2005 Nevada Revised Statutes - Chapter 658 — Supervision and Control
CHAPTER 658 - SUPERVISION AND CONTROL
NRS 658.015 Administrationof provisions of title.
NRS 658.021 Commissioner:Qualifications; restrictions on other employment.
NRS 658.025 Commissionerprohibited from having interest in bank or regulated corporation.
NRS 658.035 Oathof Commissioner.
NRS 658.045 Office.
NRS 658.055 Deputycommissioners; other employees; independent audits and examinations;assessments; account for auditing financial institutions.
NRS 658.065 Oathof deputy commissioners.
NRS 658.085 Advisorycapacity of State Board of Finance.
NRS 658.091 Deposit,use and disposition of money; Commissioner to administer account.
NRS 658.096 Feescharged by Commissioner; regulations.
NRS 658.098 Assessmentfor cost of legal services provided to Commissioner and Division of FinancialInstitutions; deposit of money in State Treasury.
NRS 658.101 Ratescharged by Commissioner for supervision and examination.
NRS 658.105 Powersof Commissioner.
NRS 658.115 Summaryorders of Commissioner.
NRS 658.125 Appealsto State Board of Finance.
NRS 658.135 Attestationof licenses, orders and certificates.
NRS 658.145 Powerof Commissioner to offer rewards.
NRS 658.151 Powerof Commissioner to take possession of business and property of depositoryinstitution; grounds.
NRS 658.155 Penalty:Neglect of duty under title; false or injurious statement concerning bank;malfeasance or corruption in office.
NRS 658.165 Officersand employees of Division of Financial Institutions prohibited from havinginterest in certain banks; exceptions; termination of interest.
NRS 658.175 StateBoard of Finance bound by limitations imposed on Commissioner as tocertification of new banks and establishment of branch banks.
NRS 658.185 Incidentalpowers of Commissioner.
NRS 658.195 Rightto sue and defend in actions involving banks; liability to suit.
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NRS
(Added to NRS by 1971, 966; A 1983, 1721; 1987, 1898;1993, 1894)
NRS
1. Must be a person who has had practical experiencein banking, savings and loan associations or other financial institutions.
2. Except as otherwise provided in
(Added to NRS by 1983, 1721; A 1987, 1898; 1995,2318)
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(Added to NRS by 1971, 966; A 1983, 1721; 1987, 1898)
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(Added to NRS by 1971, 966; A 1975, 351; 1983, 1722;1987, 1898)
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(Added to NRS by 1971, 966; A 1983, 1722)
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1. The Commissioner may appoint deputy commissionersof financial institutions, examiners, assistants, clerks, stenographers andother employees necessary to assist him in the performance of his dutiespursuant to this title, title 56 of NRS or any other law. These employees shallperform such duties as are assigned to them by the Commissioner.
2. The Commissioner shall employ a certified publicaccountant to review and conduct independent audits and examinations offinancial institutions. The Commissioner shall levy an assessment upon eachlicensed financial institution to cover all of the costs related to theemployment of the certified public accountant and the performance of the auditsand examinations.
3. Assessments collected by the Commissioner pursuantto subsection 2 must be deposited in the State Treasury for credit to theAccount for Auditing Financial Institutions, which is hereby created in theState General Fund. The Commissioner shall use the money in the Account, andmay advance money from the Account, for the purposes specified in subsection 2.
(Added to NRS by 1971, 966; A 1983, 1722; 1985, 447;1987, 826, 1898; 1989, 919; 1991, 1806)
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(Added to NRS by 1971, 966; A 1983, 1722; 1987, 1898)
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(Added to NRS by 1971, 966; A 1983, 1722)
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1. Except as otherwise provided by law, any moneyappropriated to the Commissioner or the Division of Financial Institutions andany money collected by the Commissioner or Division pursuant to law:
(a) Must be deposited in the State Treasury andaccounted for separately in the State General Fund; and
(b) May only be used to:
(1) Carry out the programs and laws administeredby the Commissioner and the Division; and
(2) Pay the expenses related to the operationsof the Commissioner and the Division.
2. Except as otherwise provided by law, any money thatremains in the account at the end of the fiscal year does not revert to theState General Fund, and the balance of the account must be carried forward tothe next fiscal year.
3. The Commissioner shall administer the account. Anyinterest or income earned on the money in the account must be credited to theaccount, after deducting any applicable charges. Any claims against the accountmust be paid as other claims against the State are paid.
(Added to NRS by
NRS
1. The Commissioner shall charge and collect thefollowing fees in connection with his official duties:
(a) For licensing of state banks:
(1) A fee of not more than $400 for each parentbank, payable on June 30 of each year.
(2) A fee of not more than $200 for each branchbank or trust office, payable on June 30 of each year.
The feesmust accompany the application for renewal of the license. A penalty of 10percent of the fee must be charged for each month or part of a month that thefees are not paid after June 30 of each year.
(b) For applications for new branch banks or trustoffices, a nonrefundable fee of not more than $400 for the application andsurvey, to be paid by the applicant at the time of making the application. Theapplicant must also pay such additional expenses incurred in the process ofinvestigation as the Commissioner deems necessary. All money received by theCommissioner pursuant to this paragraph must be placed in the InvestigativeAccount for Financial Institutions created by NRS232.545.
(c) For examinations and the examination of trustdepartments of state banks or trust offices, a fee for conducting theexamination and for preparing and typing the report of the examination at therate established pursuant to NRS 658.101.
2. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.
3. Except as otherwise provided in paragraph (b) ofsubsection 1, all money collected pursuant to this section must be deposited inthe State Treasury pursuant to the provisions of
4. As used in this section, trust office has themeaning ascribed to it in subsection 4 of NRS662.239.
(Added to NRS by 1971, 967; A 1979, 955; 1981, 754;1983, 1315, 1722; 1987, 1898, 2223; 1989, 2032; 1991, 1806;
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1. On a quarterly or other regular basis, theCommissioner shall collect an assessment pursuant to this section from each:
(a) Check-cashing service or deferred deposit loanservice that is supervised pursuant to chapter604A of NRS;
(b) Collection agency that is supervised pursuant to
(c) Bank that is supervised pursuant to
(d) Trust company that is supervised pursuant to
(e) Development corporation that is supervised pursuantto chapter 670 of NRS;
(f) Corporation for economic revitalization anddiversification that is supervised pursuant to chapter670A of NRS;
(g) Person engaged in the business of selling orissuing checks or of receiving for transmission or transmitting money orcredits that is supervised pursuant to chapter 671of NRS;
(h) Savings and loan association that is supervisedpursuant to chapter 673 of NRS;
(i) Person engaged in the business of lending that issupervised pursuant to chapter 675 of NRS;
(j) Person engaged in the business of debt adjustingthat is supervised pursuant to chapter 676 ofNRS;
(k) Thrift company that is supervised pursuant to
(l) Credit union that is supervised pursuant to
2. The Commissioner shall determine the total amountof all assessments to be collected from the entities identified in subsection1, but that amount must not exceed the amount necessary to recover the cost oflegal services provided by the Attorney General to the Commissioner and to theDivision of Financial Institutions. The total amount of all assessmentscollected must be reduced by any amounts collected by the Commissioner from anentity for the recovery of the costs of legal services provided by the AttorneyGeneral in a specific case.
3. The Commissioner shall collect from each entityidentified in subsection 1 an assessment that is based on:
(a) A portion of the total amount of all assessments asdetermined pursuant to subsection 2, such that the assessment collected from anentity identified in subsection 1 shall bear the same relation to the totalamount of all assessments as the total assets of that entity bear to the totalof all assets of all entities identified in subsection 1; or
(b) Any other reasonable basis adopted by the Commissioner.
4. The assessment required by this section is inaddition to any other assessment, fee or cost required by law to be paid by anentity identified in subsection 1.
5. Money collected by the Commissioner pursuant tothis section must be deposited in the State Treasury pursuant to the provisionsof NRS 658.091.
(Added to NRS by
NRS
1. The Commissioner shall establish by regulationrates to be paid by banks and other financial institutions for supervision andexaminations by the Commissioner or the Division of Financial Institutions.
2. In establishing a rate pursuant to subsection 1,the Commissioner shall consider:
(a) The complexity of the various examinations to whichthe rate applies;
(b) The skill required to conduct the examinations;
(c) The expenses associated with conducting theexamination and preparing a report; and
(d) Any other factors the Commissioner deems relevant.
(Added to NRS by 1987, 2222)
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1. Is charged with the enforcement of the provisionsof this title, subject to administrative supervision by the Director of theDepartment of Business and Industry;
2. May make and publish regulations for the governingof banks doing business under the provisions of this title; and
3. May require banks to furnish him with an auditedfinancial statement prepared by an independent certified public accountantlicensed to do business in Nevada.
(Added to NRS by 1971, 967; A 1983, 1723; 1987, 1899;1989, 2032; 1993, 1894)
NRS
1. The Commissioner shall make summary orders inwriting as provided in subsections 2 to 5, inclusive.
2. If a bank, a member of its board of directors orany manager, officer, employee, member or stockholder violates the articles ofincorporation or organization of the bank or any law related to banking, or, inthe opinion of the Commissioner, is conducting its business in an unauthorizedor unsafe manner, the Commissioner shall forthwith issue an order, in writing,directing the discontinuance of the unauthorized or unsafe practices.
3. If it appears to the Commissioner that thestockholders or members equity of any bank has been reduced below therequirements of law, or that the articles of incorporation of the bank havebeen unlawfully amended to reduce the authorized stock of the bank in violationof NRS 661.035, he shall forthwith issuean order directing the bank to make good the deficiency forthwith or within atime specified in the order.
4. If it appears to the Commissioner that the totalreserves or reserves on hand of any bank are below the amount required by lawto be maintained, or that a bank is not keeping its reserves on hand asrequired by this title, he shall forthwith issue an order directing the bank tomake good its reserves forthwith, or within the time specified within theorder, or that it keep its reserves on hand as required by this title.
5. If it appears to the Commissioner that any bank towhich this title is applicable does not keep its books or accounts in such amanner as to enable the Commissioner readily to ascertain its true condition,he shall issue an order requiring the bank, or the officers or managersthereof, or any of them, to open and keep its books or accounts as he may, inhis discretion, determine and prescribe for the purpose of keeping accurate andconvenient records of the transactions and accounts of the bank.
(Added to NRS by 1971, 967; A 1983, 1723; 1985, 737;1987, 1899; 1995, 473; 1997, 975)
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(Added to NRS by 1971, 968; A 1983, 1724; 1985, 738;1987, 1900)
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(Added to NRS by 1971, 968; A 1983, 1724; 1987, 1900)
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1. The Commissioner may offer, under such conditionsas he may deem proper, rewards not to exceed the sum of $500 in any one casefor the arrest and conviction of any officer, director, agent or employee ofany bank charged with violating any of the laws of this State relating to banksand banking for which a criminal penalty is provided, or for the arrest andconviction of any person charged with stealing, with or without force, any money,property or thing of value of any bank.
2. The Commissioner shall pay out of the moneydeposited to the State Treasury pursuant to the provisions of
(Added to NRS by 1971, 968; A 1983, 1724; 1987, 1900;2003, 3227)
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1. The Commissioner may forthwith take possession ofthe business and property of any depository institution to which this title ortitle 56 of NRS applies when it appears that the depository institution:
(a) Has violated its charter or any laws applicablethereto.
(b) Is conducting its business in an unauthorized orunsafe manner.
(c) Is in an unsafe or unsound condition to transactits business.
(d) Has an impairment of its stockholders or membersequity.
(e) Has refused to pay its depositors in accordancewith the terms on which such deposits were received, or has refused to pay itsholders of certificates of indebtedness or investment in accordance with theterms upon which those certificates of indebtedness or investment were sold.
(f) Has become otherwise insolvent.
(g) Has neglected or refused to comply with the termsof a lawful order of the Commissioner.
(h) Has refused, upon proper demand, to submit itsrecords, affairs and concerns for inspection and examination of an appointed orauthorized examiner of the Commissioner.
(i) Has made a voluntary assignment of its assets totrustees.
(j) Has failed to pay a tax as required pursuant to theprovisions of chapter 363A of NRS.
2. The Commissioner also may forthwith take possessionof the business and property of any depository institution to which this titleor title 56 of NRS applies when it appears that the officers of the depositoryinstitution have refused to be examined upon oath regarding its affairs.
(Added to NRS by 1971, 1001; A 1983, 1754; 1985,2155; 1987, 1900; 1997, 975;
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(Added to NRS by 1971, 968; A 1979, 1491; 1983, 1724;1987, 1901; 1995, 1315)
NRS
1. Except as otherwise provided in subsections 3 and4, an officer or employee of the Division of Financial Institutions shall notbe directly or indirectly interested in or act on behalf of any bank charteredby this State, receive, directly or indirectly, any payment from any such bank,be indebted to any state bank, engage in the negotiation of loans for otherswith any such bank or obtain credit or services from a state bank conditionedupon a fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division of FinancialInstitutions in the unclassified service of the State shall not obtain newextensions of credit from a state bank while in office.
3. Any officer or employee of the Division ofFinancial Institutions may be indebted to a bank on the same terms as areavailable 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 deposits with banks to thegreatest amount insured, receive interest on those deposits and borrow moneysecured 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 1971, 968; A 1975, 934; 1977, 1114;1983, 1725; 1997, 1623)
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(Added to NRS by 1971, 969; A 1983, 1725; 1987, 1901)
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(Added to NRS by 1971, 969; A 1983, 1725; 1987, 1901)
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1. The Commissioner may sue and prosecute or defend inany action or proceeding in any court of this State or any other state and inany court of the United States for the enforcement or protection of any rightor pursuit of any remedy necessary or proper in connection with the subjectscommitted to him for administration or in connection with any bank or therights, liabilities, property or assets thereof, under his supervision.
2. The Commissioner is not liable to be sued except asother departments and agencies of the State may be liable under the generallaw.
(Added to NRS by 1971, 969; A 1983, 1726; 1987, 1901)
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