2005 Nevada Revised Statutes - Chapter 666A — Foreign Banks

CHAPTER 666A - FOREIGN BANKS

GENERAL PROVISIONS

NRS 666A.010 Definitions.

NRS 666A.020 Agencydefined.

NRS 666A.030 Branchdefined.

NRS 666A.040 Federaldefined.

NRS 666A.050 Foreigndefined.

NRS 666A.060 Representativeoffice defined.

NRS 666A.070 Statedefined.

LICENSING

NRS 666A.080 Statebranch or agency: License required; exemptions from licensing.

NRS 666A.090 Statebranch or agency: Application and fee for license; limitation on licensing;withdrawal of application.

NRS 666A.100 Statebranch or agency: Amendment of license.

NRS 666A.110 Staterepresentative office: License required; exemption from licensing.

NRS 666A.120 Staterepresentative office: Application and fees for license; appointment ofCommissioner as agent for service of process; regulations; withdrawal ofapplication.

NRS 666A.130 Staterepresentative office: Prerequisites to issuance of license; issuance and contentsof license.

NRS 666A.140 Postingof license; transfer or assignment of license prohibited.

OPERATION

NRS 666A.150 Statebranch or agency: Powers, duties, limitations and restrictions.

NRS 666A.160 Statebranch or agency: Engaging in fiduciary activities; regulations.

NRS 666A.170 Statebranch or agency: Acting as agent.

NRS 666A.180 Statebranch or agency: Maintenance of registered office and registered agent.

NRS 666A.190 Statebranch or agency: Change of registered office or registered agent.

NRS 666A.200 Statebranch or agency: Amendment of articles of incorporation.

NRS 666A.210 Statebranch or agency: Segregation of assets; priority of creditors.

NRS 666A.220 Statebranch or agency: Notification regarding insurance of deposits and creditbalances.

NRS 666A.230 Statebranch or agency: Limitations on payment of interest on deposits.

NRS 666A.240 Statebranch or agency: Deposit of assets.

NRS 666A.250 Statebranch or agency: Maintenance of assets.

NRS 666A.260 Statebranch: Maintenance of reserve against deposits.

NRS 666A.270 Staterepresentative office: Authorized activities; approval of additionalactivities.

NRS 666A.280 Maintenanceof books, accounts and other records.

NRS 666A.290 Notificationof merger or acquisition of control.

NRS 666A.300 Relocationof office.

NRS 666A.310 Closureof office.

SUPERVISION AND CONTROL

NRS 666A.320 Authorityof Commissioner.

NRS 666A.330 Examinationsby Commissioner; fee for examinations.

NRS 666A.340 Filingof reports with Commissioner.

NRS 666A.350 Statebranch or agency: Authority and grounds for suspension or revocation oflicense.

NRS 666A.360 Statebranch or agency: Immediate suspension or revocation of license.

NRS 666A.370 Statebranch or agency: Seizure and liquidation of property and business.

NRS 666A.380 Staterepresentative office: Revocation of license.

MISCELLANEOUS PROVISIONS

NRS 666A.390 Serviceof processes, notices and demands.

NRS 666A.400 Establishmentof interstate branches in this State.

_________

GENERAL PROVISIONS

NRS 666A.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS666A.020 to 666A.070, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1995, 1537)

NRS 666A.020 Agencydefined. Agency means an office or otherplace of business of a foreign bank located in this state at which creditbalances are maintained incidental to or arising out of the exercise of bankingpowers, checks are paid or money is loaned, but at which deposits are notaccepted from citizens or residents of the United States.

(Added to NRS by 1995, 1537)

NRS 666A.030 Branchdefined. Branch of a foreign bank means anoffice or other place of business located in this state at which deposits arereceived.

(Added to NRS by 1995, 1537)

NRS 666A.040 Federaldefined. Federal when used to modify the wordagency or branch or the term representative office means licensed by theComptroller of the Currency.

(Added to NRS by 1995, 1537)

NRS 666A.050 Foreigndefined. Foreign means organized under thelaw of a foreign country or a colony, dependency or possession of a foreigncountry, or of Puerto Rico, Guam, American Samoa, the Virgin Islands or aterritory of the United States.

(Added to NRS by 1995, 1537)

NRS 666A.060 Representativeoffice defined. Representative office meansan office of a foreign bank which is not a federal or state branch or agency ora subsidiary of a foreign bank.

(Added to NRS by 1995, 1537)

NRS 666A.070 Statedefined. State when used to modify the wordagency or branch or the term representative office means licensedpursuant to the provisions of this chapter.

(Added to NRS by 1995, 1537)

LICENSING

NRS 666A.080 Statebranch or agency: License required; exemptions from licensing.

1. Except as otherwise provided in subsection 2, aforeign bank shall not transact business in this state except at a state branchor agency for which it has been issued a license pursuant to this chapter.

2. A foreign bank:

(a) Which maintains a federal branch or agency in thisstate may transact business authorized under federal law or regulation in thatbranch or agency.

(b) Which does not maintain a state branch or agencymay make loans in this state secured by real property in this state.

(c) Organized under the law of a territory of theUnited States, Puerto Rico, Guam, American Samoa or the Virgin Islands mayoperate an interstate branch in this state as if it were a state bank.

3. Transaction of business by a subsidiary of aforeign bank does not constitute transaction of business by the parent bank.

(Added to NRS by 1995, 1537)

NRS 666A.090 Statebranch or agency: Application and fee for license; limitation on licensing;withdrawal of application.

1. A foreign bank which desires to obtain a licenseunder this chapter to establish and maintain a state branch or agency shallsubmit an application to the Commissioner pursuant to NRS 666.315. The application must contain:

(a) The same information as required by the Board ofGovernors of the Federal Reserve System for an application to establish abranch or agency, as the case may be, in the United States; and

(b) The information required pursuant to NRS 666.315,

and must beaccompanied by the fee required by that section.

2. A foreign bank which is licensed under this chapterto establish and maintain a state branch or agency may not concurrentlymaintain a federal branch or agency in this State. A foreign bank whichmaintains a federal branch or agency in this State may not concurrently belicensed under this chapter to maintain a state branch or agency.

3. 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 1995, 1538; A 2005, 1847)

NRS 666A.100 Statebranch or agency: Amendment of license.

1. A foreign bank which is licensed to establish andmaintain a state branch or agency shall secure an amended license if it changesits corporate name, changes the duration of its corporate existence or desiresto pursue in this state other or additional purposes than those set forth inits previous application under this chapter for a license, by makingapplication therefor to the Commissioner.

2. The requirements with respect to the form andcontents of an application under subsection 1, the manner of its execution, thefiling of duplicate originals thereof with the Commissioner, the issuance of anamended license and the effect thereof are the same as in the case of aninitial application for a license to establish and maintain a state branch oragency.

(Added to NRS by 1995, 1543)

NRS 666A.110 Staterepresentative office: License required; exemption from licensing.

1. No foreign bank may establish or maintain a staterepresentative office unless the foreign bank is licensed by the Commissionerto maintain a state representative office.

2. A foreign bank that maintains a federal agency orbranch in this state may establish or maintain one or more federalrepresentative offices in this state.

(Added to NRS by 1995, 1540)

NRS 666A.120 Staterepresentative office: Application and fees for license; appointment ofCommissioner as agent for service of process; regulations; withdrawal ofapplication.

1. The application for a license to establish andmaintain a state representative office must be made in writing under oath andbe in such form and contain such information as the Commissioner may require.The application must be accompanied by a fee of not more than $400. A fee ofnot more than $200 must be paid annually to renew the license.

2. The Commissioner shall require a foreign bank toinclude as part of its application to establish and maintain a staterepresentative office an instrument irrevocably appointing the Commissioner andhis successors in office to be the foreign banks agent to receive service ofany lawful process in any proceeding against the foreign bank or any of itssuccessors which arises out of a transaction with its state representativeoffice, with the same force and validity as if served on the foreign bank orits successor, as the case may be. The appointment must be in such form andcontain such information as the Commissioner may require.

3. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.

4. 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 1995, 1540; A 2005, 1848)

NRS 666A.130 Staterepresentative office: Prerequisites to issuance of license; issuance andcontents of license.

1. A foreign bank making an application for a licenseto establish and maintain a state representative office must deliver to theCommissioner two duplicate originals of the application.

2. The Commissioner shall issue a license to a foreignbank to establish and maintain a state representative office if he finds that:

(a) The foreign bank is of good character and soundfinancial standing;

(b) The management of the foreign bank and the proposedmanagement of the state representative office are adequate; and

(c) The convenience and needs of persons to be servedby the proposed state representative office will be advantageously served.

3. If the Commissioner determines to issue a licenseto a foreign bank to establish and maintain a state representative office, heshall, when all fees have been paid as required by this chapter, issue thelicense.

4. Each license issued to a foreign bank to establishand maintain a state representative office must state fully the name of theforeign bank to which the license is issued, the address or addresses at whichthe state representative office is to be located and such other information asthe Commissioner may require.

(Added to NRS by 1995, 1540)

NRS 666A.140 Postingof license; transfer or assignment of license prohibited.

1. Each foreign bank which is licensed to establishand maintain a state branch, agency or representative office shall post itslicense in a conspicuous place at such branch, agency or office.

2. A license issued by the Commissioner pursuant tothis chapter is not transferable or assignable.

(Added to NRS by 1995, 1541)

OPERATION

NRS 666A.150 Statebranch or agency: Powers, duties, limitations and restrictions.

1. Except as otherwise provided in this chapter or inregulations adopted by the Commissioner, a foreign bank operating at a statebranch or agency has the same rights, privileges and powers as a Nevada bank atthe same location, including the eligibility to exercise fiduciary powers, andis subject to the same duties, restrictions, penalties, liabilities, conditionsand limitations that would apply under the laws of this state to a Nevada bankdoing business at the same location, but:

(a) A state branch may not accept from citizens orresidents of the United States deposits other than credit balances that areincidental to or arise out of its exercise of other lawful banking powers, butit may accept deposits from persons who are not citizens or residents of theUnited States;

(b) A state agency may not accept any deposits fromcitizens or residents of the United States other than credit balances that areincidental to or arise out of its exercise of other lawful banking powers, butit may accept deposits from persons who are not citizens or residents of theUnited States; and

(c) A state branch or agency is not required tomaintain federal deposit insurance and the Commissioner may, by regulation ororder, exclude or exempt uninsured state branches or agencies from, orotherwise modify the applicability to uninsured state branches or agencies of,any law or regulation of this state that is generally applicable to insuredNevada banks, or that would otherwise be applicable to an insured Nevada bankdoing business at the same location, taking into account applicable limitationson the privileges of state branches and agencies and on their power to takeretail deposits.

2. Any limitation or restriction based on thestockholders or members equity of a Nevada bank shall be deemed to refer, asapplied to a state branch or agency, to the dollar equivalent of thestockholders or members equity of the foreign bank, and if the foreign bankhas more than one state branch or agency in this state, the business transactedby all the state branches and agencies must be aggregated in determiningcompliance with the limitation.

3. The Commissioner may adopt such additional, or modifythe applicability of any existing, standards, conditions or requirements, byregulation, as he deems necessary to ensure the safety and soundness and theprotection of creditors of the operations of branches and agencies of foreignbanks in this state.

(Added to NRS by 1995, 1538; A 1997, 1003)

NRS 666A.160 Statebranch or agency: Engaging in fiduciary activities; regulations.

1. No foreign bank which is licensed to establish andmaintain a state branch or agency may engage in fiduciary activities at thatoffice unless the foreign bank first obtains a certificate of authority fromthe Commissioner to engage in fiduciary activities there.

2. An application to obtain a certificate of authorityto engage in fiduciary activities must be in such form and contain suchinformation as the Commissioner may require and must be accompanied by a fee ofnot more than $1,000. The Commissioner shall issue a certificate of authorityto engage in fiduciary activities to a foreign bank making an application underthis section if he finds that the foreign bank will exercise fiduciary powersin accordance with the laws and regulations of this State.

3. A foreign bank which holds a certificate ofauthority issued pursuant to this section may engage at its state branch oragency in fiduciary activities to the same extent and in the same manner as ifthe foreign bank were a Nevada bank.

4. A foreign bank which holds a certificate ofauthority issued pursuant to this section shall file reports and be subject toexamination and supervision to the same extent and in the same manner as if theforeign bank were a Nevada bank.

5. The Commissioner may suspend or revoke acertificate to engage in fiduciary activities issued pursuant to this sectionif he finds that:

(a) Conditions exist which would authorize him torevoke or suspend the foreign banks license to establish and maintain a statebranch or agency; or

(b) Any fact or condition exists which, if it hadexisted at the time of the foreign banks original application to obtain acertificate of authority to engage in fiduciary activities, would have resultedin his refusing to issue the certificate of authority.

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

(Added to NRS by 1995, 1539; A 2005, 1848)

NRS 666A.170 Statebranch or agency: Acting as agent.

1. A state branch of a foreign bank licensed underthis chapter may receive deposits and renew time deposits, and a state branchor agency of such a bank may close loans, service loans and receive payments onloans and other obligations, as an agent for any depository institutionaffiliated with the foreign bank, including branches, agencies and otheroffices of the same foreign bank located in other states, generally inaccordance with the same terms, conditions, procedures and requirements thatare applicable under the laws and regulations of this state to such activitiesas an agent which may be conducted by Nevada banks.

2. A state branch or agency of a foreign bank actingin this state as an agent in accordance with the provisions of this sectionmust not be considered a branch of the affiliated depository institution, butno state branch or agency may act as agent for a branch or agency of anaffiliated foreign bank other than the foreign bank which has been licensed totransact business in this state pursuant to this chapter.

3. A state branch or agency of a foreign bank licensedunder this chapter may not:

(a) Conduct any activity as an agent under this sectionwhich that office is prohibited from conducting as a principal under anyapplicable federal or state law, including the acceptance of impermissibledeposits; or

(b) As a principal, have an agent conduct any activityunder this section which that office is prohibited from conducting under anyapplicable federal or state law, including the acceptance of impermissibledeposits.

4. A state branch or agency of a foreign bank licensedunder this chapter may act as an agent for a depository institution affiliatedwith the foreign bank only on terms that are consistent with safe and soundbanking practices and all applicable regulations of the Commissioner.

5. A state branch may receive deposits or renew timedeposits, and a state branch or agency may close loans, service loans orreceive payments on loans and other obligations, as an agent for persons otherthan those for whom such agency activities are specifically authorized by thissection, if the Commissioner so authorizes by regulation.

(Added to NRS by 1995, 1539)

NRS 666A.180 Statebranch or agency: Maintenance of registered office and registered agent. A foreign bank which is licensed to establish and maintaina state branch or agency shall have and continuously maintain in this state:

1. A registered office which may be, but need not be,the same as its place of business in this state; and

2. A registered agent, who may be a natural person whoresides in this state and maintains a business office at the registered officeor a corporation authorized to transact business in this state which maintainsa business office at the registered office.

(Added to NRS by 1995, 1541)

NRS 666A.190 Statebranch or agency: Change of registered office or registered agent.

1. A foreign bank which is licensed to establish and maintaina state branch or agency may from time to time change the address of itsregistered office, and shall change its registered agent if:

(a) The registered agent ceases to act for any reason;

(b) The registered agent becomes disqualified orincapacitated to act; or

(c) It revokes the appointment of its registered agent.

2. Any change of registered office or registered agentunder this section may be effected by filing within 10 business days after thechange two duplicate originals of a statement setting forth the details withrespect to the change and the effective date thereof, in such form andcontaining such information as the Commissioner may require.

(Added to NRS by 1995, 1542)

NRS 666A.200 Statebranch or agency: Amendment of articles of incorporation. If the articles of incorporation of a foreign bank whichis licensed to maintain a state branch or agency are amended, the foreign bankshall forthwith file in the Office of the Commissioner a copy of the amendmentauthenticated by the proper officer of the country of the foreign banksorganization, but the filing thereof does not of itself enlarge or alter thepurpose or purposes which the foreign bank is authorized to pursue in thetransaction of its business in this state, nor authorize the foreign bank totransact business in this state under any name other than the name set forth inits license, nor extend the duration of its corporate existence.

(Added to NRS by 1995, 1542)

NRS 666A.210 Statebranch or agency: Segregation of assets; priority of creditors.

1. Each foreign bank which is licensed to establishand maintain a state branch or agency in this state shall keep the assets ofits business in this state separate from the assets of its business outsidethis state.

2. The creditors of the business in this stateconducted by a foreign bank at and recorded on the books of its state branch oragency are entitled to absolute priority over other creditors with respect tothe assets of the foreign banks offices in this state.

(Added to NRS by 1995, 1544)

NRS 666A.220 Statebranch or agency: Notification regarding insurance of deposits and creditbalances. Each foreign bank which is licensedto establish and maintain a state branch or agency shall, in a mannerestablished by the Commissioner, give notice that deposits and credit balancesin that office are not insured by the Federal Deposit Insurance Corporation.

(Added to NRS by 1995, 1544)

NRS 666A.230 Statebranch or agency: Limitations on payment of interest on deposits. A foreign bank which is licensed to establish and maintaina state branch or agency is subject to the same limitations with respect to thepayment of interest on deposits as a state bank which is a member of theFederal Reserve System.

(Added to NRS by 1995, 1544)

NRS 666A.240 Statebranch or agency: Deposit of assets.

1. Each foreign bank which is licensed to establishand maintain a state branch or agency shall keep on deposit, in accordance withsuch regulations as the Commissioner may adopt, with unaffiliated Nevada bankswhich the foreign bank designates and the Commissioner approves,interest-bearing bonds, notes, debentures or other obligations of the UnitedStates or any agency or instrumentality thereof, or guaranteed by the UnitedStates, or of this state, or of a city, county, town, school district, orinstrumentality of this state or guaranteed by this state, or dollar deposits,or obligations of the International Bank for Reconstruction and Development, orobligations issued by the Inter-American Development Bank, or obligations ofthe Asian Development Bank, or obligations issued by the African DevelopmentBank, or such other assets as the Commissioner by regulation permits, to anaggregate amount to be determined by the Commissioner, based upon principalamount or market value, whichever is lower, in the case of the above-describedsecurities, and subject to such limitations as he prescribes.

2. The Commissioner may from time to time require thatthe assets deposited pursuant to this section be maintained by the foreign bankin such amount, in such form and subject to such conditions as he deemsnecessary or desirable for the maintenance of a sound financial condition, theprotection of depositors and the public interest, and to maintain publicconfidence in the business of the state branch or agency. The Commissioner maygive credit to reserves required to be maintained with a federal reserve bankin or outside this state pursuant to federal law, in accordance with suchregulations as he may adopt.

3. So long as it continues business in the ordinarycourse, a foreign bank is entitled to collect interest on securities depositedpursuant to this section and from time to time exchange, examine and comparethe securities.

(Added to NRS by 1995, 1545)

NRS 666A.250 Statebranch or agency: Maintenance of assets.

1. Each foreign bank which is licensed to establishand maintain a state branch or agency shall hold in this state currency, bonds,notes, debentures, drafts, bills of exchange or other evidence of indebtedness,including loan participation agreements or certificates, or other obligationspayable in the United States or in United States money or, with the priorapproval of the Commissioner, in money freely convertible into United Statesmoney, or such other assets as the Commissioner by regulation permits, in anamount which bears such relationship as the Commissioner prescribes toliabilities of the foreign bank payable at or through its state branch oragency, including acceptances, but excluding amounts due and other liabilitiesto other offices, agencies or branches of, and wholly owned, except for anominal number of directors shares, subsidiaries of, the foreign bank and suchother liabilities as the Commissioner determines.

2. For the purposes of this section, the Commissionershall value marketable securities at principal amount or market value,whichever is lower, may determine the value of any nonmarketable bond, note,debenture, draft, bill of exchange, other evidence of indebtedness, includingagreements for or certificates of participation in loans, or of any other assetor obligation held or owed to the foreign bank or its state branch or agency inthis state, and in determining the amount of assets for the purpose ofcomputing the ratio of assets to liabilities, may by regulation exclude inwhole or in part any particular asset.

3. If, by reason of the existence or the potentialoccurrence of unusual and extraordinary circumstances, the Commissioner deemsit necessary or desirable for the maintenance of a sound financial condition,the protection of depositors, creditors and the public interest, and tomaintain public confidence in the business of a state branch or agency, he may,subject to such terms and conditions as he may prescribe, require a foreignbank to deposit the assets required to be held in this state pursuant to thissection with such Nevada banks or credit unions as he may designate.

4. The assets held to satisfy the relationship ofassets to liabilities prescribed by the Commissioner pursuant to this sectionmay include obligations of any person for money borrowed from a foreign bankholding a license to establish and maintain a state branch or agency only tothe extent that the total of such obligations of any person are not more than10 percent of the assets considered for purposes of this section.

(Added to NRS by 1995, 1545; A 1999, 1543)

NRS 666A.260 Statebranch: Maintenance of reserve against deposits.

1. Except as otherwise provided in subsection 2, aforeign bank which is licensed to establish and maintain a state branch shallat all times maintain a reserve against the deposits of the state branch as mayfrom time to time be required to be maintained, pursuant to regulations issuedby the Board of Governors of the Federal Reserve System, by a Nevada bank whichis a member of the Federal Reserve System. The reserve must be maintained witha Nevada bank or national bank which the foreign bank designates and thecommissioner approves.

2. A foreign bank which is required to maintainreserves pursuant to the authority granted the Board of Governors of theFederal Reserve System in section 7(a)(1)(B) of the federal InternationalBanking Act (12 U.S.C. 3105(a)(1)(b)) is exempt from the requirements of thissection.

(Added to NRS by 1995, 1546)

NRS 666A.270 Staterepresentative office: Authorized activities; approval of additionalactivities.

1. A foreign bank which is licensed to establish andmaintain a state representative office may, subject to such regulations as theCommissioner may prescribe:

(a) Solicit loans and in connection therewith assembleinformation concerning credit, inspect and appraise property, secureinformation on titles, prepare applications for loans and make recommendationswith respect to action thereon, solicit investors to purchase loans from theforeign bank and search for investors to contract with the foreign bank forservicing of loans;

(b) Solicit new business;

(c) Conduct research; and

(d) Perform administrative functions.

Any otheractivity, except as provided in subsection 2, which the foreign bank seeks toconduct at the office is subject to the prior written approval of the Commissioner.

2. A state representative office may approve credit ifthe foreign bank:

(a) Gives 45 days prior written notice to theCommissioner; and

(b) The Commissioner does not object within the 45-dayperiod to that activity by the state representative office.

(Added to NRS by 1995, 1541)

NRS 666A.280 Maintenanceof books, accounts and other records. Eachforeign bank which is licensed to establish and maintain a state branch, agencyor representative office shall make, keep and preserve at the office all suchbooks, accounts and other records relating to the business of the office insuch form, in such manner and for such time as the Commissioner may provide.

(Added to NRS by 1995, 1544)

NRS 666A.290 Notificationof merger or acquisition of control. A foreignbank which is licensed to establish and maintain a state branch, agency orrepresentative office shall file with the Commissioner a notice, in such formand containing such information as the Commissioner may prescribe, no laterthan 14 calendar days after the foreign bank becomes aware of any acquisition ofcontrol of the foreign bank or merges with another foreign bank.

(Added to NRS by 1995, 1543)

NRS 666A.300 Relocationof office.

1. No foreign bank which is licensed to establish andmaintain a state branch, agency or representative office may relocate theoffice unless the Commissioner first approves the relocation and issues anamended license authorizing the foreign bank to maintain the office at the newsite.

2. An application by a foreign bank under this sectionmust be in such form and contain such information as the Commissioner requires.

3. If an application made by a foreign bank pursuantto this section is approved and all conditions precedent to the issuance of anamended license authorizing the foreign bank to maintain the office at the newsite have been fulfilled, the Commissioner shall issue an amended license.

4. Promptly after a foreign bank which is licensed tomaintain a state branch, agency or representative office relocates the office,the foreign bank shall surrender to the Commissioner its previous license forthe office.

(Added to NRS by 1995, 1543)

NRS 666A.310 Closureof office.

1. No foreign bank which is licensed to establish andmaintain a state branch, agency or representative office may close that officewithout obtaining the prior written approval of the Commissioner. Anapplication by a foreign bank under this section must be in such form andinclude such information as the Commissioner requires.

2. If the Commissioner finds that the closing of theoffice will not be substantially detrimental to the public convenience andadvantage, he shall approve the application.

3. If an application by a foreign bank under thissection is approved and all conditions precedent to the closing have beenfulfilled, the foreign bank may close the office and shall promptly thereaftersurrender to the Commissioner the license which authorized it to maintain theoffice.

(Added to NRS by 1995, 1546)

SUPERVISION AND CONTROL

NRS 666A.320 Authorityof Commissioner.

1. The Commissioner has all of the powers granted tohim by the laws of this state to the same extent and in the same manner as if astate branch, agency or representative office were a Nevada bank.

2. If, after notice and a hearing, the Commissionerfinds that any person has violated any provision of this chapter or of anyregulation or order issued under this chapter, he may, in addition to any otherremedy or action available to him under the laws of this state, order theviolator to pay to him a civil penalty in such a manner and in such an amountas he determines by regulation, consistent with the penalties provided forNevada banks.

3. To carry out the purposes of this chapter, theCommissioner may:

(a) Enter into cooperative, coordinating orinformation-sharing agreements with any other bank supervisory agency or anyorganization affiliated with or representing one or more bank supervisoryagencies;

(b) With respect to periodic examination or othersupervision of a foreign bank that maintains a state branch, agency orrepresentative office, accept reports of examinations performed by, and reportssubmitted to, other bank supervisory agencies in lieu of conductingexaminations, or of receiving reports, as might otherwise be required underthis chapter; and

(c) Enter into joint examinations or joint enforcementactions with any other bank or supervisory agency having concurrentjurisdiction over any foreign bank, but the Commissioner may at any time takeany such actions independently if he determines that such actions are necessaryor appropriate to carry out his responsibilities under this chapter and toensure compliance with the laws of this state.

(Added to NRS by 1995, 1543)

NRS 666A.330 Examinationsby Commissioner; fee for examinations.

1. A state branch, agency or representative office issubject to examination by the Commissioner to the same extent and in the samemanner as if the state branch, agency or representative office were a Nevadabank.

2. In conducting an examination pursuant to this section,the Commissioner:

(a) Is entitled to full access to the offices, books,accounts, papers, records, files, safes and vaults of each office; and

(b) May require the attendance of and examine underoath all persons whose testimony may be required relative to the activities ofthe office.

3. A foreign bank which is licensed to establish andmaintain a state branch, agency or representative office shall pay a fee forconducting the examination and the expenses of preparing and typing the reportof the examination at the rate established pursuant to NRS 658.101.

(Added to NRS by 1995, 1543)

NRS 666A.340 Filingof reports with Commissioner.

1. Each foreign bank which is licensed to establishand maintain a state branch, agency or representative office shall file withthe Commissioner such reports, at such times, as he may by regulation require.

2. Each report filed with the Commissioner under thischapter or under any regulation adopted under this chapter must be in such formand contain such information, be signed in such manner and be verified in suchmanner as he may require.

(Added to NRS by 1995, 1544)

NRS 666A.350 Statebranch or agency: Authority and grounds for suspension or revocation oflicense. If, after notice and a hearing, theCommissioner finds any of the following with respect to a foreign bank which islicensed to establish and maintain a state branch or agency, he may issue anorder suspending or revoking the license of the foreign bank:

1. The foreign bank has violated any provision of thischapter or of any regulation or order issued under this chapter or anyprovision of any other applicable law, regulation or order;

2. The foreign bank is transacting activities in thisstate or elsewhere in an unsafe or unsound manner;

3. The foreign bank or any of its state branches oragencies is in an unsafe or unsound condition;

4. The foreign bank has ceased to operate any of itsoffices in this state without the prior approval of the Commissioner inaccordance with this chapter;

5. The foreign bank is insolvent in that it has ceasedto pay its debts in the ordinary course of business, it cannot pay its debts asthey become due or its liabilities exceed its assets;

6. The foreign bank has suspended payment of itsobligations, has made an assignment for the benefit of its creditors or hasadmitted in writing its inability to pay its debts as they become due;

7. The foreign bank has applied for an adjudication ofbankruptcy, reorganization, arrangement or other relief under any foreign ordomestic law on bankruptcy, reorganization, insolvency or moratorium, or anyperson has applied for any such relief under such a law against the foreignbank and the foreign bank has by any affirmative act approved of or consentedto the action or the relief has been granted;

8. A receiver, liquidator or conservator has beenappointed for the foreign bank or any proceeding for such an appointment or anysimilar proceeding has been initiated in the country of the foreign banksorganization;

9. The existence of the foreign bank or the authorityof the foreign bank to transact banking business under the laws of the countryof the foreign banks organization has been suspended or terminated; or

10. Any fact or condition exists which, if it hadexisted at the time when the foreign bank applied for its license to transactbusiness in this state, would have been a ground for denying the application.

(Added to NRS by 1995, 1546)

NRS 666A.360 Statebranch or agency: Immediate suspension or revocation of license.

1. If the Commissioner finds that any of the factorsset forth in NRS 666A.350 are truewith respect to any foreign bank which is licensed to maintain a state branchor agency and that it is necessary for the protection of the interests ofcreditors of the foreign banks business in this state or, in any case, for theprotection of the public interest that he immediately suspend or revoke thelicense of the foreign bank, he may issue an order suspending or revoking thelicense of the foreign bank.

2. Within 30 days after an order is issued pursuant tosubsection 1, the foreign bank to which the order is issued may file with theCommissioner a request for a hearing on the order. If the Commissioner fails tocommence the hearing within 15 business days after the request is filed withhim, or within such longer period as the foreign bank consents to, the order shallbe deemed rescinded. Within 30 days after the hearing, the Commissioner shallaffirm, modify or rescind the order. Otherwise, the order shall be deemedrescinded.

3. The right of any foreign bank to which an order isissued pursuant to subsection 1 to petition for judicial review of the order isnot affected by the failure of the foreign bank to petition the commissionerfor a hearing on the order pursuant to subsection 2.

(Added to NRS by 1995, 1547)

NRS 666A.370 Statebranch or agency: Seizure and liquidation of property and business.

1. If the Commissioner finds that any of the factorsset forth in NRS 666A.350 are truewith respect to any foreign bank which is licensed to establish and maintain astate branch or agency and that it is necessary for the protection of theinterests of the creditors of the foreign banks business in this state or forthe protection of the public interest that he take immediate possession of theproperty and business of the foreign bank, he may by order take possession ofthe property and business of the foreign bank in this state and retainpossession until the foreign bank resumes business in this state or is finallyliquidated. The foreign bank may, with the consent of the Commissioner, resumebusiness in this state upon such conditions as the Commissioner may prescribe.

2. If the Commissioner takes possession of theproperty and business of a foreign bank pursuant to subsection 1, the foreign bankmay, within 10 days, apply to the district court in the county in which theprimary office of the foreign bank in this state is located to enjoin furtherproceedings. The court may, after citing the Commissioner to show cause whyfurther proceedings should not be enjoined and after a hearing, dismiss theapplication or enjoin the Commissioner from further proceedings and order himto surrender the property and business of the foreign bank to the foreign bankor make further order as may be just.

3. The Commissioner or the foreign bank may appealfrom the judgment of the court having jurisdiction over any proceedings undersubsection 2 in the manner provided by law for appeals from the judgment of adistrict court. If the Commissioner appeals from the judgment of the districtcourt, the appeal operates as a stay of the judgment and the Commissioner neednot post any bond.

4. If the Commissioner takes possession of theproperty and business of a foreign bank pursuant to subsection 1, he shallconserve or liquidate the property and business of the foreign bank pursuant tothe laws of this state as if the foreign bank were a Nevada bank, with absolutepriority given to the creditors of the business in this state conducted by theforeign bank at and recorded on the books of its state branch or agency.

5. When the Commissioner has completed the liquidationof the property and business of a foreign bank, he shall transfer any remainingassets to the foreign bank in accordance with such orders as the court mayissue. However, if the foreign bank has an office in another state of theUnited States which is in liquidation and the assets of that office appear tobe insufficient to pay in full the creditors of that office, the court shallorder the Commissioner to transfer to the liquidator of that office such amountof any such remaining assets as appears to be necessary to cover the insufficiency.If there are two or more such offices and the amount of remaining assets isless than the aggregate amount of insufficiencies with respect to the offices,the court shall order the Commissioner to distribute the remaining assets amongthe liquidators of those offices in such manner as the court finds equitable.

(Added to NRS by 1995, 1547)

NRS 666A.380 Staterepresentative office: Revocation of license. TheCommissioner, after notice and opportunity for a hearing, may revoke a licenseto establish and maintain a state representative office if he finds that:

1. The foreign bank has violated any provision of thischapter or any other law or regulation of this state; or

2. Any fact or condition exists which, if it hadexisted at the time of the foreign banks original application for the license,would have been a ground for refusing to issue the license.

(Added to NRS by 1995, 1541)

MISCELLANEOUS PROVISIONS

NRS 666A.390 Serviceof processes, notices and demands.

1. In the case of a foreign bank which is licensed toestablish and maintain a state branch or agency, service of process in anysuit, action or proceeding or service of any notice or demand required orpermitted by law to be served on a foreign corporation may be made on theforeign bank by service thereof on the registered agent of the foreign bank inthis state. If a foreign bank fails to appoint or maintain a registered agentupon whom service of legal process or service of any such notice or demand maybe had, or if the registered agent cannot with reasonable diligence be found atthe registered office of the foreign bank, or if the license of the foreignbanks state branch or agency is revoked, the Commissioner by operation of lawis irrevocably authorized as the agent of the foreign bank to accept service ofany process or service of any notice or demand required or permitted by law tobe served on the foreign bank.

2. In the case of a foreign bank which is licensed toestablish and maintain a state representative office, service of process in anysuit, action or proceeding or service of any notice or demand required orpermitted by law to be served on a foreign corporation may be made on theforeign bank by service thereof on the Commissioner.

3. Service on the Commissioner in accordance with thissection of any process, notice or demand against a foreign bank must be made bydelivering to and leaving with him, or with any official having charge of hisoffice, duplicate copies of the process, notice or demand. If any process,notice or demand is served on the Commissioner, he shall immediately cause acopy thereof to be forwarded by certified mail addressed to the foreign bank atits principal office as the address appears in his records. Any service so hadon the Commissioner is returnable in not less than 30 days.

4. This chapter does not limit or affect the right toserve any process, notice or demand required or permitted by law to be servedupon a foreign corporation in any other manner permitted by law.

5. The Commissioner shall keep a record of allprocesses, notices and demands served upon him under this section and shallrecord therein the time of service and his action with reference thereto.

(Added to NRS by 1995, 1542)

NRS 666A.400 Establishmentof interstate branches in this State.

1. Except as otherwise provided in subsection 2, anout-of-state foreign bank may establish an interstate Nevada branch in the samemanner, including by merger or other transaction under section 44 of theFederal Deposit Insurance Act and comparable provisions of the laws of thisState, with Nevada banks or other institutions, as, and subject to the samecriteria, standards, conditions, requirements and procedures applicable to theestablishment of interstate branches in this State by, an out-of-state bankhaving the same home state in the United States.

2. The Commissioner:

(a) Shall apply to the establishment of an initialinterstate branch, and subsequent intrastate state branches, of anyout-of-state foreign bank the same criteria, standards, conditions,requirements and procedures applicable under this chapter or regulationsadopted thereunder to the establishment of an initial state branch, and ofsubsequent intrastate Nevada branches, respectively by other foreign banks;

(b) May apply any other criterion, standard, condition,requirement or provision of the laws or regulations of this State that hedetermines to be substantially equivalent to or consistent with a criterion,standard, condition, requirement or provision of federal law or regulationgenerally applicable to the establishment of branches in the United States byforeign banks or specifically applicable to the establishment of a branch inthe United States by the applicant foreign bank; and

(c) May by regulation allow an out-of-state foreignbank:

(1) To acquire or merge with another foreignbank maintaining a state branch or agency and thereafter continue suchoperations as its own; and

(2) To acquire or establish an interstate Nevadabranch through any other means not inconsistent with section 5 of the federalInternational Banking Act (12 U.S.C. 3103).

3. As used in this section, the words and termsdefined in NRS 666.006 and 666.008 have the meanings ascribed to themin those sections.

(Added to NRS by 1995, 1548)

 

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