NRS677.145 Certain relationships between employee of Division ofFinancial Institutions and licensee prohibited; termination of prohibitedrelationship.

NRS677.147 Applicability of chapters78 and 92A of NRS.

FORMATION

NRS 677.150 Authorizationby Commissioner.

NRS 677.160 Applicationfor authority to engage in business: Form; contents; filing fee; regulations;withdrawal of application.

NRS 677.170 Fidelitybond.

NRS 677.175 Additionalbond.

NRS 677.180 Investigationand examination of applicant.

NRS 677.190 Requisitesfor approval of application.

NRS 677.200 Qualificationsof president and certain managers of corporation.

NRS 677.210 Minimumstockholders equity required.

NRS 677.220 Certificateof authorization to transact business.

NRS 677.230 Reserves.

NRS 677.240 Authorizationfor change of place of business.

PROTECTION OF INVESTORS

NRS 677.241 Powerof licensee to obtain benefits of federal programs.

NRS 677.243 Recordsof employees; confidentiality.

NRS 677.245 Limitationon investment in real property; recording deed or other document; subsidiaryledger or other appropriate record.

NRS 677.247 Applicantrequired to obtain insurance of deposits; regulations.

BRANCH OFFICES

NRS 677.250 Establishmentand maintenance.

NRS 677.270 Requisitesfor approval of application; notice of approval or denial.

NRS 677.290 Rightto open branch office expires if office not open within 6 months after approvalof application.

NRS 677.300 Authorizationfor change of location; posting of certificate.

NRS 677.310 Specifieddesignation of branch offices by name or number required.

NRS 677.320 Closingor discontinuance of branch office.

NRS 677.330 Mobileoffices.

LICENSING

NRS 677.340 Personsineligible for licensing.

NRS 677.350 Applicabilityof chapter to persons who seek to evade.

NRS 677.355 Licenseemay own interest in bank or savings and loan association.

NRS 677.360 Expiration,renewal and reinstatement of license; fees; regulations.

NRS 677.370 Postingof license; transferability and assignability of license.

NRS 677.373 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue license.

NRS 677.375 Suspensionor revocation of license: Additional grounds.

ADMINISTRATION AND ENFORCEMENT

Generally

NRS677.380 Regulations and orders of Commissioner.

NRS677.390 Disposition of money collected pursuant to chapter.

Reports, Examinations and Audits

NRS 677.400 Annualreport by licensee; composite reports.

NRS 677.410 Preparationof annual reports and financial statements; special reports; extensions;removal of qualification.

NRS 677.420 Notificationof change in ownership of stock; application for approval after certainacquisitions; investigation; costs; waiver.

NRS 677.430 Commissionerto examine licensees business at least annually; fee.

NRS 677.435 Independentaudit and examination: Payment of assessment; cooperation.

NRS 677.440 Authorityof Commissioner to investigate business; free access required; compellingattendance of witnesses.

NRS 677.450 Authorityof Commissioner to require attendance of witnesses and production of documents.

NRS 677.460 Chargingoff assets; regulations and orders.

NRS 677.470 Licenseeto pay costs of audit of books and records.

Remedial Actions

NRS 677.480 Orderof Commissioner directing discontinuance of unsafe or injurious practice.

NRS 677.490 Surrenderof license by licensee; surrender as affecting licensees liability.

NRS 677.500 Temporarysuspension of license: Conditions; notice; hearing; term of suspension.

NRS 677.510 Revocationor suspension of license: Grounds; notice; hearing; order.

NRS 677.520 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense.

NRS 677.530 Orderto desist or refrain; action to enjoin violations; appointment and powers ofreceiver.

NRS 677.540 Takingpossession of business by Commissioner: Conditions; resumption of business.

NRS 677.545 Takingpossession of business by Commissioner: Acquisition by or merger with anotherinstitution.

NRS 677.550 Ordersuspending or limiting payment of liabilities; effect of order; assignment orhypothecation of indebtedness.

NRS 677.560 Applicationby licensee to enjoin further proceedings.

NRS 677.570 Authorityof Commissioner to liquidate or conserve company.

GENERAL REGULATIONS

NRS 677.580 Useof holding company or other device for evading or avoiding chapter prohibited;right to issue preferred stock or debentures not affected.

NRS 677.590 Issuanceof thrift certificates prohibited; exception.

NRS 677.600 Permissibledepositories.

NRS 677.610 Authorizedinvestments.

NRS 677.612 Authorityto accept deposit by fiduciary in trust; payment to fiduciary of withdrawalvalue and interest.

NRS 677.614 Paymentof withdrawal value and interest to beneficiary upon death of fiduciary.

NRS 677.616 Depositby and payment to minor.

NRS 677.620 Limiton deposits; limit on total borrowings; borrowing money from Federal Home LoanBank.

NRS 677.630 Permissibletransactions in real property.

NRS 677.640 Conductof business in place where other business being conducted; name under whichbusiness may be transacted; loans by mail.

NRS 677.645 Useor change of business name; prohibitions.

NRS 677.650 Makingloan to or purchasing contract or chose in action from officer, director orother specified person prohibited; exception; personal liability.

NRS 677.660 Advertising:Prohibitions; insurance of deposits.

NRS 677.665 Formationof bank.

LOANS; POWERS AND PRIVILEGES

NRS 677.720 Requirementsfor making and paying of loans: Duties of licensee.

NRS 677.730 Interest,charges and repayment.

NRS 677.750 Prohibitedpractices by licensee.

NRS 677.760 Restrictionon percentage of loans secured by stocks or bonds of any one obligor;exception.

NRS 677.770 Limitationson amount of secured loans or obligations of any one obligor.

NRS 677.780 Loansmay be made to any person; exceptions; property situated outside of State.

NRS 677.790 Powersof licensee.

NRS 677.795 Authorityto exercise powers of banks.

UNLAWFUL ACTS; PENALTIES

NRS 677.800 Violationof provisions of chapter.

NRS 677.805 Administrativefines.

NRS 677.810 Receivingcertain compensation or property; making false entry in books or records;embezzlement.

NRS 677.820 Fraudulentinsolvency; malfeasance of directors.

NRS 677.830 Makingloan or purchasing contract in violation of chapter.

NRS 677.840 Depositof companys money on condition of loan or advance.

NRS 677.850 Acceptingdeposits with knowledge of insolvency of company or violation of chapter.

_________

GENERAL PROVISIONS

NRS 677.010 Shorttitle. This chapter may be cited as the NevadaThrift Companies Act.

(Added to NRS by 1975, 1829)

NRS 677.020 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS677.030 to 677.140, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1975, 1829; A 1979, 995; 1983, 1817;1985, 2196; 1987, 1997; 1997, 1014)

NRS 677.030 Amountof cash advance defined. Amount of cash advancemeans the amount of cash or its equivalent actually received by a borrower orpaid out at his direction or on his behalf.

(Added to NRS by 1975, 1829)

NRS 677.040 Amountof loan obligation defined. Amount of loanobligation means the amount of cash advance plus the aggregate of chargesadded thereto pursuant to authority of this chapter.

(Added to NRS by 1975, 1829)

NRS 677.050 Borrowingsdefined. Borrowings means liability to anythrift investor or financial institution.

(Added to NRS by 1975, 1829)

NRS 677.060 Chargesdefined. Charges include:

1. The aggregate interest, fees, bonuses, commissions,brokerage, discounts, expenses and other forms of costs charged, contracted foror received by a licensee or any other person in connection with theinvestigating, arranging, negotiating, procuring, guaranteeing, making,servicing, collecting or enforcing of a loan, or for forbearance of money,credit, goods, things in action or any other service or services rendered; and

2. Any profit or advantage of any kind that any personmay contract for, collect, receive or in any manner obtain by a collateralsale, purchase or agreement in connection with negotiating, making or otherwisein connection with any loan, except commissions received on insurance sold.

(Added to NRS by 1975, 1829)

NRS 677.065 Commissionerdefined. Commissioner means the Commissionerof Financial Institutions.

(Added to NRS by 1987, 1997)

NRS 677.070 Communitydefined. Community means a contiguous areaof the same economic unit or metropolitan area, as determined by the Commissioner,and may include all or part of a city or several towns or cities.

(Added to NRS by 1975, 1829; A 1983, 1817; 1987,1997)

NRS 677.075 Depositdefined.

1. Deposit means that part of the liability of alicensee which is credited to the account of a depositor.

2. The term includes a time deposit evidenced by acertificate of deposit, but does not include an obligation evidenced by athrift certificate.

(Added to NRS by 1985, 2193; A 1987, 1244)

NRS 677.090 Grossamount defined. Gross amount means thetotal amount or value advanced to or on behalf of the borrower, including allpayments for interest, principal, expenses and charges of any nature taken substantiallycontemporaneously with the making of the loan.

(Added to NRS by 1975, 1829)

NRS 677.100 Licensedefined. License means a license, issuedunder the authority of this chapter, to accept deposits and make loans inaccordance with the provisions of this chapter, at a single place of business.

(Added to NRS by 1975, 1830; A 1985, 2196)

NRS 677.110 Licenseedefined. Licensee means a person to whom oneor more licenses have been issued.

(Added to NRS by 1975, 1830)

NRS 677.115 Loandefined. Loan does not include a bona fideconditional contract of sale.

(Added to NRS by 1979, 995)

NRS 677.125 Stockholdersequity defined. Stockholders equity meansthe capital, surplus and retained earnings of a licensee.

(Added to NRS by 1997, 1014)

NRS 677.130 Thriftcertificate defined. Thrift certificatemeans a chose in action, in passbook or certificate form, evidencing theobligation of the licensee to pay money and does not include subordinate debtsecurities.

(Added to NRS by 1975, 1830; A 1979, 995)

NRS 677.140 Unpaidprincipal balance defined. Unpaid principalbalance means the net amount of money, credit, goods or things in actionreceived by the borrower at the time of entering into the transaction and thedecreasing balances thereof after application of each payment made on theobligation.

(Added to NRS by 1975, 1830)

NRS 677.145 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 licensee;

(b) Receive, directly or indirectly, any payment fromany licensee;

(d) Engage in the negotiation of loans for others withany licensee; or

(e) Obtain credit or services from a licenseeconditioned 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 licenseewhile in office.

3. Any officer or employee of the Division ofFinancial Institutions may be indebted to a licensee on the same terms as areavailable 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 withlicensees to the greatest amount insured, receive interest on those depositsand borrow money secured 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 1983, 1816)

NRS 677.147 Applicabilityof chapters 78and 92Aof NRS. The provisions of chapters 78 and 92Aof NRS that are not in conflict with this chapter are hereby adopted as part ofthis chapter.

(Added to NRS by 1997, 1014)

FORMATION

NRS 677.150 Authorizationby Commissioner. If authorized by the Commissioner,as provided in this chapter, a corporation may be formed in accordance with thelaws of this state to engage in business under this chapter.

(Added to NRS by 1975, 1830; A 1983, 1817; 1987,1997; 1997, 1014)

NRS 677.160 Applicationfor authority to engage in business: Form; contents; filing fee; regulations;withdrawal of application.

1. The request for authority to engage in businesspursuant to this chapter must be set forth in an application in such form and containingsuch information as the Commissioner requires.

2. The filing fees are:

(a) For filing an original application, not more than$2,000 for the principal office and not more than $300 for each branch office.The applicant shall also pay such additional expenses incurred in the processof investigation as the Commissioner deems necessary. All money received by theCommissioner pursuant to this paragraph must be placed in the InvestigativeAccount created by NRS 232.545.

(b) If the license is approved for issuance, not morethan $1,000 for the principal office and not more than $200 for each branchoffice before issuance.

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 1975, 1830; A 1983, 1327, 1817;1987, 1997; 1991, 1816; 2005, 1888)

NRS 677.170 Fidelitybond. A licensee which proposes to acceptdeposits shall file with the Commissioner a fidelity bond providing fidelitycoverage on each officer, director and employee of at least $100,000. Thefidelity bond may be either a bankers blanket bond or a finance companysblanket bond, but must be written by an insurer who has been approved by theCommissioner.

(Added to NRS by 1975, 1830; A 1977, 1045; 1983,1605, 1637, 1817; 1985, 2196, 2197; 1987, 1998)

NRS 677.175 Additionalbond. If the Commissioner finds that a bondfiled pursuant to NRS 677.170 is notsufficient to protect the interests of the public, he shall require theapplicant to deposit an additional bond.

(Added to NRS by 1983, 1605; A 1983, 1644; 1985,2197; 1987, 1998)

NRS 677.180 Investigationand examination of applicant. Upon the filingof an application, the Commissioner shall make or cause to be made a carefulinvestigation and examination relative to the following:

1. Character, reputation and financial standing of theorganizers or incorporators.

2. The need for a thrift company or an additionalthrift company, as the case may be, in the community where the proposedlicensee is to be located, giving particular consideration to the adequacy ofexisting thrift company services and the need for additional services of thiskind in the community.

3. The ability of the community to support theproposed licensee, giving consideration to:

(a) The competition offered by existing licensees;

(b) Whether a thrift company has previously operated inthe community; and

(c) The opportunities for profitable employment of thelicensees money as indicated by the average demand for credit, the number ofpotential investors, the volume of transactions where the services of a thriftcompany would be appropriate, and the business and industries of the communitywith particular regard to their stability, diversification and size.

4. The character, banking, industrial loan, finance orthrift company or other experience and business qualifications of the proposedofficers and managers of the licensee.

5. The character, financial responsibility, businessexperience and standing of the proposed stockholders and directors.

6. Any other facts and circumstances bearing on theproposed licensee as in the opinion of the Commissioner may be relevant.

(Added to NRS by 1975, 1830; A 1979, 995; 1983, 1818;1987, 1998)

NRS 677.190 Requisitesfor approval of application. The Commissionershall not approve the application unless he ascertains to his satisfaction:

1. That the public convenience and advantage will bepromoted by the establishment of the proposed corporation.

2. That the corporation is being formed for no otherpurpose than the legitimate objectives contemplated by this chapter.

3. That the proposed capital structure is adequate.

4. That the financial responsibility, character andgeneral fitness of the proposed officers, directors, stockholders and otherinvestors are such as to command the confidence of the community and to warrantbelief that the business will be operated honestly and fairly within thepurpose of this chapter, and that the proposed officers and directors havesufficient banking, industrial loan or other experience, ability and standingto afford reasonable promise of successful operation.

5. That the applicant has complied with all theapplicable provisions of this chapter.

(Added to NRS by 1975, 1831; A 1983, 1818; 1985,2197; 1987, 1999; 1997, 1014)

NRS 677.200 Qualificationsof president and certain managers of corporation. Thepresident of the corporation must have not less than 10 years of experience ina regulated financial institution in this state, or in any other state or theDistrict of Columbia. The manager of the principal office and any branch officemust have not less than 2 years of experience in a regulated financialinstitution in this state, or in any other state or the District of Columbia.

(Added to NRS by 1975, 1831; A 1977, 1045; 1985,2198; 1995, 1564; 1997, 1014)

NRS 677.210 Minimumstockholders equity required. Thestockholders equity of any corporation formed to do business under thischapter must not be less than $325,000, plus an additional $25,000 for each ofits branch offices.

(Added to NRS by 1975, 1833; A 1997, 1015)

NRS 677.220 Certificateof authorization to transact business. If theCommissioner approves an application for authority to form a corporation toengage in business under this chapter, he shall issue a certificate induplicate authorizing the organization of the corporation and the operation ofa thrift company, specifying the date on which and the conditions under whichits place of business may be opened, including the place where it will belocated. The Commissioner shall deliver one copy to the applicant and retainthe other copy.

(Added to NRS by 1975, 1831; A 1983, 1819; 1987,1999)

NRS 677.230 Reserves.

1. Except asotherwise provided in subsection 2, the Commissioner may establish the basisupon which reasonable and adequate reserves must be created and maintained,which must be no less than 3 percent of the deposits, in:

(a) Cash and duefrom federally insured financial institutions in this state, financialinstitutions insured by a private insurer approved pursuant to NRS 678.755, or any Federal Reserve Bank;

(b) United Statestreasury bills or notes;

(d) Moneydeposited in federally insured financial institutions in this state, financialinstitutions insured by a private insurer approved pursuant to NRS 678.755, or any Federal Reserve Bank.

For the purposes of this subsection, short-term meanshaving a maturity of 2 years or less.

2. The Commissioner shall require a licensee who isinsured by the Federal Deposit Insurance Corporation to comply with the reserverequirements established by that insurer.

(Added to NRS by 1975, 1833; A 1979, 996; 1983, 1819;1985, 2198; 1987, 1999; 1989, 1097; 1993, 2815; 1999, 1451)

NRS 677.240 Authorizationfor change of place of business. If a licenseedesires to change its place of business to a street address other than thatdesignated in its authorization, it shall give written notice to theCommissioner who shall issue his written authorization of the change, if theCommissioner finds such change of place of business would not justify anegative finding.

(Added to NRS by 1975, 1831; A 1983, 1819; 1987,1999)

PROTECTION OF INVESTORS

NRS 677.241 Powerof licensee to obtain benefits of federal programs. Subjectto the prior approval of the Commissioner, a licensee may, by a majority voteof its board of directors:

1. Enter into a contract, incur an obligation andperform other acts necessary to obtain a membership or other benefit that isavailable to a thrift company or its customers, stockholders, conservators,receivers or liquidators pursuant to the provisions of:

(a) The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.); or

(b) The National Housing Act (12 U.S.C. 1701 to1743, inclusive).

2. Subscribe for and acquire any stock, debentures,bonds or other types of securities of the Federal Deposit InsuranceCorporation.

(Added to NRS by 1985, 2193; A 1987, 2000; 1997,1015)

NRS 677.243 Recordsof employees; confidentiality.

1. Each licensee shall maintain a record that includesfor each employee:

(a) His full name;

(b) The address of each place at which he has residedduring the previous 10 years;

(d) A recent photograph of the employee measuring 3 by5 inches; and

(e) Any alias used by the employee.

2. A licensee may comply with the provisions ofsubsection 1 by maintaining the employee identification information requiredpursuant to 26 C.F.R. Part 31.

3. The information contained in the record requiredpursuant to this section must be provided to the Commissioner upon his request,but is otherwise confidential.

(Added to NRS by 1985, 2193; A 1987, 2000; 1997,1015)

NRS 677.245 Limitationon investment in real property; recording deed or other document; subsidiaryledger or other appropriate record.

1. Unless the licensee has received a written waiverfrom the Commissioner, the total amount of money that the licensee has advancedor committed for the real property that it has developed or constructed may notexceed twice the sum of its stockholders equity and any other reservesrequired by the Commissioner.

2. If a licensee acquires title to any real propertypursuant to the provisions of subsection 1 of NRS677.630, the deed or other document representing the transaction must berecorded within a reasonable time after the acquisition of that property.

3. An account must be established for the acquiredproperty with a separate subsidiary ledger or other appropriate record. Theamount carried in the account must be the sum of the unpaid principal balanceof any loan made by the licensee that was secured by the foreclosed propertyplus the cost of the foreclosure less any advance payments held in the accountfor loans in progress at the time of acquisition, together with:

(a) Any amount paid after acquisition for taxes on theproperty that accrued before the acquisition;

(b) Assessments that are due or delinquent at the timeof acquisition;

(d) The cost of insurance on the property.

4. The subsidiary ledger or other appropriate recordmust indicate as to each property:

(a) The type and character of the property;

(b) All the capitalized items of investment and theircost; and

(Added to NRS by 1985, 2193; A 1987, 2000; 1997,1015)

NRS 677.247 Applicantrequired to obtain insurance of deposits; regulations.

1. Except as otherwise provided in subsection 2, anapplicant for an authorization to engage in the business regulated pursuant tothis chapter must obtain:

(a) The insurance of deposits provided pursuant to theprovisions of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.); or

(b) The insurance of deposits provided pursuant to theprovisions of the National Housing Act (12 U.S.C. 1701 to 1743, inclusive).

2. A person who:

(a) Is licensed pursuant to this chapter before October1, 1997; and

(b) Has not obtained the insurance of deposits providedin subsection 1,

may obtain acontract for the insurance of deposits that is issued by a private insurer. Thecontract must be approved by the Commissioner and the Commissioner ofInsurance.

3. The Commissioner shall adopt regulationsprescribing the requirements that must be complied with before a contractissued pursuant to subsection 2 will be approved by him.

(Added to NRS by 1985, 2194; A 1987, 2001; 1997,1016)

BRANCH OFFICES

NRS 677.250 Establishmentand maintenance. When authorized by theCommissioner as provided in this chapter, a licensee, pursuant to a resolutionof its board of directors, may establish and maintain one or more branchoffices within or outside the State.

(Added to NRS by 1975, 1832; A 1983, 1819; 1987,2002; 1997, 1017)

NRS 677.270 Requisitesfor approval of application; notice of approval or denial.

1. The Commissioner shall not approve an applicationfor a branch office until he has ascertained to his satisfaction that the factsset forth in the application are true and:

(a) That public convenience and advantage will bepromoted by the establishment of the proposed branch office.

(b) That the licensee has the stockholders equityrequired by this chapter.

2. The Commissioner must give his approval or denialfor an application for a branch office to the licensee within 45 days after thedate of application to open a branch office unless the Commissioner givesnotice within the original 45-day period that he is extending the period fordecision for a period not to exceed an additional 45 days.

(Added to NRS by 1975, 1832; A 1979, 996; 1983, 1819;1987, 2002; 1997, 1017)

NRS 677.290 Rightto open branch office expires if office not open within 6 months after approvalof application. The failure of a licensee toopen and operate a branch office within 6 months after the Commissionerapproves the application therefor automatically terminates the right of thelicensee to open the branch office.

(Added to NRS by 1975, 1832; A 1979, 996; 1983, 1820;1987, 2002)

NRS 677.300 Authorizationfor change of location; posting of certificate. Whenauthorized by the Commissioner, a licensee may change the location of a branchoffice from one location to another. The Commissioner must give his approval ordenial to the licensee within 25 days from the date of application for a changein branch location unless the Commissioner gives notice within the original25-day period that he is extending the period for decision for a term not toexceed an additional 25 days. Every licensee shall keep posted in a conspicuousplace in each branch office the certificate issued by the Commissioner permittingthe operating of the branch office.

(Added to NRS by 1975, 1832; A 1979, 997; 1983, 1820;1987, 2002)

NRS 677.310 Specifieddesignation of branch offices by name or number required. A licensee which maintains a branch office or branchoffices shall give to each branch office maintained by it a specifieddesignation by name or number and include in the designation the word branchor the word office and shall prominently display the designation at the placeof business of the branch.

(Added to NRS by 1975, 1832)

NRS 677.320 Closingor discontinuance of branch office.

1. With the prior written approval of theCommissioner, a licensee may close or discontinue the operation of any branchoffice if public notice thereof is given in such manner as the Commissionerdirects at least 30 days before the date of closing or discontinuance.

2. After a branch office has been closed ordiscontinued it may not be reopened without the approval of the Commissioner.

(Added to NRS by 1975, 1832; A 1983, 1820; 1987,2003)

NRS 677.330 Mobileoffices.

1. The Commissioner may authorize a licensee tooperate a mobile office.

2. A mobile office must serve its designated area atleast once each 30 days. Each mobile office must be licensed as a branchoffice.

3. Each application for authority to operate a mobileoffice must specify the permanent office of the licensee, either its mainoffice or one of its branches, at which the records of the mobile office willbe kept.

(Added to NRS by 1975, 1833; A 1979, 557; 1983, 1820;1985, 2198; 1987, 2003)

LICENSING

NRS 677.340 Personsineligible for licensing.

1. Except as otherwise provided in NRS 677.545 and chapter666 of NRS, no person doing business under the law of:

(a) Any other state; or

(b) The United States if the principal office of thebusiness is not located in Nevada,

relating tobanks, savings and loan associations or persons licensed under chapter 675 of NRS is eligible to become alicensee under this chapter. This chapter does not apply to any businesstransacted by any such person under the authority of and as permitted by anysuch law.

2. Except as otherwise provided in subsection 3 and chapter 666 of NRS, a subsidiary of a parentcorporation:

(a) One or more of whose other subsidiaries is engagedin any of the activities listed in subsection 1; or

(b) Whose parent corporation is prohibited fromobtaining a license under this chapter,

is noteligible to be licensed under this chapter.

3. Subsection 2 does not apply to a bank which isdoing business under the law of the United States if its principal office islocated in Nevada.

(Added to NRS by 1975, 1833; A 1981, 1594; 1983, 153,1606; 1985, 2159, 2199; 1995, 1564)

NRS 677.350 Applicabilityof chapter to persons who seek to evade. Theprovisions of this chapter apply to any person who seeks to evade itsapplication by any device, subterfuge or pretense whatever, including, but notthereby limiting the generality of the foregoing:

1. The loan, forbearance, use or sale of credit asguarantor, surety, endorser, comaker or otherwise, money, goods or things inaction.

2. The use of collateral or related sales or purchasesof goods or services, or agreements to sell or purchase, whether real orpretended.

3. Receiving or charging compensation for goods orservices, whether or not sold, delivered or provided.

4. The real or pretended negotiation, arrangement orprocurement of a loan through any use or activity of a third person, whetherreal or fictitious.

(Added to NRS by 1975, 1834)

NRS 677.355 Licenseemay own interest in bank or savings and loan association. The provisions of this chapter do not prohibit a licenseeor a person owning an interest in a licensee from obtaining a license or owningan interest in a corporation licensed under chapter659 or 673 of NRS.

(Added to NRS by 1983, 1605)

NRS 677.360 Expiration,renewal and reinstatement of license; fees; regulations.

1. A license expires on December 31 of each year. Onor before that date, each licensee must pay to the Commissioner a fee not morethan $1,000 for the renewal of each license held by him. The Commissioner mayreinstate an expired license upon receipt of the fee for renewal and a fee ofnot more than $400 for reinstatement.

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

(Added to NRS by 1975, 1834; A 1979, 962; 1983, 1328,1821; 1987, 2003; 1989, 923; 2005, 1888)

NRS 677.370 Postingof license; transferability and assignability of license.

1. Each licensee shall conspicuously post each licensein the place of business to which it pertains.

2. No license is transferable or assignable withoutthe permission of the Commissioner.

(Added to NRS by 1975, 1834; A 1983, 1821; 1987,2003)

NRS 677.373 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 to thischapter suspended or revoked within the 10 years immediately preceding the dateof 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, 1886)

NRS 677.375 Suspensionor revocation of license: Additional grounds. Inaddition to any other lawful reasons, the Commissioner may suspend or revoke a licenseif the licensee has engaged in any act that would be grounds for denying alicense pursuant this chapter.

(Added to NRS by 2005, 1887)

ADMINISTRATION AND ENFORCEMENT

Generally

NRS 677.380 Regulationsand orders of Commissioner.

1. The Commissioner may adopt regulations and makeorders for the administration and enforcement of this chapter, in addition toand not inconsistent with this chapter.

2. Any ruling, demand, requirement or similaradministrative act may be promulgated by an order.

3. Every order must be in writing, must state itseffective date and the date of its promulgation, and must be entered in anindexed permanent book which is a public record.

4. A copy of every order containing a requirement ofgeneral application must be mailed to each licensee at least 20 days before theeffective date thereof.

(Added to NRS by 1975, 1834; A 1983, 1822; 1987,2003)

NRS 677.390 Dispositionof money collected pursuant to chapter. Exceptas otherwise provided in NRS 677.160,all fees and charges collected under the provisions of this chapter must bedeposited in the State Treasury pursuant to the provisions of NRS 658.091.

(Added to NRS by 1975, 1834; A 1977, 102; 1983, 1328;1985, 2199; 2003,3234)

Reports, Examinations and Audits

NRS 677.400 Annualreport by licensee; composite reports.

1. Annually, on or before May 15, unless theCommissioner grants a written extension, each licensee shall file with theCommissioner a report of operations of the licensed business for the precedingcalendar year.

2. The report must give information with respect tothe financial condition of the licensee, including, without limitation:

(a) Balance sheets at the beginning and end of theyear;

(b) A statement of income and expenses for the period;

(d) A schedule of the assets used and useful in thelicensed business;

(e) The size of loans and an analysis of charges,including the monthly average number and amount of loans outstanding;

(f ) An analysisof delinquent accounts;

(g) Any court actions undertaken to effect collection;and

(h) Any further statistical information reasonablyprescribed by the Commissioner.

3. The report must be made under oath and be in theform prescribed by the Commissioner.

4. If any person or affiliated group holds more thanone license in this state, that person or group may file a composite annualreport, if a short form of report applicable to each licensed officeaccompanies the report.

5. A licensee may comply with the provisions of thissection by filing with the Commissioner a copy of the annual audit report filedby the licensee with the Federal Deposit Insurance Corporation pursuant to 12U.S.C. 1831m.

(Added to NRS by 1975, 1837; A 1979, 997; 1983, 1822;1987, 2003; 1997, 1017)

NRS 677.410 Preparationof annual reports and financial statements; special reports; extensions;removal of qualification.

1. The annual reports and financial statementsrequired by this chapter must be prepared in accordance with generally acceptedaccounting principles and must be accompanied by a report, certificate, oropinion of an independent certified public accountant or independent publicaccountant, and must contain such relevant information as the Commissioner mayrequire. The audits must be conducted in accordance with generally acceptedauditing standards and the regulations of the Commissioner.

2. A licensee shall make other special reports to theCommissioner as the Commissioner may from time to time require.

3. For good cause and upon written request, theCommissioner may extend the time for compliance with the provisions of thischapter.

4. If the report, certificate or opinion of theindependent accountant is in any way qualified, the Commissioner may requirethe company to take such action as he deems appropriate to permit anindependent accountant to remove such qualification from the report,certificate or opinion.

(Added to NRS by 1975, 1838; A 1983, 1822; 1987,2004)

NRS 677.420 Notificationof change in ownership of stock; application for approval after certainacquisitions; investigation; costs; waiver.

1. A licensee shall notify the Commissioner of anychange in the ownership of 10 percent or more of the outstanding voting stockof the licensee within 3 business days after the licensee has knowledge of thechange.

2. An application for approval must be submitted tothe Commissioner by a person who acquires:

(a) At least 25 percent of a licensees outstandingvoting stock; or

(b) Any outstanding voting stock of a licensee if thechange will result in a change in the control of the licensee.

Except asotherwise provided in subsection 4, the Commissioner shall conduct aninvestigation in accordance with NRS 677.180.If the Commissioner denies the application, he may forbid the applicant fromparticipating in the business of the licensee.

3. The licensee with which the applicant is affiliatedshall pay such a portion of the cost of the investigation as the Commissionerrequires. All money received by the Commissioner pursuant to this subsectionmust be placed in the Investigative Account created by NRS 232.545.

4. A licensee may submit a written request to theCommissioner to waive an investigation pursuant to subsection 2. TheCommissioner may grant a waiver if the applicant has undergone a similarinvestigation by a state or federal agency in connection with the licensing ofor his employment with a financial institution.

(Added to NRS by 1975, 1838; A 1983, 1823; 1985,1348; 1987, 2004; 1991, 1816; 1997, 1018)

NRS 677.430 Commissionerto examine licensees business at least annually; fee.

1. At least once each year, the Commissioner or hisauthorized representatives shall make an examination of the place of businessof each licensee and of the loans, transactions, books, papers and records ofsuch licensee so far as they pertain to the business licensed under thischapter.

2. For each examination the Commissioner shall chargeand collect from the licensee a fee for conducting the examination andpreparing and typing the report of the examination at the rate establishedpursuant to NRS 658.101.

(Added to NRS by 1975, 1835; A 1977, 102; 1983, 1823;1987, 2005, 2227)

NRS 677.435 Independentaudit and examination: Payment of assessment; cooperation. Each licensee 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, 827)

NRS 677.440 Authorityof 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) A licensee;

(b) Any other person engaged in the business describedin this chapter, participating in the business as a principal, agent, broker orotherwise;

(d) 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; and

(e) Any company which is a subsidiary of, affiliatedwith or owned or controlled by a licensee.

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 1975, 1834; A 1983, 1606, 1637,1823; 1987, 2005; 2005,1887)

NRS 677.450 Authorityof Commissioner to require attendance of witnesses and production of documents. The Commissioner may require the attendance of any personand may examine him under oath relative to loans or business regulated by thischapter or the subject matter of any examination, investigation or hearing, andmay require the production of books, accounts, papers and records.

(Added to NRS by 1975, 1835; A 1983, 1823; 1987,2005)

NRS 677.460 Chargingoff assets; regulations and orders. The Commissionermay provide by regulation or order for the charging off of assets considered tobe of little or no value.

(Added to NRS by 1975, 1834; A 1983, 1824; 1987,2006)

NRS 677.470 Licenseeto pay costs of audit of books and records. Inaddition to the annual fee provided by this chapter, the Commissioner shallassess and collect from each licensee the reasonable cost of auditing the booksand records of a licensee.

(Added to NRS by 1975, 1834; A 1983, 1824; 1987,2006)

Remedial Actions

NRS 677.480 Orderof Commissioner directing discontinuance of unsafe or injurious practice. If it appears to the Commissioner any company is conductingbusiness in an unsafe or injurious manner, he may by written order direct thediscontinuance of any unsafe or injurious practices.

(Added to NRS by 1975, 1835; A 1983, 1824; 1987,2006)

NRS 677.490 Surrenderof license by licensee; surrender as affecting licensees liability. Any licensee may surrender any license by delivering it tothe Commissioner with written notice of its surrender, but a surrender does notaffect his civil or criminal liability for acts committed before the surrender.

(Added to NRS by 1975, 1835; A 1983, 1824; 1987,2006)

NRS 677.500 Temporarysuspension of license: Conditions; notice; hearing; term of suspension. If the Commissioner finds that probable cause for revocationof any license exists and that enforcement of this chapter requires immediatesuspension of a license pending investigation, he may, upon 5 days writtennotice and without a hearing, enter an order suspending a license for a periodnot exceeding 20 days pending the holding of a hearing.

(Added to NRS by 1975, 1835; A 1977, 96; 1983, 1824;1987, 2006)

NRS 677.510 Revocationor suspension of license: Grounds; notice; hearing; order.

1. If the Commissioner has reason to believe thatgrounds for revocation or suspension of a license exist, he shall give 20 dayswritten notice to the licensee stating the contemplated action and, in general,the grounds therefor and set a date for a hearing.

2. At the conclusion of a hearing, the Commissionershall:

(a) Enter a written order either dismissing thecharges, or revoking the license, or suspending the license for a period of notmore than 60 days, which period must include any prior temporary suspension. Acopy of the order must be sent by registered or certified mail to the licensee.

(b) Impose upon the licensee an administrative fine ofnot more than $10,000 for each violation by the licensee of any provision ofthis chapter or any lawful regulation adopted pursuant thereto.

(c) If a fine is imposed pursuant to this section,enter such order as is necessary to recover the costs of the proceeding,including his investigative costs and attorneys fees.

3. The grounds for revocation or suspension of alicense are that:

(a) The licensee has failed to pay the annual licensefee;

(b) The licensee, either knowingly or without anyexercise of due care to prevent it, has violated any provision of this chapter,or any lawful regulation adopted pursuant thereto;

(d) Any fact or condition exists which would havejustified the Commissioner in denying the licensees original application for alicense hereunder; or

(e) The applicant failed to open an office for theconduct of the business authorized under this chapter within 120 days after thedate the license was issued, or has failed to remain open for the conduct ofthe business for a period of 120 days without good cause therefor.

4. Any revocation or suspension applies only to thelicense granted to a person for the particular office for which grounds forrevocation or suspension exist.

5. An order suspending or revoking a license becomeseffective 5 days after being entered unless the order specifies otherwise or astay is granted.

(Added to NRS by 1975, 1836; A 1983, 1824; 1987,2006; 1993, 902; 2003, 20thSpecial Session, 227; 2005, 1888)

NRS 677.520 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense. The revocation, suspension,expiration or surrender of any license does not impair or affect the obligationof any preexisting lawful contract between the licensee and any obligors. Sucha contract and all lawful charges thereon may be collected by the licensee, itssuccessors or assigns.

(Added to NRS by 1975, 1837; A 1989, 923)

NRS 677.530 Orderto desist or refrain; action to enjoin violations; appointment and powers ofreceiver.

1. Whenever the Commissioner has reasonable cause tobelieve that any person is violating or is threatening to or intends to violateany provision of this chapter, he may, in addition to all actions provided forin this chapter and without prejudice thereto, enter an order requiring theperson to desist or to refrain from such violation.

2. An action may be brought on the relation of theAttorney General and the Commissioner to enjoin a person from engaging in orcontinuing a violation or from doing any act or acts in furtherance thereof. Inany such action, an order or judgment may be entered awarding such preliminaryor final injunction as may be deemed proper.

3. In addition to all other means provided by law forthe enforcement of a restraining order or injunction, the court in which anaction is brought may impound, and appoint a receiver for, the property andbusiness of the defendant, including books, papers, documents and recordspertaining thereto, or so much thereof as the court deems reasonably necessaryto prevent violations of this chapter through or by means of the use of theproperty and business. Such receiver, when appointed and qualified, has suchpowers and duties as to custody, collection, administration, winding up andliquidation of such property and business as are from time to time conferredupon him by the court.

(Added to NRS by 1975, 1835; A 1983, 1825; 1987,2007)

NRS 677.540 Takingpossession of business by Commissioner: Conditions; resumption of business. Whenever it appears to the Commissioner that:

1. The stockholders equity of any licensee is lessthan its initial stockholders equity;

2. Any licensee has violated its articles ofincorporation or any law of this state;

3. Any licensee is conducting its business in anunsafe or unauthorized manner;

4. Any licensee refuses to submit its books, papersand affairs to the inspection of any examiner;

5. Any officer of any licensee refuses to be examinedupon oath touching the concerns of the licensee;

6. Any licensee has suspended payment of itsobligations;

7. Any licensee is in a condition that it is unsoundor unsafe for it to transact business;

8. Any licensee neglects or refuses to observe anyorder of the Commissioner made pursuant to this chapter unless the enforcementof the order is restrained in a proceeding brought by the licensee;

9. Any licensee has accepted deposits in violation ofthe provisions of this chapter; or

10. Any fact or condition exists which, if it hadexisted at the time of the original application for authority to organize andestablish a corporation to engage in business under this chapter, it reasonablywould have warranted the disapproval of the application by the Commissioner,

theCommissioner may forthwith take possession of the property and business of thelicensee and retain possession until it resumes business or its affairs arefinally liquidated as provided in this chapter. The licensee, with the consentof the Commissioner, may resume business upon such conditions as theCommissioner may prescribe.

(Added to NRS by 1975, 1836; A 1983, 1825; 1985,2199, 2200; 1987, 2007; 1997, 1018)

NRS 677.545 Takingpossession of business by Commissioner: Acquisition by or merger with anotherinstitution.

1. Except as limited by subsection 2, if theCommissioner has taken possession of the property and business of a corporationlicensed under this chapter pursuant to NRS677.540, or a receiver, other than the State, has been appointed for andtaken possession of the property and business of a corporation, theCommissioner may solicit offers from and authorize or require the acquisitionof the corporation by or its merger with another institution or company in thefollowing order of priority:

(a) A corporation which is licensed pursuant to thischapter.

(b) Any other depository institution licensed under thelaws of this state or of the United States if its principal office is locatedin this state, including institutions whose parent corporation has offices oroperations in other states.

(c) A bank, savings and loan association or thriftcompany, or its parent corporation, licensed pursuant to the laws of the UnitedStates or of another state, whose operations are principally conducted withinthe state of Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New Mexico,Oregon, Utah, Washington or Wyoming.

(d) A bank, savings and loan association or thriftcompany, or its parent corporation, licensed pursuant to the laws of the UnitedStates or of another state, whether or not its principal place of business isin another state.

TheCommissioner shall solicit written offers from all eligible institutions, regardlessof the order of priority established by this subsection, and wait at least 30days after solicitation before selecting the institution to be approved.

2. The selection of an institution must be made inaccordance with the order of priority established in subsection 1 only if aselection affords the greatest financial recovery by the corporationsdepositors of all offers received. The Commissioner may not accept any offerwhich affords the corporations depositors a smaller financial recovery thanthey would receive if the corporation were liquidated. If the commissionerreceives one or more acceptable offers he may negotiate with the institutionssubmitting acceptable offers, following that order of priority, and accept thatoffer which would afford the greatest financial recovery by the corporationsdepositors.

(Added to NRS by 1985, 2195; A 1987, 1315, 2008)

NRS 677.550 Ordersuspending or limiting payment of liabilities; effect of order; assignment orhypothecation of indebtedness.

1. The Commissioner may order a licensee to suspendthe payment of its liabilities or limit the payment of its liabilities in suchmanner as he prescribes, if it appears to the Commissioner that this action isnecessary for the protection of the licensee, its depositors or creditors, orin the public interest. The order is effective upon receipt of notice by thelicensee and continues in effect until rescinded or modified by theCommissioner in a writing delivered to the manager or executive officer of thelicensee.

2. Subsection 1 does not affect the right of anylicensee to pay its current operating expenses and liabilities incurred duringthe period of suspension or limitation.

3. After an order suspending or limiting the paymentof liabilities is effective and until that order is rescinded, the licenseeshall make no assignment or hypothecation of any indebtedness due to it from adepositor without first crediting thereon the liability of the licensee to thedepositor.

4. The authority granted to the Commissioner by thissection may be exercised by him in conjunction with all other powers granted bythis chapter, or independently from them.

(Added to NRS by 1975, 1837; A 1983, 1826; 1985,2200, 2201; 1987, 2009)

NRS 677.560 Applicationby licensee to enjoin further proceedings. Wheneverthe Commissioner has taken possession of the property and business of anylicensee, a licensee, within 10 days after a taking, if it deems itselfaggrieved thereby, may apply to the district court in the county in which themain office of the licensee is located to enjoin further proceedings. Thecourt, after citing the Commissioner to show cause why further proceedingsshould not be enjoined and after a hearing and a determination of the factsupon the merits may dismiss such application or enjoin the Commissioner fromfurther proceedings and direct him to surrender the property and business tosuch licensee, or make such further order as may be just.

(Added to NRS by 1975, 1837; A 1983, 1826; 1987,2009)

NRS 677.570 Authorityof Commissioner to liquidate or conserve company. Whenthe Commissioner takes possession of the property and business of any companyfor the purpose of liquidation or conservation, he may liquidate or conservethe company. In such a liquidation or conservation the Commissioner has thesame authority with reference to licensees as are vested in the Commissioner bytitle 55 of NRS with reference to banks and in addition may deposit moneycoming into his hands in the course of liquidation in one or more state ornational banks or credit unions.

(Added to NRS by 1975, 1837; A 1983, 1827; 1987,2010; 1999, 1452)

GENERAL REGULATIONS

NRS 677.580 Useof holding company or other device for evading or avoiding chapter prohibited;right to issue preferred stock or debentures not affected. A holding company or any other device may not be used forthe purpose of evading or avoiding any of the provisions of this chapter. Thissection does not affect the right of a company to issue preferred stock ordebentures when permitted to do so under the laws of this state.

(Added to NRS by 1975, 1838)

NRS 677.590 Issuanceof thrift certificates prohibited; exception.

1. Except as otherwise provided in subsection 2, thischapter does not permit a licensee to issue thrift certificates.

2. A licensee who maintains a branch office locatedoutside this state may issue thrift certificates and any other securities thatare permitted to be issued by a licensee pursuant to the laws of the state inwhich the branch office is located.

(Added to NRS by 1975, 1844; A 1985, 2201; 1997,1019)

NRS 677.600 Permissibledepositories. A licensee shall not deposit anyof its money with any other moneyed corporation, unless that corporation hasbeen designated as a depository by a majority vote of the directors or theexecutive committee, exclusive of any director who is an officer, director ortrustee of the depository so designated. Such a depository must be a federallyinsured financial institution, a financial institution insured by a privateinsurer approved pursuant to NRS 678.755or any Federal Reserve Bank.

(Added to NRS by 1975, 1844; A 1985, 2202; 1997,1019; 1999, 1452)

NRS 677.610 Authorizedinvestments. A licensee shall not invest anyof its money, except:

1. As authorized in this chapter;

2. In legal investments for banks, credit unions orsavings associations; or

3. To the extent of 5 percent or less of its totalassets, in preferred stock of corporations which have been given a rating ofA or better by a national rating service and which are not in default in thepayment of dividends.

(Added to NRS by 1975, 1844; A 1981, 1025; 1987,1244; 1999, 1452)

NRS 677.612 Authorityto accept deposit by fiduciary in trust; payment to fiduciary of withdrawalvalue and interest.

1. A deposit may be made with a licensee by anyadministrator, executor or guardian of an estate, a trustee or other fiduciaryin trust for a named beneficiary or beneficiaries.

2. The fiduciary may make additional deposits andwithdraw the deposit, in whole or in part.

3. The withdrawal value of the deposit and theinterest thereon, or other rights relating to the deposit, may be paid ordelivered to the fiduciary, and the payment or delivery to the fiduciary or areceipt or acquittance signed by the fiduciary to whom any payment or deliveryof rights is made, is a valid and sufficient release and discharge of thelicensee for the payment or delivery so made.

(Added to NRS by 1987, 1243)

NRS 677.614 Paymentof withdrawal value and interest to beneficiary upon death of fiduciary.

1. If a person who has made a deposit as a trustee orother fiduciary, in trust for a named beneficiary or beneficiaries, dies and nowritten notice of the revocation or termination of the trust relationship hasbeen given to the licensee, the withdrawal value of the deposit and theinterest thereon or other right relating to the deposit may, at the option ofthe licensee, be paid or delivered, in whole or in part, to the namedbeneficiary or beneficiaries of the trust.

2. The payment or delivery to the beneficiary orbeneficiaries is a release and discharge of the licensee for the payment ordelivery of the deposit.

(Added to NRS by 1987, 1243)

NRS 677.616 Depositby and payment to minor.

1. If a deposit is made with a licensee by a minor,the licensee may pay to the depositor such sums as may be due him, and thereceipt of the minor to the licensee is valid.

2. A licensee may operate a deposit account in the nameof a minor or in the name of two or more persons one or more of whom are minorswith the same effect upon its liability as if the minors were of lawful age.

(Added to NRS by 1987, 1243)

NRS 677.620 Limiton deposits; limit on total borrowings; borrowing money from Federal Home LoanBank.

1. Except as otherwise provided in subsections 2 and3, a licensee shall not have at any time deposits in an aggregate sum in excessof 10 times the aggregate amount of its stockholders equity.

2. A licensee insured by the Federal Deposit InsuranceCorporation shall comply with the limits imposed by that insurer, if any.

3. If a licensee has operated under this chapter for 1year or more and during its most recent fiscal year has been profitable, theCommissioner may increase the ratio of deposits to stockholders equityprescribed in subsection 1 to not more than the greatest net worth to savingsratio permitted for any savings and loan association operating in this state.The Commissioner shall give his approval or denial of the application for anincreased ratio to the licensee in writing with supporting reasons within 30days after the date of the application submitted by the licensee unless theCommissioner gives notice within the original 30-day period that he isextending the period for decision for a period not to exceed an additional 30days. The Commissioner may, for reasonable cause, decrease the ratio authorizedunder this subsection at any time, but not below the ratio prescribed insubsection 1.

4. A licensee may not have total borrowings, exclusiveof deposits, which exceed the larger of:

(a) Five times its stockholders equity; or

(b) The face amount of total deposits at the time aborrowing is made.

5. A licensee may borrow money from a Federal HomeLoan Bank. Money borrowed pursuant to this subsection shall not be deemedborrowed money for the purposes of the limitations prescribed in subsection 4.A licensee may pledge any of its assets as collateral security for moneyborrowed pursuant to this subsection.

(Added to NRS by 1975, 1844; A 1977, 1045; 1979, 997;1981, 1025; 1983, 1607, 1638, 1827; 1985, 2202, 2203; 1987, 2010; 1989, 1098;1993, 2816; 1997, 1019)

NRS 677.630 Permissibletransactions in real property.

1. A licensee may purchase, hold, develop and conveyreal property, including apartments and other buildings, for the followingpurposes only:

(a) Real property conveyed to it in satisfaction ofdebts contracted in the course of its business.

(b) Real property purchased at sale under judgments,decrees or mortgage foreclosures or foreclosures of or trustees sales underdeeds of trust, or pursuant to an order of a bankruptcy court. A licensee shallnot bid against its debtor at any such sale in a larger amount than isnecessary to satisfy its debt and costs.

(c) Real property necessary as premises for thetransaction of its business. A licensee shall not invest directly or indirectlyan amount exceeding one-third of its stockholders equity in the lot andbuilding in which the business of the company is carried on, furniture andfixtures, and vaults, necessary and proper to carry on its business.

(d) Real property purchased or held for the purpose ofdevelopment. An investment for this purpose must not exceed the market value ofthe property as evidenced by an appraisal prepared by a member of the AmericanInstitute of Real Estate Appraisers, the National Association of ReviewAppraisers and Mortgage Underwriters, the Society of Real Estate Appraisers orthe Independent Fee Appraisers Society or an appraiser approved by thecommissioner. Within 120 days after the investment is made:

(1) The licensee shall provide the Commissionerwith a certified copy of one or more appraisal reports and a report from atitle insurer which shows, for not less than the immediately preceding 3 years,the chain of title and the amount of consideration for which the title wastransferred, if that information is available.

(2) The Commissioner may require a statementfrom the licensee disclosing whether any director, officer or employee of thelicensee has, or has had within the immediately preceding 3 years, any director indirect interest in the property. For the purposes of this subparagraph,interest includes ownership of stock in a corporation which has an interestin the property.

If the totalamount to be invested in real property for residential development, excludingany real property which is mortgaged to the licensee as security for moneyowing to the licensee, exceeds the stockholders equity of the licensee, theinvestment may not be made without the written approval of the Commissioner.Any person who fails to make a disclosure required by this section is guilty ofa misdemeanor.

2. No real estate acquired pursuant to paragraph (a) or(b) of subsection 1 may be held for a longer period than 5 years unless it hasbeen improved by the licensee and is producing a fair income based upon theappraised value.

(Added to NRS by 1975, 1844; A 1981, 1026; 1983,1828; 1985, 2204, 2205; 1987, 1244, 2011; 1989, 1099; 1997, 1020)

NRS 677.640 Conductof business in place where other business being conducted; name under whichbusiness may be transacted; loans by mail. Alicensee shall not make loans or accept deposits under this chapter:

1. Within any office, suite, room or place of businessin which any other business is solicited or engaged in, except an insuranceagency or notary public, or in association or conjunction with any otherbusiness unless authority to do so is given by the Commissioner.

2. Under any name or at any place other than thatstated in the license.

This sectiondoes not prevent the making of loans by mail or prohibit accommodations toindividual borrowers when necessitated by hours of employment, sickness orother emergency situations.

(Added to NRS by 1975, 1832; A 1983, 1828; 1985,2205, 2206; 1987, 2011)

NRS 677.645 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, 1887)

NRS 677.650 Makingloan to or purchasing contract or chose in action from officer, director orother specified person prohibited; exception; personal liability.

1. Except as otherwise provided in subsection 2, alicensee shall not directly or indirectly make any loan to, or purchase acontract or chose in action from:

(a) A person who is an officer, director or holder ofrecord or beneficiary of 10 percent or more of the shares of the licensee;

(b) A person in which an officer, director or holder ofrecord or beneficiary of 10 percent or more of the shares of the licenseedirectly or indirectly is financially interested; or

(c) A person who acquired the contract directly orindirectly or through intervening assignments from a person described inparagraph (a) or (b),

unless thelicensee has been authorized by the Commissioner to make that loan or purchasethat contract or chose in action from that person.

2. Loans may be made to an officer, director orstockholder of the licensee, upon collateral of his deposits with the licensee,of not more than 90 percent of the amount of his deposits, at the same rates ofinterest and under the same terms as loans secured by deposits are offered tomembers of the general public.

3. Any officer, director or stockholder of a licenseewho:

(a) Knowingly and intentionally makes or procures orparticipates in making or procuring, directly or indirectly, a loan or contractin violation of this section; or

(b) Knowingly approves a loan or contract in violationof this section,

ispersonally liable for any loss resulting to the licensee from the loan orcontract, in addition to any other penalties provided by law.

(Added to NRS by 1975, 1845; A 1981, 1027; 1985,2206; 1997, 1021)

NRS 677.660 Advertising:Prohibitions; insurance of deposits.

1. A person shall not advertise, print, display,publish, distribute or broadcast or cause or permit to be advertised, printed,displayed, published, distributed or broadcast, in any manner, any statement orrepresentation with regard to the rates, terms or conditions for making ornegotiating loans, or with regard to deposits, which is false, misleading ordeceptive.

2. Except as otherwise provided in this subsection, alicensee shall not use any advertising or make any representations whichindicate, imply or might lead a person to believe that it is a bank, a thriftcompany or a savings bank, unless it is insured by the Federal DepositInsurance Corporation. The provisions of this subsection do not apply to athrift company that does not accept money for deposit.

3. A licensee whose deposits are insured by theFederal Deposit Insurance Corporation shall include that information in itsadvertising relating to deposits.

(Added to NRS by 1975, 1844; A 1985, 348, 2207; 1989,1099; 1993, 2817; 1997, 1022)

NRS 677.665 Formationof bank. A corporation authorized to engage inbusiness pursuant to this chapter may form a bank pursuant to the provisions ofsubsection 2 of NRS 659.015.

(Added to NRS by 1997, 1014)

LOANS; POWERS AND PRIVILEGES

NRS 677.720 Requirementsfor making and paying of loans: Duties of licensee.

1. Every licensee shall:

(a) Deliver to the borrower, or if more than one, toone of them, at the time of making a loan under this chapter a copy of the loanobligation or, in lieu thereof, a statement showing in clear and distinct termsthe date of the loan and amount of loan obligation and the date of itsmaturity, the nature of the security, if any, for the loan, the name andaddress of the borrower and of the licensee, and the description or schedule ofpayments on the loan.

(b) Except as otherwise provided in subsection 2, giveto the person making any cash payment on account of any loan a receipt at thetime the payment is made, which receipt must show the balance due, if any,after application of the payment. A receipt for the amount of the payment onlymay be given temporarily and replaced within a reasonable time with a receiptas prescribed in this paragraph.

(c) Permit payment in advance in an amount equal to oneor more full installments at any time during the regular business hours of thelicensee.

(d) Upon repayment of a loan in full, mark plainlyevery note or other evidence of the indebtedness or assignment signed by anyobligor with the word paid or cancelled, and release or provide theborrower with evidence to release any mortgage or security instrument no longersecuring any indebtedness to the licensee.

2. In lieu of the receipt mentioned in paragraph (b) ofsubsection 1, the licensee may issue a coupon payment book to the borrowersetting forth the amount and due date of each installment and containing apayment record stub corresponding to each coupon.

(Added to NRS by 1975, 1842; A 1989, 1100)

NRS 677.730 Interest,charges and repayment. A licensee may lend anyamount of money:

1. At any rate of interest;

2. Subject to the imposition of any charge in anyamount; and

3. Upon any schedule of repayment,

to which theparties may agree.

(Added to NRS by 1975, 1842; A 1979, 1000; 1985,2208; 1989, 1100; 1997, 1022)

NRS 677.750 Prohibitedpractices by licensee. A licensee shall not:

1. Take any confession of judgment or any power ofattorney running to himself or to any third person to confess judgment or toappear for the borrower in a judicial proceeding.

2. Take any note or promise to pay which does notdisclose the date and amount of the loan obligation, a schedule or descriptionof the payments to be made thereon, and the rate or aggregate amount of agreedcharges.

3. Take any instrument in which blanks are left to befilled in after the loan is made.

(Added to NRS by 1975, 1843)

NRS 677.760 Restrictionon percentage of loans secured by stocks or bonds of any one obligor;exception.

1. Alicensee shall not lend in the aggregate more than 10 percent of its stockholdersequity upon:

(a) The security of the stock of any one corporation,which stock, except as otherwise provided in subsection 2, may not exceed 10percent of the outstanding stock of that corporation.

(b) The security of the bonds of any one obligorexcept:

(1) Bonds of the United States or for thepayment of which the credit of the United States is pledged;

(2) Bonds of the State of Nevada, or for thepayment of which the credit of the State of Nevada is pledged; and

(3) Bonds which are general obligations of anycounty, city, metropolitan water district, school district or irrigationdistrict of the State of Nevada.

2. The stock of a corporation upon the security ofwhich a licensee loans money pursuant to paragraph (a) of subsection 1 mayexceed 10 percent of the outstanding stock of that corporation if:

(a) The licensee has secured collateral, other thandeposits with the licensee, which has a market value of not less than 115percent of the amount loaned; or

(b) The loans are secured by deposits with the licenseeand the amount of the money loaned does not exceed 90 percent of the depositsused as collateral.

(Added to NRS by 1975, 1843; A 1989, 1101; 1997,1022)

NRS 677.770 Limitationson amount of secured loans or obligations of any one obligor. Secured loans or obligations of any one person as primaryobligor made or held by a licensee may not, in any event, exceed in theaggregate 25 percent of the stockholders equity of the licensee. Loans securedby deposits with the licensee must not be included in applying this limitation.

(Added to NRS by 1975, 1843; A 1985, 2208; 1987,1245; 1989, 1101; 1993, 2817; 1997, 1023)

NRS 677.780 Loansmay be made to any person; exceptions; property situated outside of State.

1. Except as provided in NRS 677.770 and 677.790, a licensee may make loans to anyperson, secured by real or personal property, without regard to the location ornature of the security.

2. Any loan made on property situated outside thisstate which is lawful under the laws of the state in which the property issituated may be collected or otherwise enforced in this state in accordancewith its terms.

(Added to NRS by 1975, 1843; A 1985, 2209)

NRS 677.790 Powersof licensee. Except as provided in NRS 677.770, a licensee may:

1. Make loans secured by, and purchase, sell ordiscount in any amount:

(a) Bona fide trust receipts;

(b) Secured choses in action;

(d) Conditional sales contracts;

(e) Security agreements;

(f) Leases;

(g) Lien contracts; and

(h) Deeds of trust.

2. Accept deposits, including deposits payable on demandand time deposits, and issue certificates of deposit.

3. Enter into leases and purchase equipment for thoseleases.

(Added to NRS by 1975, 1843; A 1979, 1000; 1983,1608; 1985, 2209; 1987, 1245)

NRS 677.795 Authorityto exercise powers of banks. A licensee may,with the approval of the Commissioner, exercise any authority, right, power andprivilege, and perform any act and enjoy the same immunities as banks licensedpursuant to chapter 659 of NRS.

(Added to NRS by 1987, 1243; A 1987, 2024)

UNLAWFUL ACTS; PENALTIES

NRS 677.800 Violationof provisions of chapter. Any person and themembers, officers, directors, agents and employees thereof who knowingly and intentionallyviolate or participate in the violation of any provision of this chapter areguilty of a misdemeanor, unless a greater penalty is provided in this chapter.

(Added to NRS by 1975, 1845; A 1997, 1023)

NRS 677.805 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, without a license, conducts any business or activity forwhich a license is required pursuant to the provisions of this chapter.

(Added to NRS by 2005, 1887)

NRS 677.810 Receivingcertain compensation or property; making false entry in books or records;embezzlement. A director, officer or employeeof a licensee who:

1. Asks for or receives or consents or agrees toreceive any commission, emolument or gratuity or any money, property or thingof value for procuring or endeavoring to procure for a person any loan from thelicensee, or the purchase or discount of any note, contract or other obligationor property by the licensee;

2. Knowingly receives or possesses himself of any ofits property otherwise than in payment of a just demand, or with the intent todefraud omits to make or cause to be made a full and true entry thereof in itsbooks and accounts or concurs in omitting to make any material entry thereof;

3. Knowingly makes or concurs in making or publishingany false entry in its books or records, any written report, exhibit orstatement of its affairs or pecuniary condition containing any materialstatement which is false, or having the custody of its books willfully refusesor neglects to make any proper entry in the books as required by law, or toexhibit or allow them to be inspected or extracts to be taken therefrom by theCommissioner or his deputies or investigators, or alters, conceals, destroys orremoves any book or record;

4. Embezzles, abstracts or willfully misapplies themoney, securities or credits of a licensee, or who, with the intent to injureor defraud the licensee or a customer of the licensee:

(a) Issues or puts forth a deposit;

(b) Draws a draft, bill of exchange or mortgage; or

5. Knowingly aids or abets the commission of an actprohibited by this section,

is guilty ofa category C felony and shall be punished as provided in NRS 193.130, or by a fine of not more than$50,000, or by both fine and the punishment provided in NRS 193.130. In addition to any otherpenalty, the court shall order the person to pay restitution.

(Added to NRS by 1975, 1845; A 1983, 1829; 1985,2210; 1987, 2012; 1995, 1317)

NRS 677.820 Fraudulentinsolvency; malfeasance of directors. Everydirector of a licensee who:

1. In case of the fraudulent insolvency of suchcompany, participated in such fraud; or

2. Willfully does any act as such director which isexpressly forbidden by law or willfully omits to perform any duty imposed uponhim as such director by law,

is guilty ofa misdemeanor. The insolvency of a licensee is fraudulent for the purposes ofthis section, unless its affairs appear upon investigation to have been administeredclearly, legally and with the same care and diligence that agents receiving acompensation for their services are bound by law to observe.

(Added to NRS by 1975, 1845)

NRS 677.830 Makingloan or purchasing contract in violation of chapter. Adirector, officer or employee of a licensee who concurs in any vote or act bywhich it is intended to make a loan or purchase a contract in violation of thischapter is guilty of a misdemeanor.

(Added to NRS by 1975, 1846)

NRS 677.840 Depositof companys money on condition of loan or advance. Anydirector, officer or employee of any licensee who makes or maintains, orattempts to make or maintain, a deposit of such companys funds with any otherperson on condition, or with the understanding, express or implied, that theperson receiving such deposit make a loan or advance, directly or indirectly,to any director, officer or employee of the licensee so making or maintainingor attempting to make or maintain such deposit, is guilty of a misdemeanor.

(Added to NRS by 1975, 1846)

NRS 677.850 Acceptingdeposits with knowledge of insolvency of company or violation of chapter. Each officer or employee of any company who acceptsdeposits knowing:

1. That the company is insolvent; or

2. That the acceptance violates any provision of thischapter or any order or regulation of the Commissioner,

is guilty ofa category D felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1975, 1846; A 1983, 1829; 1985,2211; 1987, 2012; 1995, 1318)

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