2005 Nevada Revised Statutes - Chapter 668 — Prohibited Practices and Penalties

CHAPTER 668 - PROHIBITED PRACTICES ANDPENALTIES

NRS 668.015 Falseor deceptive financial statements: Criminal penalty; liability for damages;removal from office.

NRS 668.045 Receivingdeposits in insolvent banks with knowledge of insolvency; unfair preference tocreditor; penalty.

NRS 668.055 Embezzlement;willful misapplication of money; penalties.

NRS 668.065 Falseoath or affirmation of officer, director, manager or employee; penalty.

NRS 668.075 Limitationon advertising or publishing statement of stock.

NRS 668.085 Unauthorizeddisclosure of confidential information; penalty.

NRS 668.095 Penaltiesfor making, aiding in making, or suppressing evidence of false or fraudulentreport.

NRS 668.112 Administrativefines.

NRS 668.115 Violationconstitutes misdemeanor unless otherwise specified.

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NRS 668.015 Falseor deceptive financial statements: Criminal penalty; liability for damages;removal from office. Every president,director, manager, cashier or other officer or employee of any bank whoknowingly prepares, signs, approves or concurs in any account, statement,return, report or document respecting the affairs of the bank, containing anyfalse or deceptive statement, or any return or report required by this titlewhich does not set forth the true financial condition of the bank, including inthe report or return all the information required by the provisions of thistitle, is:

1. Guilty of a category D felony and shall be punishedas provided in NRS 193.130.

2. Liable for all damages which the bank, itsstockholders, creditors or depositors suffer in consequence thereof, and issubject to removal upon order of the Commissioner.

(Added to NRS by 1971, 1006; A 1983, 1757; 1987,1942; 1995, 1315)

NRS 668.045 Receivingdeposits in insolvent banks with knowledge of insolvency; unfair preference tocreditor; penalty.

1. It is unlawful for a president, director, manager,cashier or other officer or employee of any bank to permit the bank to remainopen for business, or to assent to the reception of deposits or the creation ofdebts by the banking institution, after he has knowledge of the fact that it isinsolvent or in failing circumstances. An officer, director, manager or agentof a bank shall examine the affairs of the bank and shall know its condition.Upon the failure of any such person to discharge his duty of examination, hemust be held, for the purpose of this title, to have had knowledge of theinsolvency of the bank, or that it was in failing circumstances, and shall bedeemed to have assented to the receipt of deposits while the bank was insolventor in failing circumstances. A person who violates the provisions of thissubsection is individually responsible for deposits so received, and all suchdebts so contracted, but any director who has paid more than his share of suchliabilities has a remedy at law against other persons who have not paid theirfull share of such liabilities for contribution.

2. It is unlawful for a president, director, manager,cashier or other officer or employee of any bank willfully to give or concur ingiving to a creditor of the bank any fraudulent, undue or unfair preferenceover other creditors, by giving security to the creditor, or by changing thenature of his claim, or otherwise, but this subsection does not prohibit thebank from giving security for public money of the State of Nevada or anypolitical subdivision thereof, or of the United States, or an officer, agent,agency or department thereof, in the manner provided by law.

3. A person who violates the provisions of thissection, or who is an accessory to, or permits or connives at, the receiving oraccepting of any such deposits, or the giving of such preferences, is guilty ofa category D felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1971, 1006; A 1981, 1537; 1995,1316; 1999, 1828)

NRS 668.055 Embezzlement;willful misapplication of money; penalties. Apresident, director, manager, cashier, teller, clerk, officer or agent of anybank who embezzles, abstracts or willfully misapplies any money, funds,securities or credits of any bank, or who issues or puts forth any certificateof deposit, draws any draft, bill of exchange or mortgage, or who makes use ofany bank in any manner, with the intent to injure or defraud any bank orperson, or to deceive any bank, or officer of any bank, and any natural personwho, with like intent, aids or abets any officer, clerk or agent in anyviolation of this section, shall be punished:

1. Where the amount involved is $250 or more, for acategory C felony as provided in NRS 193.130.In addition to any other penalty, the court shall order the person to payrestitution.

2. Where the amount involved is less than $250, for amisdemeanor.

(Added to NRS by 1971, 1007; A 1979, 1491; 1987,1314; 1989, 1443; 1995, 496, 1316)

NRS 668.065 Falseoath or affirmation of officer, director, manager or employee; penalty. Every officer, director, manager or employee of a bank requiredby this title to take an oath or affirmation who willfully swears or affirmsfalsely is guilty of perjury, and upon conviction thereof shall be punished asprovided by the laws of this state for cases of perjury.

(Added to NRS by 1971, 1007; A 1995, 496)

NRS 668.075 Limitationon advertising or publishing statement of stock. Abank or an officer or manager of a bank shall not advertise in any manner or publishany statement of the stock authorized or subscribed, unless the amount of stockactually paid up is advertised or published with the advertisement orstatement.

(Added to NRS by 1971, 1007; A 1995, 496; 1997, 1006)

NRS 668.085 Unauthorizeddisclosure of confidential information; penalty. Ifany person fails to keep secret the facts and information obtained in thecourse of, or as a result of, an examination of a bank, except when the duty ofsuch examiner or employee requires him to report upon or take official actionregarding the affairs of such bank, he is guilty of a misdemeanor.

(Added to NRS by 1971, 1007)

NRS 668.095 Penaltiesfor making, aiding in making, or suppressing evidence of false or fraudulentreport.

1. An examiner of financial institutions who knowinglyand willfully makes any false or fraudulent report of the condition of any bankwhich has been examined by him, with the intent to aid or abet the officers oragents of the bank in continuing to operate an insolvent bank, or if theexaminer keeps or accepts any bribe or gratuity given for the purpose ofinducing him not to file any report of examination of any bank examined by him,or neglects to make an examination of any bank because of having received oraccepted any bribe or gratuity, is guilty of a category C felony and shall bepunished as provided in NRS 193.130.

2. A person who knowingly aids or abets an examiner offinancial institutions or any other person in doing or performing any of theacts prohibited in subsection 1 is guilty of a category C felony and shall bepunished as provided in NRS 193.130.

3. A person, having knowledge of a report made by anexaminer of financial institutions of the condition of any bank, who falsifies,changes, alters or suppresses any such report with the intent to aid or abetthe officers or agents of a bank in continuing to operate an insolvent bank, orany such person who keeps or accepts any bribe or gratuity given for thepurpose of inducing him not to file any such report of examination or tofalsify, change, alter or suppress any such report of examination, is guilty ofa category C felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1971, 1008; A 1979, 1491; 1983,1758; 1995, 1317)

NRS 668.112 Administrativefines.

1. In addition to any other remedy or penalty, theCommissioner may impose an administrative fine of not more than $10,000 upon aperson who:

(a) Without a license, conducts any business oractivity for which a license is required pursuant to the provisions of chapters 657 to 668,inclusive, of NRS; or

(b) Violates any provision of chapters 657 to 668,inclusive, of NRS or any regulation adopted pursuant thereto.

2. As used in this section, license means anylicense, certificate, registration, permit or similar type of authorization.

(Added to NRS by 2005, 1849)

NRS 668.115 Violationconstitutes misdemeanor unless otherwise specified. Whereno other punishment is provided in this title, any person violating any of theprovisions of this title is guilty of a misdemeanor.

(Added to NRS by 1971, 1008)