incurred inthe process of investigation as the Commissioner deems necessary. All moneyreceived by the Commissioner pursuant to this subsection must be placed in theInvestigative Account created by NRS 232.545.

(Added to NRS by 1975, 393; A 1983, 1329, 1838; 1987,2022; 1991, 1818)

DISSOLUTION AND LIQUIDATION

NRS 678.820 Voluntarydissolution.

1. At a meeting called to consider dissolution, themembership may vote to dissolve a credit union if notice of the meeting ismailed to the members at least 10 days prior thereto. Any member who is notpresent at the meeting may, within 20 days after the meeting, vote by signing aform furnished by the Division and filing the form with the secretary of thecredit union. An affirmative vote of a majority of the members who vote at themeeting or by filing the form is required to dissolve the credit union.

2. If the members vote to dissolve, the credit unionshall, except for the purpose of liquidation, cease its business operationsimmediately.

3. The chairman shall, within 5 days after anaffirmative vote to dissolve the credit union, notify the Division by mail ofthe credit unions intention to liquidate and include with the notice a list ofthe names and addresses of the directors and officers.

(Added to NRS by 1975, 391; A 1983, 2020)

NRS 678.830 Involuntarydissolution: Suspension of operations; corrective actions; declaration ofinsolvency; liquidation.

1. If the Division determines that any credit unionorganized pursuant to the provisions of this chapter is bankrupt or insolvent,has willfully violated the provisions of this chapter or is operating in anunsafe or unsound manner, the Division may, if emergency action is required toprotect the assets of the members, issue an order temporarily suspending thecredit unions operations. Reasonable notice of the suspension of operationsand of the impending hearing shall be given to the board. Operations of thecredit union shall cease upon receipt of notice from the Division.

2. At the scheduled hearing, the board shall, if itdesires to continue operations, submit a plan of corrective actions. If theboard desires, it may, prior to the hearing, request the Commissioner todeclare the credit union insolvent and appoint a liquidating agent.

3. If the credit union is not represented at thescheduled hearing or the Division rejects the credit unions plan to continueoperations, the Commissioner may appoint a liquidating agent and dissolve thecredit union.

(Added to NRS by 1975, 391; A 1977, 96)

NRS 678.835 Involuntarydissolution: Appointment of liquidating agent for credit union closed by bankruptcyor insolvency. If a credit union is closedbecause of bankruptcy or insolvency, the Commissioner may appoint a liquidatingagent.

(Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836;1985, 785; 1987, 2019)

NRS 678.840 Procedurefor liquidation.

1. A liquidating credit union shall continue inexistence for the purpose of discharging its debts, collecting and distributingits assets, and doing any other acts required to wind up its business.

2. The board or, in the case of involuntary dissolution,the liquidating agent, shall pay from the assets, the obligations of the creditunion in the following order:

(a) Expenses incidental to liquidation including anysurety bond that may be required.

(b) Any liability due to nonmembers.

If anyassets remain, they shall be distributed to the members proportionately to thenumber of shares held by each member as of the date dissolution was approved bythe members or ordered by the Commissioner.

3. As soon as the board or the liquidating agentdetermines that all assets from which there is a reasonable expectancy ofrealization have been liquidated and distributed as set forth in this section,he shall execute a certificate of dissolution on a form provided by the Divisionand shall file such form with the proper recording authority within the countyin which the credit union has its principal place of business. After filing orrecording, and indexing the original form shall be forwarded to the Divisionand upon its receipt and filing such credit union shall be officially dissolved.

(Added to NRS by 1975, 392)

CENTRAL CREDIT UNIONS

NRS 678.850 Organizationand operation; rights and powers.

1. A central credit union may be organized andoperated under the provisions of this chapter by any three credit unionsincorporated within this state. A central credit union is subject to allprovisions not inconsistent with this section and shall use the term centralin its official name.

2. A central credit union has all the rights andpowers of any other credit union organized under this chapter and, in addition,a central credit union may:

(a) Make loans to other credit unions;

(b) Purchase shares and make deposits in other creditunions;

(d) Invest in and grant loans to associations of creditunions or organizations chartered to provide exclusive service to creditunions; and

(e) Borrow money from any source and issue notes ordebentures.

(Added to NRS by 1975, 393; A 1977, 891)

NRS 678.860 Membership. The membership for a central credit union may consist of:

1. Credit unions;

2. The Nevada Credit Union League, Inc.; and

3. Organizations affiliated with the Nevada CreditUnion League, Inc.

(Added to NRS by 1975, 393; A 1977, 892)

NRS 678.870 Votingrepresentatives.

1. The board of each credit union that becomes amember of a central credit union shall designate one person to be its voting representativein the central credit union.

2. The voting representative of a member credit unionis eligible to hold office in the central credit union.

(Added to NRS by 1975, 393; A 1977, 892)

NRS 678.875 Regularreserves.

1. Before the payment of any dividend by a centralcredit union, a regular reserve against loan losses shall be set asideaccording to the following schedule:

(a) Until the regular reserve equals 5 percent of theoutstanding loans and risk assets, 2 percent of the gross earnings shall bewithheld.

(b) Whenever the regular reserve falls below 5 percentof the outstanding loans and risk assets it shall be replenished in accordancewith the formula set forth in paragraph (a).

2. No other reserves need be maintained by the centralcredit union.

(Added to NRS by 1977, 889)

PENALTIES

NRS 678.880 Useof words credit union or conducting business as credit union by person notorganized as credit union; spreading false report concerning management orfinances of credit union.

1. Any person, except a credit union organized underthe provisions of this chapter or the Nevada Credit Union League, which uses aname or title containing the words credit union or any derivation thereof orrepresenting themselves in their advertising or otherwise as conductingbusiness as a credit union is guilty of a gross misdemeanor.

2. Any person who maliciously and knowingly spreadsfalse reports about the management or finances of any credit union is guilty ofa gross misdemeanor.

(Added to NRS by 1975, 394)

NRS 678.890 Administrativefines. In addition to any other remedy or penalty,the Commissioner may impose an administrative fine of not more than $10,000upon a person who:

1. Without a license, conducts any business oractivity for which a license is required pursuant to the provisions of thischapter; or

2. Violates any provision of this chapter or anyregulation adopted pursuant thereto.

(Added to NRS by 2005, 1890)

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