2005 Nevada Revised Statutes - Chapter 659 — Organization and Licensing of Banks

CHAPTER 659 - ORGANIZATION AND LICENSING OFBANKS

NRS 659.015 Requirementsfor organization by person, existing corporation or existing limited-liabilitycompany.

NRS 659.025 Articlesof incorporation or organization: Contents.

NRS 659.035 Deliveryof articles of incorporation or organization for filing; delivery ofcertificate of amendment of articles by existing corporation orlimited-liability company for filing; restriction on filing.

NRS 659.045 Examinationand certification of proposed bank by Commissioner; payment and deposit of feesand expenses; regulations.

NRS 659.047 Paymentof assessment; cooperation with audits and examinations.

NRS 659.055 Appealfrom refusal to make certification.

NRS 659.065 Filingof articles of incorporation or organization; filing of certificate ofamendment of articles; effect of filing; admissibility of articles as evidence;limitation on validity.

NRS 659.075 Paymentof initial stockholders or members equity; sale of stock or solicitation ofcontributions to bank in process of organization.

NRS 659.085 Filingof statement regarding directors, managers and officers and proof of federaldeposit insurance.

NRS 659.095 Examinationof affairs of bank by Commissioner; issuance of certificate authorizingcommencement of business.

NRS 659.105 Restrictionon transaction of business.

NRS 659.115 Unlawfultransaction of banking business without license; penalty.

NRS 659.125 Unlawfuluse of words bank, banking or banker in name; exceptions; penalty.

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NRS 659.015 Requirementsfor organization by person, existing corporation or existing limited-liabilitycompany.

1. One or more persons who desire to form a bank andengage in the business of establishing, maintaining and operating banks ofdiscount and deposit, savings, time and demand deposits, or in the business ofestablishing, maintaining and operating offices of loan and deposits, or tooperate a bank doing a trust and fiduciary business, must organize as a bankingcorporation or company in the manner provided in this title.

2. An existing corporation, including, but not limitedto, a corporation licensed to engage in business pursuant to chapter 677 of NRS, or a limited-liabilitycompany that desires to form a bank and engage in the activities described insubsection 1 must:

(a) Dissolve and reorganize as a banking corporation orcompany in the manner provided in this title; or

(b) Amend its articles of incorporation or organizationin such a manner that it is organized as a banking corporation or company inthe manner provided in this title.

(Added to NRS by 1971, 969; A 1995, 474; 1997, 976)

NRS 659.025 Articlesof incorporation or organization: Contents. Thearticles of incorporation or organization must, in addition to the requirementsprescribed in chapters 78 and 86 of NRS, set forth the nature of the businessof the corporation or limited-liability company.

(Added to NRS by 1971, 969; A 1995, 474; 1997, 976)

NRS 659.035 Deliveryof articles of incorporation or organization for filing; delivery ofcertificate of amendment of articles by existing corporation orlimited-liability company for filing; restriction on filing.

1. If the proposed bank is not an existing corporationor limited-liability company, the articles of incorporation or organization forthe proposed bank must be delivered to the Secretary of State for filing.

2. If the proposed bank is an existing corporation orlimited-liability company, a certificate of amendment of the articles ofincorporation or organization must be delivered to the Secretary of State forfiling.

3. The Secretary of State shall forthwith transmit tothe Commissioner a copy of the articles or certificate of amendment and shallnot file the articles or certificate of amendment until authorized to do so bythe Commissioner.

(Added to NRS by 1971, 969; A 1983, 1726; 1985, 1223;1987, 1901; 1995, 475; 1997, 976)

NRS 659.045 Examinationand certification of proposed bank by Commissioner; payment and deposit of feesand expenses; regulations.

1. Upon receipt of a copy of the articles ofincorporation or organization or the certificate of amendment of the articlesof incorporation or organization of the proposed bank, the Commissioner shallat once examine all of the facts connected with the formation of the proposedbanking corporation or company, including its location and proposedstockholders or members. If it appears that the bank, if formed, will belawfully entitled to commence the business of banking, the Commissioner shallso certify to the Secretary of State, unless upon examination and investigationhe finds that:

(a) The proposed bank is formed for any other thanlegitimate banking business;

(b) The character, general fitness and responsibilityof the persons proposed as stockholders, directors, officers, members ormanagers of the bank are not such as to command the confidence of the communityin which the bank is proposed to be located;

(c) The probable volume of business and reasonablepublic demand in such community is not sufficient to assure and maintain thesolvency of the new bank and of the bank or banks existing in the community atthat time;

(d) The name of the proposed banking corporation orcompany does not comply with the provisions of NRS 657.200.

2. The Commissioner shall not make the certificationto the Secretary of State until he has ascertained that the establishment ofthe bank will meet the needs and promote the convenience of the community to beserved by the bank.

3. A nonrefundable fee of not more than $6,000 for theapplication and survey must be submitted to the Commissioner upon filing thearticles or certificate of amendment with the Secretary of State. The proposedbanking corporation or company shall also pay such additional expenses incurredin the process of investigation as the Commissioner deems necessary. All moneyreceived by the Commissioner pursuant to this section must be placed in theInvestigative Account created by NRS 232.545.

4. The Commissioner shall adopt regulationsestablishing the amount of the application fee required pursuant to thissection.

(Added to NRS by 1971, 970; A 1983, 1316, 1726; 1987,1902; 1991, 1806; 1995, 475; 1997, 977; 2005, 1843)

NRS 659.047 Paymentof assessment; cooperation with audits and examinations. Each bank shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with theaudits and examinations performed pursuant thereto.

(Added to NRS by 1987, 826)

NRS 659.055 Appealfrom refusal to make certification. Any personaggrieved by any decision of the Commissioner made under NRS 659.045 may appeal to the State Boardof Finance if a review of the decision is desired. The appeal must be madewithin 15 days after the Commissioner makes his decision. If an appeal is taken,the State Board of Finance shall conduct a full hearing.

(Added to NRS by 1971, 970; A 1977, 95; 1983, 1727;1985, 738; 1987, 1902)

NRS 659.065 Filingof articles of incorporation or organization; filing of certificate ofamendment of articles; effect of filing; admissibility of articles as evidence;limitation on validity.

1. Upon receipt of the certification from theCommissioner, the Secretary of State shall, if the articles of incorporation ororganization are, or the certificate of amendment of the articles ofincorporation or organization is, in accordance with law, file the articles orthe certificate of amendment and cause the articles or certificate of amendmentto be recorded in his office. The Secretary of State shall, upon the payment ofthe organization fees, certify under his official seal a copy of the originalor amended articles. The certified copy of the original or amended articlesmust be filed in the Office of the Commissioner.

2. Upon completion of the requirements of subsection1, the banking corporation or company is legally constituted under the namestated in the articles.

3. The articles, or a copy thereof, certified by theSecretary of State or the Commissioner, under their respective seals, areadmissible as evidence in all courts and places, and are, in all judicialproceedings, prima facie evidence of the complete organization andincorporation of the banking corporation purporting to have been established bythe articles.

4. The articles of a bank become void if the bankfails to complete its organization and open for business to the public within 6months after the date of the filing of its articles or a certificate ofamendment of its articles by the Secretary of State. The Commissioner mayextend this limitation for good cause.

(Added to NRS by 1971, 970; A 1983, 1727; 1987, 1902;1995, 475; 1997, 977)

NRS 659.075 Paymentof initial stockholders or members equity; sale of stock or solicitation ofcontributions to bank in process of organization.

1. Subject to subsection 2, the initial stockholdersor members equity of a bank must be fully paid in, in cash, before it isauthorized by the Commissioner to commence business. The full payment in cashmust be certified to the Commissioner under oath by the president or manager ofthe bank.

2. Except for any commission or fee not otherwiseprohibited by this subsection, the stock sold by or contributions to any bankin the process of organization must be accounted for to the bank in the fullamount paid. No commission or fee may be paid to any person, association orcorporation for selling the stock of or soliciting contributions to any bank inthe process of organization. The Commissioner shall refuse such a bank the authorityto commence business if commissions or fees have been paid, or have beencontracted to be paid by the bank, or by anyone in its behalf, to any person,association or corporation for securing subscriptions for, or selling stock in,or procuring contributions to, the bank.

(Added to NRS by 1971, 971; A 1983, 1727; 1987, 1903;1991, 616; 1995, 476; 1997, 978)

NRS 659.085 Filingof statement regarding directors, managers and officers and proof of federaldeposit insurance. Before the banking corporationor company begins business, it shall file with the Commissioner:

1. A statement, under oath by the president or amanager, containing the names of all the directors, managers and officers, withthe date of their election or appointment, terms of office, residences and postoffice address of each, the amount of stock of which each is the owner in goodfaith and the amount of money paid in on account of the stock, or thecontribution made. Nothing may be received in payment of stock or contributionexcept money.

2. Proof that the bank is a member of the FederalDeposit Insurance Corporation.

(Added to NRS by 1971, 971; A 1983, 1728; 1987, 1903;1995, 476; 1997, 978)

NRS 659.095 Examinationof affairs of bank by Commissioner; issuance of certificate authorizingcommencement of business.

1. Upon filing of the statement and proof by thebanking corporation or company as required by NRS659.085, the Commissioner shall examine its affairs, ascertain especiallythe amount of the initial stockholders or members equity, the name and placeof residence of each director, the amount of stock of which each is the ownerin good faith or the amount of his contribution, and whether the banking corporationor company has complied with all the provisions of law required to entitle itto engage in business.

2. If upon the examination the Commissioner finds thatthe banking corporation or company is lawfully entitled to commence business,he shall give to it a certificate signed by the Commissioner that it hascomplied with all the provisions of law required before commencing business andthat it is authorized to commence business.

(Added to NRS by 1971, 971; A 1983, 1728; 1987, 1904;1995, 477; 1997, 979)

NRS 659.105 Restrictionon transaction of business. No banking corporationor company may transact any business except such as is incidental and necessarilypreliminary to its organization until it has been authorized to do so by theCommissioner.

(Added to NRS by 1971, 972; A 1983, 1728; 1987, 1904;1995, 477)

NRS 659.115 Unlawfultransaction of banking business without license; penalty.

1. No person, except a bank maintaining an office inthis State and doing business under the laws of the United States, may solicitor accept deposits in this State or otherwise engage in the banking business inthis State without first obtaining from the Commissioner, as provided in thissection, a license authorizing it, as a banking corporation or company, to usethe name and transact the business of a bank. The transacting of any bankingbusiness without such authority is a gross misdemeanor.

2. For the purposes of this section solicitsdeposits has the meaning ascribed to it in NRS80.016.

(Added to NRS by 1971, 972; A 1983, 1728; 1987, 1904;1989, 626; 1991, 372, 1317; 1995, 477)

NRS 659.125 Unlawfuluse of words bank, banking or banker in name; exceptions; penalty.

1. A business entity may not be organized under thelaws of this State with the words bank or banking as part of its nameexcept corporations or limited-liability companies subject to regulationpursuant to chapters 657 to 668, inclusive, of NRS, or corporations under theregulation of the Commissioner of Insurance. A corporate or company name mustnot be amended to include the words bank or banking unless the corporationor company is under such regulation.

2. Except as otherwise provided in subsections 3 and4, a natural person, association, firm or corporation domiciled within thisState, except a national bank or a banking corporation subject to regulationpursuant to chapters 657 to 668, inclusive, of NRS, or under the regulationof the Commissioner of Insurance, may not advertise or put forth any sign asbank, banking or banker or use the word bank, banking or banker as partof its name and title.

3. A savings and loan association subject to theprovisions of chapter 673 of NRS may use thewords savings bank or bank as part of its name and title if the use ofthose words is permitted by the Federal Home Loan Bank Board.

4. A thrift company subject to the provisions of chapter 677 of NRS may use the words savingsbank as part of its name if its deposits are federally insured.

5. Any person who violates any of the provisions ofthis section shall be fined not more than $500 for each offense.

(Added to NRS by 1971, 972; A 1983, 1729; 1985, 315,738; 1987, 1627; 1989, 1101; 1995, 477)

 

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