[Rev. 11/21/2013 1:05:21 PM--2013]

CHAPTER 677 - THRIFT COMPANIES

GENERAL PROVISIONS

NRS 677.010           Short title.

NRS 677.020           Definitions.

NRS 677.030           “Amount of cash advance” defined.

NRS 677.040           “Amount of loan obligation” defined.

NRS 677.050           “Borrowings” defined.

NRS 677.060           “Charges” defined.

NRS 677.065           “Commissioner” defined.

NRS 677.070           “Community” defined.

NRS 677.075           “Deposit” defined.

NRS 677.090           “Gross amount” defined.

NRS 677.100           “License” defined.

NRS 677.110           “Licensee” defined.

NRS 677.115           “Loan” defined.

NRS 677.125           “Stockholders’ equity” defined.

NRS 677.130           “Thrift certificate” defined.

NRS 677.140           “Unpaid principal balance” defined.

NRS 677.145           Certain relationships between employee of Division of Financial Institutions and licensee prohibited; termination of prohibited relationship.

NRS 677.147           Applicability of chapters 78 and 92A of NRS.

FORMATION

NRS 677.150           Authorization by Commissioner.

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

NRS 677.170           Fidelity bond.

NRS 677.175           Additional bond.

NRS 677.180           Investigation and examination of applicant.

NRS 677.190           Requisites for approval of application.

NRS 677.200           Qualifications of president and certain managers of corporation.

NRS 677.210           Minimum stockholders’ equity required.

NRS 677.220           Certificate of authorization to transact business.

NRS 677.230           Reserves.

NRS 677.240           Authorization for change of place of business.

PROTECTION OF INVESTORS

NRS 677.241           Power of licensee to obtain benefits of federal programs.

NRS 677.243           Records of employees; confidentiality.

NRS 677.245           Limitation on investment in real property; recording deed or other document; subsidiary ledger or other appropriate record.

NRS 677.247           Applicant required to obtain insurance of deposits; regulations.

BRANCH OFFICES

NRS 677.250           Establishment and maintenance.

NRS 677.270           Requisites for approval of application; notice of approval or denial.

NRS 677.290           Right to open branch office expires if office not open within 6 months after approval of application.

NRS 677.300           Authorization for change of location; posting of certificate.

NRS 677.310           Specified designation of branch offices by name or number required.

NRS 677.320           Closing or discontinuance of branch office.

NRS 677.330           Mobile offices.

LICENSING

NRS 677.340           Persons ineligible for licensing.

NRS 677.350           Applicability of chapter to persons who seek to evade.

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

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

NRS 677.370           Posting of license; transferability and assignability of license.

NRS 677.373           Application for license: Additional requirements; fingerprints; grounds for refusal to issue license.

NRS 677.375           Suspension or revocation of license: Additional grounds.

ADMINISTRATION AND ENFORCEMENT

Generally

NRS 677.380           Regulations and orders of Commissioner.

NRS 677.390           Disposition of money collected pursuant to chapter.

 

Reports, Examinations and Audits

NRS 677.400           Annual report by licensee; composite reports.

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

NRS 677.420           Notification of change in ownership of stock; application for approval after certain acquisitions; investigation; costs; waiver.

NRS 677.430           Commissioner to examine licensee’s business at least annually; fee.

NRS 677.435           Independent audit and examination: Payment of assessment; cooperation.

NRS 677.440           Authority of Commissioner to investigate business; free access required; compelling attendance of witnesses.

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

NRS 677.460           Charging off assets; regulations and orders.

NRS 677.470           Licensee to pay costs of audit of books and records.

 

Remedial Actions

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

NRS 677.490           Surrender of license by licensee; surrender as affecting licensee’s liability.

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

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

NRS 677.520           Preexisting contracts unaffected by revocation, suspension, expiration or surrender of license.

NRS 677.530           Order to desist or refrain; action to enjoin violations; appointment and powers of receiver.

NRS 677.540           Taking possession of business by Commissioner: Conditions; resumption of business.

NRS 677.545           Taking possession of business by Commissioner: Acquisition by or merger with another institution.

NRS 677.550           Order suspending or limiting payment of liabilities; effect of order; assignment or hypothecation of indebtedness.

NRS 677.560           Application by licensee to enjoin further proceedings.

NRS 677.570           Authority of Commissioner to liquidate or conserve company.

GENERAL REGULATIONS

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

NRS 677.590           Issuance of thrift certificates prohibited; exception.

NRS 677.600           Permissible depositories.

NRS 677.610           Authorized investments.

NRS 677.612           Authority to accept deposit by fiduciary in trust; payment to fiduciary of withdrawal value and interest.

NRS 677.616           Deposit by and payment to minor.

NRS 677.620           Limit on deposits; limit on total borrowings; borrowing money from Federal Home Loan Bank.

NRS 677.630           Permissible transactions in real property.

NRS 677.640           Conduct of business in place where other business being conducted; name under which business may be transacted; loans by mail.

NRS 677.645           Use or change of business name; prohibitions.

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

NRS 677.660           Advertising: Prohibitions; insurance of deposits.

NRS 677.665           Formation of bank.

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

NRS 677.673           Definitions.

NRS 677.677           “Designated reporter” defined.

NRS 677.683           “Exploitation” defined.

NRS 677.687           “Older person” defined.

NRS 677.693           “Reasonable cause to believe” defined.

NRS 677.697           “Vulnerable person” defined.

NRS 677.703           Training; reporting to designated reporter.

NRS 677.707           Designated reporter: Designation; duty to report; immunity.

LOANS; POWERS AND PRIVILEGES

NRS 677.720           Requirements for making and paying of loans: Duties of licensee.

NRS 677.730           Interest, charges and repayment.

NRS 677.750           Prohibited practices by licensee.

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

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

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

NRS 677.790           Powers of licensee.

NRS 677.795           Authority to exercise powers of banks.

UNLAWFUL ACTS; PENALTIES

NRS 677.800           Violation of provisions of chapter.

NRS 677.805           Administrative fines.

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

NRS 677.820           Fraudulent insolvency; malfeasance of directors.

NRS 677.830           Making loan or purchasing contract in violation of chapter.

NRS 677.840           Deposit of company’s money on condition of loan or advance.

NRS 677.850           Accepting deposits with knowledge of insolvency of company or violation of chapter.

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GENERAL PROVISIONS

      NRS 677.010  Short title.  This chapter may be cited as the Nevada Thrift Companies Act.

      (Added to NRS by 1975, 1829)

      NRS 677.020  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 677.030 to 677.140, inclusive, have the 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  “Amount of cash advance” defined.  “Amount of cash advance” means the amount of cash or its equivalent actually received by a borrower or paid out at his or her direction or on his or her behalf.

      (Added to NRS by 1975, 1829)

      NRS 677.040  “Amount of loan obligation” defined.  “Amount of loan obligation” means the amount of cash advance plus the aggregate of charges added thereto pursuant to authority of this chapter.

      (Added to NRS by 1975, 1829)

      NRS 677.050  “Borrowings” defined.  “Borrowings” means liability to any thrift investor or financial institution.

      (Added to NRS by 1975, 1829)

      NRS 677.060  “Charges” defined.  “Charges” include:

      1.  The aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses and other forms of costs charged, contracted for or received by a licensee or any other person in connection with the investigating, 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 person may contract for, collect, receive or in any manner obtain by a collateral sale, purchase or agreement in connection with negotiating, making or otherwise in connection with any loan, except commissions received on insurance sold.

      (Added to NRS by 1975, 1829)

      NRS 677.065  “Commissioner” defined.  “Commissioner” means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 1997)

      NRS 677.070  “Community” defined.  “Community” means a contiguous area of 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  “Deposit” defined.

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

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

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

      NRS 677.090  “Gross amount” defined.  “Gross amount” means the total amount or value advanced to or on behalf of the borrower, including all payments for interest, principal, expenses and charges of any nature taken substantially contemporaneously with the making of the loan.

      (Added to NRS by 1975, 1829)

      NRS 677.100  “License” defined.  “License” means a license, issued under the authority of this chapter, to accept deposits and make loans in accordance with the provisions of this chapter, at a single place of business.

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

      NRS 677.110  “Licensee” defined.  “Licensee” means a person to whom one or more licenses have been issued.

      (Added to NRS by 1975, 1830)

      NRS 677.115  “Loan” defined.  “Loan” does not include a bona fide conditional contract of sale.

      (Added to NRS by 1979, 995)

      NRS 677.125  “Stockholders’ equity” defined.  “Stockholders’ equity” means the capital, surplus and retained earnings of a licensee.

      (Added to NRS by 1997, 1014)

      NRS 677.130  “Thrift certificate” defined.  “Thrift certificate” means a chose in action, in passbook or certificate form, evidencing the obligation of the licensee to pay money and does not include subordinate debt securities.

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

      NRS 677.140  “Unpaid principal balance” defined.  “Unpaid principal balance” means the net amount of money, credit, goods or things in action received by the borrower at the time of entering into the transaction and the decreasing balances thereof after application of each payment made on the obligation.

      (Added to NRS by 1975, 1830)

      NRS 677.145  Certain relationships between employee of Division of Financial Institutions and licensee prohibited; termination of prohibited relationship.

      1.  Except as provided in subsections 3 and 4, an officer or employee of the Division of Financial Institutions shall not:

      (a) Be directly or indirectly interested in or act on behalf of any licensee;

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

      (c) Be indebted to any licensee;

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

      (e) Obtain credit or services from a licensee conditioned upon a fraudulent practice or undue or unfair preference over other customers.

      2.  An employee of the Division in the unclassified service of the State shall not obtain new extensions of credit from a licensee while in office.

      3.  Any officer or employee of the Division of Financial Institutions may be indebted to a licensee on the same terms as are available to the public generally upon:

      (a) A mortgage loan on his or her own real property.

      (b) A secured installment debt.

      (c) An unsecured debt.

      4.  Any officer or employee of the Division of Financial Institutions may establish and maintain savings deposits with licensees to the greatest amount insured, receive interest on those deposits and borrow money secured by a pledge of those deposits.

      5.  If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his or her appointment or employment, or obtains it during his or her employment, he or she shall terminate it within 120 days after the date of his or her appointment or employment or the discovery of the prohibited act.

      (Added to NRS by 1983, 1816)

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

      (Added to NRS by 1997, 1014)

FORMATION

      NRS 677.150  Authorization by Commissioner.  If authorized by the Commissioner, as provided in this chapter, a corporation may be formed in accordance with the laws 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  Application for authority to engage in business: Form; contents; filing fee; regulations; withdrawal of application.

      1.  The request for authority to engage in business pursuant to this chapter must be set forth in an application in such form and containing such 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 process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.

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

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

      4.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits 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  Fidelity bond.  A licensee which proposes to accept deposits shall file with the Commissioner a fidelity bond providing fidelity coverage on each officer, director and employee of at least $100,000. The fidelity bond may be either a banker’s blanket bond or a finance company’s blanket bond, but must be written by an insurer who has been approved by the Commissioner.

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

      NRS 677.175  Additional bond.  If the Commissioner finds that a bond filed pursuant to NRS 677.170 is not sufficient to protect the interests of the public, he or she shall require the applicant to deposit an additional bond.

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

      NRS 677.180  Investigation and examination of applicant.  Upon the filing of an application, the Commissioner shall make or cause to be made a careful investigation and examination relative to the following:

      1.  Character, reputation and financial standing of the organizers or incorporators.

      2.  The need for a thrift company or an additional thrift company, as the case may be, in the community where the proposed licensee is to be located, giving particular consideration to the adequacy of existing thrift company services and the need for additional services of this kind in the community.

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

      (a) The competition offered by existing licensees;

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

      (c) The opportunities for profitable employment of the licensee’s money as indicated by the average demand for credit, the number of potential investors, the volume of transactions where the services of a thrift company would be appropriate, and the business and industries of the community with particular regard to their stability, diversification and size.

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

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

      6.  Any other facts and circumstances bearing on the proposed 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  Requisites for approval of application.  The Commissioner shall not approve the application unless he or she ascertains to his or her satisfaction:

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

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

      3.  That the proposed capital structure is adequate.

      4.  That the financial responsibility, character and general fitness of the proposed officers, directors, stockholders and other investors are such as to command the confidence of the community and to warrant belief that the business will be operated honestly and fairly within the purpose of this chapter, and that the proposed officers and directors have sufficient banking, industrial loan or other experience, ability and standing to afford reasonable promise of successful operation.

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

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

      NRS 677.200  Qualifications of president and certain managers of corporation.  The president of the corporation must have not less than 10 years of experience in a regulated financial institution in this state, or in any other state or the District of Columbia. The manager of the principal office and any branch office must have not less than 2 years of experience in a regulated financial institution 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  Minimum stockholders’ equity required.  The stockholders’ equity of any corporation formed to do business under this chapter must not be less than $325,000, plus an additional $25,000 for each of its branch offices.

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

      NRS 677.220  Certificate of authorization to transact business.  If the Commissioner approves an application for authority to form a corporation to engage in business under this chapter, he or she shall issue a certificate in duplicate authorizing the organization of the corporation and the operation of a thrift company, specifying the date on which and the conditions under which its place of business may be opened, including the place where it will be located. The Commissioner shall deliver one copy to the applicant and retain the other copy.

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

      NRS 677.230  Reserves.

      1.  Except as otherwise provided in subsection 2, the Commissioner may establish the basis upon 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 due from federally insured financial institutions in this state, financial institutions insured by a private insurer approved pursuant to NRS 678.755, or any Federal Reserve Bank;

      (b) United States treasury bills or notes;

      (c) Short-term obligations of the federal or state government; or

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

Ê For the purposes of this subsection, “short-term” means having a maturity of 2 years or less.

      2.  The Commissioner shall require a licensee who is insured by the Federal Deposit Insurance Corporation to comply with the reserve requirements 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  Authorization for change of place of business.  If a licensee desires to change its place of business to a street address other than that designated in its authorization, it shall give written notice to the Commissioner who shall issue his or her written authorization of the change, if the Commissioner finds such change of place of business would not justify a negative finding.

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

PROTECTION OF INVESTORS

      NRS 677.241  Power of licensee to obtain benefits of federal programs.  Subject to the prior approval of the Commissioner, a licensee may, by a majority vote of its board of directors:

      1.  Enter into a contract, incur an obligation and perform other acts necessary to obtain a membership or other benefit that is available 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 to 1743, inclusive).

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

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

      NRS 677.243  Records of employees; confidentiality.

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

      (a) The employee’s full name;

      (b) The address of each place at which the employee has resided during the previous 10 years;

      (c) The name and address of each employer during the previous 10 years;

      (d) A recent photograph of the employee measuring 3 by 5 inches; and

      (e) Any alias used by the employee.

      2.  A licensee may comply with the provisions of subsection 1 by maintaining the employee identification information required pursuant to 26 C.F.R. Part 31.

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

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

      NRS 677.245  Limitation on investment in real property; recording deed or other document; subsidiary ledger or other appropriate record.

      1.  Unless the licensee has received a written waiver from the Commissioner, the total amount of money that the licensee has advanced or committed for the real property that it has developed or constructed may not exceed twice the sum of its stockholders’ equity and any other reserves required by the Commissioner.

      2.  If a licensee acquires title to any real property pursuant to the provisions of subsection 1 of NRS 677.630, the deed or other document representing the transaction must be recorded within a reasonable time after the acquisition of that property.

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

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

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

      (c) Any other costs of acquisition; and

      (d) The cost of insurance on the property.

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

      (a) The type and character of the property;

      (b) All the capitalized items of investment and their cost; and

      (c) The account number of the former loan or contract of sale.

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

      NRS 677.247  Applicant required to obtain insurance of deposits; regulations.

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

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

      (b) The insurance of deposits provided pursuant to the provisions 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 October 1, 1997; and

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

Ê may obtain a contract for the insurance of deposits that is issued by a private insurer. The contract must be approved by the Commissioner and the Commissioner of Insurance.

      3.  The Commissioner shall adopt regulations prescribing the requirements that must be complied with before a contract issued pursuant to subsection 2 will be approved by him or her.

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

BRANCH OFFICES

      NRS 677.250  Establishment and maintenance.  When authorized by the Commissioner as provided in this chapter, a licensee, pursuant to a resolution of its board of directors, may establish and maintain one or more branch offices within or outside the State.

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

      NRS 677.270  Requisites for approval of application; notice of approval or denial.

      1.  The Commissioner shall not approve an application for a branch office until he or she has ascertained to his or her satisfaction that the facts set forth in the application are true and:

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

      (b) That the licensee has the stockholders’ equity required by this chapter.

      2.  The Commissioner must give his or her approval or denial for an application for a branch office to the licensee within 45 days after the date of application to open a branch office unless the Commissioner gives notice within the original 45-day period that he or she is extending the period for decision 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  Right to open branch office expires if office not open within 6 months after approval of application.  The failure of a licensee to open and operate a branch office within 6 months after the Commissioner approves the application therefor automatically terminates the right of the licensee to open the branch office.

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

      NRS 677.300  Authorization for change of location; posting of certificate.  When authorized by the Commissioner, a licensee may change the location of a branch office from one location to another. The Commissioner must give his or her approval or denial to the licensee within 25 days from the date of application for a change in branch location unless the Commissioner gives notice within the original 25-day period that he or she is extending the period for decision for a term not to exceed an additional 25 days. Every licensee shall keep posted in a conspicuous place in each branch office the certificate issued by the Commissioner permitting the operating of the branch office.

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

      NRS 677.310  Specified designation of branch offices by name or number required.  A licensee which maintains a branch office or branch offices shall give to each branch office maintained by it a specified designation by name or number and include in the designation the word “branch” or the word “office” and shall prominently display the designation at the place of business of the branch.

      (Added to NRS by 1975, 1832)

      NRS 677.320  Closing or discontinuance of branch office.

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

      2.  After a branch office has been closed or discontinued 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  Mobile offices.

      1.  The Commissioner may authorize a licensee to operate a mobile office.

      2.  A mobile office must serve its designated area at least once each 30 days. Each mobile office must be licensed as a branch office.

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

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

LICENSING

      NRS 677.340  Persons ineligible for licensing.

      1.  Except as otherwise provided in NRS 677.545 and chapter 666 of NRS, no person doing business under the law of:

      (a) Any other state; or

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

Ê relating to banks, savings and loan associations or persons licensed under chapter 675 of NRS is eligible to become a licensee under this chapter. This chapter does not apply to any business transacted by any such person under the authority of and as permitted by any such law.

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

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

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

Ê is not eligible to be licensed under this chapter.

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

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

      NRS 677.350  Applicability of chapter to persons who seek to evade.  The provisions of this chapter apply to any person who seeks to evade its application by any device, subterfuge or pretense whatever, including, but not thereby limiting the generality of the foregoing:

      1.  The loan, forbearance, use or sale of credit as guarantor, surety, endorser, comaker or otherwise, money, goods or things in action.

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

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

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

      (Added to NRS by 1975, 1834)

      NRS 677.355  Licensee may own interest in bank or savings and loan association.  The provisions of this chapter do not prohibit a licensee or a person owning an interest in a licensee from obtaining a license or owning an interest in a corporation licensed under chapter 659 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. On or before that date, each licensee must pay to the Commissioner a fee not more than $1,000 for the renewal of each license held by the licensee. The Commissioner may reinstate an expired license upon receipt of the fee for renewal and a fee of not more than $400 for reinstatement.

      2.  The Commissioner shall adopt regulations establishing 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  Posting of license; transferability and assignability of license.

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

      2.  No license is transferable or assignable without the permission of the Commissioner.

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

      NRS 677.373  Application for license: Additional requirements; fingerprints; grounds for refusal to issue license.

      1.  In addition to any other requirements set forth in this chapter, each applicant must submit:

      (a) Proof satisfactory to the Commissioner that the applicant:

             (1) Has a good reputation for honesty, trustworthiness and integrity and is competent to transact the business for which the applicant seeks to be licensed in a manner which protects the interests of the general public.

             (2) Has not made a false statement of material fact on the application for the license.

             (3) Has not committed any of the acts specified in subsection 2.

             (4) Has not had a license issued pursuant to this chapter suspended or revoked within the 10 years immediately preceding the date of the application.

             (5) Has not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude.

      (b) A complete set of his or her fingerprints and written permission authorizing the Division of Financial Institutions of the Department of Business and Industry to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

      2.  In addition to any other lawful reasons, the Commissioner may refuse to issue a license to an applicant if the applicant:

      (a) Has committed or participated in any act which, if committed or done by a holder of a license, would be grounds for the suspension or revocation of the license.

      (b) Has previously been refused a license pursuant to this chapter or has had such a license suspended or revoked.

      (c) Has participated in any act which was a basis for the refusal or revocation of a license pursuant to this chapter.

      (d) Has falsified any of the information submitted to the Commissioner in support of the application for the license.

      (Added to NRS by 2005, 1886)

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

      (Added to NRS by 2005, 1887)

ADMINISTRATION AND ENFORCEMENT

Generally

      NRS 677.380  Regulations and orders of Commissioner.

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

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

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

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

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

      NRS 677.390  Disposition of money collected pursuant to chapter.  Except as otherwise provided in NRS 677.160, all fees and charges collected under the provisions of this chapter must be deposited 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  Annual report by licensee; composite reports.

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

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

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

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

      (c) A reconciliation of the surplus or net worth with the balance sheets;

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

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

      (f) An analysis of delinquent accounts;

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

      (h) Any further statistical information reasonably prescribed by the Commissioner.

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

      4.  If any person or affiliated group holds more than one license in this state, that person or group may file a composite annual report, if a short form of report applicable to each licensed office accompanies the report.

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

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

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

      1.  The annual reports and financial statements required by this chapter must be prepared in accordance with generally accepted accounting principles and must be accompanied by a report, certificate, or opinion of an independent certified public accountant or independent public accountant, and must contain such relevant information as the Commissioner may require. The audits must be conducted in accordance with generally accepted auditing standards and the regulations of the Commissioner.

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

      3.  For good cause and upon written request, the Commissioner may extend the time for compliance with the provisions of this chapter.

      4.  If the report, certificate or opinion of the independent accountant is in any way qualified, the Commissioner may require the company to take such action as he or she deems appropriate to permit an independent 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  Notification of change in ownership of stock; application for approval after certain acquisitions; investigation; costs; waiver.

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

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

      (a) At least 25 percent of a licensee’s outstanding voting stock; or

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

Ê Except as otherwise provided in subsection 4, the Commissioner shall conduct an investigation in accordance with NRS 677.180. If the Commissioner denies the application, he or she may forbid the applicant from participating in the business of the licensee.

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

      4.  A licensee may submit a written request to the Commissioner to waive an investigation pursuant to subsection 2. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his or her 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  Commissioner to examine licensee’s business at least annually; fee.

      1.  At least once each year, the Commissioner or his or her authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, papers and records of such licensee so far as they pertain to the business licensed under this chapter.

      2.  For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.

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

      NRS 677.435  Independent audit and examination: Payment of assessment; cooperation.  Each licensee shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with the audits and examinations performed pursuant thereto.

      (Added to NRS by 1987, 827)

      NRS 677.440  Authority of Commissioner to investigate business; free access required; compelling attendance of witnesses.

      1.  For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his or her duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:

      (a) A licensee;

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

      (c) Any other person engaged in an activity for which a license is required pursuant to the provisions of this chapter;

      (d) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter; and

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

      2.  For the purpose of examination, the Commissioner or his or her authorized representatives shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.

      3.  The Commissioner may require the attendance of any person and examine him or her under oath regarding:

      (a) Any transaction or business regulated pursuant to the 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  Authority of Commissioner to require attendance of witnesses and production of documents.  The Commissioner may require the attendance of any person and may examine him or her under oath relative to loans or business regulated by this chapter or the subject matter of any examination, investigation or hearing, and may require the production of books, accounts, papers and records.

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

      NRS 677.460  Charging off assets; regulations and orders.  The Commissioner may provide by regulation or order for the charging off of assets considered to be of little or no value.

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

      NRS 677.470  Licensee to pay costs of audit of books and records.  In addition to the annual fee provided by this chapter, the Commissioner shall assess and collect from each licensee the reasonable cost of auditing the books and records of a licensee.

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

Remedial Actions

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

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

      NRS 677.490  Surrender of license by licensee; surrender as affecting licensee’s liability.  Any licensee may surrender any license by delivering it to the Commissioner with written notice of its surrender, but a surrender does not affect his or her civil or criminal liability for acts committed before the surrender.

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

      NRS 677.500  Temporary suspension of license: Conditions; notice; hearing; term of suspension.  If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of a license pending investigation, he or she may, upon 5 days’ written notice and without a hearing, enter an order suspending a license for a period not 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  Revocation or suspension of license: Grounds; notice; hearing; order.

      1.  If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, he or she shall give 20 days’ written 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 Commissioner shall:

      (a) Enter a written order either dismissing the charges, or revoking the license, or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. A copy of the order must be sent by registered or certified mail to the licensee.

      (b) Impose upon the licensee an administrative fine of not more than $10,000 for each violation by the licensee of any provision of this 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 or her investigative costs and attorney’s fees.

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

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

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

      (c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;

      (d) Any fact or condition exists which would have justified the Commissioner in denying the licensee’s original application for a license hereunder; or

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

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

      5.  An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.

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

      NRS 677.520  Preexisting contracts unaffected by revocation, suspension, expiration or surrender of license.  The revocation, suspension, expiration or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any obligors. Such a contract and all lawful charges thereon may be collected by the licensee, its successors or assigns.

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

      NRS 677.530  Order to desist or refrain; action to enjoin violations; appointment and powers of receiver.

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

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

      3.  In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as the court deems reasonably necessary to prevent violations of this chapter through or by means of the use of the property and business. Such receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as are from time to time conferred upon the receiver by the court.

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

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

      1.  The stockholders’ equity of any licensee is less than its initial stockholders’ equity;

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

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

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

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

      6.  Any licensee has suspended payment of its obligations;

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

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

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

      10.  Any fact or condition exists which, if it had existed at the time of the original application for authority to organize and establish a corporation to engage in business under this chapter, it reasonably would have warranted the disapproval of the application by the Commissioner,

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

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

      NRS 677.545  Taking possession of business by Commissioner: Acquisition by or merger with another institution.

      1.  Except as limited by subsection 2, if the Commissioner has taken possession of the property and business of a corporation licensed under this chapter pursuant to NRS 677.540, or a receiver, other than the State, has been appointed for and taken possession of the property and business of a corporation, the Commissioner may solicit offers from and authorize or require the acquisition of the corporation by or its merger with another institution or company in the following order of priority:

      (a) A corporation which is licensed pursuant to this chapter.

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

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

      (d) A bank, savings and loan association or thrift company, or its parent corporation, licensed pursuant to the laws of the United States or of another state, whether or not its principal place of business is in another state.

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

      2.  The selection of an institution must be made in accordance with the order of priority established in subsection 1 only if a selection affords the greatest financial recovery by the corporation’s depositors of all offers received. The Commissioner may not accept any offer which affords the corporation’s depositors a smaller financial recovery than they would receive if the corporation were liquidated. If the Commissioner receives one or more acceptable offers he or she may negotiate with the institutions submitting acceptable offers, following that order of priority, and accept that offer which would afford the greatest financial recovery by the corporation’s depositors.

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

      NRS 677.550  Order suspending or limiting payment of liabilities; effect of order; assignment or hypothecation of indebtedness.

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

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

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

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

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

      NRS 677.560  Application by licensee to enjoin further proceedings.  Whenever the Commissioner has taken possession of the property and business of any licensee, a licensee, within 10 days after a taking, if it deems itself aggrieved thereby, may apply to the district court in the county in which the main office of the licensee is located to enjoin further proceedings. The court, after citing the Commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits may dismiss such application or enjoin the Commissioner from further proceedings and direct him or her to surrender the property and business to such licensee, or make such further order as may be just.

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

      NRS 677.570  Authority of Commissioner to liquidate or conserve company.  When the Commissioner takes possession of the property and business of any company for the purpose of liquidation or conservation, he or she may liquidate or conserve the company. In such a liquidation or conservation the Commissioner has the same authority with reference to licensees as are vested in the Commissioner by title 55 of NRS with reference to banks and in addition may deposit money coming into his or her hands in the course of liquidation in one or more state or national banks or credit unions.

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

GENERAL REGULATIONS

      NRS 677.580  Use of 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 for the purpose of evading or avoiding any of the provisions of this chapter. This section does not affect the right of a company to issue preferred stock or debentures when permitted to do so under the laws of this state.

      (Added to NRS by 1975, 1838)

      NRS 677.590  Issuance of thrift certificates prohibited; exception.

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

      2.  A licensee who maintains a branch office located outside this state may issue thrift certificates and any other securities that are permitted to be issued by a licensee pursuant to the laws of the state in which the branch office is located.

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

      NRS 677.600  Permissible depositories.  A licensee shall not deposit any of its money with any other moneyed corporation, unless that corporation has been designated as a depository by a majority vote of the directors or the executive committee, exclusive of any director who is an officer, director or trustee of the depository so designated. Such a depository must be a federally insured financial institution, a financial institution insured by a private insurer approved pursuant to NRS 678.755 or any Federal Reserve Bank.

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

      NRS 677.610  Authorized investments.  A licensee shall not invest any of its money, except:

      1.  As authorized in this chapter;

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

      3.  To the extent of 5 percent or less of its total assets, in preferred stock of corporations which have been given a rating of “A” or better by a national rating service and which are not in default in the payment of dividends.

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

      NRS 677.612  Authority to accept deposit by fiduciary in trust; payment to fiduciary of withdrawal value and interest.

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

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

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

      (Added to NRS by 1987, 1243)

      NRS 677.616  Deposit by 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 or her, and the receipt of the minor to the licensee is valid.

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

      (Added to NRS by 1987, 1243)

      NRS 677.620  Limit on deposits; limit on total borrowings; borrowing money from Federal Home Loan Bank.

      1.  Except as otherwise provided in subsections 2 and 3, a licensee shall not have at any time deposits in an aggregate sum in excess of 10 times the aggregate amount of its stockholders’ equity.

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

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

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

      (a) Five times its stockholders’ equity; or

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

      5.  A licensee may borrow money from a Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be deemed borrowed money for the purposes of the limitations prescribed in subsection 4. A licensee may pledge any of its assets as collateral security for money borrowed 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  Permissible transactions in real property.

      1.  A licensee may purchase, hold, develop and convey real property, including apartments and other buildings, for the following purposes only:

      (a) Real property conveyed to it in satisfaction of debts 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 under deeds of trust, or pursuant to an order of a bankruptcy court. A licensee shall not bid against its debtor at any such sale in a larger amount than is necessary to satisfy its debt and costs.

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

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

             (1) The licensee shall provide the Commissioner with a certified copy of one or more appraisal reports and a report from a title 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 was transferred, if that information is available.

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

Ê If the total amount to be invested in real property for residential development, excluding any real property which is mortgaged to the licensee as security for money owing to the licensee, exceeds the stockholders’ equity of the licensee, the investment 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 of a 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 has been improved by the licensee and is producing a fair income based upon the appraised 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  Conduct of business in place where other business being conducted; name under which business may be transacted; loans by mail.  A licensee shall not make loans or accept deposits under this chapter:

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

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

Ê This section does not prevent the making of loans by mail or prohibit accommodations to individual borrowers when necessitated by hours of employment, sickness or other emergency situations.

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

      NRS 677.645  Use or change of business name; prohibitions.

      1.  A licensee must obtain the approval of the Commissioner before using or changing a business name.

      2.  A licensee shall not:

      (a) Use any business name which is identical or similar to a business name used by another licensee under this chapter or which may mislead or confuse the public.

      (b) Use any printed forms which may mislead or confuse the public.

      (Added to NRS by 2005, 1887)

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

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

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

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

      (c) A person who acquired the contract directly or indirectly or through intervening assignments from a person described in paragraph (a) or (b),

Ê unless the licensee has been authorized by the Commissioner to make that loan or purchase that contract or chose in action from that person.

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

      3.  Any officer, director or stockholder of a licensee who:

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

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

Ê is personally liable for any loss resulting to the licensee from the loan or contract, 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 or representation with regard to the rates, terms or conditions for making or negotiating loans, or with regard to deposits, which is false, misleading or deceptive.

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

      3.  A licensee whose deposits are insured by the Federal Deposit Insurance Corporation shall include that information in its advertising relating to deposits.

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

      NRS 677.665  Formation of bank.  A corporation authorized to engage in business pursuant to this chapter may form a bank pursuant to the provisions of subsection 2 of NRS 659.015.

      (Added to NRS by 1997, 1014)

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

      NRS 677.673  Definitions.  As used in NRS 677.673 to 677.707, inclusive, unless the context otherwise requires, the words and terms defined in NRS 677.677 to 677.697, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 1492)

      NRS 677.677  “Designated reporter” defined.  “Designated reporter” means a person designated by a licensee to receive reports of known or suspected exploitation of an older person or vulnerable person pursuant to NRS 677.707.

      (Added to NRS by 2007, 1492)

      NRS 677.683  “Exploitation” defined.  “Exploitation” has the meaning ascribed to it in subsection 2 of NRS 200.5092.

      (Added to NRS by 2007, 1492)

      NRS 677.687  “Older person” defined.  “Older person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.

      (Added to NRS by 2007, 1492)

      NRS 677.693  “Reasonable cause to believe” defined.  “Reasonable cause to believe” has the meaning ascribed to it in NRS 200.50925.

      (Added to NRS by 2007, 1492)

      NRS 677.697  “Vulnerable person” defined.  “Vulnerable person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.

      (Added to NRS by 2007, 1492)

      NRS 677.703  Training; reporting to designated reporter.

      1.  Each licensee shall provide training concerning the identification and reporting of the suspected exploitation of an older person or vulnerable person to each officer and employee of the licensee who:

      (a) May, as part of his or her regular duties for the licensee, come into direct contact with an older person or vulnerable person; or

      (b) May review or approve the financial documents, records or transactions of an older person or vulnerable person in connection with providing financial services to the older person or vulnerable person.

      2.  The training required pursuant to subsection 1 must be provided as soon as reasonably practicable, but not later than 6 months after the officer or employee is employed by the licensee.

      3.  The training required pursuant to subsection 1 must include, without limitation:

      (a) An explanation of the conduct which constitutes exploitation of an older person or vulnerable person;

      (b) The manner in which exploitation of an older person or vulnerable person may be recognized;

      (c) Information concerning the manner in which reports of exploitation are investigated; and

      (d) Instruction concerning when and how to report known or suspected exploitation of an older person or vulnerable person.

      4.  An officer or employee who has observed or has knowledge of an incident that is directly related to a transaction or matter which is within his or her scope of practice and which reasonably appears to be exploitation of an older person or vulnerable person shall report the known or suspected exploitation to the designated reporter.

      (Added to NRS by 2007, 1492)

      NRS 677.707  Designated reporter: Designation; duty to report; immunity.

      1.  Each licensee shall designate a person or persons to whom an officer or employee of the licensee must report known or suspected exploitation of an older person or vulnerable person.

      2.  If an officer or employee reports known or suspected exploitation of an older person to a designated reporter and, based on such a report or based on his or her own observations or knowledge, the designated reporter knows or has reasonable cause to believe that an older person has been exploited, the designated reporter shall:

      (a) Except as otherwise provided in subsection 3, report the known or suspected exploitation of the older person to:

             (1) The local office of the Aging and Disability Services Division of the Department of Health and Human Services;

             (2) A police department or sheriff’s office;

             (3) The county’s office for protective services, if one exists in the county where the suspected action occurred; or

             (4) A toll-free telephone service designated by the Aging and Disability Services Division of the Department of Health and Human Services; and

      (b) Make such a report as soon as reasonably practicable.

      3.  If the designated reporter knows or has reasonable cause to believe that the exploitation of the older person involves an act or omission of the Aging and Disability Services Division, another division of the Department of Health and Human Services or a law enforcement agency, the designated reporter shall make the report to an agency other than the one alleged to have committed the act or omission.

      4.  If an officer or employee reports known or suspected exploitation of a vulnerable person to a designated reporter and, based on such a report or based on his or her own observations or knowledge, the designated reporter knows or has reasonable cause to believe that a vulnerable person has been exploited, the designated reporter shall:

      (a) Except as otherwise provided in subsection 5, report the known or suspected exploitation of the vulnerable person to a law enforcement agency; and

      (b) Make such a report as soon as reasonably practicable.

      5.  If the designated reporter knows or has reasonable cause to believe that the exploitation of the vulnerable person involves an act or omission of a law enforcement agency, the designated reporter shall make the report to a law enforcement agency other than the one alleged to have committed the act or omission.

      6.  In accordance with the provisions of subsection 3 of NRS 239A.070, in making a report pursuant to this section, a designated reporter may:

      (a) Disclose any facts or information that form the basis of the determination that the designated reporter knows or has reasonable cause to believe that an older person or vulnerable person has been exploited, including, without limitation, the identity of any person believed to be involved in the exploitation of the older person or vulnerable person; and

      (b) Provide any financial records or other documentation relating to the exploitation of the older person or vulnerable person.

      7.  An officer, employee and the designated reporter are entitled to the immunity from liability set forth in NRS 200.5096 for making a report in good faith.

      (Added to NRS by 2007, 1493)

LOANS; POWERS AND PRIVILEGES

      NRS 677.720  Requirements for making and paying of loans: Duties of licensee.

      1.  Every licensee shall:

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

      (b) Except as otherwise provided in subsection 2, give to the person making any cash payment on account of any loan a receipt at the time 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 only may be given temporarily and replaced within a reasonable time with a receipt as prescribed in this paragraph.

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

      (d) Upon repayment of a loan in full, mark plainly every note or other evidence of the indebtedness or assignment signed by any obligor with the word “paid” or “cancelled,” and release or provide the borrower with evidence to release any mortgage or security instrument no longer securing any indebtedness to the licensee.

      2.  In lieu of the receipt mentioned in paragraph (b) of subsection 1, the licensee may issue a coupon payment book to the borrower setting forth the amount and due date of each installment and containing a payment 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 any amount of money:

      1.  At any rate of interest;

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

      3.  Upon any schedule of repayment,

Ê to which the parties may agree.

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

      NRS 677.750  Prohibited practices by licensee.  A licensee shall not:

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

      2.  Take any note or promise to pay which does not disclose the date and amount of the loan obligation, a schedule or description of the payments to be made thereon, and the rate or aggregate amount of agreed charges.

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

      (Added to NRS by 1975, 1843)

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

      1.  A licensee shall not lend in the aggregate more than 10 percent of its stockholders’ equity upon:

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

      (b) The security of the bonds of any one obligor except:

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

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

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

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

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

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

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

      NRS 677.770  Limitations on amount of secured loans or obligations of any one obligor.  Secured loans or obligations of any one person as primary obligor made or held by a licensee may not, in any event, exceed in the aggregate 25 percent of the stockholders’ equity of the licensee. Loans secured by 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  Loans may 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 any person, secured by real or personal property, without regard to the location or nature of the security.

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

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

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

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

      (a) Bona fide trust receipts;

      (b) Secured choses in action;

      (c) Chattel mortgages;

      (d) Conditional sales contracts;

      (e) Security agreements;

      (f) Leases;

      (g) Lien contracts; and

      (h) Deeds of trust.

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

      3.  Enter into leases and purchase equipment for those leases.

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

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

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

UNLAWFUL ACTS; PENALTIES

      NRS 677.800  Violation of provisions of chapter.  Any person and the members, officers, directors, agents and employees thereof who knowingly and intentionally violate or participate in the violation of any provision of this chapter are guilty of a misdemeanor, unless a greater penalty is provided in this chapter.

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

      NRS 677.805  Administrative fines.  In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.

      (Added to NRS by 2005, 1887)

      NRS 677.810  Receiving certain compensation or property; making false entry in books or records; embezzlement.  A director, officer or employee of a licensee who:

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

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

      3.  Knowingly makes or concurs in making or publishing any false entry in its books or records, any written report, exhibit or statement of its affairs or pecuniary condition containing any material statement which is false, or having the custody of its books willfully refuses or neglects to make any proper entry in the books as required by law, or to exhibit or allow them to be inspected or extracts to be taken therefrom by the Commissioner or his or her deputies or investigators, or alters, conceals, destroys or removes any book or record;

      4.  Embezzles, abstracts or willfully misapplies the money, securities or credits of a licensee, or who, with the intent to injure or 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

      (c) Otherwise uses his or her position or employment with a licensee; or

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

Ê is guilty of a 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 other penalty, 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  Fraudulent insolvency; malfeasance of directors.  Every director of a licensee who:

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

      2.  Willfully does any act as such director which is expressly forbidden by law or willfully omits to perform any duty imposed upon him or her as such director by law,

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

      (Added to NRS by 1975, 1845)

      NRS 677.830  Making loan or purchasing contract in violation of chapter.  A director, officer or employee of a licensee who concurs in any vote or act by which it is intended to make a loan or purchase a contract in violation of this chapter is guilty of a misdemeanor.

      (Added to NRS by 1975, 1846)

      NRS 677.840  Deposit of company’s money on condition of loan or advance.  Any director, officer or employee of any licensee who makes or maintains, or attempts to make or maintain, a deposit of such company’s funds with any other person on condition, or with the understanding, express or implied, that the person receiving such deposit make a loan or advance, directly or indirectly, to any director, officer or employee of the licensee so making or maintaining or attempting to make or maintain such deposit, is guilty of a misdemeanor.

      (Added to NRS by 1975, 1846)

      NRS 677.850  Accepting deposits with knowledge of insolvency of company or violation of chapter.  Each officer or employee of any company who accepts deposits knowing:

      1.  That the company is insolvent; or

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

Ê is guilty of a 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)