[Rev. 4/6/2015 4:13:05 PM]

Link to Page 1680

 

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ê1983 Statutes of Nevada, Page 1681 (Chapter 578, AB 562)ê

 

investments collected, sold, or charged off during the accounting period , [;] investments made during the accounting period, with the date, source, and cost of each , [;] deductions from principal during the accounting period, with the date and purpose of each , [;] and the trust principal, invested or uninvested, on hand at the end of the accounting period, reflecting the approximate market value thereof;

      (d) In a separate schedule the trust income on hand at the beginning of the accounting period, and in what form held , [;] trust income received during the accounting period, when, and from what source , [;] trust income paid out during the accounting period, when, to whom, and for what purpose , [;] trust income on hand at the end of the accounting period, and how invested;

      (e) That neither any seller of, nor buyer from, the trustee of trust property during the accounting period was at the time of [such] the sale or purchase:

             (1) In the case of a corporate trustee , an affiliate [,] or any officer, employee, or nominee of the trust or of an affiliate; or [was]

             (2) In the case of a noncorporate trustee , a relative, partner, employer, employee, or business associate;

but none of the provisions of this paragraph [shall] apply to purchases and sales made by brokers for the trustee or to stock exchanges;

      (f) A statement of unpaid claims with the reason for failure to pay them, including a statement as to whether any estate or inheritance taxes have become due with regard to the trust property, and if due, whether paid;

      (g) A brief summary of the account; and

      (h) Such other facts as the court may by rule or court order require.

      2.  [Within] Except as provided in subsection 3, within 30 days after the end of each yearly period thereafter during the life of the trust, the testamentary trustee then in office shall file with the same court an intermediate account under oath showing corresponding facts regarding the current accounting period.

      3.  A corporate trustee is not required to file the intermediate accounts specified in subsections 1 and 2. A corporate trustee must include the information specified in subsection 1 in the final account for the entire time for which the trustee administered the trust.

 

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ê1983 Statutes of Nevada, Page 1682ê

 

CHAPTER 579, AB 163

Assembly Bill No. 163–Assemblymen Getto, Bilyeu, May, Schofield and Stone

CHAPTER 579

AN ACT relating to crimes against public justice; providing penalties for the commission of certain acts against victims of crime, witnesses and public justice; providing for an affirmative defense; providing for injunctions; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 199 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  As used in sections 3 and 4 of this act, “victim of a crime” means a person against whom a crime has been committed.

      Sec. 3.  Every person who, by intimidating or threatening another person, prevents or dissuades a victim of a crime, a person acting on his behalf or a witness from:

      1.  Reporting a crime or possible crime to a:

      (a) Judge;

      (b) Peace officer;

      (c) Parole or probation officer;

      (d) Prosecuting attorney;

      (e) Warden or other employee at an institution of the department of prisons; or

      (f) Superintendent or other employee at a juvenile correctional institution;

      2.  Commencing a criminal prosecution or a proceeding for the revocation of a parole or probation, or seeking or assisting in such a prosecution or proceeding; or

      3.  Causing the arrest of a person in connection with a crime,

or who hinders or delays such a victim, agent or witness in his effort to carry out any of those actions shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than $10,000.

      Sec. 4.  Every person who, by intimidating or threatening another person, prevents or dissuades a victim of a crime from attending an official proceeding on any matter relating to that crime is guilty of a gross misdemeanor.

      Sec. 5.  It is not a defense to a prosecution under NRS 199.230 or 199.240 or section 4 of this act to show that:

      1.  An official proceeding was not pending or about to be instituted; or

      2.  The testimony sought or the record, document or other object to have been produced would have been legally privileged or inadmissible in evidence.


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ê1983 Statutes of Nevada, Page 1683 (Chapter 579, AB 163)ê

 

      Sec. 6.  NRS 199.230 is hereby amended to read as follows:

      199.230  Every person who , [willfully prevents or attempts to prevent,] by persuasion, [threats or otherwise, any] force, threat, intimidation, deception or otherwise, and with intent to obstruct the course of justice, prevents or attempts to prevent another person from appearing before any court, or officer authorized to subpena witnesses, as a witness in any action, [proceeding or investigation, with intent thereby to obstruct the course of justice,] investigation or other official proceeding, or causes or induces another person to absent himself from such a proceeding or evade the process which requires him to appear as a witness to testify or produce a record, document or other object, shall be punished:

      1.  Where physical force or the immediate threat of such force is used, by imprisonment in the state prison for not less than 1 year nor more than 6 years, and may be further punished by a fine of not more than [$5,000.] $50,000.

      2.  Where no physical force or immediate threat of such force is used, for a gross misdemeanor.

      Sec. 7.  NRS 199.240 is hereby amended to read as follows:

      199.240  Every person who : [gives,]

      1.  Gives, offers or promises directly or indirectly any compensation, gratuity or reward to any witness or person who may be called as a witness [,] in an official proceeding, upon an agreement or understanding that [the] his testimony [of such witness] shall be thereby influenced [, or who willfully attempts by any other means to induce] ; or

      2.  Uses any force, threat, intimidation or deception with intent to:

      (a) Influence the testimony of any witness or person who may be called as a witness in an official proceeding;

      (b) Cause or induce him to give false testimony [,] or to withhold true testimony [,] ; or

      (c) Cause or induce him to withhold a record, document or other object from the proceeding,

shall be punished by imprisonment in the state prison for not less than 1 year nor more than 10 years, and may be further punished by a fine of not more than [$10,000.] $50,000.

      Sec. 8.  Chapter 33 of NRS is hereby amended by adding thereto a new section which shall read as follows:

      Whenever it appears that a defendant or other person is doing, about to do, threatening to do or procuring to be done some act against a victim of a crime or a witness in violation of any provision of section 3 or 4 of this act or NRS 199.230 or 199.240, a court of competent jurisdiction may issue an injunction restraining the defendant or other person from the commission or continuance of that act.

 

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ê1983 Statutes of Nevada, Page 1684ê

 

CHAPTER 580, SB 478

Senate Bill No. 478–Committee on Finance

CHAPTER 580

AN ACT authorizing expenditures by various officers, departments, boards, agencies, commissions and institutions of the state government for the fiscal years commencing July 1, 1983, and ending June 30, 1984, and beginning July 1, 1984, and ending June 30, 1985; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Expenditure of the following sums not appropriated from the state general fund or the state highway fund is hereby authorized during the fiscal years beginning July 1, 1983, and ending June 30, 1984, and beginning July 1, 1984, and ending June 30, 1985, by the various officers, departments, boards, agencies, commissions and institutions of the state government mentioned in this act:

 

                                                                                                 1983-84           1984-85

Office of the governor

State Jobs Training and Partnership Act office   ....................................................... $7,103,690....................................................... $9,613,665

State jobs training office/ balance of state          ....................................................... 616,252....................................................... -0-

Office of community services..................... .................................................. 470,270.................................................. 478,483

Community development.................. ............................................... 2,473,500............................................... 2,473,500

Housing assistance.............................. ............................................... 1,685,000............................................... 1,685,000

Energy assistance................................. ............................................... 3,963,010............................................... 3,916,000

State occupational information and coordinating committee............ ....................................................... 82,188....................................................... 86,297

Attorney general

Administration............................................... ............................................... 1,427,155............................................... 1,443,152

Office of extradition coordinator............... 5,090....................................................... 5,090

Private detectives’ licensing......................... ..................................................... 50,271..................................................... 50,501

Crime prevention........................................... ..................................................... 64,325..................................................... 64,554

Consumers’ advocate................................... .................................................. 502,953.................................................. 512,117

Treasurer...................................................................... ..................................................................................... 82,958..................................................................................... 85,168

Municipal bond bank revenue.................... ............................................... 6,877,873............................................... 6,642,415

Municipal bond bank debt service............. ....................................................... 6,610,496....................................................... 6,493,448

 


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ê1983 Statutes of Nevada, Page 1685 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Silicosis and disabled pension fund............ ............................................. $6,139,587............................................. $6,124,587

Department of administration

Budget division.............................................. 3,000....................................................... 3,000

Hearings division........................................... .................................................. 692,957.................................................. 701,415

Workmen’s compensation hearing reserve          ....................................................... 110,042....................................................... 139,037

Bond interest and redemption..................... .................................................. 739,745.................................................. 721,535

Risk management division.......................... ............................................... 2,057,879............................................... 2,544,637

Clear Creek youth center............................. .................................................. 118,825.................................................. 122,009

State employees workers compensation... ....................................................... 2,870,577....................................................... 3,892,061

Department of personnel.......................................... ............................................................................... 2,024,304............................................................................... 2,076,099

State unemployment compensation.......... ....................................................... 590,400....................................................... 625,500

Cooperative personnel services................... ....................................................... 58,173....................................................... 60,924

Retired employees group insurance........... ....................................................... 493,000....................................................... 606,000

Department of general services

Director’s office............................................. ..................................................... 61,093..................................................... 61,377

State printing office....................................... ............................................... 2,449,110............................................... 2,520,494

Records management—micrographics      .................................................. 139,802.................................................. 141,660

Buildings and grounds division................... ....................................................... 3,407,990....................................................... 3,536,281

Telephone.............................................. ............................................... 2,630,372............................................... 2,657,817

Mail........................................................ ......................................................... 1,282,065......................................................... 1,275,946

Roofing program.................................. ..................................................... 28,806..................................................... 22,726

Motor vehicle operations division.............. ....................................................... 1,385,338....................................................... 1,557,698

Motor vehicle purchase................................ .................................................. 543,169.................................................. 485,277

Purchasing division........................................ ............................................... 1,190,366............................................... 1,225,265

Commodity food program................. ....................................................... 441,012....................................................... 492,696

Surplus property administration........ ....................................................... 130,252....................................................... 138,516

Marlette Lake................................................. .................................................. 114,803.................................................. 115,132

Water treatment plant.................................. .................................................. 233,676.................................................. 237,499

Accounting division....................................... .................................................. 246,188.................................................. 249,722

Stewart facility............................................... .................................................. 109,940.................................................. 176,591

Department of tourism and economic development

Tourism division............................................ ............................................... 2,172,499............................................... 2,231,683

 


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ê1983 Statutes of Nevada, Page 1686 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Nevada Magazine............................... ....................................................... $923,095....................................................... $1,011,597

Aerial navigation charts...................... ....................................................... 20,000....................................................... 20,000

Industrial division.......................................... ..................................................... 13,500..................................................... 14,850

Department of taxation............................................ .................................................................................. 353,508.................................................................................. 382,270

Public works board..................................................... .................................................................................. 120,686.................................................................................. 117,800

Public work-inspection.................................. .................................................. 465,916.................................................. 477,667

Department of data processing............................... .................................................................................. 103,102.................................................................................. 103,831

Division of systems and programming...... ....................................................... 3,211,928....................................................... 3,294,173

Division of facilities management.............. ....................................................... 2,630,123....................................................... 2,596,205

Equal employment opportunity commission      ....................................................... 233,322....................................................... 235,660

Employees management relations board..............     2,000....................................................................................... 2,000

Legislative fund

Legal division................................................. .................................................. 550,000.................................................. 165,000

Court administrator................................................... .................................................................................. 206,238.................................................................................. 232,896

Uniform system of judicial records......................... .................................................................................. 240,146.................................................................................. 240,146

Judicial education...................................................... ..................................................................................... 84,000..................................................................................... 84,000

District judges’ travel................................................. 1,000....................................................................................... 1,000

Public defender........................................................... .................................................................................. 479,654.................................................................................. 493,944

Department of education

Education: State programs.......................... ..................................................... 29,992..................................................... 29,992

Educational Consolidation and Improvement Act, Chapter II—State programs       ....................................................... 350,448....................................................... 356,558

Proficiency testing......................................... ....................................................... 40,000....................................................... 40,000

Job Training and Partnership Act/CETA... ....................................................... 311,270....................................................... 425,000

Education for the Handicapped Act—Title VI   ....................................................... 2,851,604....................................................... 2,902,978

Education Consolidation and Improvement Act—Chapter I........................... ....................................................... 5,844,424....................................................... 5,853,053

Education Consolidation and Improvement Act—Chapter 2—Block grants......... ....................................................... 1,844,369....................................................... 1,796,368

Support services............................................. .................................................. 540,177.................................................. 550,864

Vocational education................................... ............................................... 1,897,246............................................... 1,892,414

School lunch program................................... ............................................... 7,071,250............................................... 7,062,876

Adult basic education................................... .................................................. 320,000.................................................. 320,000

 


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ê1983 Statutes of Nevada, Page 1687 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Higher education student loan.................... ............................................. $2,971,773............................................. $3,515,615

Discretionary grants program...................... .................................................. 113,814.................................................. 113,788

Teacher training for handicapped children              ....................................................... 87,088....................................................... 92,561

Commission on postsecondary authorization    ..................................................... 62,046..................................................... 62,460

University of Nevada System

Desert research institute................................ .................................................. 420,436.................................................. 300,000

System administration.................................. ..................................................... 69,369..................................................... 69,429

Agriculture experiment station.................... ....................................................... 1,044,195....................................................... 1,067,449

Cooperative extension service.................... ............................................... 1,074,670............................................... 1,097,569

University of Nevada, Reno........................ ............................................... 6,562,242............................................... 6,562,242

School of medical sciences.......................... ............................................... 1,116,282............................................... 1,116,282

University of Nevada, Las Vegas............... ....................................................... 6,176,632....................................................... 6,382,989

Clark County community college.............. ....................................................... 1,919,093....................................................... 2,010,893

Western Nevada community college......... .................................................. 386,606.................................................. 434,486

Truckee Meadows community college...... .................................................. 976,440............................................... 1,052,680

Northern Nevada community college........ .................................................. 158,525.................................................. 161,975

University enhancements............................. .................................................. 658,476.................................................. 686,736

W.I.C.H.E. loan fund................................................. .................................................................................. 837,568.................................................................................. 729,822

Virginia & Truckee Railroad.................................... 3,000....................................................................................... 3,000

Nevada historical society.......................................... ..................................................................................... 20,000..................................................................................... 22,000

Lost City museum...................................................... 3,750....................................................................................... 3,750

Nevada state museum.............................................. ..................................................................................... 62,818..................................................................................... 63,016

Nevada state museum—Las Vegas....................... 1,500....................................................................................... 1,750

Nevada council on the arts....................................... .................................................................................. 379,740.................................................................................. 379,740

Nevada state library.................................................. .................................................................................. 464,650.................................................................................. 464,650

Archives division............................................ 1,500....................................................... 1,500

Department of human resources

Health planning and resources.................... .................................................. 246,696.................................................. 259,315

Aging services................................................. ............................................... 3,890,593............................................... 3,890,593

Radioactive material disposal..................... ............................................... 1,325,450............................................... 1,554,454

Northern Nevada children’s home............. ..................................................... 23,430..................................................... 23,430

Southern Nevada children’s home............. ..................................................... 23,500..................................................... 23,500

 


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ê1983 Statutes of Nevada, Page 1688 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Child care services bureau........................... ..................................................... $3,000..................................................... $3,000

Nevada youth training center...................... ..................................................... 99,000..................................................... 99,000

Youth training center—ECIA—Chapters 1 and 2......................................... ....................................................... 159,081....................................................... 167,516

Youth training center farm................. 1,500....................................................... 1,500

Girls training center........................................ ..................................................... 49,377..................................................... 52,966

Health division

Office of the state health officer....... ....................................................... 85,174....................................................... 85,717

Silicosis program.................................. ....................................................... 85,232....................................................... 58,656

Vital statistics........................................ ....................................................... 79,684....................................................... 79,684

Bureau of health facilities.................. ....................................................... 264,198....................................................... 271,398

Family planning................................... ....................................................... 202,394....................................................... 213,608

Bureau of laboratory and research.. ....................................................... 173,137....................................................... 168,753

Women’s, infants’ and children’s food supplement program.................. ....................................................... 5,041,949....................................................... 5,317,186

Bureau of children’s health services. ....................................................... 902,762....................................................... 858,943

Special children’s clinic....................... ....................................................... 385,498....................................................... 343,983

Bureau of community health services            ....................................................... 427,642....................................................... 428,342

Emergency medical services.............. 61,000....................................................... 61,000

Health aid to counties......................... 75,913....................................................... 75,913

Venereal disease control..................... ....................................................... 208,789....................................................... 218,843

Immunization program...................... ....................................................... 113,550....................................................... 119,555

Consumer protection........................... ....................................................... 474,158....................................................... 434,457

Improved pregnancy outcome.......... 80,000....................................................... -0-

T.B. control........................................... 60,000....................................................... 60,000

Drug licensing........................................ 64,000....................................................... 64,000

Uranium mills licensing....................... ....................................................... 250,000....................................................... 250,000

Cancer control registry........................ 52,500....................................................... 52,500

Mental hygiene and mental retardation

Division of mental hygiene and mental retardation................................... ....................................................... 125,000....................................................... 125,000

Nevada mental health institute......... ....................................................... 1,864,313....................................................... 1,987,624

 


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ê1983 Statutes of Nevada, Page 1689 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Facility for the mental offender........ ....................................................... $18,000....................................................... $18,000

Rural clinics........................................... ....................................................... 1,802,756....................................................... 1,780,941

Southern Nevada adult mental health services......................................... ....................................................... 824,187....................................................... 874,000

Southern Nevada child and adolescent services......................................... ....................................................... 1,247,134....................................................... 1,189,238

Southern MH/MR food service......... ....................................................... 399,432....................................................... 419,441

Northern Nevada child and adolescent services......................................... ....................................................... 707,857....................................................... 660,446

Chapter 1—Special education project        ....................................................... 189,244....................................................... 201,326

Southern mental retardation services          ....................................................... 4,077,774....................................................... 4,286,921

Northern mental retardation services          ....................................................... 3,496,426....................................................... 3,676,057

Community training centers.............. ....................................................... 571,488....................................................... 665,502

Foster grandparents program............. ....................................................... 204,926....................................................... 205,113

Resident placement............................. ....................................................... 1,235,493....................................................... 1,241,039

Retired senior volunteer...................... ....................................................... 91,554....................................................... 96,394

Welfare division

Administration...................................... ....................................................... 8,628,931....................................................... 8,566,065

Child welfare......................................... ....................................................... 1,335,600....................................................... 1,421,150

Assistance to aged and blind............. 3,000....................................................... 3,000

Food stamp program........................... ....................................................... 1,808,469....................................................... 1,888,929

Aid to dependent children.................. ....................................................... 5,695,000....................................................... 5,695,000

Nevada medicaid................................. ....................................................... 38,265,846....................................................... 39,604,831

Homemaking services......................... ....................................................... 652,408....................................................... 725,482

Special welfare grants......................... ............................................. 13,000............................................. -0-

Child support enforcement................ ....................................................... 4,520,684....................................................... 4,628,934

Public assistance trust......................... ....................................................... 30,000....................................................... 30,000

Purchase of social services................. ....................................................... 9,493,072....................................................... 9,634,653

Child welfare trust................................ ....................................................... 280,300....................................................... 330,300

Refugee program................................. ....................................................... 913,884....................................................... 1,044,704

Child protection.................................... ....................................................... 44,246....................................................... 44,246

 


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ê1983 Statutes of Nevada, Page 1690 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Rehabilitation division

Administration...................................... ....................................................... $692,267....................................................... $715,432

Vocational rehabilitation.................... ....................................................... 2,933,650....................................................... 2,921,728

Services to the blind............................. ....................................................... 725,175....................................................... 720,137

Business enterprise contingency fund         ....................................................... 526,613....................................................... 591,932

Rehabilitation facilities....................... ....................................................... 317,578....................................................... 333,479

Alcoholism and drug rehabilitation.. ....................................................... 1,960,931....................................................... 2,205,857

Alcohol gift fund.................................. ....................................................... 640,750....................................................... 657,250

Bureau of disability adjudication..... ....................................................... 2,384,707....................................................... 2,537,274

Developmental disabilities................. ....................................................... 349,613....................................................... 316,629

Department of the military

Departmental................................................. .................................................. 776,589.................................................. 813,605

Adjutant general’s construction fund........     8,159....................................................... 8,000

Division of emergency management......... ....................................................... 91,218....................................................... 97,567

Disaster preparedness improvement ....................................................... 25,000....................................................... 25,000

Training grant....................................... ....................................................... 78,723....................................................... 76,794

State assistance program.................... ....................................................... 68,470....................................................... 67,095

Radiological services and maintenance program........................................ ....................................................... 91,774....................................................... 90,535

Radiological defense officers program       ....................................................... 57,583....................................................... 58,176

Hardware program.............................. ....................................................... 214,500....................................................... 202,000

National weather service grant—emergency management.......... ....................................................... 46,123....................................................... 49,641

Emergency management assistance program........................................ ....................................................... 230,000....................................................... 250,000

Emergency planning program........... ....................................................... 83,271....................................................... 82,640

Nevada state prison

Office of the director..................................... ....................................................... 232,957....................................................... 235,708

Prison industries............................................. ....................................................... 907,660....................................................... 1,026,998

Prison warehouse fund................................. ....................................................... 2,000,000....................................................... 2,000,000

Nevada state prison...................................... ....................................................... 208,599....................................................... 205,868

Prison construction crew............................... ....................................................... 220,072....................................................... -0-

Northern Nevada correctional center......... ....................................................... 122,159....................................................... 133,128

 


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ê1983 Statutes of Nevada, Page 1691 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Southern Nevada correctional center........ ....................................................... $18,395....................................................... $21,431

Southern desert correctional center............ ....................................................... 159,684....................................................... 93,169

Nevada women’s correctional center........ ....................................................... 19,857....................................................... 25,149

Offenders’ store fund.................................... ....................................................... 166,511....................................................... 185,186

Prison honor camps....................................... ....................................................... 1,898,206....................................................... 51,698

Northern restitution center........................... ....................................................... 93,808....................................................... 183,960

Southern restitution center........................... ....................................................... 146,064....................................................... 168,633

Prison dairy..................................................... ....................................................... 494,325....................................................... 561,803

Prison grant account..................................... ....................................................... 95,608....................................................... 101,192

Parole and probation................................................. .................................................................................. 156,780.................................................................................. 397,440

Commerce department

Directors office............................................... ....................................................... 33,533....................................................... 35,896

Manufactured housing division.................. ....................................................... 365,804....................................................... 392,335

Financial institutions division...................... ....................................................... 95,975....................................................... 97,875

Insurance division......................................... ....................................................... 128,728....................................................... 129,739

Insurance fraud section...................... ....................................................... 240,000....................................................... 257,419

National association of insurance commissioners............................ ....................................................... 27,653....................................................... 23,830

Prepaid funeral and cemetery fund.. ....................................................... 13,087....................................................... 9,474

Self-insurance—workers compensation     ....................................................... 118,635....................................................... 122,291

Insurance examiners........................... ....................................................... 650,000....................................................... 700,000

Insurance recovery fund.................... ....................................................... 40,000....................................................... 40,000

Insurance education and research.... ....................................................... 114,785....................................................... 110,569

Industrial development bond program...... ....................................................... 200,000....................................................... 200,000

Consumer affairs........................................... ....................................................... 32,000....................................................... 32,000

Disability and advocacy program.............. ....................................................... 50,770....................................................... 51,773

Fire marshal.................................................... ....................................................... 73,050....................................................... 83,400

Fire service training........................................ ....................................................... 78,312....................................................... 78,312

Real estate administration........................... ....................................................... 10,000....................................................... 10,000

Real estate education and research.. ....................................................... 166,290....................................................... 122,950

Real estate recovery............................ ....................................................... 115,000....................................................... 115,000

Real estate investigative fund........... ....................................................... 10,000....................................................... 10,000

Housing division............................................ ....................................................... 469,280....................................................... 443,688

 


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ê1983 Statutes of Nevada, Page 1692 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Gaming control board investigative fund.............. ..................................................................................... $1,450,000..................................................................................... $1,450,000

Racing commission.................................................... ..................................................................................... 17,500..................................................................................... 18,500

Dairy commission...................................................... .................................................................................. 673,422.................................................................................. 651,069

Public service commission........................................ ............................................................................... 3,548,448............................................................................... 3,614,402

Department of industrial relations.......................... ............................................................................... 1,024,617............................................................................... 1,138,813

Division of occupational safety and health        ....................................................... 1,731,801....................................................... 1,791,816

Division of mine inspector........................... ....................................................... 389,183....................................................... 411,124

Taxicab authority...................................................... ............................................................................... 1,424,016............................................................................... 1,351,101

Colorado River commission..................................... .................................................................................. 487,316.................................................................................. 429,884

Power and water fund................................... ....................................................... 26,200,000....................................................... 28,200,000

Water treatment facility............................... ....................................................... 11,530,000....................................................... 14,530,000

Federal pumping and transmission facility              ....................................................... 16,370,000....................................................... 19,470,000

Research and development......................... ....................................................... 52,829....................................................... 56,979

Fort Mohave development fund................ ....................................................... 951,075....................................................... 4,357,950

Department of conservation and natural resources

Environmental protection............................ ....................................................... 909,939....................................................... 968,870

Division of state lands.................................. 2,850....................................................... 3,135

Division of historic preservation and archeology   ....................................................... 471,524....................................................... 526,279

Comstock historic district commission...... 1,000....................................................... 1,000

Division of state parks.................................. ....................................................... 1,269,394....................................................... 1,269,394

State park planning and development        ....................................................... 134,338....................................................... 148,841

Division of forestry........................................ ....................................................... 495,989....................................................... 497,658

Forestry intergovernmental agreement           ....................................................... 720,795....................................................... 839,831

Rural fire departments........................ ....................................................... 10,000....................................................... 10,000

Forestry honor camp........................... ....................................................... 1,227,285....................................................... 126,000

Forestry nurseries................................. ....................................................... 133,701....................................................... 199,922

Forest fire suppression......................... ....................................................... 150,000....................................................... 150,000

Forest and watershed rehabilitation. 5,000....................................................... 5,000

Heil wild horse bequest................................. ....................................................... 1,075,812....................................................... 1,225,812

Carey Act trust fund..................................... 6,719....................................................... 4,963

Conservation districts...................................    200....................................................... 250

Department of minerals............................................ .................................................................................. 250,602.................................................................................. 252,253

Nuclear waste................................................. ....................................................... 750,000....................................................... 750,000

Department of wildlife.............................................. ............................................................................... 8,083,820............................................................................... 8,141,251

Boat program................................................. ....................................................... 747,845....................................................... 742,969

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1693 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Department of agriculture

Plant industry fund........................................ ....................................................... $106,747....................................................... $110,885

Apiary inspection fund................................. 7,053....................................................... 6,260

Agriculture registration and enforcement fund   ....................................................... 189,918....................................................... 204,924

Livestock inspection fund............................ ....................................................... 538,029....................................................... 536,687

Meat inspection............................................. ....................................................... 99,372....................................................... 100,076

Insect abatement........................................... ....................................................... 103,158....................................................... 90,000

Alfalfa seed research.................................... ....................................................... 26,667....................................................... 23,667

Veterinary medical services......................... ....................................................... 61,760....................................................... 61,760

Nevada beef council.................................................. ..................................................................................... 53,913..................................................................................... 80,691

Predatory animal and rodent control..................... ..................................................................................... 15,000..................................................................................... 15,000

Sheep commission..................................................... ..................................................................................... 14,000..................................................................................... 14,075

Woolgrowers predatory animal control.................. 62,342....................................................................................... 44,702

Grazing boards............................................................ ..................................................................................... 33,000..................................................................................... 33,000

Department of transportation.................................. .......................................................................... 192,776,477.......................................................................... 192,927,180

Department of motor vehicles

Director’s office............................................. ....................................................... 74,529....................................................... 75,083

Record search program................................ ....................................................... 995,028....................................................... 1,012,417

Drivers license................................................. ....................................................... 270,279....................................................... 285,848

Automation division..................................... ....................................................... 67,260....................................................... 67,260

Highway patrol special fund....................... ....................................................... 5,002,148....................................................... 5,025,242

Highway patrol communication section... ....................................................... 509,829....................................................... 505,602

Motor vehicle pollution control................... ....................................................... 491,125....................................................... 463,849

DMV multi-state project.............................. ....................................................... 78,357....................................................... 72,682

DMV P.O.S.T.................................................. ....................................................... 141,843....................................................... 162,396

DMV criminal law manual.......................... ....................................................... 11,171....................................................... 11,071

Traffic safety................................................. ....................................................... 213,765....................................................... 230,862

Registration division...................................... ....................................................... 176,748....................................................... 176,748

Traffic safety — federal grants.................. ....................................................... 743,600....................................................... 743,600

Public employees’ retirement fund......................... ............................................................................... 1,805,472............................................................................... 1,726,477

State industrial insurance system............................ ............................................................................. 19,687,792............................................................................. 20,872,210

S.I.I.S. rehabilitation center......................... ....................................................... 5,028,535....................................................... 5,259,019

Industrial attorney..................................................... .................................................................................. 333,140.................................................................................. 338,147

Employment security department.......................... ............................................................................. 19,300,533............................................................................. 19,817,332

Employment security fund.......................... ....................................................... 760,179....................................................... 829,179

Old-age survivors insurance administration        ....................................................... 17,265....................................................... 17,315

Victim of crime........................................................... .................................................................................. 221,000.................................................................................. 221,000

Rural housing.............................................................. .................................................................................. 244,686.................................................................................. 259,498

Professional and vocational boards

Board of accounting..................................... ....................................................... 210,942....................................................... 232,042

Board of architecture.................................... ....................................................... 96,429....................................................... 101,226

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1694 (Chapter 580, SB 478)ê

 

                                                                                                 1983-84           1984-85

Board of landscape architects.................... ....................................................... $17,434....................................................... $17,434

State barbers’ health and sanitation board         ....................................................... 28,118....................................................... 28,140

Board of chiropractic examiners................ ....................................................... 31,500....................................................... 33,500

Board of contractors..................................... ....................................................... 1,180,000....................................................... 1,310,000

Board of cosmetology.................................. ....................................................... 161,933....................................................... 187,061

Board of dental examiners.......................... ....................................................... 106,950....................................................... 115,790

Board of registered professional engineers............. ....................................................... 173,000....................................................... 190,000

Board of funeral directors and embalmers          ....................................................... 3,570....................................................... 3,749

Board of hearing aid specialists.................. 1,486....................................................... 1,561

State liquefied petroleum gas board.......... ....................................................... 27,000....................................................... 28,351

Board of medical examiners....................... ....................................................... 225,600....................................................... 234,550

Board of nursing............................................ ....................................................... 173,720....................................................... 180,500

Board of dispensing opticians..................... ....................................................... 8,549....................................................... 9,546

Board of optometry...................................... ....................................................... 15,602....................................................... 16,382

Board of osteopathy..................................... ....................................................... 12,183....................................................... 12,792

Board of pharmacy...................................... ....................................................... 299,523....................................................... 314,499

Board of physical therapy examiners....... 8,550....................................................... 9,350

Board of Oriental medicine......................... ....................................................... 10,679....................................................... 11,212

Board of podiatry.......................................... 5,937....................................................... 6,235

Board of psychological examiners............. ....................................................... 11,550....................................................... 12,128

Board of examiners in veterinary medicine        ....................................................... 34,000....................................................... 35,850

 

      Sec. 2.  1.  Expenditure of $10,512,564 by the Nevada gaming control board from the state general fund pursuant to the provisions of NRS 463.330 is hereby authorized during the fiscal year beginning July 1, 1983, and ending June 30, 1984.

      2.  Expenditure of $10,688,207 by the Nevada gaming control board from the state general fund pursuant to the provisions of NRS 463.330 is hereby authorized during the fiscal year beginning July 1, 1984, and ending June 30, 1985.

      Sec. 3.  The funds authorized to be expended by the provisions of sections 1 and 2 of this act (except the legislative fund and judicial agencies) must be expended in accordance with the allotment transfer, work-program and budget provisions of NRS 353.150 to 353.245, inclusive, and transfers to and from salary allotments, travel allotments, operating expense allotments, equipment allotments and other allotments must be allowed and made in accordance with the provisions of NRS 353.215 to 353.225, inclusive, and after separate consideration of the merits of each request.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1695 (Chapter 580, SB 478)ê

 

inclusive, and transfers to and from salary allotments, travel allotments, operating expense allotments, equipment allotments and other allotments must be allowed and made in accordance with the provisions of NRS 353.215 to 353.225, inclusive, and after separate consideration of the merits of each request.

      Sec. 4.  1.  Except as provided in subsection 2 and limited by section 5, and in accordance with the provisions of NRS 353.220, the chief of the budget division of the department of administration may, with the approval of the governor, authorize the augmentation of the amounts authorized in sections 1 and 2 of this act for expenditure by a given officer, department, board, agency, commission and institution from any other state agency, from any agency of local government or of the Federal Government, or from any other source which he determines is in excess of the amount so taken into consideration by this act. The chief of the budget division of the department of administration shall reduce any authorization whenever he determines that funds to be received will be less than the amount so authorized in sections 1 and 2 of this act.

      2.  The director of the legislative counsel bureau may, with the approval of the legislative commission, authorize the augmentation of the amount authorized in section 1 of this act to the legislative fund for expenditure by the legislative counsel bureau from any source which he determines is in excess of the amount so taken into consideration by this act. The director of the legislative counsel bureau shall reduce the authorization whenever he determines that funds to be received will be less than the amount so authorized in section 1 of this act.

      Sec. 5.  Except as otherwise provided in section 6, where the operation of an office, department, board, agency, commission, institution or program is financed by an appropriation or appropriations from the state general fund as well as by funds received from other sources, the portion provided by appropriation from the state general fund must be decreased to the extent that the receipts of the funds from other sources are exceeded, but such decrease must not jeopardize the receipts of such funds as are to be received from other sources.

      Sec. 6.  The University of Nevada System may expend any additional fees collected from the registration of students, resident or nonresident, in addition to the following amounts for the respective fiscal years:

 

                                                                                                   1983-84             1984-85

University of Nevada, Reno............................ $5,642,762     $5,642,762

University of Nevada, Las Vegas...................   5,569,398        5,761,085

Clark County community college..................   1,722,500        1,821,950

Western Nevada community college.............      417,746           469,616

Truckee Meadows community college..........   1,055,310        1,137,070

Northern Nevada community college............      171,875           175,625

School of medical sciences..............................      666,282           666,282

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1696 (Chapter 580, SB 478)ê

 

      Sec. 7.  In addition to the individual authorization for expenditure by the legal division in section 1 of this act, expenditure of $800,000 by the legislative counsel bureau from the legislative fund is hereby authorized during the fiscal year beginning July 1, 1983, and ending June 30, 1984.

      Sec. 8.  1.  Expenditure of the following amounts by the division of state parks of the state department of conservation and natural resources, for capital improvements to the state parks throughout the fiscal biennium 1983-1985:

             From the Federal Government................................................      $488,688

             From the proceeds of bonds issued pursuant to chapter 613, Statutes of Nevada 1969..........................................................................................        470,000

      2.  The money authorized by this section may be used in part for contracts for the services of consultants who participate with the division of state parks in planning capital improvements.

      Sec. 9.  In addition to the amounts authorized in section 1, the real estate division is authorized to expend the following amounts collected as a result of Senate Bill No. 176 of this session for the respective fiscal years:

 

                                                                                                   1983-84             1984-85

Real estate administration................................... $70,400           $28,500

Real estate investigation fund.............................    10,000              10,000

 

________

 

 

CHAPTER 581, SB 418

Senate Bill No. 418–Committee on Commerce and Labor

CHAPTER 581

AN ACT relating to the department of commerce; creating a division of financial institutions and providing for its organization, powers and duties; abolishing the banking division, the credit union division and the savings and loan division; transferring the regulation of thrift companies from the director to the administrator of financial institutions; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 78.045 is hereby amended to read as follows:

      78.045  1.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed under the laws of this state which provides that the name of the corporation contain the word “trust,” unless:

      (a) It appears from the articles or the certificate of amendment that the corporation proposes to carry on business as a trust company, either exclusively or in connection with its business as a bank or savings and loan association; and

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1697 (Chapter 581, SB 418)ê

 

exclusively or in connection with its business as a bank or savings and loan association; and

      (b) The articles or certificate of amendment is first approved by the [superintendent of banks or the commissioner of savings associations.] administrator of financial institutions.

      2.  The secretary of state shall not accept for filing any articles of incorporation or any certificate of amendment of articles of incorporation of any corporation formed under this chapter when it appears from the articles or the certificate of amendment that the business to be carried on by the corporation is subject to supervision by the commissioner of insurance, unless the articles or certificate of amendment is first approved by the commissioner of insurance.

      3.  The secretary of state shall not accept for filing any articles of incorporation or any certificate or amendment of articles of incorporation of any corporation formed under the laws of this state if the name of the corporation contains the words “engineer,” “engineered,” “engineering,” “professional engineer” or “licensed engineer” unless:

      (a) The state board of registered professional engineers and land surveyors certifies that the principals of the corporation are registered to practice engineering or are registered to practice engineering and architecture, except landscape architecture, under the laws of this state; or

      (b) The state board of registered professional engineers and land surveyors certifies that the corporation is exempt from the prohibitions of NRS 625.520.

      4.  The provisions of subsection 3 do not apply to any corporation, whose securities are publicly traded and regulated by the Securities and Exchange Act of 1934, which does not engage in the practice of professional engineering.

      5.  The [superintendent of banks, the commissioner of savings associations] administrator of financial institutions and the commissioner of insurance may approve or disapprove the articles or amendments referred to them under the provisions of this section.

      Sec. 2.  NRS 163.040 is hereby amended to read as follows:

      163.040  1.  A corporate trustee which is subject to regulation and supervision by state or federal authorities may deposit with itself trust funds which are being held necessarily pending investment, distribution, or the payment of debts, provided it pays into the trust for such deposit such interest as it is required by statute to pay on uninvested trust funds, or, if there be no such statute, the same rate of interest it pays upon similar nontrust deposits, and maintains in its trust department as security for all such deposits a separate fund consisting of securities legal for trust investments and at all times equal in total market value to the amount of the deposits. But no such security [shall] may be required to the extent that the deposit is insured or given a preference by any state or federal law.

      2.  The separate fund of securities [shall] must be marked as such. Withdrawals from or additions to it may be made from time to time, as long as the required value is maintained.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1698 (Chapter 581, SB 418)ê

 

as long as the required value is maintained. The income of such securities [shall belong] belongs to the corporate trustee. In all statements of its financial condition published, or delivered to the [superintendent of banks, such] administrator of financial institutions, the corporate trustee shall show as separate items the amount of trust funds which it has deposited with itself and the amount of securities which it holds as security for the payment of such deposits.

      Sec. 3.  NRS 232.230 is hereby amended to read as follows:

      232.230  1.  The department of commerce is hereby created.

      2.  The department consists of a director and the following divisions:

      (a) [Banking division.

      (b)] Consumer affairs division.

      [(c) Credit union division.

      (d)](b) Division of financial institutions.

      (c) Housing division.

      [(e)](d) Insurance division.

      [(f)](e) Manufactured housing division.

      [(g)](f) Real estate division.

      [(h) Savings and loan division.

      (i)](g) State fire marshal division.

      Sec. 4.  NRS 232.250 is hereby amended to read as follows:

      232.250  The director:

      1.  Shall appoint, with the consent of the governor, a chief of each of the divisions of the department. In making the appointments, other than that of the state fire marshal, the director shall obtain lists of nominees from recognized professional organizations, if any, in the appropriate professions and make the appointments after consultation with and concurrence of the organizations. The director shall consult the state fire marshal’s advisory board and appoint the state fire marshal from the list of candidates presented by the board. The chief of the [banking division is the superintendent of banks, the chief of the] consumer affairs division is the commissioner of consumer affairs, the chief of the [credit union division is the commissioner of credit unions,] division of financial institutions is the administrator of financial institutions, the chief of the housing division is the administrator of the housing division, the chief of the insurance division is the commissioner of insurance, the chief of the manufactured housing division is the administrator of the manufactured housing division, the chief of the real estate division is the real estate administrator [, the chief of the savings and loan division is the commissioner of savings associations] and the chief of the state fire marshal division is the state fire marshal.

      2.  Is responsible for the administration through the divisions of the department of the provisions of Titles 55 to 57, inclusive, of NRS, chapters 319 and 645 of NRS, and NRS 598.360 to 598.640, inclusive, and for the administration directly or through a division of all other provisions of law relating to the functions of the department.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1699 (Chapter 581, SB 418)ê

 

      Sec. 5.  NRS 356.030 is hereby amended to read as follows:

      356.030  1.  If any insured banks, insured credit unions or any insured savings and loan associations fail to pay any deposit or deposits, or any part thereof, on demand of the state treasurer, then the state treasurer, with the written approval of the state board of finance, forthwith shall:

      (a) Advertise such securities for sale for not less than 10 days in a newspaper of general circulation published within this state.

      (b) Sell the securities, or a sufficient amount thereof, to repay the deposit, at public or private sale to the highest and best bidder.

      (c) Apply the proceeds of the sale, including accrued interest, if any, toward the cancellation of the deposit.

      2.  If there is an excess of such proceeds or of security, or both, after the satisfaction of the deposit, the excess must be returned to the depository bank, credit union or savings and loan association or its successor in interest.

      3.  Nothing in this section prevents the depository bank, credit union or savings and loan association, or the [superintendent of banks, the commissioner of credit unions or the commissioner of savings associations] administrator of financial institutions in charge thereof, or the legally constituted receiver or liquidator thereof from redeeming the securities within a reasonable time, as determined by the state board of finance, at such a price as will repay to the state treasurer the full amount of the deposit in the depository.

      Sec. 6.  (Deleted by amendment.)

      Sec. 7.  NRS 452.380 is hereby amended to read as follows:

      452.380  The administrator shall promptly deposit with the state treasurer, for credit to the [banking division] revolving fund [,] of the insurance division, hereby established in the state treasury, all fees and charges collected by him under this chapter.

      Sec. 8.  NRS 539.655 is hereby amended to read as follows:

      539.655  1.  Whenever any bond of an irrigation district organized and existing under and pursuant to the laws of the State of Nevada, including any bond authorized in any such district but not sold, which is eligible to certification by the state controller under NRS 539.647, is presented to the state controller, he shall attach a certificate in substantially the following form:

 

Carson City, Nevada ................................ (insert date).

      I, ..................................................., state controller of the State of Nevada, do hereby certify that the within bond, No. ............ of issue No. ................ of the ...................................... Irrigation District, issued ............................... (insert date), is, in accordance with NRS 539.640 to 539.665, inclusive, a legal investment for all trust funds and for the funds of all insurance companies, banks, both commercial and savings, trust companies, and any funds which may be invested in county, municipal or school district bonds, and it may be deposited as security for the performance of any act whenever the bonds of any county, city or school district may be so deposited, it being entitled to such privileges by virtue of an examination by the [governor, the state engineer and the superintendent of banks] department of taxation in pursuance of NRS 539.640 to 539.665, inclusive.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1700 (Chapter 581, SB 418)ê

 

for the performance of any act whenever the bonds of any county, city or school district may be so deposited, it being entitled to such privileges by virtue of an examination by the [governor, the state engineer and the superintendent of banks] department of taxation in pursuance of NRS 539.640 to 539.665, inclusive. The within bond may also be used as security for the deposit of public money in banks in this state.

 

                                                    ...........................................................................

                                                         State Controller of the State of Nevada

 

      2.  In case of a change in the constitution or any of the laws of this state relating to the bonds of irrigation districts, the state controller shall, if necessary, modify the above certificate so that it conforms to the facts.

      3.  A facsimile of the state controller’s signature, printed or otherwise, impressed upon the certificate is a sufficient signing thereof.

      Sec. 9.  NRS 598B.070 is hereby amended to read as follows:

      598B.070  “Division” means the [banking] division of financial institutions of the department of commerce.

      Sec. 10.  NRS 598B.090 is hereby amended to read as follows:

      598B.090  The [superintendent of banks] administrator of financial institutions through the division shall:

      1.  Administer the provisions of this chapter;

      2.  Study the nature and extent of any discrimination as to sex or marital status in credit practices in this state; and

      3.  Cooperate with and assist all public and private agencies, organizations and institutions which are formulating or carrying on programs to prevent or eliminate discrimination on the basis of sex or marital status in credit practices.

      Sec. 11.  NRS 645B.010 is hereby amended to read as follows:

      645B.010  As used in this chapter, unless the context otherwise requires:

      1.  [“Commissioner” means the commissioner of savings associations.] “Administrator” means the administrator of financial institutions.

      2.  “Mortgage company” means any person who, directly or indirectly:

      (a) Holds himself out for hire to serve as an agent for any person in an attempt to obtain a loan which will be secured by a lien on real property;

      (b) Holds himself out for hire to serve as an agent for any person who has money to lend, if the loan is or will be secured by a lien on real property;

      (c) Holds himself out as being able to make loans secured by liens on real property , unless the loans are made pursuant to subsection 6 or 8 of NRS 645B.190;

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1701 (Chapter 581, SB 418)ê

 

      (d) Holds himself out as being able to service loans secured by liens on real property ; or

      (e) Holds himself out as being able to buy or sell notes secured by liens on real property.

      Sec. 12.  NRS 645B.020 is hereby amended to read as follows:

      645B.020  1.  A license as a mortgage company may be obtained by filing a written application in the office of the [commissioner.] administrator.

      2.  The application must:

      (a) Be verified.

      (b) State the location of the applicant’s principal office and branch offices in the state.

      (c) State the name under which the applicant will conduct business.

      (d) List the names, residence and business addresses of all persons having an interest in the business as principals, partners, officers, trustees and directors, specifying the capacity and title of each.

      (e) Indicate the general plan and character of the business.

      (f) State the length of time the applicant has been engaged in the mortgage company business.

      (g) Require a financial statement of the applicant.

      (h) Require such other information as the [commissioner] administrator determines necessary.

      3.  If the [commissioner] administrator determines after investigation that the experience, character, financial condition, business reputation and general fitness of the applicant are such as to command the confidence of the public and to warrant the belief that the handling of money deposited for taxes and insurance premiums or otherwise held in escrow or trust accounts as provided in this chapter will protect and safeguard the public, he shall issue a license to the applicant as a mortgage company.

      Sec. 13.  NRS 645B.030 is hereby amended to read as follows:

      645B.030  1.  Except as otherwise provided in this section, at the time of filing an application for a mortgage company’s license, the applicant must deposit with the [commissioner:] administrator:

      (a) A corporate surety bond payable to the [commissioner] administrator on behalf of the fund for mortgage investors, in an amount, to be determined by the [commissioner,] administrator, no less than $25,000, executed by a corporate surety satisfactory to the [commissioner] administrator and signed by one or more sureties approved by the [commissioner,] administrator, whose liabilities as sureties need not exceed the amount of the bond in the aggregate; or

      (b) An irrevocable letter of credit upon which the applicant is the obligor, issued by a bank approved by the [commissioner,] administrator, whose deposits are insured by the Federal Deposit Insurance Corporation.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1702 (Chapter 581, SB 418)ê

 

      2.  The bond or letter of credit must be conditioned that the applicant shall conduct the business in accordance with the provisions of this chapter and all regulations adopted by the [commissioner] administrator and pay all money that becomes due. The terms of the bond or letter of credit must be approved by the [commissioner.] administrator.

      3.  In lieu of depositing a bond or letter of credit, an applicant may deposit with the state treasurer, under terms prescribed by the [banking] division of financial institutions of the department of commerce:

      (a) Money of the United States in an amount equal to the amount of the required bond; or

      (b) A savings certificate of a federally insured financial institution in this state for an amount payable which is equal to the amount of the required bond and which is not available for withdrawal except by direct order of the [commissioner.] administrator. Interest earned under the certificate accrues to the account of the applicant.

      4.  If the applicant obtains a mortgage company’s license, any deposit he has made pursuant to this section may be retained by the [commissioner] administrator until the licensee qualifies to pay the annual fee for claims against persons licensed under this chapter.

      Sec. 14.  NRS 645B.040 is hereby amended to read as follows:

      645B.040  If the [commissioner] administrator determines that a bond on deposit pursuant to the provisions of NRS 645B.030 is insufficient to protect the public interest, he shall require an additional bond to be deposited.

      Sec. 15.  NRS 645B.050 is hereby amended to read as follows:

      645B.050  1.  A mortgage company’s license expires June 30 next after the date of issuance if it is not renewed. A license may be renewed by filing an application for renewal and paying the annual fee for a license for the succeeding year. The application and payment must be received by the [commissioner] administrator on or before June 30 next preceding the expiration date. If the application or payment is not received by June 30, the license is canceled. The [commissioner] administrator may reinstate the license if the licensee pays the filing fee and a reinstatement fee of $200.

      2.  The [commissioner] administrator shall require a licensee to deliver a financial statement prepared from his books and records by a public accountant who is certified or registered in this state. The financial statement must be dated not earlier than the close of the latest fiscal year of the company and must be submitted within 60 days thereafter.

      3.  The filing fees are:

      (a) For filing an original application, $200 for the principal office and $75 for each branch office.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1703 (Chapter 581, SB 418)ê

 

      (b) For filing an original application from April 1 to June 30, inclusive, $100 for the principal office of a mortgage company.

      (c) For filing an application for a copy of any license, upon satisfactory showing of its loss, $10.

      (d) For filing an application for renewal, $500.

      4.  Except as otherwise provided in this chapter, all fees received under this chapter must be deposited in the state treasury for credit to the state general fund.

      Sec. 16.  NRS 645B.060 is hereby amended to read as follows:

      645B.060  1.  Subject to the administrative control of the director of the department of commerce, the [commissioner] administrator shall exercise general supervision and control over mortgage companies doing business in this state.

      2.  In addition to the other duties imposed upon him by law, the [commissioner] administrator shall:

      (a) Adopt reasonable regulations as may be necessary for making effective this chapter, except as to loan brokerage fees.

      (b) Conduct such investigations as may be necessary to determine whether any person has violated any provision of this chapter.

      (c) Conduct such examinations, periodic or special audits, investigations and hearings, in addition to those specifically provided for by law, as may be necessary and proper for the efficient administration of the laws of this state regarding mortgage companies.

      (d) Classify as confidential certain records and information obtained by the division when those matters are obtained from a governmental agency upon the express condition that they remain confidential. This paragraph does not limit examination by the legislative auditor.

      (e) Conduct such examinations and investigations as are necessary to ensure that mortgage companies meet the requirements of this chapter for obtaining a license, both at the time of the application for a license and thereafter on a continuing basis.

      Sec. 17.  NRS 645B.070 is hereby amended to read as follows:

      645B.070  1.  In the conduct of any examination, periodic or special audit, investigation or hearing, the [commissioner] administrator may:

      (a) Compel the attendance of any person by subpena.

      (b) Administer oaths.

      (c) Examine any person under oath concerning the business and conduct of affairs of any person subject to the provisions of this chapter and in connection therewith require the production of any books, records or papers relevant to the inquiry.

      2.  Every person subpenaed under the provisions of this section who willfully refuses or willfully neglects to appear at the time and place named in the subpena or to produce books, records or papers required by the [commissioner,] administrator, or who refuses to be sworn or answer as a witness, is guilty of a misdemeanor.

 


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ê1983 Statutes of Nevada, Page 1704 (Chapter 581, SB 418)ê

 

      3.  The cost of any examination, periodic or special audit, investigation or hearing conducted under this chapter may be assessed to and collected from the mortgage company in question by the [commissioner.] administrator.

      Sec. 18.  NRS 645B.090 is hereby amended to read as follows:

      645B.090  Except as otherwise provided by law, all papers, documents, reports and other written instruments filed with the [commissioner] administrator under this chapter are open to public inspection, except that the [commissioner] administrator may withhold from public inspection for such time as he considers necessary any information which in his judgment the public welfare or the welfare of any mortgage company requires to be so withheld.

      Sec. 19.  NRS 645B.100 is hereby amended to read as follows:

      645B.100  1.  Grounds for refusing to license any person as a mortgage company and grounds for suspending any license are that the applicant or licensee:

      (a) Is insolvent;

      (b) Is of bad business repute or has demonstrated his unworthiness to transact the business of a mortgage company;

      (c) Does not conduct his business in accordance with law or has violated any provisions of this chapter;

      (d) Is in such financial condition that he cannot continue in business with safety to his customers;

      (e) Has been guilty of fraud in connection with any transaction governed by this chapter;

      (f) Has made any misrepresentations or false statement to, or concealed any essential or material fact from, any person in the course of his business;

      (g) Has knowingly made or caused to be made to the [commissioner] administrator any false representation of material fact or has suppressed or withheld from the [commissioner] administrator any information which the applicant or licensee possesses, and which if submitted by him would have rendered the applicant or licensee ineligible to be licensed under this chapter;

      (h) Has failed to account to persons interested for all money received for the impound trust account;

      (i) Has refused to permit an examination by the [commissioner] administrator of his books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the [commissioner] administrator under the provisions of this chapter;

      (j) Has been convicted of a felony or any misdemeanor of which an essential element is fraud;

      (k) Has refused or failed to pay, within a reasonable time, those expenses assessed to the mortgage company pursuant to NRS 645B.050 or 645B.070;

 


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ê1983 Statutes of Nevada, Page 1705 (Chapter 581, SB 418)ê

 

      (l) Has failed to satisfy a claim made by a client which has been reduced to judgment; or

      (m) Has not conducted verifiable business as a mortgage company for 6 consecutive months, except in the case of a new applicant. The [commissioner] administrator shall determine whether a company is conducting business by examining the monthly reports submitted by the licensee or by conducting an examination of the licensee.

      2.  It is sufficient cause for refusal or revocation of a license in the case of a partnership or corporation or any unincorporated association that any member of the partnership or any officer or director of the corporation or association has been guilty of any act or omission which would be cause for refusing or revoking the registration of a natural person.

      Sec. 20.  NRS 645B.110 is hereby amended to read as follows:

      645B.110  1.  Notice of the entry of any order of suspension or of refusing a license to any mortgage company [shall] must be given in writing, served personally or sent by certified mail or by telegraph to the company affected.

      2.  The company, upon application, is entitled to a hearing; but if no such application is made within 20 days after the entry of an order of suspension or of refusing a license of any company, the [commissioner] administrator shall enter a final order in either case.

      Sec. 21.  NRS 645B.120 is hereby amended to read as follows:

      645B.120  1.  The [commissioner] administrator may investigate either upon complaint or otherwise when it appears that a mortgage company is conducting its business in an unsafe and injurious manner or in violation of this chapter or the regulations promulgated thereunder by the [commissioner,] administrator, or when it appears that any person is engaging in the mortgage company business without being licensed under the provisions of those sections.

      2.  If upon investigation it appears that such company is so conducting its business or an unlicensed person is engaged in the mortgage company business, the [commissioner] administrator may:

      (a) Advise the district attorney of the county in which the business is conducted, and the district attorney shall cause the appropriate legal action to be taken to enjoin the operation of the business or prosecute the violations of this chapter; and

      (b) Bring suit in the name and on behalf of the State of Nevada against such person and any other person concerned in or in any way participating in or about to participate in such unsafe or injurious practices or action in violation of this chapter or regulations thereunder to enjoin any such person from continuing such practices or engaging therein or doing any such act.

      3.  If the [commissioner] administrator brings suit, the district court of any county of this state is hereby vested with the jurisdiction in equity to restrain unsafe, injurious or illegal practices or transactions and may grant injunctions to prevent and restrain such practices or transactions.

 


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ê1983 Statutes of Nevada, Page 1706 (Chapter 581, SB 418)ê

 

and may grant injunctions to prevent and restrain such practices or transactions. The court may, during the pendency of the proceedings before it, issue such temporary restraining orders as may appear to be just and proper; and the findings of the [commissioner] administrator shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the issue ex parte of a temporary restraining order. In any such court proceedings the [commissioner] administrator may apply for and on due showing is entitled to have issued the court’s subpena requiring forthwith the appearance of any defendant and his employees and the production of documents, books and records as may appear necessary for the hearing of such petition, to testify and give evidence concerning the acts or conduct or things complained of in such application for injunction.

      Sec. 22.  NRS 645B.130 is hereby amended to read as follows:

      645B.130  1.  An appeal may be taken by any person interested from any final decision of the [commissioner] administrator to the district court in the county in which the party adversely affected by the decision resides or has his place of business by serving upon the [commissioner] administrator within 10 days after notice of the entry of the order a written notice of the appeal, stating the grounds upon which a reversal of the final order is sought and accompanied by a demand in writing for a certified transcript of the record and of all papers on file in the office of the [commissioner] administrator affecting or relating to the decision, and all the evidence taken on the hearing, and paying not more than 25 cents for each folio of the transcript and $1 for the certification thereof. The [commissioner] administrator shall within 30 days make and certify such transcript.

      2.  The appellant shall, within 5 days after receiving the transcript, file with the clerk of the court:

      (a) The transcript and the notice of appeal; and

      (b) A petition for review of the [commissioner’s] administrator’s decision, setting forth in specific detail the grounds for the appeal, including any errors which the appellant contends were made by the [commissioner] administrator at the administrative hearing.

      3.  An appeal from an order of the [commissioner shall] administrator must be treated as a proceeding in equity. In the proceeding before the court, the appellant has the burden of proof.

      4.  Any order of the [commissioner] administrator which finally limits or adversely determines the rights of any interested person is a final administrative decision as to that person.

      Sec. 23.  NRS 645B.140 is hereby amended to read as follows:

      645B.140  1.  If the order of the [commissioner] administrator is reversed, the court shall by its mandate specifically direct the [commissioner] administrator as to his further action in the matter including the making and entering of any order in connection therewith and the conditions, limitations or restrictions to be therein contained; but the [commissioner] administrator is not thereby barred from thereafter revoking or altering the order for any proper cause which may thereafter accrue or be discovered.

 


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ê1983 Statutes of Nevada, Page 1707 (Chapter 581, SB 418)ê

 

thereafter revoking or altering the order for any proper cause which may thereafter accrue or be discovered.

      2.  If the order is affirmed, the appellant is not barred after 30 days from filing a new application if the application is not otherwise barred or limited.

      3.  The appeal [shall] does not suspend the operation of the order appealed from during the pendency of the appeal except upon proper order of the court.

      4.  An appeal may be taken from the judgment of the district court on the same terms and conditions as an appeal is taken in civil actions.

      Sec. 24.  NRS 645B.150 is hereby amended to read as follows:

      645B.150  1.  When the [commissioner] administrator ascertains by examination or otherwise that the assets or capital of any mortgage company are impaired or that a mortgage company’s affairs are in an unsafe condition which may result in danger to the public, he may immediately take possession of all the property, business and assets of the company which are located in this state and retain possession of them pending further proceedings provided for in this chapter.

      2.  If the board of directors or any officer or person in charge of the offices of the company refuses to permit the [commissioner] administrator to take possession of its property, the [commissioner] administrator shall communicate that fact to the attorney general. Thereupon the attorney general shall immediately institute such proceedings as may be necessary to place the [commissioner] administrator in immediate possession of the property of the company. The [commissioner] administrator thereupon shall make or have made an inventory of the assets and known liabilities of the company.

      3.  The [commissioner] administrator shall file one copy of the inventory in his office and one copy in the office of the clerk of the district court of the county in which the principal office of the company is located and shall mail one copy to each stockholder, partner, officer or associate of the mortgage company at his last-known address.

      4.  The clerk of the court with which the copy of the inventory is filed shall file it as any other case or proceeding pending in the court and shall give it a docket number.

      Sec. 25.  NRS 645B.160 is hereby amended to read as follows:

      645B.160  1.  The officers, directors, partners, associates or stockholders of the mortgage company may, within 60 days from the date when the [commissioner] administrator takes possession of the property, business and assets, make good any deficit which may exist or remedy the unsafe condition of its affairs.

      2.  At the expiration of such time, if the deficiency in assets or capital has not been made good or the unsafe condition remedied, the [commissioner] administrator may apply to the court to be appointed receiver and proceed to liquidate the assets of the company which are located in this state in the same manner as now provided by law for liquidation of a private corporation in receivership.

 


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ê1983 Statutes of Nevada, Page 1708 (Chapter 581, SB 418)ê

 

located in this state in the same manner as now provided by law for liquidation of a private corporation in receivership.

      3.  No other person may be appointed receiver by any court without first giving the [commissioner] administrator ample notice of his application.

      4.  The inventory made by the [commissioner] administrator and all claims filed by creditors are open at all reasonable times for inspection and any action taken by the receiver upon any of the claims is subject to the approval of the court before which the cause is pending.

      5.  The expenses of the receiver and compensation of counsel, as well as all expenditures required in the liquidation proceedings, [shall] must be fixed by the [commissioner] administrator subject to the approval of the court, and, upon certification of the [commissioner, shall] administrator, must be paid out of the [funds] money in his hands as [such] the receiver.

      Sec. 26.  NRS 645B.170 is hereby amended to read as follows:

      645B.170  1.  All money paid to the mortgage company for payment of taxes or insurance premiums on property which secures any loan made by the mortgage company [shall] must be deposited in a bank and kept separate, distinct and apart from funds belonging to the mortgage company. Such funds, when deposited, are to be designated as an “impound trust account” or under some other appropriate name indicating that the funds are not the funds of the mortgage company.

      2.  The mortgage company [shall have] has a fiduciary duty to its debtors with respect to the funds in its impound trust account.

      3.  The mortgage company shall, upon reasonable notice, account to any debtor whose property secures a loan made by the mortgage company for any funds which that person has paid to the mortgage company for the payment of taxes or insurance premiums on the property in question.

      4.  The mortgage company shall, upon reasonable notice, account to the [commissioner] administrator for all funds in the company’s impound trust account.

      Sec. 27.  NRS 645B.175 is hereby amended to read as follows:

      645B.175  1.  All money paid to a mortgage company by a person to acquire ownership of or a beneficial interest in a loan, made or to be made by the mortgage company and secured by a lien on real property, must:

      (a) Be deposited in:

             (1) An insured bank or insured savings and loan association; or

             (2) An escrow account which is controlled by a person who is independent of the parties and subject to instructions regarding the account which are approved by the parties; and

      (b) Be kept separate from money belonging to the mortgage company in an account appropriately named to indicate that it contains the proceeds of a loan, not belonging to the mortgage company.

 


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ê1983 Statutes of Nevada, Page 1709 (Chapter 581, SB 418)ê

 

      2.  The amount held in trust pursuant to subsection 1 must be released:

      (a) Upon completion of the loan, including proper recordation of the respective interests or release, or upon completion of the transfer of the ownership or beneficial interest therein, to the debtor or his designee or to the mortgage company, as the case may be;

      (b) If the loan or the transfer thereof is not consummated, to the person who furnished the money held in trust; or

      (c) Pursuant to any instructions regarding the escrow account.

      3.  All money paid to a mortgage company by a person in full or in partial payment of a loan, made by that company and secured by a lien on real property, must:

      (a) Be deposited in:

             (1) An insured bank or insured savings and loan association; or

             (2) An escrow account which is controlled by a person who is subject to instructions regarding the account which are approved by the parties; and

      (b) Be kept separate from money belonging to the mortgage company in an account appropriately named to indicate that it contains payments on a loan, not belonging to the mortgage company.

      4.  The amount held in trust pursuant to subsection 3 must be released, upon the deduction and payment of any fees or service charge due the mortgage company, to the owner of or the person having the beneficial interest in the note.

      5.  Upon reasonable notice, any mortgage company described in this section shall:

      (a) Account to any debtor or creditor upon whose behalf money has been paid to the mortgage company and deposited in the trust accounts as set forth in this section; and

      (b) Account to the [commissioner] administrator for all money in the mortgage company’s loan proceeds or loan payments trust account.

      Sec. 28.  (Deleted by amendment.)

      Sec. 29.  NRS 648.190 is hereby amended to read as follows:

      648.190  This chapter [shall] does not apply:

      1.  To any detective or officer belonging to the law enforcement agencies of the State of Nevada or the United States, or of any county or city of the State of Nevada, while any such detective or officer is engaged in the performance of his official duties.

      2.  To special police officers appointed by the police department of any city, county, or city and county within the State of Nevada while any such officer is engaged in the performance of his official duties.

      3.  To insurance adjusters and their associate adjusters licensed pursuant to the Nevada Insurance Adjusters Law who are not otherwise engaged in the business of private investigators.

      4.  To any person employed by an employer regularly in connection with the affairs of that employer if a bona fide employer-employee relationship exists.

 


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ê1983 Statutes of Nevada, Page 1710 (Chapter 581, SB 418)ê

 

with the affairs of that employer if a bona fide employer-employee relationship exists.

      5.  To a person engaged exclusively in the business of obtaining and furnishing information as to the financial rating of persons.

      6.  To a charitable philanthropic society or association duly incorporated under the laws of this state which is organized and maintained for the public good and not for private profit.

      7.  To an attorney at law in performing his duties as such.

      8.  To a collection agency unless engaged in business as a repossessor, licensed by the [superintendent of banks,] administrator of financial institutions, or an employee thereof while acting within the scope of his employment while making an investigation incidental to the business of the agency, including an investigation of the location of a debtor or his assets and of property which the client has an interest in or lien upon.

      9.  To admitted insurers and agents and insurance brokers licensed by the state, performing duties in connection with insurance transacted by them.

      10.  To any bank organized under the laws of this state or to any national bank engaged in banking in this state.

      Sec. 30.  Chapter 649 of NRS is hereby amended by adding thereto a new section which shall read as follows:

      “Administrator” means the administrator of financial institutions.

      Sec. 31.  NRS 649.005 is hereby amended to read as follows:

      649.005  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 649.010 to [649.043,] 649.040, inclusive, and section 30 of this act, have the meanings ascribed to them in such sections.

      Sec. 32.  NRS 649.027 is hereby amended to read as follows:

      649.027  “Community” means a contiguous area of the same economic unit or metropolitan area as determined by the [superintendent,] administrator, and may include all or a part of an incorporated city or several towns or cities.

      Sec. 33.  NRS 649.051 is hereby amended to read as follows:

      649.051  The [superintendent] administrator shall administrator and enforce the provisions of this chapter, subject to the administrative supervision of the director of the department of commerce.

      Sec. 34.  NRS 649.053 is hereby amended to read as follows:

      649.053  The [superintendent] administrator shall:

      1.  Adopt such [rules and] regulations as may be necessary to carry out the provisions of this chapter.

      2.  Make such surveys as may be necessary to determine the necessity and conditions for new or additional collection agencies in any community and use such surveys as a basis for making appropriate decisions on applications for collection agency licenses.

      Sec. 35.  NRS 649.056 is hereby amended to read as follows:

      649.056  The [superintendent] administrator may:

 


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ê1983 Statutes of Nevada, Page 1711 (Chapter 581, SB 418)ê

 

      1.  By [rule or] regulation prescribe for collection agencies the method and manner of:

      (a) Keeping records.

      (b) Preparing and filing financial and other reports.

      (c) Handling trust funds and accounts.

      (d) The transfer or assignment of accounts and other agreements.

      (e) Using fair practices for the solicitation of business and collection of accounts.

      (f) The operation of such other phases of the business as may be necessary to promote the best interests of the industry and the public.

      2.  Conduct such investigations or examinations of collection agencies, their personnel, activities, books, records and other matters as may be necessary to [insure] ensure compliance with the purposes and provisions of this chapter.

      Sec. 36.  NRS 649.059 is hereby amended to read as follows:

      649.059  The [superintendent] administrator may require collection agencies to submit any printed form of agreements, listing sheets, acknowledgments, communications or other documents used in its business for his approval or disapproval.

      Sec. 37.  NRS 649.061 is hereby amended to read as follows:

      649.061  1.  The [superintendent] administrator shall notify all applicants for licensure, certification or registration of the results of any examination taken under this chapter, by certified mail, as soon as the results are available.

      2.  All examination papers shall be kept on file in the office of the [superintendent] administrator for at least 1 year, after which they may be destroyed.

      Sec. 38.  NRS 649.065 is hereby amended to read as follows:

      649.065  1.  The [superintendent] administrator shall keep in his office, in a suitable record provided for the purpose, all applications for certificates, registrations, licenses and all bonds required to be filed under this chapter. The record shall state the date of issuance or denial of the license, certificate or registration and the date and nature of any action taken against any of them.

      2.  All licenses, certificates and registrations issued [shall] must be sufficiently identified in the record.

      3.  All renewals [shall] must be recorded in the same manner as originals, except that in addition, the word “Renewal” and the number of the preceding license or certificate issued [shall] must be recorded.

      4.  Except for confidential information contained therein, the record [shall] must be open for inspection as a public record in the office of the [superintendent.] administrator.

      Sec. 39.  NRS 649.075 is hereby amended to read as follows:

      649.075  A person shall not conduct within this state a collection agency or engage within this state in the business of collecting claims for others, or of soliciting the right to collect or receive payment for another of any claim, or advertise, or solicit, either in print, by letter, in person or otherwise, the right to collect or receive payment for another of any claim, or seek to make collection or obtain payment of any claim on behalf of another without having first applied for and obtained a license from the [superintendent.]

 


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ê1983 Statutes of Nevada, Page 1712 (Chapter 581, SB 418)ê

 

another of any claim, or advertise, or solicit, either in print, by letter, in person or otherwise, the right to collect or receive payment for another of any claim, or seek to make collection or obtain payment of any claim on behalf of another without having first applied for and obtained a license from the [superintendent.] administrator.

      Sec. 40.  NRS 649.095 is hereby amended to read as follows:

      649.095  1.  An application for a license must be in writing and filed with the [superintendent] administrator on a form provided for that purpose.

      2.  The application must state:

      (a) The name of the applicant and the name under which the applicant does business or expects to do business.

      (b) The address of the applicant’s business and residence, including street and number.

      (c) The character of the business sought to be carried on.

      (d) The locations by street and number where the business will be transacted.

      (e) In the case of a firm or partnership, the full names and residential addresses of all members or partners and the name and residential address of the manager.

      (f) In the case of a corporation or voluntary association, the name and residential address of each of the directors and officers and the name and residential address of the manager.

      (g) Any other information reasonably related to the applicant’s qualifications for the license which the [superintendent] administrator determines to be necessary.

      3.  The application must be subscribed by the applicant and acknowledged.

      4.  Every applicant may be examined concerning his competency, experience, character and qualifications by the [superintendent of banks] administrator or his authorized agent, and if the examination reveals that the applicant lacks any of the required qualifications, issuance of the license must be denied. Every application must have attached to it a financial statement showing the assets, liabilities and net worth of the applicant.

      Sec. 41.  NRS 649.105 is hereby amended to read as follows:

      649.105  1.  An applicant for a license shall file with the [superintendent,] administrator, concurrently with the application, a bond in the sum of $25,000, or an appropriate substitute pursuant to NRS 649.119, which must run to the State of Nevada. The bond must be made and executed by the principal and a surety company authorized to write bonds in the State of Nevada.

      2.  The bonds must be conditioned:

      (a) That the principal, who must be the applicant and who must have been a resident of the State of Nevada for at least 6 months before the application, must, upon demand in writing, pay any customer from whom any claim for collection is received, the proceeds of the collection, in accordance with the terms of the agreement made between the principal and the customer; and

 

 


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ê1983 Statutes of Nevada, Page 1713 (Chapter 581, SB 418)ê

 

whom any claim for collection is received, the proceeds of the collection, in accordance with the terms of the agreement made between the principal and the customer; and

      (b) That the principal must comply with all requirements of this or any other statute with respect to the duties, obligations and liabilities of collection agencies.

      Sec. 42.  NRS 649.115 is hereby amended to read as follows:

      649.115  1.  The bond [shall] must be in a form approved by the [banking] division of financial institutions of the department of commerce and conditioned that the applicant [shall] conduct his business in accordance with the requirements of this chapter.

      2.  The bond [shall] must cover all matters placed with the licensee during the term of the license so applied for, or a renewal thereof.

      3.  No action [shall] may be brought upon any bond after the expiration of 2 years from the revocation or expiration of the license.

      4.  [From and after] After the expiration of the period of 2 years, all liability of the surety or sureties upon the bond [shall cease, provided] ceases if no action [shall have been] is commenced upon the bond before the expiration of the period.

      Sec. 43.  NRS 649.119 is hereby amended to read as follows:

      649.119  1.  An applicant for a license may deposit with any bank or trust company authorized to do business in this state, with the permission of the [superintendent,] administrator, as a substitute for the surety bond required by NRS 649.105:

      (a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;

      (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or

      (c) Any obligation of this state or any city, county, town, school district or other instrumentality of this state or guaranteed by this state, in an aggregate amount, based upon principal amount or market value, whichever is lower.

The deposit must be in a form approved by the [superintendent.] administrator.

      2.  The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond. With the approval of the [superintendent,] administrator, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the [superintendent.] administrator.

      3.  Any interest or dividends earned on the deposit accrue to the account of the depositor.

      4.  The deposit must be an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the [superintendent.] administrator.

 


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ê1983 Statutes of Nevada, Page 1714 (Chapter 581, SB 418)ê

 

      Sec. 44.  NRS 649.125 is hereby amended to read as follows:

      649.125  Upon receiving an application for a license and bond in proper form along with payment of the required investigation fee, the [superintendent] administrator shall investigate all the facts stated in the application and the requirements of NRS 649.135.

      Sec. 45.  NRS 649.135 is hereby amended to read as follows:

      649.135  The [superintendent] administrator shall enter an order approving the application for a license, keep on file his findings of fact pertaining thereto, and permit the applicant to take the required examination, if he finds that:

      1.  The applicant has met all the other requirements of this chapter pertaining to his qualifications and application; and

      2.  Allowing the applicant to engage in the collection agency business will promote the convenience and advantage of the community in which the business is to be located.

      Sec. 46.  NRS 649.145 is hereby amended to read as follows:

      649.145  1.  If the [superintendent] administrator enters an order approving the application in accordance with NRS 649.135 and the applicant passes the required examination and pays the required license fee, the [superintendent] administrator shall grant and issue a license to the applicant.

      2.  The license, when issued, [shall] must state:

      (a) The name of the licensee.

      (b) The locations by street and number where the licensee is authorized to carry on business.

      (c) The number and the date of the license.

      (d) That it is issued pursuant to this chapter, and that the licensee is [duly] authorized under this chapter.

      Sec. 47.  NRS 649.155 is hereby amended to read as follows:

      649.155  1.  If the [superintendent] administrator finds that any application or applicant for a collection agency license does not meet the requirements of NRS 649.135 or the applicant fails to pass the required examination, he shall enter an order denying the application.

      2.  Within 10 days after the entry of such an order, the superintendent shall mail or deliver to the applicant written notice of the denial in which all the reasons for such denial are stated.

      Sec. 48.  NRS 649.175 is hereby amended to read as follows:

      649.175  [Except for the period provided in NRS 649.415, no] No person may be the manager of a collection agency unless he holds a valid manager’s certificate issued pursuant to the provisions of this chapter.

      Sec. 49.  NRS 649.185 is hereby amended to read as follows:

      649.185  Each person who is, or desires to become, the manager of a collection agency shall make application for a manager’s certificate to the [superintendent] administrator in accordance with the provisions of this chapter.

 


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ê1983 Statutes of Nevada, Page 1715 (Chapter 581, SB 418)ê

 

      Sec. 50.  NRS 649.196 is hereby amended to read as follows:

      649.196  1.  [Except as otherwise provided in NRS 649.425, each] Each applicant for a manager’s certificate must:

      (a) Be a citizen of the United States or lawfully entitled to remain and work in the United States.

      (b) Be 21 years of age.

      (c) Be of good moral character and not have been convicted of any crime involving moral turpitude.

      (d) Not have committed any of the acts specified in NRS 649.215.

      (e) Submit evidence of having had not less than 2 years’ full-time experience with a collection agency in the collection of accounts assigned by creditors who were not affiliated with the collection agency except as assignors of accounts. At least 1 year of the 2 years of experience must have been within the 18-month period preceding the date of filing the application.

      (f) Pass the examination provided for.

      (g) Pay the required fees.

      (h) Submit three recent photographs and three sets of fingerprints in such form as the [superintendent] administrator prescribes.

      (i) Submit such other information reasonably related to his qualifications for the manager’s certificate as the [superintendent] administrator determines to be necessary.

      2.  The [superintendent,] administrator, without a hearing, may refuse to issue a manager’s certificate if the applicant does not meet the requirements of paragraphs (a), (b), or (e) to (i), inclusive, of subsection 1.

      3.  If the [superintendent] administrator refuses to issue a manager’s certificate under this section, he shall notify the applicant in writing by certified mail stating the reasons for the refusal.

      Sec. 51.  NRS 649.205 is hereby amended to read as follows:

      649.205  1.  The [superintendent] administrator shall provide for managers’ examinations at such times and places as he may direct, at least twice each year.

      2.  [Such examinations shall] The examinations must be of a length, scope and character which the [superintendent] administrator deems reasonably necessary to determine the fitness of the applicants to act as managers of collection agencies.

      3.  The [superintendent] administrator may make such rules and regulations as may be necessary to carry out the purposes of this section.

      Sec. 52.  NRS 649.215 is hereby amended to read as follows:

      649.215  The [superintendent,] administrator, after a hearing, may refuse to permit an applicant for a manager’s certificate to take the examination, or may suspend or revoke a manager’s certificate if the applicant or manager has:

      1.  Committed or done any act which, if committed or done by a licensee, would be grounds for the suspension or revocation of a license.

 


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ê1983 Statutes of Nevada, Page 1716 (Chapter 581, SB 418)ê

 

licensee, would be grounds for the suspension or revocation of a license.

      2.  Been refused a license, certificate or registration under this chapter or had a license, certificate or registration suspended or revoked.

      3.  Participated in any act, which act was a basis for the refusal or revocation of a collection agency license.

      4.  Falsified any of the information submitted to the [superintendent] administrator in support of an application under this chapter.

      5.  Impersonated, or permitted or aided and abetted another to impersonate, a law enforcement officer or employee of the United States, a state or any political subdivision thereof.

      6.  Made any statement in connection with his employment with a collection agency with the intent to give an impression that he was a law enforcement officer of the United States, a state or political subdivision thereof.

      7.  Filed a voluntary petition in bankruptcy, or been the object of an involuntary petition, and has been adjudicated a bankrupt within 5 years preceding the filing of an application for granting renewal or reinstatement of a manager’s certificate.

      Sec. 53.  NRS 649.225 is hereby amended to read as follows:

      649.225  1.  The [superintendent] administrator shall issue a manager’s certificate to any applicant who meets the requirements of this chapter for [such] the certificate.

      2.  Each manager holding a manager’s certificate issued pursuant to this chapter shall notify the superintendent in writing of any change in his residence address within 10 days after [such] the change.

      Sec. 54.  NRS 649.245 is hereby amended to read as follows:

      649.245  1.  A collection agency or manager desiring a renewal of a license or certificate which will expire shall file in the office of the [superintendent,] administrator, on or before June 1 in each year following the year of original issuance, a renewal application, stating in addition to the matters required in the original application the date and number of the license or certificate which will expire. The renewal application [shall] must be accompanied by the renewal fee.

      2.  The [superintendent] administrator shall issue a renewal license or certificate to the applicant, which [shall] must be dated July 1 next ensuing the date of the application, in form and text like the original except that, in addition, the renewal [shall] must show the date and number of the earliest license or certificate issued, and [shall] must bear across its face in conspicuous letters the word “Renewal.”

      3.  All requirements of this chapter with respect to original certificates, licenses and bonds apply with like force to all renewal certificates, licenses and bonds except as otherwise specified in this section.

      4.  The [superintendent] administrator shall refuse to renew a certificate or license if at the time of application a proceeding to revoke or suspend the certificate or license is pending.

 


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ê1983 Statutes of Nevada, Page 1717 (Chapter 581, SB 418)ê

 

      Sec. 55.  NRS 649.295 is hereby amended to read as follows:

      649.295  1.  A nonrefundable investigation fee of $100 must accompany each new application for a collection agency license.

      2.  A fee of $300 must be charged for each collection agency license issued and $150 for each annual renewal of such a license.

      3.  A fee of $10 must be charged for each duplicate or location transfer license issued.

      4.  A nonrefundable investigation fee of $75 must accompany each application for a manager’s certificate unless the applicant is the holder of or an applicant for a collection agency license.

      5.  A fee of $20 must be charged for each manager’s certificate issued and for each annual renewal of such a certificate.

      6.  A fee of $30 must be charged for the reinstatement of a manager’s certificate.

      7.  A fee of $5 must be charged for each day an application for the renewal of a license or certificate, or a required report, is filed late, unless the fee or portion thereof is excused by the [superintendent] administrator for good cause shown.

      8.  For each examination the [superintendent] administrator shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and in preparing and typing the examination report, but the total fee must not exceed $800 for any regular examination or investigation unless some irregularity is disclosed during the course of the regular examination warranting special or additional investigation or examination. If such an irregularity is disclosed, the licensee shall pay for the additional investigation required by reason of the irregularity at a reasonable rate for each man-hour so required.

      9.  All money received by the [superintendent] administrator under this chapter must be deposited in the state treasury for credit to the appropriate account within the state general fund, for use of the [banking] of financial institutions division to carry out the provisions of this chapter. At the end of each fiscal year, any remaining balance lapses within the state general fund.

      Sec. 56.  NRS 649.305 is hereby amended to read as follows:

      649.305  [Except for the period provided in NRS 649.415, no] No collection agency may operate its business without a manager who holds a valid manager’s certificate issued under the provisions of this chapter.

      Sec. 57.  NRS 649.325 is hereby amended to read as follows:

      649.325  1.  A collection agency shall not remove its business location from the place of business as stated in the license except upon prior approval by the [superintendent] administrator in writing.

      2.  In approving or disapproving the removal to a new location the [superintendent] administrator shall apply the standard specified in subsection 2 of NRS 649.135.

      3.  If the removal is approved, the [superintendent] administrator shall note the change upon the face of the license and enter in his records a notation of such location change.

 


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ê1983 Statutes of Nevada, Page 1718 (Chapter 581, SB 418)ê

 

shall note the change upon the face of the license and enter in his records a notation of such location change.

      Sec. 58.  NRS 649.335 is hereby amended to read as follows:

      649.335  1.  Every collection agency shall keep all records concerning each of its accounts for at least 6 years following the completion of the last transaction concerning such account.

      2.  The [superintendent] administrator shall inspect and conduct an examination of the books, records and accounts of each collection agency licensed under this chapter at least once every 3 years.

      Sec. 59.  NRS 649.345 is hereby amended to read as follows:

      649.345  1.  Each licensed collection agency shall file with the [superintendent] administrator an annual written report in January, signed and sworn to by its manager. Such report must include:

      (a) The total sum of money due to all creditors as of the close of the last business day of the preceding month.

      (b) The total sum on deposit in customer trust fund accounts and available for immediate distribution as of the close of the last business day of the preceding month, the title of the trust account or accounts, and the name of the bank or banks where the [moneys are] money is deposited.

      (c) The total amount of creditors’ or forwarders’ share of [moneys] money collected more than 60 days before the last business day of the preceding month and not remitted by that date.

      (d) When the total sum under paragraph (c) exceeds $10, the name of each creditor or forwarder and the respective share of each in that sum.

      (e) Such other information, audit or reports as the [superintendent] administrator may require.

      2.  The filing of any report required by this section which is known by the collection agency to contain false information or statements constitutes grounds for the suspension of the agency’s license or the manager’s certificate, or both.

      Sec. 60.  NRS 649.355 is hereby amended to read as follows:

      649.355  1.  Every collection agency and collection agent shall openly, fairly and honestly conduct the collection agency business and shall at all times conform to the accepted business ethics and practices of the collection agency business.

      2.  Every licensee shall at all times maintain a separate bank account in which [shall] must be deposited all [moneys] money collected. Such account [shall] must bear some title sufficient to distinguish it from the licensee’s personal or general checking account and to designate it as a trust account, such as “customer’s trust fund account.” Such trust account [shall] must at all times contain sufficient funds to pay all money due or owing to all customers, and no disbursement may be made from such account except to customers or to pay costs advanced for such customers, except that a licensee may periodically withdraw from such account such [moneys] money as may accrue to the licensee from collections deposited or from adjustments resulting from costs advanced and payments made directly to customers.

 


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ê1983 Statutes of Nevada, Page 1719 (Chapter 581, SB 418)ê

 

may accrue to the licensee from collections deposited or from adjustments resulting from costs advanced and payments made directly to customers.

      3.  Every licensee maintaining a separate custodial or trust account shall keep a record of all funds deposited in such account, which record shall indicate clearly the date and from whom the money was received, the date deposited, the dates of withdrawals and other pertinent information concerning the transaction, and shall show clearly for whose account the money is deposited and to whom the money belongs. All such [moneys shall] money must be remitted to the creditors respectively entitled thereto within 30 days following the end of the month in which payment is received. All such records and [moneys shall be] money are subject to inspection by the [superintendent] administrator or his authorized representative.

      4.  Any disclosed shortage in trust accounts [shall] must be made up by the licensee within 5 days after the [superintendent] administrator gives written notice to do so. If the licensee fails or refuses to make up the shortage within the time required, the [superintendent] administrator may do any one or more of the following, as may be warranted under the circumstances:

      (a) Issue a cease and desist order prohibiting the licensee from accepting or collecting on any new claims or accounts.

      (b) Suspend the licensee’s license, pending a hearing and determination of the case.

      (c) Compel the licensee to file within 48 hours of demand an additional bond in such form and amount as the [superintendent] administrator deems necessary to cover the shortage.

      (d) Institute custodial, conservatorship, receivership or liquidation proceedings.

      Sec. 61.  NRS 649.375 is hereby amended to read as follows:

      649.375  A collection agency, or its manager, agents or employees, shall not:

      1.  Use any device, subterfuge, pretense or deceptive means or representations to collect any debt, nor use any collection letter, demand or notice which simulates a legal process or purports to be from any local, city, county, state or government authority or attorney.

      2.  Collect or attempt to collect any interest, charge, fee or expense incidental to the principal obligation unless any such interest as authorized by law has been added to the principal of the debt by the collection agency immediately upon receipt of such item of collection and described as such in the first communication had with the debtor for satisfaction of the total obligation then owed and outstanding, or unless such interest, charge, fee or expense have thereafter been judicially determined as proper and legally due from and chargeable against the debtor.

      3.  Assign or transfer any claim or account upon termination or abandonment of its collection business unless prior written consent by the customer is given for such assignment or transfer.

 


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ê1983 Statutes of Nevada, Page 1720 (Chapter 581, SB 418)ê

 

the customer is given for such assignment or transfer. Such written consent [shall] must contain an agreement with the customer as to all terms and conditions of such assignment or transfer, including the name and address of the intended assignee. Prior written consent of the [superintendent shall] administrator must also be obtained for any such bulk assignment or transfer of claims or accounts, and any such assignment or transfer may be regulated and made subject to such limitations or conditions as the [superintendent by rule or] administrator by regulation may reasonably prescribe.

      4.  Operate its business or solicit claims for collection from any location, address or post office box other than that listed on its license or as may be prescribed by the [superintendent.] administrator.

      5.  Harass a debtor’s employer in collecting or attempting to collect a claim, nor engage in any conduct that constitutes harassment as defined by [rules or] regulations adopted by the [superintendent.] administrator.

      6.  Advertise for sale or threaten to advertise for sale any claim as a means to enforce payment of the claim, unless acting under court order.

      7.  Publish or post, or cause to be published or posted, any list of debtors except for the benefit of its stockholders or membership in relation to its internal affairs.

      8.  Conduct or operate, in conjunction with its collection agency business, a debt counseling or prorater service whereby a debtor assigns or turns over to the counselor or prorater any of his earnings or other funds for apportionment and payment of his debts or obligations.

      Sec. 62.  NRS 649.385 is hereby amended to read as follows:

      649.385  1.  Upon the filing with the [superintendent] administrator of a verified complaint against any collection agency, manager or registered employee, the [superintendent] administrator shall send a copy of the complaint to the accused and a copy to the attorney general.

      2.  The [superintendent] administrator may require the accused collection agency, manager or registered employee to file a verified answer to the complaint within 10 days after service unless, for good cause shown, the superintendent extends such time for a period not to exceed 60 days.

      3.  After the verified answer is filed, the accused is entitled to be heard on the complaint at any informal hearing. If the complaint is not explained to the satisfaction of the [superintendent,] administrator, he may take such action against the accused as may be authorized by the provisions of this chapter.

      Sec. 63.  NRS 649.395 is hereby amended to read as follows:

      349.395  1.  The [superintendent] administrator may suspend or revoke the license of a collection agency, by an order made in writing and filed in his office and served on the licensee by registered or certified mail at the address shown in the records of the [superintendent,] administrator, if:

 

 


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ê1983 Statutes of Nevada, Page 1721 (Chapter 581, SB 418)ê

 

and filed in his office and served on the licensee by registered or certified mail at the address shown in the records of the [superintendent,] administrator, if:

      (a) The licensee is adjudged liable in any court of law for breach of any bond given under the provisions of this chapter; or

      (b) After notice and hearing, the licensee is found guilty of:

             (1) Fraud or misrepresentation; or

             (2) An act or omission inconsistent with the faithful discharge of his duties and obligations; or

             (3) A violation of any provision of this chapter.

      2.  Upon revocation of his license, all rights of the licensee under this chapter [shall forthwith] terminate, and no application [shall] may be received from any person whose license has once been revoked.

      Sec. 64.  Chapter 657 is hereby amended by adding thereto the provisions set forth as sections 65 and 66 of this act.

      Sec. 65.  “Administrator” means the administrator of financial institutions.

      Sec. 66.  “Division of financial institutions” means the division of financial institutions of the department of commerce.

      Sec. 67.  NRS 657.045 is hereby amended to read as follows:

      657.045  “Insolvency” means any one or more of the following:

      1.  When a bank cannot meet its deposit liabilities as they become due in the regular course of business.

      2.  When the actual cash market value of a bank’s assets is insufficient to pay its liabilities to depositors and other creditors.

      3.  When a bank’s reserve falls under the amount required by this Title, and it fails to make good such reserve within 30 days after being required to do so by the [superintendent.] administrator.

      4.  Whenever the undivided profits and surplus are inadequate to cover losses of the bank and an impairment of the capital stock is created.

      Sec. 67.5. Chapter 658 is hereby amended by adding thereto a new section which shall read as follows:

      The administrator:

      1.  Must be a person who has had practical experience in banking, savings and loan associations or other financial institutions.

      2.  Shall devote his entire time and attention to the business of his office and shall not pursue any other business or occupation or hold any other office of profit.

      Sec. 68.  NRS 658.015 is hereby amended to read as follows:

      658.015  The [superintendent] administrator and the [banking] division of financial institutions shall administer the provisions of this Title, subject to administrative supervision by the director of the department of commerce.

      Sec. 69.  NRS 658.025 is hereby amended to read as follows:

      658.025  The [superintendent shall be a person who has had practical banking experience. He shall] administrator must not, either directly or indirectly, be interested in any bank or corporation to which this Title is applicable, except as a depositor, nor engage in business as a personal loan broker.

 


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ê1983 Statutes of Nevada, Page 1722 (Chapter 581, SB 418)ê

 

directly or indirectly, be interested in any bank or corporation to which this Title is applicable, except as a depositor, nor engage in business as a personal loan broker.

      Sec. 70.  NRS 658.035 is hereby amended to read as follows:

      658.035  After appointment and before entering upon the discharge of the duties of his office, the [superintendent] administrator shall take and subscribe to an official oath.

      Sec. 71.  NRS 658.045 is hereby amended to read as follows:

      658.045  The [banking division shall] division of financial institutions must be furnished with suitable offices for the performance of its duties . [in accordance with this Title.]

      Sec. 72.  NRS 658.055 is hereby amended to read as follows:

      658.055  1.  Within the provisions of chapter 284 of NRS, the [superintendent] administrator may appoint deputy [superintendents of banks,] administrators of financial institutions, examiners, assistants, clerks, stenographers and other employees necessary to assist him in the performance of his duties [.] under this Title, Title 56 of NRS or under any other law.

      2.  [Such employees shall] These employees are entitled to receive such salaries as may be authorized under the provisions of chapter 284 of NRS and other statutes and shall perform such duties as may be assigned to them by the [superintendent.] administrator.

      Sec. 73.  NRS 658.065 is hereby amended to read as follows:

      658.065  Every deputy [superintendent of banks] administrator of financial institutions shall, before entering upon the discharge of his duties, take and subscribe to the constitutional oath of office.

      Sec. 74.  NRS 658.075 is hereby amended to read as follows:

      658.075  The [superintendent] administrator and his staff [shall] must be allowed traveling expenses and subsistence allowances as provided in NRS 281.160.

      Sec. 75.  NRS 658.085 is hereby amended to read as follows:

      658.085  The state board of finance shall act in an advisory capacity to the [banking] division of financial institutions in the administration of the provisions of this Title and perform such other functions as are required by [such] those provisions.

      Sec. 76.  NRS 658.096 is hereby amended to read as follows:

      658.096  1.  The [superintendent] administrator shall charge and collect the following examination and survey fees in connection with his official duties:

      (a) For examination of state banks:

             (1) A fee of $100 for each parent bank, payable on June 30 and December 31 of each year.

             (2) A fee of $25 for each branch bank, payable on June 30 and December 31 of each year.

             (3) Based upon the total assets of all banks, payable semiannually on the basis of the call report of condition as of June 30 and December 31 of each year, a fee of 10 cents per $1,000 for the first $500,000,000, 4 cents per $1,000 for the next $500,000,000, and 2 cents per $1,000 for amounts over $1,000,000,000.

 


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ê1983 Statutes of Nevada, Page 1723 (Chapter 581, SB 418)ê

 

$500,000,000, 4 cents per $1,000 for the next $500,000,000, and 2 cents per $1,000 for amounts over $1,000,000,000.

      (b) For surveys of new branch bank sites or new bank applications:

             (1) $100 per day, plus per diem expenses and travel allowance, for the examiner-in-charge.

             (2) $50 per day, plus per diem expenses and travel allowance, for each assistant of the examiner-in-charge.

      (c) For a special bank examination:

             (1) $100 per day, plus per diem expenses and travel allowance, for the examiner-in-charge.

             (2) $50 per day, plus per diem expenses and travel allowance, for each assistant of the examiner-in-charge.

      (d) For examination of trust departments of state banks:

             (1) $125 per day, plus per diem expenses and travel allowance, for the examiner-in-charge.

             (2) $50 per day, plus per diem expenses and travel allowance, for each assistant of the examiner-in-charge.

      2.  All money collected under this section must be paid into the state general fund.

      Sec. 77.  NRS 658.105 is hereby amended to read as follows:

      658.105  In addition to the other powers conferred upon him by this Title, the [superintendent] administrator shall:

      1.  Be charged with the enforcement of the provisions of this Title, subject to administrative supervision by the director of the department of commerce; and

      2.  Have the power to make and publish [rules and] regulations for the governing of banks doing business under the provisions of this Title.

      Sec. 78.  NRS 658.115 is hereby amended to read as follows:

      658.115  1.  Particularly, the [superintendent] administrator shall make summary orders in writing as provided in subsections 2 to 5, inclusive.

      2.  Whenever any banking corporation violates its charter or any law, or, in the opinion of the [superintendent,] administrator, is conducting its business in an unauthorized or unsafe manner, the [superintendent] administrator shall forthwith issue an order, in writing, directing the discontinuance of such unauthorized or unsafe practices and requiring the delinquent bank to appear before him, at a time and place fixed in the order, to present any explanation in defense of the practices directed to be discontinued in the order.

      3.  Whenever it appears to the [superintendent] administrator that the capital stock of any bank has been reduced in value below the requirements of law, or of its certificate of incorporation, he shall forthwith issue an order directing that such bank make good such deficiency forthwith or within a time specified in such order.

      4.  Whenever it appears to the [superintendent] administrator that either the total reserves or reserves on hand of any bank are below the amount required by law to be maintained, or that such bank is not keeping its reserves on hand as required by this Title, he shall forthwith issue an order directing that such bank make good such reserves forthwith, or within the time specified within such order, or that it keep its reserves on hand as required by this Title.

 


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ê1983 Statutes of Nevada, Page 1724 (Chapter 581, SB 418)ê

 

amount required by law to be maintained, or that such bank is not keeping its reserves on hand as required by this Title, he shall forthwith issue an order directing that such bank make good such reserves forthwith, or within the time specified within such order, or that it keep its reserves on hand as required by this Title.

      5.  Whenever it appears to the [superintendent] administrator that any bank to which this Title is applicable does not keep its books or accounts in such manner as to enable the [superintendent] administrator readily to ascertain its true condition, he shall issue an order requiring such bank, or the officers thereof, or any of them, to open and keep such books or accounts as he may, in his discretion, determine and prescribe for the purpose of keeping accurate and convenient records of the transactions and accounts of such bank.

      Sec. 79.  NRS 658.125 is hereby amended to read as follows:

      658.125  1.  Any bank aggrieved by any decision or order issued by the [superintendent] administrator or any member of his staff [shall] must appeal to the state board of finance if a review of [such] the decision or order is desired.

      2.  The procedure set forth in NRS 659.055 [shall govern] governs all such appeals.

      Sec. 80.  NRS 658.135 is hereby amended to read as follows:

      658.135  All licenses, orders and certificates issued by the [superintendent shall] administrator must be attested by the seal of the [banking] division of financial institutions and by the signature of the [superintendent.] administrator.

      Sec. 81.  NRS 658.145 is hereby amended to read as follows:

      658.145  1.  The [superintendent] administrator may offer, under such conditions as he may deem proper, rewards not to exceed the sum of $500 in any one case for the arrest and conviction of any officer, director, agent or employee of any bank charged with violating any of the laws of this state relating to banks and banking for which a criminal penalty is provided, or for the arrest and conviction of any person charged with stealing, with or without force, any money, property or thing of value of any bank.

      2.  The state treasure shall pay out of the state general fund [in the state treasury] all such rewards when they are approved by the state board of examiners in the usual manner for allowing other claims against the state.

      Sec. 82.  NRS 658.155 is hereby amended to read as follows:

      658.155  Any member of the state board of finance, the [superintendent] administrator or any member of his staff, who willfully neglects to perform any duty required by this Title, or who knowingly makes any false statement concerning any bank, or any injurious statement concerning any bank, except in the exercise of his duty, or who is guilty of malfeasance or corruption in office, shall, be punished by a fine of not more than $5,000 or by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by both fine and imprisonment, and in addition shall be removed from office.

 


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ê1983 Statutes of Nevada, Page 1725 (Chapter 581, SB 418)ê

 

      Sec. 83.  NRS 658.165 is hereby amended to read as follows:

      658.165  1.  Except as [otherwise] provided in [subsection 2,] subsections 3 and 4, an officer or employee of the [banking] division of financial institutions shall not be [an officer, director, trustee, attorney or shareholder in] directly or indirectly interested in or act on behalf of any bank [in the State of Nevada or] chartered by this state, receive, directly or indirectly, any payment from any such bank , [or] be indebted to any state bank, [or be engaged] engage in the negotiation of loans for others with any such bank [.

      2.] or obtain credit or services from a state bank 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 state bank while in office.

      3.  Any officer or employee of the [banking] division of financial institutions may be [a depositor] indebted to a bank on the same terms as are available to the public generally [, or may be indebted to a bank] upon:

      (a) A mortgage loan upon his own [home.] real property.

      (b) A secured installment debt . [transferred to a bank in regular course of business by a seller of merchandise purchased by the officer or employee.]

      (c) An unsecured debt.

      4.  Any officer or employee of the division of financial institutions may establish and maintain deposits with banks 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 appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.

      Sec. 84.  NRS 658.175 is hereby amended to read as follows:

      658.175  Notwithstanding any other provisions of this Title, the state board of finance, in the exercise of its authority to review the action of the [superintendent, shall be] administrator, is bound by the requirements, conditions and limitations imposed by this Title on the [superintendent] administrator as to the certification of new banks or the establishment of branch banks.

      Sec. 85.  NRS 658.185 is hereby amended to read as follows:

      658.185  In addition to the express powers, duties and functions given to the [superintendent] administrator by this Title, the [superintendent] administrator has such other powers and rights as may be necessary or incident to the proper discharge of his duties.

 


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ê1983 Statutes of Nevada, Page 1726 (Chapter 581, SB 418)ê

 

      Sec. 86.  NRS 658.195 is hereby amended to read as follows:

      658.195  1.  The [superintendent] administrator may sue and prosecute or defend in any action or proceeding in any court of this state or any other state and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection with the subjects committed to him for administration or in connection with any bank or the rights, liabilities, property or assets thereof, under his supervision.

      2.  The [superintendent shall not be] administrator is not liable to be sued except as other departments and agencies of the state may be liable under the general law.

      Sec. 87.  NRS 659.035 is hereby amended to read as follows:

      659.035  1.  The articles of incorporation [shall] must be signed by the original incorporators, or a majority of them, and [shall] must be proved or acknowledged before an officer [duly] authorized under the laws of this state to take proof or acknowledgment of deeds, and [shall] must be filed in the office of the secretary of state.

      2.  The secretary of state shall forthwith transmit to the [superintendent] administrator a copy of the articles of incorporation, and shall not issue a corporation charter certificate or record the articles of incorporation until authorized to do so by the [superintendent] administrator as provided in NRS 659.065.

      Sec. 88.  NRS 659.045 is hereby amended to read as follows:

      659.045  1.  Upon receipt of a copy of the articles of incorporation of the proposed bank, the [superintendent] administrator shall at once examine into all of the facts connected with the formation of such proposed banking corporation, including its location and proposed stockholders. If it appears that such corporation, if formed, will be lawfully entitled to commence the business of banking, the [superintendent] administrator shall so certify to the secretary of state, unless upon examination and investigation he finds that:

      (a) The proposed corporation is formed for any other than legitimate banking business;

      (b) The character, general fitness and responsibility of the persons proposed as stockholders, directors, officers and other managerial officials of such corporation are not such as to command the confidence of the community in which such bank is proposed to be located;

      (c) The probable volume of business and reasonable public demand in such community is not sufficient to assure and maintain the solvency of the new bank and of the then-existing bank or banks in the community;

      (d) The name of the proposed corporation is likely to mislead the public as to its character or purpose; or

      (e) The proposed name is the same as the one already adopted or appropriated by an existing bank in this state, or so similar thereto as to be likely to mislead the public.

 


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ê1983 Statutes of Nevada, Page 1727 (Chapter 581, SB 418)ê

 

      2.  The [superintendent] administrator shall not make the certification to the secretary of state until he has ascertained that the establishment of such bank will meet the needs and promote the convenience of the community to be served by the bank.

      Sec. 89.  NRS 659.055 is hereby amended to read as follows:

      659.055  Any person aggrieved by any decision of the [superintendent] administrator made under NRS 659.045 may appeal to the state board of finance if a review of [such] the decision is desired. If an appeal is taken, the state board of finance shall conduct a full hearing.

      Sec. 90.  NRS 659.065 is hereby amended to read as follows:

      659.065  1.  Upon receipt of the certification from the [superintendent,] administrator, the secretary of state shall, if the articles of incorporation are in accordance with law, issue the articles and cause them to be recorded in his office. The secretary of state shall, upon the payment of the organization fees, certify under his official seal two copies of the articles of incorporation. One of such copies [shall] must forthwith be filed in the office of the county clerk of the county where the principal office of such banking corporation in this state is to be located. The other certified copy [shall] must be filed in the office of the [superintendent.] administrator.

      2.  Upon completion of the requirements of subsection 1, the banking corporation [shall] must be legally constituted a corporation under the name stated in the articles of incorporation.

      3.  The articles of incorporation, or a copy thereof, [duly] certified by the secretary of state or the county clerk of the county in which such articles are recorded, or by the [superintendent,] administrator, under their respective seals, [shall] must be evidence in all courts and places, and [shall,] must, in all judicial proceedings, be prima facie evidence of the complete organization and incorporation of the banking corporation purporting thereby to have been established.

      4.  The corporation charter certificate of any bank is void if such bank fails to complete its organization and open for business to the public within 6 months after the date of filing its articles of incorporation with the secretary of state. The [superintendent] administrator may extend such 6-month limitation for good cause.

      Sec. 91.  NRS 659.075 is hereby amended to read as follows:

      659.075  1.  Subject to subsection 2, the capital stock of every bank [shall] must be fully paid in, in cash, before it is authorized by the [superintendent] administrator to commence business. The full payment in cash of the capital stock [shall] must be certified to the [superintendent] administrator under oath by the president and cashier of the bank.

      2.  The stock sold by any bank in process of organization, or for an increase of the capital stock, [shall] must be accounted for to the bank in the full amount paid for [the same.] it. No commission or fee [shall] may be paid to the person, association or corporation for selling such stock.

 


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ê1983 Statutes of Nevada, Page 1728 (Chapter 581, SB 418)ê

 

fee [shall] may be paid to the person, association or corporation for selling such stock. The [superintendent] administrator shall refuse any bank the authority to commence business if commissions or fees have been paid, or have been contracted to be paid by the bank, or by anyone in its behalf, to any person, association or corporation for securing subscriptions for or selling stock in such bank.

      Sec. 92.  NRS 659.085 is hereby amended to read as follows:

      659.085  Before the banking corporation begins the business of banking, banking and trust or fiduciary business, it shall file with the [superintendent:] administrator:

      1.  A statement under oath by the president or cashier, containing the names of all the directors and officers, with the date of their election or appointment, terms of office, residences and post office address of each, the amount of capital stock of which each is the owner in good faith and the amount of money paid in on account of the capital stock. Nothing [shall] may be received in payment of capital stock but money.

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

      Sec. 93.  NRS 659.095 is hereby amended to read as follows:

      659.095  1.  Upon filing of the statement and proof by the banking corporation [,] as required by NRS 659.085 , the [superintendent] administrator shall examine into its affairs, ascertain especially the amount of money paid in on account of its capital, the name and place of residence of each director, the amount of capital stock of which each is the owner in good faith, and whether [such] the banking corporation has complied with all the provisions of law required to entitle it to engage in business.

      2.  If upon [such] examination the [superintendent] administrator finds that the banking corporation is lawfully entitled to commence the business of banking, banking and trust or fiduciary business, he shall give to such banking corporation a certificate signed by the [superintendent] administrator that [such] the corporation has complied with all the provisions of the law required, before commencing the business of banking, and that [such] the corporation is authorized to commence business.

      Sec. 94.  NRS 659.105 is hereby amended to read as follows:

      659.105  No banking corporation [shall] may transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized to do so by the [superintendent.] administrator.

      Sec. 95.  NRS 659.115 is hereby amended to read as follows:

      659.115  1.  No corporation, except a bank doing business under the laws of the United States, [shall] may engage in the banking business in this state without first obtaining from the [superintendent,] administrator, as provided in this section, a license authorizing [such] the corporation to use the name and transact the business of a bank.

 


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ê1983 Statutes of Nevada, Page 1729 (Chapter 581, SB 418)ê

 

The transacting of any banking business without such authority is a gross misdemeanor.

      2.  The amount of fees to be paid for [such license shall] the license must be regulated in proportion to its authorized capitalization, as follows:

      (a) A bank having a capitalization of more than $250,000 and up to and including $500,000 shall pay a license fee of $500.

      (b) A bank having a capitalization of more than $500,000 and up to and including $1,000,000 shall pay a license fee of $750.

      (c) A bank having a capitalization of more than $1,000,000 shall pay a license fee of $1,000.

      3.  In addition to the provisions of subsection 2, every such bank shall pay a license fee of $100 for each branch bank or branch office maintained by it.

      4.  Every such bank shall pay annually thereafter, on April 1 of each year, a license fee equal to the original license fee provided in this section.

      5.  All [moneys] money collected under the provisions of this section [shall] must be paid into the state general fund [in the state treasury,] and the state treasurer is required to issue his receipt therefor.

      6.  The provisions of this section do not apply to any bank while any portion of its deposits are restricted as to withdrawal pursuant to the provisions of this Title authorizing such restriction of withdrawals.

      Sec. 96.  NRS 659.125 is hereby amended to read as follows:

      659.125  1.  [After July 1, 1971, a] A corporation [shall] must not be chartered under the laws of this state with the words “bank” or “banking” as part of its name except corporations reporting to and under the supervision of the [superintendent,] administrator, or corporations under the supervision of the commissioner of insurance. A corporate name [shall] must not be amended to include the words “bank’ or “banking” unless the corporation is under such supervision.

      2.  No person, association, firm or corporation domiciled within [the State of Nevada,] this state, except corporations reporting to and under the supervision of the [superintendent] administrator or under the supervision of the commissioner of insurance, [shall] may advertise or put forth any sign as bank, banking or banker or use the word “bank,” “banking” or “banker” as part of its name and title.

      3.  Any violation of the provisions of this section is a misdemeanor, and upon conviction thereof the offender shall be fined in a sum not exceeding $500 for each offense.

      Sec. 97.  NRS 660.015 is hereby amended to read as follows:

      660.015  1.  Banks organized under this Title may maintain branch offices but the location of the principal office and the parent bank [shall] must be within [the State of Nevada.] this state.

      2.  Additional branch offices may be from time to time established by the board of directors with the written consent of the [superintendent.]

 


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ê1983 Statutes of Nevada, Page 1730 (Chapter 581, SB 418)ê

 

by the board of directors with the written consent of the [superintendent.] administrator.

      3.  A bank may discontinue a branch office upon resolution of its board of directors. Upon the adoption of such a resolution, the bank shall file a certification with the [superintendent] administrator specifying the location of the branch office to be discontinued and the date upon which it is proposed that the discontinuance is to be effective. This certificate must state the reasons for the closing of [such] the branch office and indicate that the needs and conveniences of the community would still be adequately met. Notice stating the intention to discontinue [such] the branch office [shall] must be published in a newspaper serving [such] the community once a week for 4 consecutive weeks before any certificate requesting discontinuance is filed with the [superintendent.] administrator. No such branch office may be discontinued until approved by the [superintendent,] administrator, who shall first hold a public hearing thereon, if so requested by any interested person.

      4.  Any action taken by the [superintendent] administrator pursuant to this section [shall be] is subject to review in the same manner as provided in NRS 659.055.

      Sec. 98.  NRS 660.025 is hereby amended to read as follows:

      660.025  1.  As used in this section “service center” is a place where functions of a bank are performed that do not involve the receiving of deposits, making of loans or withdrawals or the handling of cash.

      2.  Banks organized under this Title may establish and maintain one or more service centers according to their needs.

      3.  A service center may be established by a bank by the vote of its board of directors. The bank shall inform the [superintendent] administrator in writing of its intention to establish a service center and the location thereof.

      4.  A service center does not constitute branch banking. No license, certificate or prior approval of the [superintendent,] administrator, of the [banking] division of financial institutions or of the department of commerce is necessary before a service center may be established.

      Sec. 99.  NRS 660.035 is hereby amended to read as follows:

      660.035  1.  Any bank organized under the laws of this state possessing a capital and surplus of $1,000,000 or more may file an application with the [superintendent] administrator for permission to establish, upon conditions and under such regulations as may be prescribed by the [superintendent,] administrator, branches in foreign countries or dependencies or singular possessions of the United States for the furtherance of the foreign commerce of the United States, and to act, if required to do so, as fiscal agents of the United States.

      2.  The application [shall] must specify:

      (a) The name, capital and surplus of the bank filing it.

      (b) The powers applied for.

 


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ê1983 Statutes of Nevada, Page 1731 (Chapter 581, SB 418)ê

 

      (c) The place or places where the banking operations are to be carried on.

      3.  The [superintendent] administrator may:

      (a) Approve or reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient.

      (b) From time to time to increase or decrease the number of places where such banking operations may be carried on.

      4.  Every bank operating foreign branches [shall] must be required to furnish information concerning the condition of such branches to the [superintendent] administrator upon demand, and the [superintendent] administrator may order special examinations of such branches at such time or times as he may deem best.

      5.  Each bank shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office, and shall at the end of each year transfer to its general ledger the profit or loss accrued at each branch as a separate item.

      Sec. 100.  NRS 661.015 is hereby amended to read as follows:

      661.015  [After July 1, 1971, no bank shall] No bank may be:

      1.  Organized with a less capital than $250,000, or in such greater amount as may be required by the [superintendent,] administrator, and paid-up surplus of $50,000, or in such greater amount as may be required by the [superintendent,] administrator, and the full amount of the capital and surplus of any bank must be paid in cash, exclusive of all organization expenses, except as otherwise provided in this Title, before it [shall] may be authorized to commence the business of banking.

      2.  Organized or authorized to do banking or banking and trust business unless it is a member in good standing of the Federal Deposit Insurance Corporation.

      Sec. 101.  NRS 661.025 is hereby amended to read as follows:

      661.025  1.  The paid-up capital, together with the surplus, undivided profits, capital notes, debentures and reserves for losses of any state bank, [shall,] must, subject to the limitations of NRS 661.015, be at least 6 percent of the total deposit liability of the bank as may be determined by the [superintendent.] administrator. In determining the amount of paid-up capital, surplus, undivided profits, capital notes, debentures and reserves for losses that will be required, the [superintendent] administrator shall give due consideration to the character and liquidity of the assets of the bank and to the standards regarding capital requirements established by other state and federal banking supervising agencies.

      2.  The [superintendent] administrator shall, for the purpose of determining capital requirements for any state bank, include capital, surplus, undivided profits, capital notes, debentures and any reserve for losses, and may include as capital 6 percent of the par value of all unpledged United States Government bonds owned by the bank.

 


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ê1983 Statutes of Nevada, Page 1732 (Chapter 581, SB 418)ê

 

for losses, and may include as capital 6 percent of the par value of all unpledged United States Government bonds owned by the bank.

      3.  The deposit liability for the purposes of this section [shall] must be the average of daily deposit liabilities for the preceding 60 calendar days.

      4.  Nothing in this section prohibits the acceptance of deposits by any bank while it is proceeding expeditiously, as determined by the [superintendent,] administrator, to comply with the provisions of this section.

      Sec. 102.  NRS 661.035 is hereby amended to read as follows:

      661.035  1.  A banking corporation doing business under the provisions of this Title may increase its capital stock as provided by law for other corporations.

      2.  A bank may, with the approval of the [superintendent] administrator and by the vote of the holders of at least two-thirds of the stock of the particular class or classes of stock entitled to vote on such proposal, amend its charter to authorize an increase in the authorized but unissued common stock of the bank, in an amount not to exceed 10 percent of the outstanding shares of such class or classes of stock. Any such authorized increase of stock [shall] must be free from preemptive rights.

      3.  The authorized but unissued stock may be issued from time to time to officers or employees of the bank pursuant to a stock option or stock purchase plan adopted in accordance with this Title.

      Sec. 103.  NRS 661.046 is hereby amended to read as follows:

      661.046  1.  Except as provided in subsection 2, a corporation doing business under the provisions of this Title may reduce its capital stock in the manner provided for other corporations upon a vote in favor of the decrease of two-thirds in interest of each class of stockholders with voting powers.

      2.  No bank [shall] may reduce its capital stock to an amount less than the minimum required by law. [Such reduction shall not be] The reduction is not valid or does not warrant the cancellation of stock certificates until it has been approved by the [superintendent. Such approval shall] administrator. The approval must not be given except upon a finding by the [superintendent] administrator that the security of existing creditors of the corporation will not be impaired.

      Sec. 104.  NRS 661.085 is hereby amended to read as follows:

      661.085  1.  If the capital of any bank has become impaired and the surplus and undivided profits of [such] that bank are insufficient to make [such] the impairment good, the [superintendent] administrator shall notify [such] the bank to make the impairment good within 60 days of [such] the notice by an assessment upon the stockholders of the bank.

      2.  The officers and directors of the bank receiving [such] the notice shall immediately call a special meeting of the stockholders for the purpose of making an assessment upon its stockholders payable in cash sufficient to cover the impairment of the capital.

 


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ê1983 Statutes of Nevada, Page 1733 (Chapter 581, SB 418)ê

 

cash sufficient to cover the impairment of the capital. The assessment [shall] must be made at [such] that meeting unless the capital of the bank is reduced to the extent of the impairment as provided in NRS 661.046.

      3.  If any stockholder of [such] the bank neglects or refuses to pay the required assessment, the board of directors shall, to make good the deficiency, cause a sufficient amount of the capital stock of [such] the stockholder or stockholders to be sold at public auction, upon 30 days’ notice. [Such notice shall] The notice must be given by posting a notice of the sale in the office of the bank and by publishing the notice in a newspaper in the place where the bank is located, or if there is no newspaper there, then in a newspaper circulating in the county in which the bank is located. The balance, if any, over and above the deficiency, [shall] must be returned to the delinquent shareholder or shareholders.

      4.  If, within 3 months after receiving notice from the [superintendent,] administrator, the bank fails to make good the deficiency in its capital stock, the [superintendent] administrator, may forthwith take possession of the property and business of [such] the bank until its affairs are finally liquidated as provided by law.

      5.  A sale of stock as provided in this section [shall effect] effects an absolute cancellation of the outstanding certificate or certificates evidencing the stock so sold, and the certificate [shall be] is void. A new certificate [shall] must be issued by the bank to the purchaser of [such] the stock.

      Sec. 105.  NRS 661.105 is hereby amended to read as follows:

      661.105  1.  Notwithstanding any other provision of law, any banking corporation organized under the laws of this state may, with the approval of the [superintendent] administrator and by vote of shareholders owning a majority of the stock of such corporation, upon not less than 10 days’ notice given by registered or certified mail pursuant to action taken by its board of directors, issue preferred stock of one or more classes, in such amount and with such par value as is approved by the [superintendent,] administrator, and make such amendments to the articles of incorporation as may be necessary for this purpose; but, in the case of a newly organized banking corporation which has not yet issued common stock, the requirements of notice to and vote of shareholders [shall] does not apply.

      2.  No issue of preferred stock [shall be] is valid until the par value of all stock so issued is paid in.

      3.  Any preferred stock lawfully issued by a banking corporation organized under the laws of this state [shall] must be included in determining whether such banking corporation has complied with the minimum capital requirements provided by this Title.

      4.  Such preferred stock [shall] must in no case be subject to any assessment.

 


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ê1983 Statutes of Nevada, Page 1734 (Chapter 581, SB 418)ê

 

      5.  The holders of such preferred stock shall not be held individually responsible as such holders for any debts, contract or engagements of such banking corporation, and [shall] must not be held liable for assessments to restore impairments in the capital of such corporation.

      6.  Preferred stock [shall have] has such voting rights and [be] is subject to retirement in such manner and upon such terms and conditions as may be provided in the articles of incorporation of new banks or amendments to the articles of incorporation of existing banks.

      7.  No dividends [shall] may be declared or paid on common stock until all cumulative dividends on the preferred stock have been paid in full; and if the bank is liquidated, either through voluntary or involuntary proceedings, and if all depositors and creditors are paid in full, then the preferred stockholders [shall] must be paid the full par value of their stock, plus all cumulated dividends prior to any distribution to holders of common stock.

      Sec. 106.  NRS 661.115 is hereby amended to read as follows:

      661.115  1.  The president and cashier of every bank shall cause to be kept at all times in the banking room where the bank’s business is transacted, a full and correct list of the names and places of residence of its stockholders, and the number of shares held by each.

      2.  [Such list shall] The list must be open to the inspection of the officers authorized to assess taxes under state authority during the business hours of each day in which business may be legally transacted.

      3.  On the 1st Monday in January of each year, a copy of such list, verified by the oath of the president or cashier, [shall] must be transmitted to the [superintendent and shall] administer and must be filed in his office for the confidential use of the [superintendent.] administrator.

      Sec. 107.  NRS 661.125 is hereby amended to read as follows:

      661.125  1.  As used in this section, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policy of the bank, or a change in the ownership of as much as 10 percent of the outstanding voting stock in any bank.

      2.  Whenever a change occurs in the outstanding voting stock of any bank which will result in a change in the control of the bank, the president or other chief executive officer of such bank shall report such facts to the [superintendent] administrator within 24 hours after obtaining knowledge of such change in the control of the bank.

      3.  Whenever a loan or loans are made by a bank, which loan or loans are, or are to be, secured by 10 percent or more of the voting stock of a Nevada bank, the president or other chief executive officer of the bank which makes the loan or loans shall report such fact to the [superintendent] administrator within 24 hours after obtaining knowledge of such loan or loans, except when the borrower has been the owner of record of the stock for a period of 1 year or more, or the stock is of a newly organized bank prior to its opening.

 


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ê1983 Statutes of Nevada, Page 1735 (Chapter 581, SB 418)ê

 

the owner of record of the stock for a period of 1 year or more, or the stock is of a newly organized bank prior to its opening.

      4.  The reports required in subsections 2 and 3 [shall] must be in addition to any reports required by any other law and [shall] must contain whatever information is available to inform the [superintendent] administrator of the effect of the transaction upon control of the bank whose stock is involved, and [shall] must contain, when known by the person making the report:

      (a) The number of shares involved;

      (b) The identity of the sellers or transferors and purchasers or transferees of record;

      (c) The identity of the beneficial owners of the shares involved;

      (d) The purchase price;

      (e) The total number of shares owned by the sellers or transferors and purchasers or transferees of record, both immediately prior to and after the transaction being reported;

      (f) The total number of shares owned by the beneficial owners of the shares involved, both immediately prior to and after the transaction being reported;

      (g) The identity of borrowers;

      (h) The name of the bank issuing the stock securing the loan; and

      (i) The number of shares securing the loan and the amount of the loan or loans.

      5.  Each bank shall report to the [superintendent] administrator within 24 hours any changes in chief executive officers or directors, including in its report a statement of the past and current business and professional affiliations of new chief executive officers or directors. Any new chief executive officer shall furnish to the [superintendent] administrator a complete financial statement as may be required by the [superintendent.] administrator.

      Sec. 108.  NRS 661.155 is hereby amended to read as follows:

      661.155  1.  A director, when selected, shall take an oath that:

      (a) He will, so far as the duty devolves upon him, diligently and honestly administer the affairs of such bank, and will not knowingly violate, or willingly permit to be violated, any of the provisions of this Title.

      (b) He is the owner, in good faith and in his own right, of the number of shares of stock required by this Title standing in his name on the books of the corporation, and that [the same is] they are not hypothecated or in any way pledged as security for any loan or debt.

      2.  Such oath, subscribed by the director making it and certified by the notary public before whom it was taken, shall be immediately transmitted to the [superintendent and shall] administrator and must be filed and preserved in his office.

      Sec. 109.  NRS 661.185 is hereby amended to read as follows:

      661.185  1.  The active officers and employees of any bank before entering upon their duties shall give bond to the bank in a surety company authorized to do business in Nevada, in the amount required by the directors and upon such form as may be approved by the [superintendent,] administrator, the premium for such bond to be paid by the bank.

 


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ê1983 Statutes of Nevada, Page 1736 (Chapter 581, SB 418)ê

 

entering upon their duties shall give bond to the bank in a surety company authorized to do business in Nevada, in the amount required by the directors and upon such form as may be approved by the [superintendent,] administrator, the premium for such bond to be paid by the bank.

      2.  The [superintendent] administrator or directors of such bank may require an increase of the amount of such bond whenever they deem it necessary. If injured by the breach of any bond given hereunder, the bank so injured may commence an action and recover such damages as it may have sustained.

      Sec. 110.  NRS 662.015 is hereby amended to read as follows:

      662.015  1.  In addition to the powers conferred by law upon private corporations, a bank may:

      (a) Exercise by its board of directors or authorized officers and agents, subject to law, all powers necessary to carry on the business of banking, by discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of indebtedness, by receiving deposits, by buying and selling exchange, coin and bullion and by loaning money on personal security or real and personal property. Loans secured by real property must not exceed 80 percent of the appraised value of the real property, nor may those loans have a maturity date in excess of 30 years. At the time of making loans, banks may take and receive interest or discounts in advance where the effective rates of interest or discounts collected do not exceed the maximum rates of interest as provided by law.

      (b) Adopt regulations for its own government not inconsistent with the constitution and laws of this state.

      (c) Issue, advise and confirm letters of credit authorizing the beneficiaries to draw upon the bank or its correspondents.

      (d) Receive money for transmission.

      (e) Establish and become a member of a clearing house association and pledge assets required for its qualification.

      (f) Exercise any authority and perform all acts that a national bank may exercise or perform, with the consent and written approval of the [superintendent.] administrator.

      (g) Provide for the performance of bank service corporation services, such as data processing service and bookkeeping, subject to any regulations which may be adopted by the [superintendent.] administrator.

      2.  A bank may purchase, hold and convey real property for the following purposes:

      (a) Such as is necessary for the convenient transaction of its business, including furniture and fixtures, with its banking offices and for future site expansion, which investment must not exceed 60 percent of its capital accounts plus subordinated capital notes and debentures; but the [superintendent] administrator may, in his discretion, authorize any bank located in a city having a population of more than 5,000 to invest more than 60 percent of its capital accounts plus subordinated capital notes and debentures in its banking houses, furniture and fixtures.

 


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ê1983 Statutes of Nevada, Page 1737 (Chapter 581, SB 418)ê

 

notes and debentures in its banking houses, furniture and fixtures. As used in this paragraph “capital accounts” means capital stocks, permanent surplus and retained earnings.

      (b) Such as is mortgaged to it in good faith by way of security for loans made or money due to the bank.

      3.  Nothing in this section prohibits any bank from holding or disposing of any real property it may acquire through the collection of debts due it; but that real property may not be held for a longer time than 10 years. It must be sold at private or public sale within 30 days thereafter. During the time that the bank holds the real property, the bank shall charge off the real property on a schedule of not less than 10 percent per year, or at a greater percentage per year as the [superintendent] administrator may require.

      Sec. 111.  NRS 662.025 is hereby amended to read as follows:

      662.025  Subject to the approval of the [superintendent,] administrator, and on the authority of a majority of its board of directors, a bank may:

      1.  Enter into such contracts, incur such obligations and generally do and perform any [and] or all such acts and things whatsoever as may be necessary or appropriate in order to take advantage of any [and] or all memberships, loans, subscriptions, contracts, grants, rights or privileges which may at any time be available to inure to banking institutions, or to their depositors, creditors, stockholders, conservators, receivers or liquidators, by virtue of those provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811-1831) which creates the Federal Deposit Insurance Corporation and provides for the insurance of deposits, or of any other provisions of that or any other act or resolution of the Congress to aid, regulate or safeguard banking institutions and their depositors, including any amendments to such acts, laws or resolutions or substitutions therefor.

      2.  Subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation and shall comply with the lawful regulations and requirements from time to time issued or made by the Federal Deposit Insurance Corporation.

      Sec. 112.  NRS 662.035 is hereby amended to read as follows:

      662.035  1.  A bank may maintain separate departments and deposit in its commercial department to the credit of its trust department all uninvested fiduciary funds of cash and secure, under rules and regulations of the [superintendent,] administrator, all such deposits in the name of the trust department, whether in consolidated deposits or for separate fiduciary accounts, by segregating and delivering to the trust department such securities as may be eligible for the security of funds of the State of Nevada under subsection 1 of NRS 356.020. Such securities must be held by the trust department as security for the full payment or repayment of all such deposits and must be kept separate and apart from other assets of the trust department. Until all such deposits have been accounted for to the trust department or to the individual fiduciary account, no creditor of the bank has any claim or right to such securities.

 


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ê1983 Statutes of Nevada, Page 1738 (Chapter 581, SB 418)ê

 

individual fiduciary account, no creditor of the bank has any claim or right to such securities.

      2.  When fiduciary funds are deposited by the trust department in the commercial department of the bank, the deposit thereof does not constitute a use of such funds in the general business of the bank and the bank in such instance is not liable for interest on such funds.

      3.  To the extent and in the amount such deposits may be insured by the Federal Deposit Insurance Corporation, the amount of security required for such deposits may be reduced.

      4.  The [superintendent] administrator may make such [rules and] regulations as he may deem necessary for the enforcement of the provisions of this section.

      Sec. 113.  NRS 662.065 is hereby amended to read as follows:

      662.065  1.  As used in this section, “private security” means a marketable obligation in the form of a bond, note or debenture which is commonly regarded as an investment security. It does not include investments which are predominantly speculative in nature.

      2.  A bank may purchase a private security for its own account when in its prudent banking judgment, which may be based in part upon estimates which it believes to be reliable, it determines that:

      (a) There is adequate evidence that the obligor will be able to perform all that it undertakes to perform in connection with the security, including all debt service requirements; and

      (b) The security may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.

      3.  A bank may purchase a private security for its own account, although its judgment with respect to the obligor’s ability to perform is based predominantly upon estimates which it believes to be reliable. Although the appraisal of the prospects of any obligor will generally be based in part upon estimates, it is the purpose of this subsection to permit a bank to exercise a broader range of judgment with respect to a more restricted portion of its investment portfolio. This authority may be exercised not only in the absence of a record of performance, but also when there are prospects for improved performance.

      4.  A bank may consider as a factor in reaching its prudent banking judgment with respect to a private security, a ruling published by the [superintendent] administrator on the eligibility of such security for purchase. Consideration [shall] must be given [, however,] to the possibility that circumstances on which the ruling was based, may have changed since the time of the ruling.

      5.  Subject to the limitations of NRS 662.155, the investment in any private securities of any one obligor [shall] may at no time be more than 25 percent of the unimpaired capital and permanent surplus of any bank.

      Sec. 114.  NRS 662.075 is hereby amended to read as follows:

      662.075  1.  Notwithstanding any restrictions or limitations on securities for deposits of public [funds] money contained in any law of this state, the bonds, debentures, securities or other similar obligations issued pursuant to:

 


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ê1983 Statutes of Nevada, Page 1739 (Chapter 581, SB 418)ê

 

of this state, the bonds, debentures, securities or other similar obligations issued pursuant to:

      (a) The Federal Farm Loan Act, as amended;

      (b) The Farm Credit Act of 1933, as amended;

      (c) The Federal Home Loan Bank Act of 1932, as amended;

      (d) The Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended; and

      (e) Any other federal act or authority, the bonds, debentures, securities or other similar obligations of which have been approved by the [superintendent] administrator for investment,

[shall be,] are, without limitation, authorized securities for all deposits of public [funds] money for the State of Nevada, of agencies of the State of Nevada, of counties of the State of Nevada, and of municipalities and other political subdivisions of the State of Nevada.

      2.  This section is cumulative to all other laws relating to securities for deposits of [such funds.] public money.

      Sec. 115.  NRS 662.105 is hereby amended to read as follows:

      662.105  1.  Subject to any applicable [rules or] regulations of the [superintendent,] administrator, a bank may grant options to purchase, sell or enter into agreements to sell shares of its capital stock to its officers or employees, or both, for a consideration of not less than 100 percent of the fair market value of the shares on the date the option is granted, or, if pursuant to a stock purchase plan, 85 percent of the fair market value of the shares on the date the purchase price is fixed, pursuant to the terms of an officer-employee stock purchase plan which has been adopted by the board of directors of the bank and approved by the holders of at least two-thirds of the particular class or classes of stock entitled to vote on such proposal and by the [superintendent.] administrator. In no event [shall] may the option to purchase such shares be for a consideration less than the par value thereof.

      2.  Stock options issued pursuant to subsection 1 [shall] must qualify as restricted stock options under the Internal Revenue Code of 1954, and corresponding provisions of subsequent United States law.

      Sec. 116.  NRS 662.115 is hereby amended to read as follows:

      662.115  A bank may issue capital notes or debentures, convertible or otherwise, subject to such regulations as the [superintendent] administrator may adopt with respect thereto.

      Sec. 117.  NRS 662.135 is hereby amended to read as follows:

      662.135  1.  Except as otherwise provided in this section and subject to the provisions of NRS 662.065 and 662.125, no bank [shall] may make any investment in capital stock of any other state or national bank.

      2.  A bank doing business under this Title may subscribe to or purchase, upon such terms as may be agreed upon, the capital stock of banks organized under the Act of Congress known as the Edge Act or the capital stock of central reserve banks whose capital stock exceeds $1,000,000.

 


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ê1983 Statutes of Nevada, Page 1740 (Chapter 581, SB 418)ê

 

the capital stock of central reserve banks whose capital stock exceeds $1,000,000.

      3.  In order to constitute a central reserve bank as contemplated by this Title, at least 50 percent of the capital stock of such bank [shall] must be owned by other banks. The investment by any bank in the capital stock of such central reserve bank or a bank organized under the Edge Act, [shall] must at no time exceed 10 percent of the paid-in capital and permanent surplus of the bank making the investment.

      4.  A bank shall not invest in the stocks of other corporations, firms, partnerships or companies except as otherwise provided in this Title, unless such stock is purchased to protect the bank from loss.

      5.  Any stocks owned or acquired after July 1, 1971, in excess of the limitations imposed by this section [shall] must be disposed of at public or private sale within 12 months after the date of acquiring [the same,] them, and if not so disposed of they [shall] must be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which such stocks are disposed of or charged off the books of the bank may be extended by the [superintendent] administrator if in his judgment it is for the best interest of the bank that such extension be granted.

      6.  A bank may subscribe to, purchase or become the owner of stock in:

      (a) Federal reserve banks as established by Act of Congress approved December 23, 1913, being c. 6, 38 Stat. 251, or any amendment thereof; or

      (b) Any governmental agency or liquidating or financial corporation created by the Congress of the United States.

      7.  A bank may invest up to 50 percent of its surplus in the stock of corporations engaged in related banking fields.

      Sec. 118.  NRS 662.145 is hereby amended to read as follows:

      662.145  1.  Subject to the limitations of NRS 662.155, the total outstanding loans of any bank to any person, company, corporation or firm, including in the loans to any unincorporated company or firm the loans to the several members thereof, may not at any time exceed 25 percent of the capital and surplus of the bank, actually paid in; but the discount of bills of exchange drawn in good faith against actual existing values, as collateral security, and a discount or purchase of commercial or business paper, actually owned by the persons, must not be considered as money loaned.

      2.  Neither the limitation on loans by banks contained in this section nor any other similar limitations contained in any law of this state relating to banks or banking apply to any loan or loans made by any bank to the extent that they are secured or covered by guarantees or by commitments or agreements to take over or to purchase made by any Federal Reserve Bank or by the United States or any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned, directly or indirectly, by the United States.

 


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ê1983 Statutes of Nevada, Page 1741 (Chapter 581, SB 418)ê

 

including any corporation wholly owned, directly or indirectly, by the United States.

      3.  The [superintendent] administrator may establish limitations on loans made by a bank to its directors, officers or employees and may establish requirements for the reporting of these loans.

      Sec. 119.  NRS 662.175 is hereby amended to read as follows:

      662.175  1.  Any bank may secure funds deposited with such bank by the United States, the State of Nevada or a political subdivision of this state by pledging acceptable assets of the bank as collateral security.

      2.  Any bank may borrow money for temporary purposes, not to exceed the amount of its paid-up capital and surplus, and may pledged any of its assets as collateral security therefor.

      3.  With the written consent of the [superintendent] administrator and the state board of finance in each instance, a bank may borrow to the amount of 50 percent in excess of its paid-up capital and surplus, and pledge assets of the bank as collateral security therefor. Any indebtedness [, however,] contracted in excess of the amount limited in this subsection [shall be] is void in its entirety.

      4.  The purchase of federal reserve funds by a bank from another bank shall be deemed a transfer from a seller’s account in a Federal Reserve Bank to the buyer’s account therein, and such transfer shall be considered a purchase and sale of such funds. Any such transfer does not create an obligation on the part of the buyer subject to NRS 662.145, or a borrowing subject to the limitations of this section, but shall be considered a purchase and sale of such funds.

      Sec. 120.  NRS 662.186 is hereby amended to read as follows:

      662.186  1.  Each bank doing business under the laws of this state shall have on hand, in cash, at least the sum of money determined by the [superintendent] administrator as necessary to meet the operating requirements of the bank and at least a required sum consisting of demand balances due from good and solvent banks, selected from time to time with the approval of the [superintendent.] administrator.

      2.  Any bank organized under the laws of this state shall carry or maintain as a reserve at least that amount of money which is required under the terms of the Federal Reserve Act.

      Sec. 121.  NRS 662.275 is hereby amended to read as follows:

      662.275  1.  Whenever the [superintendent] administrator is of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, in this state or any part of this state, the [superintendent] administrator may, by proclamation, authorize banks located in the affected area or areas to close any or all of their offices.

      2.  In addition, if the [superintendent] administrator is of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, which affects or may affect a particular bank or banks, or a particular office or offices thereof, but not banks located in the area generally, he may authorize the particular bank or banks, or office or offices so affected, to close.

 


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ê1983 Statutes of Nevada, Page 1742 (Chapter 581, SB 418)ê

 

not banks located in the area generally, he may authorize the particular bank or banks, or office or offices so affected, to close.

      3.  The office or offices so closed [shall] must remain closed until the [superintendent] administrator proclaims that the emergency has ended, or until such earlier time as the officers of the bank determine that one or more of such offices should reopen. In either event, the bank or office which was closed may remain closed for such further time thereafter as may reasonably be required to reopen.

      Sec. 122.  NRS 662.285 is hereby amended to read as follows:

      662.285  1.  Whenever the officers of a bank are of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, which affects or may affect one or more or all of the bank’s offices, they shall have the authority in the reasonable and proper exercise of their discretion not to open any one or more or all of such offices during the continuation of such emergency, even if the [superintendent] administrator has not issued and does not issue a proclamation of emergency.

      2.  The office or offices so closed [shall] must remain closed until such time as the officers determine that the emergency has ended, and for such further time thereafter as may reasonably be required to reopen; but such office or offices [shall] must not remain closed for more than 48 consecutive hours, excluding other legal holidays, without requesting the approval of the [superintendent.] administrator.

      3.  The officers of a bank may close any one or more or all of the bank’s offices on any day or days designated, by proclamation of the President of the United States or the governor of this state, as a day or days of mourning, rejoicing or other special observance.

      Sec. 123.  NRS 662.295 is hereby amended to read as follows:

      662.295  A bank closing an office or offices pursuant to subsection 1 of NRS 662.285 shall give as prompt notice of its action as conditions will permit, by any means available, to the [superintendent,] administrator, or in the case of a national bank, to the Comptroller of the Currency.

      Sec. 124.  NRS 663.035 is hereby amended to read as follows:

      663.035  No bank [shall] may pay interest on time deposits, directly or indirectly, at a greater rate than that fixed by the [superintendent;] administrator; but the [superintendent] administrator may fix an interest rate not in excess of that allowed by the Board of Governors of the Federal Reserve System for the member banks of the Federal Reserve System in the State of Nevada.

      Sec. 125.  NRS 663.075 is hereby amended to read as follows:

      663.075  1.  A bank may arrange for the collection of savings from school children by the principal of the school, by the teachers, or by collectors pursuant to regulations issued by the [superintendent] administrator and approved, in the case of public schools, by the board of trustees of the school district in which the school is situated.

 


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ê1983 Statutes of Nevada, Page 1743 (Chapter 581, SB 418)ê

 

The principal, teacher or person authorized by the bank to make collections from the school children [shall] must be the agent of the bank to make collections from the school children, and the bank is liable to the pupil for all deposits made with such principal, teacher or other authorized person to the same extent as if the deposits were made directly with the bank.

      2.  The acceptance of deposits in furtherance of a school thrift or savings plan by an officer, employee or agent of a bank at any school is not the establishment or operation of a branch facility.

      Sec. 126.  NRS 664.015 is hereby amended to read as follows:

      664.015  1.  The [banking] division of financial institutions may, upon a proper application in writing showing good cause therefor, authorize any bank in this state or organized under this Title to restrict, for a limited period, the percentage of withdrawals from all of the accounts of such bank.

      2.  Whenever, in the interest of public business, any bank doing business in this state deems it necessary to curtail or restrict the withdrawals of its patrons for a limited period, such bank, through its proper officers, may make application in writing, setting forth the reasons therefor, to the [banking] division of financial institutions requesting an order or authorization from the [banking] division to restrict, for a limited period, withdrawals by the depositors of the bank to a specific percentage of their respective deposits.

      3.  Upon receipt of such application by the [banking division,] division of financial institutions, and good cause appearing therefor, the division may issue to the applicant an authorization specifying therein the percentage of all deposits which the bank may pay to its depositors, and the period to which such restriction or limitation may extend. For good cause shown, the banking division may shorten, cancel, extend or renew such authorization whenever the division deems such action proper in the interest of public business.

      4.  Any bank obtaining any order or authorization authorized by this section shall post and maintain, during the period of restriction, in a conspicuous place in or upon its banking premises, a certified copy of each order or authorization.

      5.  The [banking] division of financial institutions may authorize all such banks thereafter to receive new deposits, which [shall] must be segregated from the old deposits, and the new deposits [shall not be] are not subject to any restriction as to the withdrawal thereof, except as provided in the terms of any time certificate of deposit or savings passbook; and the new deposits [shall] must be invested in such liquid assets as may be approved by the [banking] division in order that such banks may at all times have sufficient funds available to meet the demands on such new deposits in accordance herewith.

      Sec. 127.  NRS 665.015 is hereby amended to read as follows:

      665.015  1.  For the purpose of carrying into effect the provisions of this Title, the [superintendent] administrator shall provide the necessary forms for all examinations and reports as required in this Title.

 


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ê1983 Statutes of Nevada, Page 1744 (Chapter 581, SB 418)ê

 

of this Title, the [superintendent] administrator shall provide the necessary forms for all examinations and reports as required in this Title.

      2.  All reports received by the [superintendent shall] administrator must be preserved in his office.

      Sec. 128.  NRS 665.025 is hereby amended to read as follows:

      665.025  The [superintendent] administrator shall make a thorough examination of and into the affairs of every bank doing business under this Title, as often as the [superintendent] administrator may deem necessary, but at least once within each 18-month period. In lieu thereof, the [superintendent] administrator may accept any or all of a report of an examination of a bank made by a federal regulatory agency. If the [superintendent] administrator accepts any part of such a report in one 18-month period, he shall examine the bank to which the report pertains in the succeeding 18-month period.

      Sec. 129.  NRS 665.035 is hereby amended to read as follows:

      665.035  1.  The results of such examinations and inquiries [shall] must be reduced to a written report and signed by the [superintendent] administrator or his deputies.

      2.  The report [shall] must contain a true and detailed statement of the condition of such bank, and [shall] must also contain:

      (a) A full statement of any violation of any of the provisions of this Title.

      (b) A description of and comment on all assets and liabilities which in the opinion of the [superintendent] administrator may be subject to criticism.

      (c) A classification of assets showing which are of doubtful collectibility.

      Sec. 130.  NRS 665.045 is hereby amended to read as follows:

      665.045  Upon the preparation of the report as provided in NRS 665.035, the [superintendent] administrator shall forthwith serve a copy thereof on the president or secretary of the board of directors of the bank, and may make copies available to each member of such board. If, in the judgment of the [superintendent,] administrator, the report discloses any violation of the provisions of this Title on the part of the bank, or if it appears from the report that there are certain conditions existing which should be corrected by the bank, the [superintendent] administrator may, in writing, call the matter to the attention of each member of the board of directors with instructions to correct the condition.

      Sec. 131.  NRS 665.055 is hereby amended to read as follows:

      665.055  1.  All examination reports and all information obtained by the [superintendent] administrator and his staff in conducting examinations of banks is confidential and privileged information and, except as otherwise provided in this Title, [shall] must not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body or other entity.

 


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ê1983 Statutes of Nevada, Page 1745 (Chapter 581, SB 418)ê

 

      2.  No employee or other member of the staff of the [superintendent shall] administrator may disclose or permit disclosure of any confidential or privileged information to anyone other than an employee or member of the staff of the [superintendent] administrator entitled to such information for the proper performance of his official duties, unless authorized to do so by the [superintendent] administrator in accordance with the provisions of this Title.

      Sec. 132.  NRS 665.065 is hereby amended to read as follows:

      665.065  1.  The [superintendent] administrator may make [state bank examination] reports of examinations of financial institutions prepared by his office available to:

      (a) Any federal agency having jurisdiction over state banks and which makes examination of state banks.

      (b) The director of the department of commerce for his confidential use.

      (c) The state board of finance for its confidential use, when such report is necessary for the state board of finance to perform its duties under this Title.

      2.  All such examination reports made available [shall] remain the property of the [banking division,] division of financial institutions, and no person, agency or authority to whom such reports are made available, or any officer, director or employee thereof, [shall] may disclose any of such reports or any information contained therein, except in published statistical material that does not disclose the affairs of any [individual] natural person or corporation.

      Sec. 133.  NRS 665.075 is hereby amended to read as follows:

      665.075  1.  The report of examination made by an examiner of the [banking] division of financial institutions is designed for use in the supervision of the bank. The bank’s copy of the report is the property of the [superintendent] administrator and is furnished to the bank solely for its confidential use.

      2.  The bank’s directors, in keeping with their responsibilities both to depositors and to stockholders, shall thoroughly review the report. Under no circumstances [shall] may the bank, or any of its directors, officers or employees disclose or make public in any manner the report or any portion thereof. [Such report shall] The report must not be made available to other banking institutions in connection with proposed transactions such as mergers and consolidations. [Such report shall] The report must not be made available to a clearing house association, but a bank may voluntarily disclose information concerning its affairs to such clearing house association where such disclosure is through reports prepared by the bank or by others at the request of the bank.

      Sec. 134.  NRS 665.080 is hereby amended to read as follows:

      665.080  1.  Each year the [superintendent] administrator shall make a thorough examination of and into the affairs of every bank holding company and every banking subsidiary thereof doing business in this state or accept a report of an examination made by the Comptroller of the Currency, the Federal Deposit Insurance Corporation or the Board of Governors of the Federal Reserve System.

 


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ê1983 Statutes of Nevada, Page 1746 (Chapter 581, SB 418)ê

 

holding company and every banking subsidiary thereof doing business in this state or accept a report of an examination made by the Comptroller of the Currency, the Federal Deposit Insurance Corporation or the Board of Governors of the Federal Reserve System.

      2.  The [superintendent] administrator may make additional examinations of any bank holding company and its subsidiaries.

      3.  The expense of any examination made by the [superintendent] administrator must be borne by the bank holding company being examined.

      Sec. 135.  NRS 665.085 is hereby amended to read as follows:

      665.085  1.  The [superintendent] administrator shall keep a record in his office of his official acts, rulings and transactions.

      2.  Where any disclosure of the records in his office or of any report or other transaction might injuriously affect any bank actually operating, such disclosure [shall] must not be made or required except as may be done under the provisions of law in similar cases.

      Sec. 136.  NRS 665.095 is hereby amended to read as follows:

      665.095  In all civil actions in the courts of this state wherein any of the records of the [superintendent] administrator are involved as evidence or otherwise, a certified copy of such a record signed and sealed by the [superintendent,] administrator, is admissible in evidence to the same effect as if produced in court at trial by the proper custodian of the records.

      Sec. 137.  NRS 665.105 is hereby amended to read as follows:

      665.105  1.  Every bank shall make at least four reports each year to the [superintendent] administrator at the same times and substantially in the form of similar reports required by the Comptroller of the Currency, the Federal Reserve Bank or the Federal Deposit Insurance Corporation.

      2.  The bank shall make additional reports within 10 days after the receipt of a request therefor from the [superintendent.] administrator.

      3.  The reports must be prepared by the cashier or by any competent person approved by the [superintendent] administrator and be verified by the oath or affirmation of the present or vice president and cashier, the person by whom the reports were prepared, and by at least three of the directors.

      4.  Each report must:

      (a) Exhibit in detail, and under the appropriate heads, the resources and liabilities and a profit and loss account of the bank at the close of business on any past day specified by the [superintendent.] administrator.

      (b) Be published in condensed form, according to the requirements of the [superintendent,] administrator, within 10 days after the report is made, in a newspaper published in the county in which such bank is established, for one insertion, at the expense of the bank. Such proof of publication must be furnished within 5 days after the date of publication as may be required by the [superintendent.] administrator.

 


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ê1983 Statutes of Nevada, Page 1747 (Chapter 581, SB 418)ê

 

      5.  The [superintendent] administrator may call for special reports, which need not be published, from any bank whenever, in his judgment, the reports are necessary in order to gain complete knowledge of its condition.

      Sec. 138.  NRS 665.115 is hereby amended to read as follows:

      665.115  1.  Every bank which fails to make and transmit or to publish any report required under this Title [shall be] is subject to a penalty of $50 for each day after the period mentioned in NRS 665.105 that it delays to make and transmit its report or proof of publication.

      2.  Whenever any bank delays or refuses to pay the penalty imposed in this section for a failure to make and transmit or to publish a report, the [superintendent] administrator may maintain an action, in the name of the state, against the delinquent bank for the recovery of such penalty. All sums collected by such action [shall] must be paid into the state permanent school fund.

      Sec. 139.  NRS 665.120 is hereby amended to read as follows:

      665.120  Each bank holding company doing business in this state, directly or through a subsidiary bank, shall file an annual registration report with the [superintendent] administrator within 120 days after the end of its fiscal year. The report must contain:

      1.  A full statement of the general financial condition of the company; and

      2.  A description of the operation, management and intercompany relationships of the company.

      Sec. 140.  NRS 665.125 is hereby amended to read as follows:

      665.125  1.  The [state bank] examiners of financial institutions shall verify all reports made to the [superintendent] administrator by the officers and directors of any banking corporation, as required by this Title or by the [superintendent.] administrator.

      2.  The officers of every bank shall submit and surrender its books, assets, papers and concerns to the examiners appointed by the [superintendent,] administrator, who shall retain the custody and possession of such books, assets, papers and concerns for such length of time as may be required for the purpose of making an examination as required by this Title.

      3.  If any officer refuses to surrender such books, assets, papers and concerns, or refuses to be examined under oath touching the affairs of such bank, the [superintendent] administrator may forthwith take possession of the property and business of the bank and liquidate its affairs in accordance with the provisions of this Title.

      Sec. 141.  NRS 665.135 is hereby amended to read as follows:

      665.135  In making examinations as required by this Title, the [superintendent] administrator and any [duly] appointed examiner may administer oaths to examine any officer, director, agent, employee, customer, depositor, shareholder of the bank, or any other person or persons, touching the affairs and business of the bank being examined.

 


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ê1983 Statutes of Nevada, Page 1748 (Chapter 581, SB 418)ê

 

examined. Any examiner may summon in writing any officer, director, agent, employee, customer, depositor, shareholder or any person or persons resident of this state to appear before him and testify in relation to the affairs and business of such bank.

      Sec. 142.  NRS 665.145 is hereby amended to read as follows:

      665.145  Each official communication directed by the [superintendent] administrator or any [state bank] examiner of financial institutions to any bank, or to any officer thereof, relating to an examination or investigation conducted or made by the [superintendent] administrator or containing suggestions or recommendations as to the conduct of the bank shall, if required by the authority submitting the same, be submitted by the officer or director receiving it to the executive committee, if there is one, or board of directors of such bank and [duly] noted in the minutes of such meeting. The receipt and submission of such notice to the executive committee or board of directors [shall] must be certified to the [superintendent,] administrator, within such time as he may require, by three members of such committee or board.

      Sec. 143.  NRS 665.155 is hereby amended to read as follows:

      665.155  1.  If any assets of a bank are of a doubtful or disputed value, the [superintendent] administrator may have an appraisal of such assets made. In making such appraisal, the [superintendent] administrator shall designate one agent as an appraiser; the bank shall designate one agent as an appraiser; and the two chosen appraisers shall designate a third.

      2.  The selected appraisers shall make an appraisal of the assets designated as doubtful or disputed, and file a written report of their appraisal with the bank and with the [superintendent.] administrator. In making such appraisal, the appraisers shall determine the actual cash market value of such assets. The appraisal, when made, [shall] must be accepted as the value of such assets for the purpose of examination or for the purpose of determining the actual cash market value of such assets.

      3.  The appraisers [shall] must not be interested in any way, either in the bank or as an employee of the [superintendent,] administrator, and all expenses of such appraisal [shall] must be paid by the bank whose assets are appraised.

      4.  If any bank fails to appoint an appraiser within 10 days after the date on which the [superintendent] administrator designates an appraiser pursuant to subsection 1, the [superintendent] administrator may apply to the district court of the county in which the bank is located for the appointment of such an appraiser, and the court shall make the appointment for the bank.

      Sec. 144.  NRS 665.165 is hereby amended to read as follows:

      665.165  1.  Every state bank shall retain its business records for such periods as are or may be prescribed by or in accordance with the terms of this section.

 


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ê1983 Statutes of Nevada, Page 1749 (Chapter 581, SB 418)ê

 

      2.  Each state bank shall retain permanently the minute books of meetings of its stockholders and directors, its capital stock ledger and capital stock certificate ledger or stubs, its general ledger, its investment ledger, its copies of bank examination reports, and all records which the [superintendent] administrator in accordance with this section requires to be retained permanently.

      3.  All other bank records [shall] must be retained for such periods as the [superintendent] administrator may in accordance with this section prescribe.

      4.  The [superintendent] administrator shall, from time to time, issue regulations classifying all records kept by state banks and prescribe the period for which records in each class [shall] must be retained. Such periods may be permanent or for a lesser term of years. The [superintendent] administrator shall keep such regulations current and shall revise them at least once every 3 years. In issuing and revising such regulations, the [superintendent] administrator shall consider:

      (a) Actions at law and administrative proceedings in which the production of bank records might be necessary or desirable.

      (b) State and federal statutes of limitation applicable to such actions or proceedings.

      (c) The availability of information contained in bank records from other sources.

      (d) Such other matters as the [superintendent] administrator considers pertinent in order that his regulations will require banks to retain their records for as short a period as is commensurate with the interests of bank customers and shareholders and of the people of this state in having bank records available.

      5.  Any state bank may dispose of any record which has been retained for the period prescribed by or in accordance with the terms of this section for retention of records of its class, and shall thereafter be under no duty to produce such record in any action or proceeding.

      6.  Any state bank may cause any or all records required to be kept pursuant to this section to be reproduced by the microphotographic process and any such reproduction [shall have] has the same [force and] effect as the original. Upon completion of a microphotographic duplication, the original of any record may be destroyed.

      7.  To the extent that they are not in contravention of any law of the United States, the provisions of this section apply to all banks doing business in this state.

      Sec. 145.  NRS 665.175 is hereby amended to read as follows:

      665.175  The [superintendent] administrator may require the immediate removal from office of any officer, director or employee of any bank doing business under this Title who is found to be dishonest, incompetent or reckless in the management of the affairs of the bank, or who persistently violates the laws of this state or the lawful orders, instructions and regulations issued by the [superintendent.]

 


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ê1983 Statutes of Nevada, Page 1750 (Chapter 581, SB 418)ê

 

instructions and regulations issued by the [superintendent.] administrator.

      Sec. 146.  NRS 666.015 is hereby amended to read as follows:

      666.015  1.  A state bank may merge or consolidate with, or transfer its assets and liabilities to, another state bank. Before such merger, consolidation or transfer becomes effective, each bank concerned in such merger, consolidation or transfer shall file with the [superintendent] administrator certified copies of the minutes of all proceedings had by its directors and stockholders regarding such merger, consolidation or transfer.

      2.  The minutes of the proceedings had by the stockholders of each such bank shall set forth that holders of at least two-thirds of the stock voted in the affirmative on the proposition of merger, consolidation or transfer. [Such minutes shall] The minutes must also contain or have attached thereto a complete copy of the agreement made and entered into between the banks, with reference to such merger, consolidation or transfer.

      3.  When the certified copies of all such minutes have been filed, the [superintendent] administrator shall conduct an investigation of each bank to determine:

      (a) Whether the interests of the depositors, creditors and stockholders of each bank are protected.

      (b) That the merger, consolidation or transfer is in the public interest.

      (c) That the merger, consolidation or transfer is made for legitimate purposes.

      4.  The [superintendent’s] administrator’s consent to or rejection of such merger, consolidation or transfer [shall] must be based upon such investigation. No such merger, consolidation or transfer [shall] may be made without the consent of the [superintendent.] administrator. The expense of such investigation [shall] must be paid by the banks.

      5.  Notice of such merger, consolidation or transfer [shall] must be published once a week for 4 consecutive weeks, before or after the merger, consolidation or transfer [shall be] is effective at the discretion of the [superintendent,] administrator, in a newspaper published in a city, town or county in which each of such banks is located, and a certified copy of such notice [shall] must be filed with the [superintendent.] administrator.

      6.  In any such merger, consolidation or transfer, all rights of creditors and all liens upon any property of the constituent banks [shall] must be preserved unimpaired, limited in lien to the property affected by such liens immediately prior to the time of the merger, consolidation or transfer. All debts, liabilities and duties of the respective constituent banks shall thenceforth attach to the surviving, consolidated or transferee bank and may be enforced against it to the same extent as if the debts, liabilities and duties have been incurred or contracted by it.

 


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ê1983 Statutes of Nevada, Page 1751 (Chapter 581, SB 418)ê

 

      7.  In the case of a merger, consolidation or transfer pursuant to the provisions of this section, if any stockholder of any constituent bank votes against the agreement, objects to the agreement in writing at or prior to the taking of the vote thereon, and such stockholder, within 20 days after the date on which the agreement is filed as provided in this section, demands in writing from the surviving or consolidated bank payment of his shares, the surviving, consolidated or transferee bank shall, within 30 days thereafter, pay to such stockholder the fair cash value of his shares as of the day before the vote on the agreement of merger, consolidation or transfer was taken, exclusive of any element of value arising from the expectation or accomplishment of the merger, consolidation or transfer.

      Sec. 147.  NRS 666.025 is hereby amended to read as follows:

      666.025  1.  When an agreement of consolidation is made and a certified copy thereof is filed with the secretary of state, together with a certified copy of the approval of the [superintendent] administrator of such consolidation, the banks which are parties to the consolidation [shall] become one bank, possessed of the rights, privileges, powers and franchises of the several banks, but subject to all the provisions of law under which it is created.

      2.  The directors and other officers named in the agreement of consolidation shall serve until the first annual meeting for election of officers and directors, the date for which [shall] must be named in the agreement.

      3.  On filing such agreement, the property and rights of every kind of the several banks are thereby transferred and vested in such new bank, and are as fully its property as they were of the banks which were parties to the agreement.

      Sec. 148.  NRS 666.035 is hereby amended to read as follows:

      666.035  1.  A state bank may, with the approval of the [superintendent,] administrator, consolidate, convert into or merge with a national bank upon the vote of the holders of two-thirds of each class of voting stock of the state bank.

      2.  The [superintendent] administrator shall not approve any consolidation, conversion or merger under this section which would:

      (a) Result in a monopoly or which would further any attempt to monopolize the business of banking in this state; or

      (b) Substantially lessen competition or be in restraint of trade, unless the [superintendent] administrator finds that the anticompetitive effects of the proposed transaction are clearly outweighed by the probable success of the transaction in meeting the needs of the community to be served.

In every case, the [superintendent] administrator shall consider the financial and managerial resources and the future prospects of the company or companies and the banks concerned, and the convenience and the needs of the community to be served.

 


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ê1983 Statutes of Nevada, Page 1752 (Chapter 581, SB 418)ê

 

      3.  Except as provided in subsection 5, the rights and liabilities of a state bank which consolidates, converts into or merges with a national bank, and the rights and liabilities of its stockholders, are the same as the rights and liabilities prescribed by the law of the United States for national banks and their stockholders at the time of the consolidation, conversion or merger.

      4.  Upon consolidation, conversion or merger, the resulting national bank becomes the same business as each consolidating, converting or merging bank, with all the property rights, power and duties of each consolidating, converting or merging bank, except as affected by the law of the United States and by the charter and bylaws of the resulting bank. Any reference to a consolidating, converting or merging bank in any writing, whether executed or which takes effect before or after the consolidation, conversion or merger, is applicable to the resulting bank if not inconsistent with the other provisions of that writing.

      5.  The holders of shares of the stock of a state bank which were voted against a consolidation or merger into a national bank are entitled to receive their value in cash, if and when the consolidation or merger becomes effective, upon written demand made to the resulting national bank at any time within 30 days after the effective date of the consolidation or merger, accompanied by the surrender of the stock certificate or certificates. The value of such shares must be determined, as of the date of the meeting of the stockholders approving the consolidation or merger, by three appraisers, one to be selected by the owners of two-thirds of the dissenting shares involved, one by the board of directors of the resulting national bank, and the third by the two so chosen. The valuation agreed upon by any two appraisers governs. If the appraisal is not completed within 90 days after the consolidation or merger becomes effective, the Comptroller of the Currency shall cause an appraisal to be made.

      6.  The amount fixed as the value of the shares of stock of the consolidating or merging bank at the time of the meeting of the stockholders approving the consolidation or merger, and the amount fixed by the appraisal as provided by subsection 5, where the fixed value is not accepted, constitute a debt of the resulting national bank.

      7.  Upon the completion of the consolidation, conversion or merger, the license to operate as a state bank automatically terminates.

      Sec. 149.  NRS 666.045 is hereby amended to read as follows:

      666.045  1.  Any national bank doing business in this state may, with the approval of the [superintendent,] administrator, merge or consolidate with a state bank or incorporate as a state bank as provided in this Title for the organization of banks.

      2.  The [superintendent] administrator shall, when approving or rejecting the proposed merger or consolidation, base his decision on the considerations provided in NRS 666.035.

      3.  The [superintendent] administrator may accept good assets of the national bank, at their actual cash value, in lieu of cash payments for the stock of the state bank.

 


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ê1983 Statutes of Nevada, Page 1753 (Chapter 581, SB 418)ê

 

the national bank, at their actual cash value, in lieu of cash payments for the stock of the state bank.

      Sec. 150.  NRS 667.015 is hereby amended to read as follows:

      667.015  1.  A bank may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this state by the affirmative votes of its stockholders owning two-thirds of its stock. Such vote [shall] must be taken at a meeting of the stockholders [duly] called by resolution of the board of directors. Written notice of the meeting, which notice [shall] must state the purpose of the meeting, [shall] must be mailed to each stockholder, or in case of his death, to his legal representative or heirs at law, addressed to his last-known residence 10 days prior to the date of the meeting.

      2.  When the stockholders decide to liquidate such bank, a certified copy of all proceedings of the meeting at which such action is taken, verified by the oath of the president and cashier, [shall] must be transmitted to the [superintendent] administrator for his approval. If the [superintendent] administrator approves the liquidation, he shall issue to such bank, under his seal, a permit for such purpose. No such permit [shall] may be issued by the [superintendent] administrator until he is satisfied that provision has been made by the bank to satisfy and pay off all depositors and all creditors of such bank. If he is not satisfied, the [superintendent] administrator shall not issue a permit, but he may take possession of the bank, its assets and business, and liquidate such bank in the manner provided by this chapter.

      3.  When the [superintendent] administrator approves the voluntary liquidation of a bank, the directors of such bank shall cause to be published in a newspaper in the city, town or county in which the bank is located, a notice that the bank is closing its affairs and going into liquidation, and that its depositors and creditors are to present their claims for payment.

      4.  When any bank is in the process of voluntary liquidation, it [shall be] is subject to examination by the [superintendent,] administrator, and the bank shall furnish such reports, from time to time, as may be called for by the [superintendent.] administrator.

      5.  All unclaimed deposits and dividends remaining in the hands of such bank [shall be] are subject to the provisions of this chapter.

      6.  Any bank may sell and transfer to any other state or national bank all of its assets of every kind upon such terms as may be agreed upon and approved by the [superintendent] administrator and by two-thirds vote of the bank’s board of directors. A certified copy of the minutes of any meeting at which such action is taken, under the oath of the president and cashier, together with a copy of the contract of sale and transfer, [shall] must be filed with the [superintendent.] administrator.

      7.  If a voluntary liquidation or the sale and transfer of the assets of any bank is approved by the [superintendent,] administrator, a certified copy of such approval under seal of the [superintendent,] administrator, filed in the office of the secretary of state, shall authorize the cancellation of the charter certificate of such bank, subject to its continued existence, as provided by law.

 


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ê1983 Statutes of Nevada, Page 1754 (Chapter 581, SB 418)ê

 

certified copy of such approval under seal of the [superintendent,] administrator, filed in the office of the secretary of state, shall authorize the cancellation of the charter certificate of such bank, subject to its continued existence, as provided by law.

      Sec. 151.  NRS 667.025 is hereby amended to read as follows:

      667.025  1.  The [superintendent] administrator may forthwith take possession of the business and property of any bank to which this Title is applicable when it appears that such bank:

      (a) Has violated its charter or any laws applicable thereto.

      (b) Is conducting its business in an unauthorized or unsafe manner.

      (c) Is in an unsafe or unsound condition to transact its business.

      (d) Has an impairment of its capital stock.

      (e) Has refused to pay its depositors in accordance with the terms on which such deposits were received, or has refused to pay its holders of certificates of indebtedness or investment in accordance with the terms upon which such certificates of indebtedness or investment were sold.

      (f) Has become otherwise insolvent.

      (g) Has neglected or refused to comply with the terms of a duly issued lawful order of the [superintendent.] administrator.

      (h) Has refused, upon proper demand, to submit its records, affairs and concerns for inspection and examination of a duly appointed or authorized examiner of the [superintendent.] administrator.

      (i) Has made a voluntary assignment of its assets to trustees.

      2.  The [superintendent] administrator also may forthwith take possession of the business and property of any bank to which this Title is applicable when it appears that the officers of such bank have refused to be examined upon oath regarding its affairs.

      3.  A bank which has been taken possession of by the [superintendent] administrator pursuant to subsection 1 or 2, may resume business as provided in NRS 667.215.

      Sec. 152.  NRS 667.075 is hereby amended to read as follows:

      667.075  1.  Any state bank which is, or may hereafter be, closed on account of inability to meet the demands of its depositors, by action of the [superintendent,] administrator, by action of a court, by action of its directors or due to its insolvency or suspension, the [superintendent,] administrator, or the receiver or liquidator of such bank with the permission of the [superintendent,] administrator, may borrow from the Federal Deposit Insurance Corporation and furnish any part or all of the assets of the bank to the Federal Deposit Insurance Corporation as security for a loan from it; but where the Federal Deposit Insurance Corporation is acting as such receiver or liquidator, the order of a court of record of competent jurisdiction [shall] must be first obtained approving such loan.

      2.  The [superintendent,] administrator, or the receiver or liquidator of any state bank with the permission of the [superintendent,] administrator, upon the order of a court of record of competent jurisdiction, may sell to the Federal Deposit Insurance Corporation any part or all of the assets of such bank.

 


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ê1983 Statutes of Nevada, Page 1755 (Chapter 581, SB 418)ê

 

administrator, upon the order of a court of record of competent jurisdiction, may sell to the Federal Deposit Insurance Corporation any part or all of the assets of such bank.

      3.  The provisions of this section do not limit the power of any bank, the [superintendent,] administrator, receivers or liquidators to pledge or sell assets in accordance with any other existing law.

      Sec. 153.  NRS 667.085 is hereby amended to read as follows:

      667.085  1.  The [superintendent] administrator shall furnish to the Federal Deposit Insurance Corporation, or to any official or examiner thereof, a copy of all examinations made of any state bank and of all reports made by such bank. The [superintendent] administrator shall give access to and disclose to the Federal Deposit Insurance Corporation, or to any official or examiner thereof, all information possessed by the office of the [banking] division of financial institutions with reference to the conditions or affairs of any state bank.

      2.  Nothing in this section limits:

      (a) The duty of any bank in this state from complying with the provisions of the Federal Deposit Insurance Act, its amendments or substitutions, or the requirements of the Federal Deposit Insurance Corporation relative to examinations and reports; or

      (b) The powers of the [superintendent] administrator with reference to examinations and reports pursuant to the provisions of this Title.

      Sec. 154.  NRS 667.095 is hereby amended to read as follows:

      667.095  All books, papers and records of a bank which has been finally liquidated [shall] must be deposited by the receiver in the office of the county clerk of the county in which the office of such bank is located, or in such other place as in his judgment will provide for the proper safekeeping and protection of such books, papers and records. Such books, papers and records [shall] must be held subject to the orders of the [superintendent] administrator and the county clerk of the county in which such bank was located.

      Sec. 155.  NRS 667.105 is hereby amended to read as follows:

      667.105  1.  Subject to the provisions of subsection 3, after the expiration of 10 years from the date of filing in the office of the county clerk of a final order approving the liquidation of any insolvent bank and the delivery to the county clerk or into his custody of the records of such bank, such records may be destroyed by the county clerk by burning them in the presence of the county recorder and the sheriff of the county, who shall join with the county clerk in the execution of a certificate as to the destruction of such records. The certificate [shall] must be filed by the county clerk in the court records of the liquidation of the insolvent bank.

      2.  Subject to the provisions of subsection 3, after the expiration of 10 years from the filing by the [superintendent] administrator of a final report of liquidation of any insolvent bank, the [superintendent,] administrator, with the consent of the state board of finance, may destroy, by burning, the records of any insolvent bank held in the office of the [superintendent] administrator in connection with the liquidation of such bank; but if there are any unpaid dividends of the insolvent bank the [superintendent] administrator shall preserve the deposit ledger or other evidence of indebtedness of such bank which refer to the unpaid dividends until the dividends have been paid.

 


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ê1983 Statutes of Nevada, Page 1756 (Chapter 581, SB 418)ê

 

held in the office of the [superintendent] administrator in connection with the liquidation of such bank; but if there are any unpaid dividends of the insolvent bank the [superintendent] administrator shall preserve the deposit ledger or other evidence of indebtedness of such bank which refer to the unpaid dividends until the dividends have been paid.

      3.  Neither the county clerk of any county or the [superintendent] administrator [shall] may destroy any of the formal records of liquidation, nor [shall the superintendent] may the administrator destroy any of the records made in his office with reference to the liquidation of any insolvent bank.

      Sec. 156.  NRS 667.115 is hereby amended to read as follows:

      667.115  When any bank created under the laws of this state, which has been or is appointed trustee in any indenture, deed of trust or other instrument of like character, executed to secure the payment of any bonds, notes or other evidences of indebtedness, is taken over for liquidation by the [superintendent,] administrator, by the Federal Deposit Insurance Corporation or by any other legally constituted authority, the powers and duties of such bank as trustee in any such instrument shall cease upon the entry of an order of the district court appointing a successor trustee pursuant to a petition as provided for in NRS 667.125 to 667.185, inclusive.

      Sec. 157.  NRS 667.195 is hereby amended to read as follows:

      667.195  If the [superintendent,] administrator, the Federal Deposit Insurance Corporation or any liquidating agent appointed pursuant to the provisions of NRS 667.035 to 667.085, inclusive, exercises the power of sale set up in any mortgage, deed of trust or other written instrument for the security of the payment of money in which any bank then in liquidation was named trustee, the exercise of the power of sale and the acts of resigning the trust, of the [superintendent,] administrator, the Federal Deposit Insurance Corporation or such appointed liquidating agent [are of] have the same [force and] effect as if done by the bank named as trustee in the mortgage, deed of trust or other instrument.

      Sec. 158.  NRS 667.205 is hereby amended to read as follows:

      667.205  1.  The [superintendent] administrator shall, on [or before July 1, 1971, and on] January 1 and July 1 of each year , [thereafter,] file with the secretary of state a report showing all banks under liquidation in the State of Nevada, the names of [any and] all auditors together with the amounts paid to them for auditing each of such banks, and the names of [any and] all attorneys employed in connection with the liquidation of such banks together with the amount paid or contracted to be paid to each of such attorneys. If any attorney has been employed on a fee contingent upon recovery, the report [shall] must contain in substance the contract.

      2.  Within 5 days after the receipt of such report, the secretary of state shall cause such report to be published one time in some newspaper published in each county in which a bank or banks are under liquidation.

 


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ê1983 Statutes of Nevada, Page 1757 (Chapter 581, SB 418)ê

 

state shall cause such report to be published one time in some newspaper published in each county in which a bank or banks are under liquidation. If there is no newspaper published in such county or counties, the secretary of state shall cause a copy of such report to be posted at the courthouse door in such county.

      Sec. 159.  NRS 667.215 is hereby amended to read as follows:

      667.215  When the [superintendent] administrator or the Federal Deposit Insurance Corporation has taken possession of any bank, such bank may, with the consent of the [superintendent,] administrator, resume business upon such terms and conditions as may be approved by the [superintendent] administrator and the Federal Deposit Insurance Corporation.

      Sec. 160.  NRS 667.225 is hereby amended to read as follows:

      667.225  1.  When any bank is authorized to dissolve, and has taken the necessary steps to effect dissolution in accordance with the laws of this state or the laws of the United States, but prior to actual dissolution, a majority of the directors of such national or state bank, upon authority in writing of the owners of two-thirds of its capital stock and with the approval of the [superintendent,] administrator, may execute articles of incorporation as provided in this Title for the organization of a new bank, which articles [shall] must further set forth the authority derived from the stockholders of such national or state bank.

      2.  Upon filing such articles of incorporation in the same manner as provided for the organization of new banks, such reorganized bank [shall be] is a bank under the laws of this state. Upon such reorganization, all assets, real and personal, of the dissolved national or state bank , [shall,] by operation of law, vest in and become the property of such reorganized state bank, subject to all liabilities of such national or state bank existing prior to such reorganization.

      Sec. 161.  NRS 668.015 is hereby amended to read as follows:

      668.015  Every president, director, manager, cashier or other officer or employee of any bank who knowingly prepares, signs, approves or concurs in any account, statement, return, report or document respecting the affairs of the bank, containing any false or deceptive statement, or any return or report required by this Title which does not set forth the true financial condition of the bank, including in such report or return all the information required by the provisions of this Title, is:

      1.  Guilty of a felony, and upon conviction thereof shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      2.  Liable for all damages which the bank, its stockholders, creditors or depositors suffer in consequence thereof, and is subject to removal upon order of the [superintendent.] administrator.

      Sec. 162.  NRS 668.025 is hereby amended to read as follows:

      668.025  1.  It is unlawful for any director, manager, officer or employee of any bank to become an endorser or surety for loans to any other person, or in any manner become obligor for money borrowed from or loaned by such bank.

 


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ê1983 Statutes of Nevada, Page 1758 (Chapter 581, SB 418)ê

 

employee of any bank to become an endorser or surety for loans to any other person, or in any manner become obligor for money borrowed from or loaned by such bank.

      2.  The office or position of any director, officer or employee who acts in contravention to the provisions of this section [shall] must be immediately declared vacant by the [superintendent,] administrator, and no such director, officer or employee [shall] may be elected or appointed to such vacancy while such indebtedness exists.

      Sec. 163.  NRS 668.095 is hereby amended to read as follows:

      668.095  1.  If any [bank] examiner of financial institutions knowingly and willfully makes any false or fraudulent report of the condition of any bank which has been examined by him, with the intent to aid or abet the officers or agents of such bank in continuing to operate an insolvent bank, or if any such examiner keeps or accepts any bribe or gratuity given for the purpose of inducing him not to file any report of examination of any bank examined by him, or neglects to make an examination of any bank because of having received or accepted any bribe or gratuity, he shall be imprisoned in the state prison for not less that 1 year nor more than 10 years, and may be further punished by a fine of not more than $10,000.

      2.  Any person who knowingly aids or abets [a bank] an examiner of financial institutions or any other person in doing or performing any of the acts prohibited in subsection 1 shall be imprisoned in the state prison for not less than 1 year nor more than 10 years, and may be further punished by a fine of not more than $10,000.

      3.  Any person, having knowledge of a report made by [a bank] an examiner of financial institutions of the condition of any bank, who falsifies, changes, alters or suppresses any such report with the intent to aid or abet the officers or agents of a bank in continuing to operate an insolvent bank, or any such person who keeps or accepts any bribe or gratuity given for the purpose of inducing him not to file any such report of examination or to falsify, change, alter or suppress any such report of examination, shall be imprisoned in the state prison for not less than 1 year nor more than 10 years, and may be further punished by a fine of not more than $10,000.

      Sec. 164.  NRS 669.030 is hereby amended to read as follows:

      669.030  “Community” means a contiguous area of the same economic unit or metropolitan area as determined by the [superintendent,] administrator, and may include all or part of an incorporated city or several towns or cities.

      Sec. 165.  NRS 669.090 is hereby amended to read as follows:

      669.090  It is unlawful for any person, partnership, association, corporation or other legal entity to engage in the business of a trust company without complying with the provisions of this chapter and having a license issued by the [superintendent.] administrator.

      Sec. 166.  NRS 669.100 is hereby amended to read as follows:

      669.100  No trust company may be organized or operated [after July 1, 1969,] with a capital of less than $250,000, or in such greater amount as may be required by the [superintendent,] administrator, and paid-up surplus of $50,000, or in such greater amount as may be required by the [superintendent.]

 


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ê1983 Statutes of Nevada, Page 1759 (Chapter 581, SB 418)ê

 

July 1, 1969,] with a capital of less than $250,000, or in such greater amount as may be required by the [superintendent,] administrator, and paid-up surplus of $50,000, or in such greater amount as may be required by the [superintendent.] administrator. The full amount of the capital and surplus must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business.

      Sec. 167.  NRS 669.120 is hereby amended to read as follows:

      669.120  1.  The articles of incorporation [shall] must contain:

      (a) The corporate name adopted by the corporation, which [shall] must be such as to distinguish it from any other trust company formed or incorporated in this state, or engaged in the trust business in this state.

      (b) The place where its business is to be conducted.

      (c) The purpose for which it is formed.

      (d) The amount of its capital stock, which [shall] must be divided into shares of the par value of not less than $25 each, except that upon the written approval of the [superintendent] administrator the capital stock may be divided into shares of the par value of not less than $1 each. The amount of capital stock [shall] must not be less than $250,000, and [shall] must be assessable.

      (e) The amount of its original paid-in surplus, which [shall] must not be less than 20 percent of its capital stock.

      (f) The name and place of residence of, and the number of shares subscribed by, each stockholder.

      (g) The number of directors, which [shall] must not be less than five, and the names of the stockholders selected to act as the first board of directors, each of whom [shall] must be a bona fide subscriber for at least $1,000 of the stock of the bank, fully paid and not hypothecated. A majority of directors [shall] must be residents of the State of Nevada.

      (h) The location of all branch offices as approved by the [superintendent.] administrator.

      (i) Such other matters, not inconsistent with law, as the incorporators may deem proper.

      2.  The articles of incorporation may also provide for the issuance and sale of preferred stock in such amount as [shall be] is fixed by the articles or by amendments thereto, and the amount and number of shares thereof, and the terms and conditions thereof not inconsistent with the provisions of this chapter.

      Sec. 168.  NRS 669.130 is hereby amended to read as follows:

      669.130  1.  The secretary of state shall issue a certificate in the form provided by law for other corporations, and the existence of such trust company as a corporation [shall date] dates from the issuance of the certificate by the secretary of state, from which time it [shall have] has and may exercise the powers conferred by law upon corporations generally, except as limited or modified by this chapter.

 


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      2.  Such trust company shall transact no business, except the election of officers, and the taking and approving of their official bonds, and the receipt of payments on account of the subscriptions of the capital stock, and such other business as is incidental to its organization, until it [has been] is authorized by the [superintendent] administrator to commence the trust company business as provided in this chapter.

      Sec. 169.  NRS 669.140 is hereby amended to read as follows:

      669.140  1.  The articles of incorporation [shall:] must:

      (a) Be subscribed to by at least three of the stockholders of the proposed corporate trust company.

      (b) Be acknowledged by them before some person competent to take an acknowledgment of deeds.

      (c) Be filed in the office of the secretary of state.

      2.  One copy thereof, [duly] certified by the secretary of state, [shall] must be filed in the office of the clerk of the county in which the principal place of business of the corporation is intended to be located, and another copy thereof in like manner [shall] must be filed with the [superintendent.] administrator.

      Sec. 170.  NRS 669.150 is hereby amended to read as follows:

      669.150  Thereafter, the corporate trust company shall file an application for a license to transact trust company business with the [superintendent] administrator on forms prescribed by the [superintendent, which shall] administrator, which must contain such information as the [superintendent] administrator may require and be accompanied by a $250 investigation fee, which is nonrefundable.

      Sec. 171.  NRS 669.160 is hereby amended to read as follows:

      669.160  1.  Within 60 days following the filing of the application for a license the [superintendent] administrator shall investigate the facts of the application and the other requirements of this chapter to determine:

      (a) That the persons who will serve as directors or officers are qualified by character and experience.

      (b) That the financial status of the stockholders, directors and officers is consistent with their responsibilities and duties.

      (c) That the name of the proposed company is not deceptively similar to that of another trust company or otherwise misleading. 

      (d) That the capital and surplus are not less than the required minimum.

      (e) The need for trust facilities or additional trust facilities in the community where the proposed trust company is to be located.

      (f) Such other matters concerning the proposed trust company in relation to its location as the [superintendent] administrator may deem relevant.

      2.  Within 90 days after the application is filed, the [superintendent] administrator shall conduct a public hearing to consider the application.

 


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ê1983 Statutes of Nevada, Page 1761 (Chapter 581, SB 418)ê

 

application. At least 30 days prior to such hearing, the [superintendent] administrator shall give written notice of the hearing to all persons doing a trust business in the community in which the proposed trust company is to be located and to such other persons, institutions or organization as he may see fit.

      Sec. 172.  NRS 669.180 is hereby amended to read as follows:

      669.180  If the [superintendent] administrator finds that the applicant has met all the requirements of this chapter and other applicable laws, he shall, within 30 days after the conclusion of the hearing, issue a license to the applicant to conduct a trust company business upon the applicant’s paying the required license fee. Otherwise the [superintendent] administrator shall deny the application and notify the applicant in writing of the reasons for such denial.

      Sec. 173.  NRS 669.190 is hereby amended to read as follows:

      669.190  1.  The amount of fees to be paid for a trust company license [shall] must be in proportion to their authorized capitalization as follows:

      (a) A trust company having a capitalization of $250,000 and up to and including $500,000 shall pay a license fee of $500.

      (b) A trust company having a capitalization of more than $500,000 and up to and including $1,000,000 shall pay a license fee of $750.

      (c) A trust company having a capitalization of more than $1,000,000 shall pay a license fee of $1,000.

      2.  In addition every trust company shall pay a license fee of $100 for each branch office that may be authorized by the [superintendent.] administrator.

      3.  Thereafter, every such trust company shall pay annually on or before April 1 of each year a license fee equal to the original license fee provided in this section.

      4.  All [moneys] money collected under the provisions of this section [shall] must be paid into the state general fund [of the state treasury] and the state treasurer shall issue a receipt therefor.

      Sec. 174.  NRS 669.200 is hereby amended to read as follows:

      669.200  If a proposed trust company fails to open for business within 6 months after the date the license was issued, or within an additional 6-month extension granted by the [superintendent] administrator upon written application and for good cause shown, the [superintendent] administrator shall issue an order canceling the trust company’s license.

      Sec. 175.  NRS 669.230 is hereby amended to read as follows:

      669.230  Whenever any trust company desires to discontinue its trust business, it shall furnish to the [superintendent] administrator satisfactory evidence of its release and discharge from all the obligations and trusts which it has assumed or which have been imposed by law. Thereafter, the [superintendent] administrator shall enter an order canceling the trust company’s license.

 


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ê1983 Statutes of Nevada, Page 1762 (Chapter 581, SB 418)ê

 

      Sec. 176.  NRS 669.240 is hereby amended to read as follows:

      669.240  1.  The directors of a trust company shall require good and sufficient fidelity bonds in the amount of $25,000 or more on all active officers and employees, whether or not they receive a salary or other compensation from the company, to indemnify the company against loss because of any dishonest, fraudulent or criminal act or omission by any such officer or employee acting alone or in combination with any other person. The bonds may be in any form and may be paid for by the trust company.

      2.  Such directors shall obtain suitable insurance protection for their company against burglary, robbery, theft and other hazards to which it may be exposed in the operation of its business.

      3.  Such directors shall at least annually prescribe the amount or penal sum of such bonds or policies and designate the sureties and underwriters thereof, after giving due and careful consideration to all known elements and factors constituting a risk or hazard. The directors’ action must be recorded in the minutes of the board of directors and reported to the [superintendent.] administrator.

      Sec. 177.  NRS 669.250 is hereby amended to read as follows:

      669.250  1.  The [superintendent] administrator shall charge and collect examination fees for any examination of a trust company’s books and records required or authorized under this chapter, as follows:

      (a) For the examiner-in-charge, $125 per day, plus per diem expenses and travel allowance.

      (b) For each assistant of the examiner-in-charge, $50 per day, plus per diem expenses and travel allowance.

      2.  All [moneys] money collected under this section and all investigation fees required under NRS 669.150 [shall] must be paid into the state general fund . [in the state treasury.]

      Sec. 178.  NRS 669.260 is hereby amended to read as follows:

      669.260  In addition to other provisions of this Title which are applicable to this Title as a whole or specifically made applicable to trust companies, the [superintendent] administrator may by [rule or] regulation make applicable to trust companies any regulatory provision contained in chapters 657 to 667, inclusive, which can be reasonably applied and which are not inconsistent with the provisions of this chapter.

      Sec. 179.  NRS 669.270 is hereby amended to read as follows:

      669.270  The [superintendent] administrator may adopt [and promulgate such rules and] such regulations as may be necessary to carry out the purposes and provisions of this chapter.

      Sec. 180.  NRS 669.280 is hereby amended to read as follows:

      669.280  1.  The violation of any of the provisions of this chapter by the officers or directors of any trust company authorized to do business under the provisions of this chapter is sufficient cause for the [superintendent] administrator to close the trust company, liquidate its business and revoke its license.

 


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ê1983 Statutes of Nevada, Page 1763 (Chapter 581, SB 418)ê

 

[superintendent] administrator to close the trust company, liquidate its business and revoke its license.

      2.  If any officer or director of a trust company refuses to allow the [superintendent] administrator or his deputies to inspect all books, records, papers and effects of its business, the [superintendent] administrator may revoke its license and proceed to wind up its affairs.

      Sec. 181.  NRS 669.290 is hereby amended to read as follows:

      669.290  Every officer, employer, director or agent of a trust company who knowingly or willfully neglects to perform any duty required by this chapter or other applicable law, or who knowingly or willfully fails to conform to any material lawful requirement made by the [superintendent, shall be] administrator, is subject to removal upon order of the [superintendent,] administrator, and upon conviction shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      Sec. 182.  NRS 670.067 is hereby amended to read as follows:

      670.067  The [superintendent] administrator shall adopt such regulations as may be necessary to carry out the purposes and provisions of this chapter.

      Sec. 183.  NRS 670.085 is hereby amended to read as follows:

      670.085  Before the articles of incorporation or any amendment to them are filed with the secretary of state they must be approved by the [superintendent.] administrator.

      Sec. 184.  NRS 670.100 is hereby amended to read as follows:

      670.100  When the articles of incorporation have been approved by the [superintendent] administrator and filed in the office of the secretary of state and approved by the secretary of state, and all application, licensing and filing fees and taxes prescribed by law have been paid, the subscribers, their successors and assigns constitute a corporation, and the corporation is then authorized to commence business, and stock of the corporation to the extent authorized by this chapter may from time to time be issued.

      Sec. 185.  NRS 670.110 is hereby amended to read as follows:

      670.110  1.  The articles of incorporation may be amended by the affirmative vote of stockholders representing not less than two-thirds of the issued and outstanding stock entitled to vote. No amendment of the articles of incorporation which is inconsistent with the general purposes expressed in this chapter or which eliminates or curtails the right of the [superintendent of banks] administrator to examine the corporation or the obligation of the corporation to make reports as provided in NRS 670.250, may be made.

      2.  The amendment must then be approved by the [superintendent] administrator before it is submitted to the secretary of state.

      3.  Within 30 days after any meeting at which an amendment of the articles of incorporation has been adopted, articles of amendment signed and sworn to by the president, treasurer and a majority of the directors, setting forth the amendment and due adoption of it, must be submitted to the secretary of state who shall examine them, and if he finds that they conform to the requirements of this chapter, shall so certify and endorse his approval on them.

 


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ê1983 Statutes of Nevada, Page 1764 (Chapter 581, SB 418)ê

 

signed and sworn to by the president, treasurer and a majority of the directors, setting forth the amendment and due adoption of it, must be submitted to the secretary of state who shall examine them, and if he finds that they conform to the requirements of this chapter, shall so certify and endorse his approval on them. Then the articles of amendment must be filed in the office of the secretary of state, and no amendment may take effect until the articles of amendment have been filed.

      Sec. 186.  NRS 670.115 is hereby amended to read as follows:

      670.115  A development corporation shall obtain a license from the [superintendent] administrator before conducting any business. The application for the license must be on a form and be accompanied by a nonrefundable application fee of not more than $1,000 prescribed by the [superintendent.] administrator.

      Sec. 187.  NRS 670.250 is hereby amended to read as follows:

      670.250  1.  The [superintendent of banks] administrator shall examine the corporation as often as he deems necessary.

      2.  The corporation shall make reports of its condition at least annually to the [superintendent of banks] administrator and more frequently upon the order of the [superintendent of banks. The superintendent of banks] administrator. The administrator shall furnish copies of these reports to the commissioner of insurance [, the commissioner of savings associations] and the governor. The corporation shall also furnish such other information as may from time to time be required by the [superintendent of banks] administrator or the secretary of state.

      3.  The corporation shall pay a reasonable cost for each hour expended by [a state] an examiner of financial institutions in conducting the examination and preparing the examination report.

      4.  The [superintendent of banks] administrator shall exercise the same supervisory authority over corporations organized under this chapter as he now exercises over banks and trust companies chartered by the state.

      Sec. 188.  NRS 671.030 is hereby amended to read as follows:

      671.030  The [superintendent] administrator may adopt such reasonable regulations as may be necessary or appropriate for the administration of this chapter.

      Sec. 189.  NRS 671.050 is hereby amended to read as follows:

      671.050  1.  Every application for a license required under this chapter must be in writing, signed by the applicant, and in the form prescribed by the [superintendent.] administrator.

      2.  The application must contain:

      (a) The name and principal business address of the applicant and, if incorporated, the date and place of its incorporation;

      (b) The name and address of each of the applicant’s branch offices, subsidiaries or affiliates, if any, which will be operated under the license;

 


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ê1983 Statutes of Nevada, Page 1765 (Chapter 581, SB 418)ê

 

      (c) The name and addresses, business and residential, of the proprietor or partners of the applicant or, if the applicant is a corporation or association, of each of the directors, trustees and principal officers, and of any stockholder who owns 20 percent or more of the applicant’s stock; and

      (d) Such other pertinent information as the [superintendent] administrator requires.

      3.  The application must be accompanied by:

      (a) A surety bond or securities as required by this chapter; and

      (b) A certified financial statement, satisfactory to the [superintendent,] administrator, showing that the applicant’s net worth exceeds $100,000, unless the applicant’s surety bond or securities is in at least twice the minimum principal sum required by NRS 671.100; and

      (c) A license fee of $200 which is refundable if the application for the license is denied and an investigation fee of $100 which is nonrefundable.

      Sec. 190.  NRS 671.060 is hereby amended to read as follows:

      671.060  1.  Upon the filing of the application, payment of the fees and approval of the surety bond or securities, the [superintendent] administrator shall investigate the financial condition and responsibility, the financial and business experience, and the character and general fitness of the applicant and may investigate any partners, directors, trustees or principal officers of the applicant.

      2.  If the [superintendent] administrator determines that the business of the applicant will be conducted lawfully, honestly, fairly and efficiently, the [superintendent] administrator shall issue a license to the applicant to engage in the business of selling and issuing checks, receiving for transmission or transmitting money or credits, or both.

      3.  If the [superintendent] administrator denies an application, he shall refund the amount of the application fee submitted by the applicant.

      Sec. 191.  NRS 671.070 is hereby amended to read as follows:

      671.070  1.  A license issued pursuant to this chapter expires on June 30 of the year following its issuance and thereafter expires on June 30 of each year, unless it is earlier surrendered, suspended or revoked.

      2.  The license may be renewed from year to year upon the approval of the [superintendent] administrator if the licensee files an application conforming to the requirements for an initial application at least 60 days before the expiration of his current license.

      3.  An application for the renewal of the license must be accompanied by a fee of $200. No investigation fee may be charged for the renewal of the license.

 


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ê1983 Statutes of Nevada, Page 1766 (Chapter 581, SB 418)ê

 

      Sec. 192.  NRS 671.080 is hereby amended to read as follows:

      671.080  1.  A license issued under this chapter is not transferable or assignable.

      2.  The license entitles the holder to engage in business only at the location or locations specified in his application or at a location or locations operated by a duly appointed agent of the licensee.

      3.  A change [shall] must not be made in:

      (a) The location of any place of business covered by the license;

      (b) The name of the licensed business; or

      (c) The licensee’s operation or services if the nature of the change affects the qualification for the license,

without prior notice to and approval of the [superintendent.] administrator.

      Sec. 193.  NRS 671.100 is hereby amended to read as follows:

      671.100  1.  Except as provided in NRS 671.110, each licensee shall have in force a surety bond payable to the State of Nevada for the use and benefit of any holder of any outstanding check sold or issued by a licensee in the normal course of business and for value in the following minimum principal sums:

      (a) For the first location granted in the license, $10,000; and

      (b) For each additional location in this state where its business is conducted directly or through an agent, $5,000.

The maximum amount of any surety bond required under this subsection is $250,000.

      2.  The bond [shall] must be in a form satisfactory to the [superintendent,] administrator, issued by a bonding company authorized to do business in this state, and shall secure the faithful performance of the obligations of the licensee respecting the sale or issuance of checks and receipt for transmission or transmission of money or credits.

      3.  A licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against him by any creditor or claimant arising out of business regulated by this chapter, give notice thereof to the [superintendent] administrator by registered or certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to such a creditor or claimant, give notice thereof to the [superintendent] administrator by registered or certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.

      4.  Whenever the principal sum of the bond is reduced by recoveries or payments thereon, the licensee shall furnish:

      (a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required under subsection 1; or

      (b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum.

      5.  The liability of the surety on the bond to such a creditor or clamant is not affected by any misrepresentation, breach of warranty, failure to pay a premium, or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.

 


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ê1983 Statutes of Nevada, Page 1767 (Chapter 581, SB 418)ê

 

clamant is not affected by any misrepresentation, breach of warranty, failure to pay a premium, or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.

      6.  The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the licensee’s agents within 30 days after:

      (a) The licensee’s death or the dissolution or liquidation of his business; or

      (b) The termination of the bond,

whichever event occurs first.

      7.  Whenever the [superintendent] administrator determines that the protection of the public so requires, he may order that an increase be made in the principal sum of the bond of any licensee, except that the [superintendent] administrator may not order an increase of more than $10,000 if the licensee has submitted a current financial statement, or more than $15,000 otherwise.

      8.  Neither a licensee nor his surety may cancel or alter such a bond except after notice to the [superintendent] administrator by registered or certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the [superintendent.] administrator. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 6.

      Sec. 194.  NRS 671.110 is hereby amended to read as follows:

      671.110  1.  In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a licensee may deposit with the state treasurer or with any bank or trust company authorized to do business in this state as the licensee may select, with the approval of the [superintendent:] administrator:

      (a) Interest-bearing stocks;

      (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or

      (c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state,

in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof.

      2.  The securities [shall] must be held to secure the same obligation as would the surety bond, but the depositor may receive any interest or dividends and, with the approval of the [superintendent,] administrator, substitute other suitable securities for those deposited.

      Sec. 195.  NRS 671.120 is hereby amended to read as follows:

      671.120  1.  Except as provided in subsection 4, once each year the [superintendent] administrator shall examine the financial accounts of each licensee and any other documents relevant to the conduct of the licensee’s business, and the [superintendent] administrator may conduct such examinations at additional times.

 


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ê1983 Statutes of Nevada, Page 1768 (Chapter 581, SB 418)ê

 

accounts of each licensee and any other documents relevant to the conduct of the licensee’s business, and the [superintendent] administrator may conduct such examinations at additional times.

      2.  For the purpose of the examinations, the [superintendent] administrator may enter upon any of the business premises of a licensee or his agents and obtain access to the relevant documents. Any obstruction or denial of such an entry or access is a violation of this chapter.

      3.  For each examination the [superintendent] administrator shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and in preparing and typing the report.

      4.  The [superintendent] administrator may accept a report of an audit of the licensee which covers the most recent fiscal year in lieu of conducting an examination.

      Sec. 196.  NRS 671.150 is hereby amended to read as follows:

      671.150  1.  All money or credits received by an agent of a licensee from the sale and issuance of checks or for the purpose of transmission [shall] must be remitted to the licensee or deposited with a bank authorized to do business in this state for credit to an account of the licensee not later than the third business day following its receipt.

      2.  Funds received from the sale or issuance of checks or for the purpose of transmission [shall] must not be commingled with the other assets of the licensee or his agents.

      3.  If a license is suspended or terminated, the licensee shall immediately deposit in an account in the name of the [superintendent,] administrator, an amount which is sufficient to make the total funds in the account equal to all outstanding checks in the State of Nevada sold or issued and money or credits received but not transmitted.

      4.  Each licensee shall at all times maintain liquid assets, government or municipal securities or other marketable securities having a value, computed in accordance with generally accepted accounting principles, equal to or more than the aggregate liability of the licensee with respect to checks sold and issued and money or credits received for transmission.

      Sec. 197.  NRS 671.160 is hereby amended to read as follows:

      671.160  1.  Within 5 days after a discontinuance of a licensee’s business, he shall inform the [superintendent] administrator of the discontinuance and shall surrender his license for cancellation.

      2.  If, as a result of any investigation, hearing, report or examination, the [superintendent] administrator finds that a licensee is insolvent or is conducting his business in such a manner as to render his further operations hazardous to the public, the [superintendent] administrator may, through an order served by registered or certified mail upon the licensee and any person possessing funds of the licensee or his customers, require the immediate discontinuance of the disbursement of the funds and the cessation of the licensee’s business.

 


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ê1983 Statutes of Nevada, Page 1769 (Chapter 581, SB 418)ê

 

or his customers, require the immediate discontinuance of the disbursement of the funds and the cessation of the licensee’s business. The order [shall remain] remains in effect until:

      (a) It is set aside, in whole or in part, by the [superintendent;] administrator;

      (b) The licensee has been adjudged a bankrupt; or

      (c) A receiver for the licensee has been appointed by a court of competent jurisdiction.

      3.  If a court does not have jurisdiction over the licensee, the [superintendent] administrator may take possession of the licensee’s business and property until the licensee complies with the requirements of the [superintendent] administrator for resumption of business or the licensee’s affairs are finally liquidated.

      4.  Whenever the [superintendent] administrator takes possession of a licensee’s business and property, the [superintendent] administrator may petition the court for appointment of a receiver to liquidate the affairs of the licensee.

      Sec. 198.  NRS 671.170 is hereby amended to read as follows:

      671.170  1.  The [superintendent] administrator may conduct any necessary investigations and hearings to determine whether any licensee or other person has violated any of the provisions of this chapter or whether any licensee has conducted himself in a manner which requires the suspension, revocation or denial of renewal of his license.

      2.  In conducting any investigation or hearing pursuant to this chapter, the [superintendent,] administrator, or any person designated by him, may require the attendance and testimony of any person and compel the production of all relevant books, records, accounts and other documents. The cost of any examination or investigation, not to exceed $10 an hour, [shall] must be borne by the licensee.

      3.  The [superintendent] administrator may require any licensee to submit such reports concerning his business as the [superintendent] administrator deems necessary for the enforcement of this chapter.

      4.  All reports of investigations and examinations and other reports rendered pursuant to this section, and all correspondence and memoranda relating to or arising therefrom, including any [duly] authenticated copies thereof in the possession of any licensee or the [superintendent,] administrator, are confidential communications, are not subject to any subpena, and [shall] must not be made public unless the [superintendent] administrator determines that justice and the public advantage will be served by their publication. This subsection does not preclude any party to an administrative or judicial proceeding from introducing into evidence any information or document otherwise available or admissible.

      Sec. 199.  NRS 671.180 is hereby amended to read as follows:

      671.180  1.  If the [superintendent] administrator has reason to believe that grounds exist for the suspension, revocation or denial of renewal of a license, he shall give 10 days’ written notice to the licensee, stating the grounds therefor, and shall set a date for a hearing, if a hearing is requested by the licensee.

 


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ê1983 Statutes of Nevada, Page 1770 (Chapter 581, SB 418)ê

 

renewal of a license, he shall give 10 days’ written notice to the licensee, stating the grounds therefor, and shall set a date for a hearing, if a hearing is requested by the licensee. If the protection of the public so requires, the [superintendent] administrator may suspend the license at any time before the hearing.

      2.  At the conclusion of the hearing, the [superintendent] administrator shall enter a written order either dismissing the charges or suspending, revoking or denying the renewal of the license. The order [shall] must include a statement of the grounds for the action taken by the [superintendent and shall become] administrator and becomes effective 10 days after receipt of a copy of the order by the licensee at his principal place of business. The [superintendent] administrator may immediately suspend, revoke or deny the renewal of the license in a case where the licensee has failed to maintain in effect the required surety bond or insurance policy.

      3.  The grounds for suspension, revocation or denial of renewal of a license are:

      (a) Failure to pay the annual license fee;

      (b) Failure to maintain in effect the required bond or securities;

      (c) Fraud, misrepresentation or omission of any material fact in any application, statement or report;

      (d) Failure to pay any judgment arising from the licensee’s business within 30 days after the judgment becomes final or within 30 days after the expiration of a stay of execution on the judgment; or

      (e) Violation of any provision of this chapter or any regulation adopted or order issued by the [superintendent] administrator pursuant to this chapter.

      4.  Any action taken by the [superintendent] administrator pursuant to this section is subject to judicial review in the first judicial district court.

      Sec. 200.  NRS 671.190 is hereby amended to read as follows:

      671.190  1.  Any person who:

      (a) Violates any provision of this chapter, or any regulation adopted or order issued by the [superintendent] administrator pursuant to this chapter;

      (b) Knowingly makes any false or misleading statement of a material fact in any application, statement or report filed pursuant to this chapter;

      (c) Knowingly omits to state any material fact necessary to provide the [superintendent] administrator with information lawfully required by him; or

      (d) Refuses to permit or obstructs any lawful investigation, examination, entry or access by the [superintendent,] administrator,

is guilty of a misdemeanor.

      2.  Each day during which a violation continues constitutes a separate offense.

 


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ê1983 Statutes of Nevada, Page 1771 (Chapter 581, SB 418)ê

 

      3.  The imposition of any fine or term of imprisonment pursuant to subsection 1:

      (a) Is in addition to any suspension, revocation or denial of renewal of a license which may result from the violation.

      (b) Is not a bar to enforcement of this chapter by an injunction or other appropriate civil remedy.

      Sec. 201.  Chapter 673 of NRS is hereby amended by adding thereto a new section which shall read as follows:

      “Administrator” means the administrator of financial institutions.

      Sec. 202.  NRS 673.001 is hereby amended to read as follows:

      673.001  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 673.002 to 673.034, inclusive, and section 201 of this act have the meanings ascribed to them in those sections.

      Sec. 203.  NRS 673.0321 is hereby amended to read as follows:

      673.0321  “Service office” means any office or other place of business in this state operated by one or more savings and loan associations other than the principal office or a branch of an association, where activities are confined to processing and storing data and records, accounting, printing, storing of supplies, and such other activities as the [commissioner shall approve] administrator approves which involve no personal contact with the public. At a service office, payment on account of savings or loan may be processed, but the association shall have all payments which are initially received at a service office, rather than at the principal office or branch of the association, made by mail only and directed to a post office box and not to the address or location of the service office. The [commissioner] administrator may require that an association’s name not be displayed at or near a service office.

      Sec. 204.  NRS 673.035 is hereby amended to read as follows:

      673.035  The [commissioner] administrator shall administer the provisions of this chapter, subject to administrative supervision by the director. He shall make the decisions, determinations and enter the consents and orders necessary or reasonably appropriate to accomplish the purposes of this chapter.

      Sec. 205.  NRS 673.03531 is hereby amended to read as follows:

      673.03531  1.  Except as provided in [subsection 2, the commissioner and any deputy, attorney, examiner, accountant or appraiser appointed or employed by the commissioner shall not:

      (a) Be interested, directly or indirectly, in any association.

      (b) Be or become indebted, directly or indirectly, as borrower, endorser, surety or guarantor, or sell or otherwise dispose of any loan or investment to any association under the commissioner’s supervision or subject to the commissioner’s examination.

 


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ê1983 Statutes of Nevada, Page 1772 (Chapter 581, SB 418)ê

 

      2.  The commissioner and any deputy, attorney, examiner, accountant or appraiser appointed or employed by the commissioner] 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 association;

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

      (c) Be indebted to any association;

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

      (e) Obtain credit or services from an association 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 an association while in office.

      3.  Any officer or employee of the division of financial institutions may be indebted to an association on the same terms as are available to the public generally upon:

      (a) A mortgage loan upon his 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 associations to the [maximum insured amount,] greatest amount insured, receive interest on [their] those deposits and borrow money secured by a pledge of [their] those deposits.

      [3.  If the commissioner or any deputy, attorney, examiner, accountant or appraiser appointed or employed by the commissioner has an interest or relation]

      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 appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment [.] or the discovery of the prohibited act.

      Secs. 206-208.  There are no sections 206-208.

      Sec. 209.  NRS 673.039 is hereby amended to read as follows:

      673.039  The [commissioner] administrator shall:

      1.  [Have a seal.

      2.]  Keep in his office:

      (a) For no less than 5 years, every report made by an association.

      (b) The original application of every association in a permanent file.

      (c) Other administrative documents in the manner provided by law or by appropriate regulations.

      [3.]2.  Provide a complete stenographic record of every hearing and proceeding conducted by his office and maintain, for no less than 5 years, a transcript of such hearing or proceeding, together with any regulation, order, decision, determination or consent entered in connection with such hearing or proceeding.

 


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ê1983 Statutes of Nevada, Page 1773 (Chapter 581, SB 418)ê

 

5 years, a transcript of such hearing or proceeding, together with any regulation, order, decision, determination or consent entered in connection with such hearing or proceeding.

      Sec. 210.  NRS 673.040 is hereby amended to read as follows:

      673.040  The [commissioner shall have supervision of] administrator shall supervise and make all policy with regard to all foreign and domestic associations, companies and corporations governed by this chapter and doing business in this state . [, and shall be charged with the administration of the provisions of this chapter, subject to administrative supervision by the director.]

      Sec. 211.  NRS 673.041 is hereby amended to read as follows:

      673.041  All information and data required by the [commissioner] administrator to be furnished to him under this chapter or which may be otherwise obtained by him, including information and data relative to earnings or revenue of an existing association or an applicant for a permit or license, [shall be] is confidential and [shall] must not be revealed in whole or in part, except:

      1.  In the course of the necessary administration of this chapter.

      2.  Upon the lawful order of a court of competent jurisdiction.

      Sec. 212.  NRS 673.042 is hereby amended to read as follows:

      673.042  1.  The [commissioner] administrator shall, before September 1 of each even-numbered year for the biennium ending June 30 of such year, report to the governor. The report [shall:] must:

      (a) Show the condition of all associations reporting to or examined by the [commissioner.] administrator.

      (b) Be accompanied by a detailed statement of all [moneys] money received by the [commissioner] administrator since his last report and the disposition of [such moneys.] that money.

      2.  Copies of the reports [shall] must be furnished to each association or company licensed under the provisions of this chapter.

      Sec. 213.  NRS 673.043 is hereby amended to read as follows:

      673.043  1.  The [commissioner] administrator may establish such regulations as may be reasonable or necessary to carry out the purposes of this chapter.

      2.  Such regulations as originally drafted, and as amended from time to time, [shall] must be printed and distributed by the [commissioner] administrator to all associations, and [shall become] becomes effective not earlier than 30 days from the date of issuance, but before such regulations become effective and within such 30-day period any association may appeal to the director as to the reasonableness and necessity of any of or all of such regulations.

      Sec. 214.  NRS 673.0435 is hereby amended to read as follows:

      673.0435  The [commissioner] administrator may cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of any provision of this chapter.

 


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ê1983 Statutes of Nevada, Page 1774 (Chapter 581, SB 418)ê

 

      Sec. 215.  NRS 673.044 is hereby amended to read as follows:

      673.044  All notices [shall] must be in writing. All notices issued or required to be issued by the [commissioner shall] administrator must be sent by registered or certified mail and [shall] become effective upon their deposit [of the notice] in the mails.

      Sec. 216.  NRS 673.045 is hereby amended to read as follows:

      673.045  The [commissioner] administrator may, for reasonable cause and upon 15 days’ notice, amend or alter any license issued by him, but the association may appeal the order of the [commissioner] administrator in the manner provided in this chapter.

      Sec. 217.  NRS 673.050 is hereby amended to read as follows:

      673.050  A person affected by any order, ruling, proceeding, act or action of the [commissioner] administrator or any person acting on his behalf and at his instance, or the director or any person acting on his behalf and at his instance, may test the validity of the action in any court of competent jurisdiction through injunction, appeal, error or other proper process or proceeding, mandatory or otherwise.

      Sec. 218.  NRS 673.080 is hereby amended to read as follows:

      673.080  1.  The secretary of state shall not issue any certificate to an association or company authorizing it to do business until the articles of association, agreement or incorporation are approved by the [commissioner.] administrator.

      2.  No amendment to the articles of the organization may be filed by the secretary of state without the written approval of the articles by the [commissioner.] administrator.

      3.  No association may sell, offer for sale, negotiate for the sale of, take subscriptions for, or issue any of its common or preferred stock until it has first applied for and secured from the [commissioner] administrator approval of an application for permission to organize as provided for in this section.

      4.  [(a)] Persons who desire to organize an association under this chapter shall first execute in triplicate an application, in the form prescribed by the [commissioner,] administrator, for permission to organize an association before taking any other action in connection with the organization.

      [(b)] Upon execution of an application for permission to organize by seven responsible citizens, referred to in this section as “applicants,” the original and two copies of the application must be submitted to the [commissioner.] administrator. The applicants shall submit with their application the names and addresses of the applicants, the location of the proposed office, an itemized account of the financial condition of the proposed association and of the applicants, the amount and character of the proposed stock, statements, exhibits, maps and such additional information as the [commissioner] administrator may require, together with an affidavit that the representations made thereby are consistent with the facts to the best of the applicants’ information and belief. This data must be sufficiently detailed and comprehensive to enable the [commissioner] administrator to pass upon the application as to:

 

 


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ê1983 Statutes of Nevada, Page 1775 (Chapter 581, SB 418)ê

 

comprehensive to enable the [commissioner] administrator to pass upon the application as to:

             [(1)](a) The character and responsibility of the applicants;

             [(2)](b) The need for the association in the community to be served;

             [(3)](c) The reasonable probability of its usefulness and success; and

             [(4)](d) Whether or not such an association can be established without undue injury to any properly conducted existing savings and loan institutions.

      [(c)]5.  If the [commissioner] administrator approves the application he shall, within 30 days, notify all associations within 100 miles of the community where the applicant intends to establish an association. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the [commissioner] administrator of the written protest, the [commissioner] administrator shall fix a date for a hearing upon the protest, and the hearing must be held not earlier than 30 days nor more than 60 days from the date of receipt of written notice by registered or certified mail by the parties.

      [(d) The commissioner] The administrator shall approve or deny the application within 90 days from the date of the conclusion of the hearing and give all parties written notice of his decision on or before that date.

      [(e)]6.  If the [commissioner] administrator approves the application, he shall establish as conditions to be met before the issuance of a charter requirements as to:

            [(1)](a) The minimum number of shares of common or preferred stock to be subscribed to the association’s permanent capital, of which at least 75 percent in number of stockholders and dollar amount of capital must be subscribed by bona fide residents of the State of Nevada;

             [(2)](b) The minimum amount of paid-in surplus;

             [(3)](c) The minimum amount of investment certificates to be paid into the association’s savings accounts upon issuance of a charter to it; and

             [(4)](d) Such other requirements as he deems necessary or desirable.

Approval of an application for permission to organize an association does not in any manner obligate the [commissioner] administrator to issue a charter, except that when all requirements of this chapter and of the [commissioner] administrator have been fulfilled, he shall issue a charter.

      [(f)]7.  The charter expires 180 days after issuance, unless, within that time, the association has obtained insurance of accounts from the Federal Savings and Loan Insurance Corporation. The [commissioner] administrator may, for good cause, extend the time of the conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.

 


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ê1983 Statutes of Nevada, Page 1776 (Chapter 581, SB 418)ê

 

conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.

      [5.]8.  An association shall not sell or issue any of its permanent stock until it has first applied for and secured from the [commissioner] administrator a license authorizing it to operate as a savings and loan association under the laws of this state and until it has applied for and secured insurance of accounts under the [rules and] regulations of the Federal Savings and Loan Insurance Corporation. This insurance of accounts must be maintained at all times.

      [6.  The commissioner] 9.  The administrator may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.

      [7.]10.  Every application for permission to organize, as provided for in this section, must be accompanied by a fee of $500, which must be paid into the state general fund and no part of it may be refunded.

      [8.  The commissioner] 11.  The administrator may impose conditions requiring the impoundment of proceeds from the sale of any stock, limiting the expense in connection with the sale of stock, and such other conditions as are reasonable and necessary or advisable to insure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the permission to organize.

      [9.]12.  Every permission to organize issued by the [commissioner shall] administrator must recite in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the organization or of the stock permitted to be issued.

      [10.]13.  Any corporation making application under this section or authorized to organize or authorized to establish a savings and loan association shall provide for a minimum par value of its permanent capital stock of at least $1 in its articles of incorporation. Par value of permanent capital stock may not be reduced below $1 without written permission of the [commissioner.] administrator.

      [11.]14.  The removal of the home office or of any branch office of an association to any other location from its then-existing location requires prior approval of the [commissioner.] administrator. An application seeking approval must be delivered to the [commissioner,] administrator, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be in an amount, not less than $100 nor more than $250, to be determined by the [commissioner.] administrator.

      [12.]15.  An association shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.

      Sec. 219.  NRS 673.110 is hereby amended to read as follows:

      673.110  Any domestic association, which has the words “savings and loan” in its name, may, by filing with the [commissioner] administrator written notice thereof authorized by its board of directors and by complying otherwise with its articles of incorporation, remove the words “and loan” from its name.

 


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ê1983 Statutes of Nevada, Page 1777 (Chapter 581, SB 418)ê

 

administrator written notice thereof authorized by its board of directors and by complying otherwise with its articles of incorporation, remove the words “and loan” from its name.

      Sec. 220.  NRS 673.112 is hereby amended to read as follows:

      673.112  1.  A branch office is a legally established place of business of an association, other than the home office, which is authorized by the board of directors and approved by the [commissioner] administrator and at which any of the association’s business may be conducted.

      2.  All branch offices are subject to direction from the home office.

      3.  No association may establish or maintain a branch office without prior written approval of the [commissioner.] administrator. Each application for approval of the establishment and maintenance of a branch office must:

      (a) State the proposed location thereof, the need therefor, and functions to be performed therein, the estimated annual expense thereof and the mode of payment therefor.

      (b) Be accompanied by a fee of $250, no part of which may be refunded.

      (c) Be accompanied by a budget of the association for the current semiannual period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of such branch office.

      4.  After receipt of an application the [commissioner] administrator shall determine:

      (a) Whether the establishment and maintenance of the branch office will unduly injure any properly conducted existing association in the community where the branch office is proposed to be established or in any neighboring community; and

      (b) Whether or not the establishment and maintenance of the branch office will serve the public interest.

      5.  Before issuance of a charter for a branch office, the [commissioner] administrator shall notify all associations doing business within a radius of 100 miles of the principal place of business of the applicant, and within a radius of 100 miles of the proposed branch office. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the [commissioner] administrator of such a written protest, the [commissioner] administrator shall fix a date for a hearing upon the protest. The hearing must be held not earlier than 60 days nor more than 90 days after the date of receipt of written notice by registered or certified mail by the parties.

      6.  If the [commissioner] administrator finds that no undue injury is likely to result, that the establishment and maintenance of such branch office is advisable and will serve the public interest, he may approve the application.

      7.  Approval of an association’s application for a branch office charter permits the association to establish an operating office in a temporary or a permanent building, if the building is placed on or erected at the approved location within 12 months after the approval.

 


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ê1983 Statutes of Nevada, Page 1778 (Chapter 581, SB 418)ê

 

charter permits the association to establish an operating office in a temporary or a permanent building, if the building is placed on or erected at the approved location within 12 months after the approval.

      8.  For good cause and after notice to the association, the [commissioner] administrator may revoke his approval for the maintenance of a branch office. Failure to establish a branch office in the manner and within the time permitted under this section constitutes a good cause for revocation, unless a prior, written request for a waiver of the time limitation is sought by the association and an extension, in writing, is granted by the [commissioner.] administrator.

      9.  An association which maintains one or more branch offices shall give each branch office a specific designation by name and include in the designation the word “branch” and shall prominently display the designation at the place of business of the branch. When an association is operating a branch office, all advertising of or by any such branch office must state clearly the location of the principal office of the association.

      Sec. 221.  NRS 673.113 is hereby amended to read as follows:

      673.113  1.  Every association shall maintain bond coverage with a bonding company which is acceptable to the [commissioner] administrator and the Federal Savings and Loan Insurance Corporation for an amount to be determined by the [commissioner] administrator not to exceed 5 percent of the total assets of the association, nor for an amount greater than $3,000,000, covering all directors, officers, employees, agents, data processing service firms and all other operating hazards that are normally covered under such a bond. The bond [shall] must be in the form known as Standard Form No. 22, its equivalent or some other form which may be acceptable to the Federal Savings and Loan Insurance Corporation and the [commissioner.] administrator. The bond coverage may allow for a deductible amount or provision adopted under Title 12, Code of Federal Regulations, Section 563.19(a), (b) and (c), and under any subsequent amendments thereto.

      2.  A true copy of the surety bond [shall] must be placed in the custody of the [commissioner] administrator and the original maintained in the office of the association at all times.

      3.  The surety bond [shall] must provide that a cancellation thereof, either by the surety company or by the insured, [shall] does not become effective until 10 days’ notice in writing is first given to the [commissioner,] administrator, or unless he earlier approves the cancellation in writing.

      4.  When requested by the [commissioner,] administrator, the association shall provide a duplicate copy of the invoice showing that the bond premium has been paid or satisfied.

      5.  The face amount of the surety bond [shall] must comply with the requirements of the Federal Savings and Loan Insurance Corporation.

 


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ê1983 Statutes of Nevada, Page 1779 (Chapter 581, SB 418)ê

 

      Sec. 222.  NRS 673.114 is hereby amended to read as follows:

      673.114  1.  No association [shall] may open, maintain or conduct a service office without approval from the [commissioner.] administrator.

      2.  For good cause, and after notice to the association, the [commissioner] administrator may revoke his approval for the maintenance of a service office.

      Sec. 223.  NRS 673.115 is hereby amended to read as follows:

      673.115  1.  An association shall not issue or publish, or cause or permit to be issued or published, any advertisement that it is doing or is permitted to do any business which is prohibited by law to an association, or which misrepresents the nature of its stock, investment certificates, savings deposits or the right of investors or depositors in respect thereto.

      2.  An association may set forth in any of its advertisements any of the purposes for which it is organized.

      3.  An association shall not issue, circulate or publish any advertisement after notice in writing from the [commissioner] administrator that in his opinion the advertisement is unauthorized, false, misleading or likely to deceive the public.

      4.  An association shall not:

      (a) State in any advertisement that it is under state supervision or control.

      (b) Include in any advertisement or in any instrument used by it a replica of the great seal of the State of Nevada.

      (c) State or imply in any advertisement that funds may be invested with such association at any place other than the principal office or branch of the association.

      (d) Us the word “deposit” or “deposits” in any form of advertising, unless the use of such word is authorized in the advertising of a federal savings and loan association pursuant to federal law.

      5.  No association may offer or deliver any gift or premium to any investor or saver of an investment certificate or to any savings depositor in excess of basic cost to the association of $2.50.

      Sec. 224.  NRS 673.208 is hereby amended to read as follows:

      673.208  No person [shall be] is eligible to serve as a director of an association without the written permission of the [commissioner] administrator if he:

      1.  Has been adjudicated a bankrupt or has taken the benefit of any assignment for the benefit of creditors or has suffered a judgment recovered against him for a sum of money to remain unsatisfied of record or not safeguarded by supersedeas bond on appeal for a period of more than 3 months; or

      2.  Is a director, officer or employee of any other savings and loan association; or

      3.  Is an officer or employee of a commercial bank in this state; or

      4.  Is not an investor in such association, owning in his own right or in a representative capacity as an executor, administrator, guardian or trustee stock in the association of the par value of at least $1,000, or full-paid investment certificates in the association of the value of at least $1,000.

 


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ê1983 Statutes of Nevada, Page 1780 (Chapter 581, SB 418)ê

 

or in a representative capacity as an executor, administrator, guardian or trustee stock in the association of the par value of at least $1,000, or full-paid investment certificates in the association of the value of at least $1,000. For the purpose of this chapter, a person who owns stock or investment certificates as a joint tenant with one other person shall be deemed to own, in his own right, one-half of such stock or investment certificates; or

      5.  Sells or hypothecates all the stock or investment certificates owned by him, or so much thereof that he ceases to be the owner, free from encumbrances, of the amount of stock or investment certificates required by subsection 4.

      Sec. 225.  NRS 673.209 is hereby amended to read as follows:

      673.209  If the [commissioner] administrator notifies the board of directors of any association, in writing, that he has information that any director, officer or employee of [such] the association is failing in the performance of his duties, the board of directors shall meet and consider [such] the matter forthwith. The [commissioner shall] administrator must have notice of the time and place of such meeting. If the board of directors finds the [commissioner’s] administrator’s objection to be well founded, [such] the director, officer or employee shall be removed immediately.

      Sec. 226.  NRS 673.216 is hereby amended to read as follows:

      673.216  Every official communication by the [commissioner] administrator directed to the board of directors of an association [shall] must be read at the next meeting of the board of directors and made a part of the minutes of such meeting.

      Sec. 227.  NRS 673.2175 is hereby amended to read as follows:

      673.2175  Any change or proposed change in the stock ownership of an association which would result in the obtaining by any person, including but not limited to a business trust, of 10 percent or more of the outstanding capital stock of an association must be reported by the president of the association to the [commissioner] administrator within 10 days after obtaining knowledge of that change or proposed change.

      Sec. 228.  NRS 673.225 is hereby amended to read as follows:

      673.225  1.  Notwithstanding any other provision of this chapter, every company, association or corporation licensed under the provisions of this chapter whose accounts are insured by the Federal Savings and Loan Insurance Corporation or its successor, or which is a member of a federal home-loan bank or its successor as an insured association, has the same rights, powers, privileges, immunities and exceptions which are possessed by any federally chartered association unless expressly denied by the [commissioner.] administrator.

      2.  Whenever additional rights, powers, privileges or exceptions are granted to any federally chartered association, every company, association or corporation licensed under the provisions of this chapter whose accounts are federally insured has those additional rights, powers, privileges or exceptions unless expressly denied by the [commissioner.]

 


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ê1983 Statutes of Nevada, Page 1781 (Chapter 581, SB 418)ê

 

privileges or exceptions unless expressly denied by the [commissioner.] administrator.

      Sec. 229.  NRS 673.227 is hereby amended to read as follows:

      673.227  1.  An association may purchase or lease property for its office buildings or construct its office buildings on property purchased or leased by it, [providing that] if the total cost of land and improvements does not exceed 70 percent of the sum of the association’s capital, surplus and reserves.

      2.  With the approval of the [commissioner,] administrator, senior capital notes of the Federal Savings and Loan Insurance Corporation may be included in capital for the purposes of this section.

      Sec. 230.  NRS 673.250 is hereby amended to read as follows:

      673.250  1.  No association may sell or issue any of its common or preferred stock until it has first applied for and secured from the [commissioner] administrator a license authorizing it so to do as provided in NRS 673.080.

      2.  Every license must recite in bold type that the issuance of the license is permissive only and does not constitute a recommendation or endorsement of the stock permitted to be issued.

      3.  Before the sale of, or option to buy, any additional authorized but unissued common or preferred stock, the association must have the written approval of the [commissioner.] administrator.

      4.  The [commissioner] administrator may impose conditions requiring the impoundment of the proceeds from the sale of any stock, limiting the expense in connection with the sale and such other conditions as are reasonable and necessary or advisable to [insure] ensure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the license.

      Sec. 231.  NRS 673.260 is hereby amended to read as follows:

      673.260  1.  The license mentioned in NRS 673.250 [shall authorize] authorizes the company, association or corporation to whom it is issued to sell its approved securities and contracts within this state for the remainder of the fiscal year ending on June 30 next succeeding. Each license [shall be] is renewable, under like restrictions, annually thereafter.

      2.  For the issuing of any license provided for in NRS 673.250 and for any renewal thereof, the fee of the [commissioner shall be:] administrator is:

      (a) For each home office, $200 plus 15 cents for each $1,000 of total assets of the company, association or corporation as of December 31 of each year.

      (b) For each branch office, $100.

      3.  [Such fees shall] The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable [shall] must be charged for each month or part thereof that the fees are not paid after June 30 of each year.

      4.  All sums so received by the [commissioner shall] administrator must be forthwith delivered to the state treasurer and [shall] must be paid into the state general fund .

 


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ê1983 Statutes of Nevada, Page 1782 (Chapter 581, SB 418)ê

 

must be forthwith delivered to the state treasurer and [shall] must be paid into the state general fund . [in the state treasury.]

      Sec. 232.  NRS 673.270 is hereby amended to read as follows:

      673.270  1.  No person [shall,] may, as a soliciting agent, soliciting representative or employee of any such foreign or domestic company, association or corporation, or in any other capacity, sell or solicit sales for any securities such as investment certificates or savings accounts or contract for the sale of securities until he [shall have first been] is first licensed as a salesman or solicitor for sales of such securities by the [commissioner.] administrator.

      2.  No person [shall] may be licensed for a period of more than 1 year, and he [shall] may not be licensed until he has first satisfied the [commissioner] administrator as to his personal integrity.

      3.  For the issuing of any license provided for in this section and for any renewal thereof, the fee of the [commissioner shall be] administrator is $5. All sums so received by the [commissioner shall] administrator must be delivered to the state treasurer and [shall] must be paid into the state general fund . [in the state treasury.]

      4.  Tellers or other employees of an insured savings and loan association are exempt from such licensing requirements unless their employment entails soliciting sales outside their respective offices as commission salesmen.

      Sec. 233.  NRS 673.273 is hereby amended to read as follows:

      673.273  1.  Except as permitted by subsection 6, the total common stock and any preferred stock subscribed and paid plus the total of the surplus, undivided profits and all reserves available for losses must not at any time be less than 5 percent of the aggregate certificate value of the outstanding investment certificates of the association after the 11th anniversary of the date of insurance of accounts. The stock surplus, undivided profits and reserves must be at least equal to the percentage of outstanding investment certificates on each prior anniversary as stated below:

 

Date of insurance of accounts............................................     3.00 percent

Second anniversary of date of insurance of accounts...     3.20 percent

Third anniversary of date of insurance of accounts.......     3.40 percent

Fourth anniversary of date of insurance of accounts....     3.60 percent

Fifth anniversary of date of insurance of accounts........     3.80 percent

Sixth anniversary of date of insurance of accounts.......     4.00 percent

Seventh anniversary of date of insurance of accounts..     4.20 percent

Eighth anniversary of date of insurance of accounts.....     4.40 percent

Ninth anniversary of date of insurance of accounts......     4.60 percent

Tenth anniversary of date of insurance of accounts......     4.80 percent

 

      2.  No dividends may be declared on common or preferred stock until the total of the common stock, preferred stock, surplus, undivided profits and all reserves available for losses is equal to the percentage required by subsection 1 of the outstanding investment certificates and if payment of those dividends would reduce the capital structure to an amount below that percentage.

 


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ê1983 Statutes of Nevada, Page 1783 (Chapter 581, SB 418)ê

 

percentage required by subsection 1 of the outstanding investment certificates and if payment of those dividends would reduce the capital structure to an amount below that percentage.

      3.  Subject to the provisions of this chapter, common stock and any preferred stock is entitled to the rate of dividend, if earned, fixed by the board of directors. Stock dividends may be declared by the board of directors at any time, payable only from otherwise unallocated surplus and undivided profits.

      4.  No stock dividend may be declared and paid for any period in which the association has not declared and paid interest upon its withdrawable accounts.

      5.  The liability of an association on account of any capital notes which are subordinated to all outstanding investment certificates shall be deemed a reserve available for losses for the purposes of subsection 1 and of NRS 673.274, but no dividends may be declared on common or preferred stock while any such capital notes are outstanding, without the written permission of the [commissioner.] administrator.

      6.  The [commissioner] administrator may approve a lower ratio of the total common stock and any preferred stock, undivided profits and all reserves which must be available for losses to the aggregate of outstanding investment certificates. The [commissioner] administrator shall not approve any ratio which would impair the insurance of the association’s accounts by the Federal Savings and Loan Insurance Corporation.

      Sec. 234.  NRS 673.275 is hereby amended to read as follows:

      673.275  1.  If the [commissioner,] administrator, as a result of any examination or from any report made to him, finds that the common or preferred stock of any association is impaired, he shall notify the association that the impairment exists and shall require the association to make good the impairment within 90 days after the date of the notice.

      2.  If the amount of the impairment as determined by the [commissioner] administrator is questioned by the association, then upon application filed within 10 days after the notice from the [commissioner] administrator that the impairment exists, the association may have the value of the assets in question be determined by appraisals made by independent appraisers acceptable to the [commissioner] administrator and the association.

      3.  The directors of the association upon which the notice has been served shall levy a pro rata assessment upon the common and any preferred stock to make good the impairment. They shall cause notice of the requirement of the [commissioner] administrator and of the levy to be given in writing to each stockholder of the association, and the amount of assessment which he must pay for the purpose of making good the impairment. In lieu of making the assessment, the impairment may be made good, without the consent of the [commissioner,] administrator, by reduction of the common or preferred stock. Any stockholder who does not make payment under such an assessment shall transfer sufficient stock to the association to pay his pro rata share of the assessment, and there is no further liability to the stockholder.

 


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ê1983 Statutes of Nevada, Page 1784 (Chapter 581, SB 418)ê

 

stockholder who does not make payment under such an assessment shall transfer sufficient stock to the association to pay his pro rata share of the assessment, and there is no further liability to the stockholder.

      Sec. 235.  NRS 673.2755 is hereby amended to read as follows:

      673.2755  1.  An association may issue investment certificates, with or without passbooks. The holders of investment certificates are not liable for debts or assessments, and are entitled upon liquidation of an association to receive payment in full before any payment or distribution is made to stockholders. The holders of investment certificates have no right to participate in the profits of the association.

      2.  Investment certificates may be issued as fully paid investment certificates, accumulative investment certificates, minimum term investment certificates or other types of certificates approved by the [commissioner.] administrator. The [commissioner] administrator shall not approve any certificates whose issuance would impair the insurance of the association’s accounts by the Federal Savings and Loan Insurance Corporation.

      Sec. 236.  (Deleted by amendment.)

      Sec. 237.  NRS 673.2765 is hereby amended to read as follows:

      673.2765  1.  An association may invest in the capital stock, obligations or other securities of a related service corporation organized under the laws of this state, except a corporation organized for the underwriting or sale of insurance, subject to any regulations concerning the insurability of the association’s accounts by the Federal Savings and Loan Insurance Corporation and to whatever regulations the [commissioner] administrator may impose in this regard, if the entire capital stock of the corporation is available for purchase by associations organized under the laws of this state only.

      2.  No association may make any such investment if its aggregate, outstanding investments, pursuant to subsection 1, would then be in excess of 1 percent of its assets.

      Sec. 238.  NRS 673.2766 is hereby amended to read as follows:

      673.2766  1.  Any investment in real property for purposes of subdivision or for residential development must not exceed the market value or appraisal valuation as evidenced by an appraisal report prepared within 120 days of such investment by a member of the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, or the Independent Fee Appraisers Society, or by such other appraiser as may be approved by the [commissioner.] administrator.

      2.  Before such investment is made, the association shall provide the [commissioner] administrator with a certified copy of one or more appraisal reports on the real property involved and with a title insurance company report, reflecting the chain of title for a period of at least 3 years and the amount of consideration, as available, given for each title transfer that may have occurred during the reported period.

 


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ê1983 Statutes of Nevada, Page 1785 (Chapter 581, SB 418)ê

 

If the total amount to be invested in undeveloped real property exceeds one-half of 1 percent of the association’s total savings accounts, the investment may not be made until the [commissioner] administrator has given his written approval.

      3.  The [commissioner] administrator may require a statement from the association disclosing whether or not any director, officer or employee of the association has a direct or indirect interest in the real property involved or has had any such interest at any time during the past 3 years. Stock ownership in an interested corporation may be considered the direct or indirect interest of the investor. Failure to make any such required disclosure is unlawful.

      Sec. 239.  NRS 673.281 is hereby amended to read as follows:

      673.281  1.  No association [shall] may sell, exchange, transfer, pledge, hypothecate or otherwise dispose of or encumber any notes or other obligations held by it, evidencing any loan made or purchased by it, or the mortgages, trust deeds or other security therefor, that has been on the books of the association for 3 years or longer, without the approval of the [commissioner.] administrator. All loans sold [shall] must be sold without recourse and, if under a contract to service [the same,] them, then on a basis to provide sufficient compensation to the association to reimburse it for expenses incurred under its service contract.

      2.  This section does not apply to loans sold in which the association retains a participating interest, nor to loans pledged as security for borrowing as provided in NRS 673.300 and 673.302.

      Sec. 240.  NRS 673.302 is hereby amended to read as follows:

      673.302  The aggregate amount of all borrowings of any association in force at any one time, excluding borrowings from the federal home-loan banks, the Federal Savings and Loan Insurance Corporation, or other similar federal agencies, must not exceed 5 percent of the total assets of the association without the approval of the [commissioner.] administrator. The [commissioner] administrator shall not approve any borrowing which would impair the insurance of the association’s accounts by the Federal Savings and Loan Insurance Corporation.

      Sec. 241.  NRS 673.316 is hereby amended to read as follows:

      673.316  1.  Nothing in this chapter requires any association to sell, transfer or dispose of any investment or loan made or purchased by the association before March 30, 1959. Any association may:

      (a) Renew, extend the time of payment of, or rewrite any loan made before that date.

      (b) Make additional advances or loans for the purpose of preserving the security of the loan or for the purpose of protecting the property securing the loan.

      (c) Make any such renewal, extension, advance or loan to the borrower or to any successor in interest in the property securing the loan.

      (d) Make loans on property sold by an association or extend credit thereon for the purpose of facilitating the sale of the property regardless of any other provision of this chapter.

 


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ê1983 Statutes of Nevada, Page 1786 (Chapter 581, SB 418)ê

 

thereon for the purpose of facilitating the sale of the property regardless of any other provision of this chapter.

      2.  No advance or loan may be made under the provisions of this section if the advance or loan would increase the total liability to the association making the advance or loan to more than 2 percent of total assets, except with the approval of the [commissioner.] administrator.

      3.  For the purpose of preserving the security of any loan or of protecting the property securing any loan made in compliance with this chapter, an association may make additional advances or loans to the borrower or any successor in interest in the property securing the loan. Regardless of any other provision of this chapter an association may make loans or extend credit for the purpose of facilitating the sale of property acquired by repossession, foreclosure or conveyance in lieu of foreclosure if that activity conforms to generally accepted accounting practices.

      Sec. 242.  NRS 673.317 is hereby amended to read as follows:

      673.317  No loan may be made upon the appraisement of, nor [shall] may compensation for any appraisement be paid to any appraiser, officer or member of any committee who has not been first approved in writing by the [commissioner] administrator for the association. The approval is subject to such limitations as the [commissioner] administrator provides, and may be revoked for cause by the [commissioner,] administrator, after giving due notice to the appraiser and the association and holding a hearing. The association shall give notice in writing to the [commissioner] administrator of the termination of the services of any appraiser within 15 days of such termination.

      Sec. 243.  NRS 673.318 is hereby amended to read as follows:

      673.318  Every association shall appraise each parcel of real estate at the time of acquisition thereof. The report of each such appraisal [shall] must be submitted in writing to the board of directors and [shall] must be kept in the records of the association. The [commissioner] administrator may require the appraisal of real estate securing loans by an appraiser selected by the [commissioner.] administrator. The association whose securities are appraised under this section shall pay the expense of such appraisal to the [commissioner] administrator upon demand. [Moneys] Money so received [shall] must be paid into the state general fund . [in the state treasury.] Copies of appraisals [shall] must be furnished to the association.

      Sec. 244.  NRS 673.319 is hereby amended to read as follows:

      673.319  1.  The [commissioner] administrator may require each association to establish and maintain a specific loss reserve for the amount by which the book value of any asset exceeds the [commissioner’s] administrator’s appraisal of such asset.

      2.  In determining the values of the security properties for a group of loans, the [commissioner] administrator may use his appraisal of each property or his estimate of the total value of such properties based upon his appraisal of a reasonable sample thereof.

 


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ê1983 Statutes of Nevada, Page 1787 (Chapter 581, SB 418)ê

 

based upon his appraisal of a reasonable sample thereof. If any association contests the validity of the estimate based upon a sample, it may have an appraisal, at its own expense, by an appraiser approved by the [commissioner,] administrator, of all the group from which the sample was drawn, or of a larger sample of the group than was recommended by the [commissioner.] administrator.

      3.  If the [commissioner] administrator has directed an association to carry a specific loss reserve on its books, the amount so designated for this purpose by the [commissioner] administrator cannot be reduced or changed in any manner without his written approval.

      4.  The provisions of subsections 2 and 3 shall be effective on July 1, 1967, but shall not be applied retroactively.

      Sec. 245.  NRS 673.3244 is hereby amended to read as follows:

      673.3244  1.  No association may make any loans to a:

      (a) Corporation if the majority of the stock is owned or controlled individually or collectively by any one or more of the directors, officers or majority stockholders of the association; or

      (b) Partnership if the limited or general partner is a director, officer or the majority owner of the association,

unless the loan is expressly authorized by this chapter or by a resolution of the board of directors of the association. The resolution must be approved by a vote of at least two-thirds of all the disinterested directors of the association.

      2.  An association may make loans to any corporation or partnership in which a director or officer of the association is a minority stockholder or partner if the loan is authorized or confirmed, at a meeting held within 30 days after the loan is made, by the affirmative vote of all the disinterested directors of the association present at the meeting and if the affirmative vote constitutes a majority of all the directors of the association. The interested director or officer shall not vote or participate in any manner in the action of the board of directors upon the loan. The authorization or confirmation must be entered in the minutes of the association. The loan must in all other respects comply with the provisions covering the granting of loans.

      3.  If a loan is made to a corporation or partnership as set forth in subsection 2, and if the director or officer of the association owns more than 10 percent of the paid-in capital of the corporation, or if any two or more officers or directors own more than 20 percent of the paid-in capital of the corporation or if any one or more of the directors is a general partner, the association shall file reports with the [commissioner] administrator showing the following:

      (a) The fact of making the loan.

      (b) The names of the directors authorizing or confirming the loan.

      (c) The corporate or partnership name of the borrower.

      (d) The name of each director or officer of the association who is a stockholder, officer, director or partner of the corporation or partnership to which the loan was made.

 


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ê1983 Statutes of Nevada, Page 1788 (Chapter 581, SB 418)ê

 

      (e) The amount of stock held by the officer or director in the corporation.

      (f) The amount of the loan, the rate of interest thereon, the time when the loan becomes due, the amount, character and value of the security given therefor, and the fact of final payment when made.

      4.  All officers, directors or stockholders holding more than 10 percent of the paid-in capital of the association shall disclose annually to the [commissioner] administrator their investments in any partnership or corporation to which a loan is made. If any changes in those investments occur, the [commissioner] administrator must be notified.

      Sec. 246.  NRS 673.3271 is hereby amended to read as follows:

      673.3271  1.  An association shall not make at one time loans to any one borrower, or under any one transaction, or applicable to any one project, or tract, if the loans in the aggregate are in excess of whichever of the following is the lesser:

      (a) Ten percent of its total savings accounts, unless that requirement is waived by written approval of the [commissioner.] administrator.

      (b) An amount equal to the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve, capital notes and such other reserves as the [commissioner] administrator may prescribe.

      2.  For the purpose of this section, the term “one borrower” means:

      (a) Any person or entity that is, or that upon the making of a loan will become, obligor on a loan.

      (b) Nominees of the obligor.

      (c) All persons, trusts, partnerships, syndicates and corporations of which the obligor is a nominee or a beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of any corporation.

      (d) If such obligor is a trust, partnership, syndicate or corporation, all trusts, partnerships, syndicates and corporations of which any beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock is also a beneficiary, partner, member or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of such association.

      3.  For the purpose of this section, the term “loans to any one borrower” means the amount of the new loan plus the total balances of all outstanding loans owed to the association by such borrower. Notwithstanding any other limitations of this section, any such loan may be made if the new loan when added to the total balances of all outstanding loans owed to the association by such borrower does not exceed $250,000.

      4.  For the purpose of this section, the term “balances of all outstanding loans” means the original amounts loaned by the association plus any additional advances and interest due and unpaid, less repayments and participating interests sold and exclusive of any loan on the security of real estate the title to which has been conveyed to a bona fide purchaser of the real estate.

 


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ê1983 Statutes of Nevada, Page 1789 (Chapter 581, SB 418)ê

 

plus any additional advances and interest due and unpaid, less repayments and participating interests sold and exclusive of any loan on the security of real estate the title to which has been conveyed to a bona fide purchaser of the real estate.

      5.  If an association makes a loan to any one borrower in an amount which, when added to the total balances of all outstanding loans owed to the association by such borrower, exceeds $250,000, the records of the association with respect to the loan must include documentation showing that the loan was made within the limitations of this chapter. For the purpose of such documentation, the association may require, and may accept in good faith, a certification by the borrower identifying the persons, entities and interests described in the definition of one borrower in subsection 2.

      Sec. 247.  NRS 673.332 is hereby amended to read as follows:

      673.332  1.  An association may hold, manage and convey real property, including apartments and other buildings:

      (a) Acquired by foreclosure or a conveyance in lieu of foreclosure; or

      (b) Developed or built by the association.

Unless the association has received a written waiver from the [commissioner,] administrator, the total of money which it has advanced or committed for property which it has developed or built may not exceed twice the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve and any other reserves specified by the [commissioner.] administrator.

      2.  When an association acquires title to any real property pursuant to subsection 1, the document representing the transaction must be recorded immediately. This subsection does not require recordation of the evidences of any transfer of stock resulting from foreclosure of an interest in a cooperative housing corporation.

      3.  An appropriate real-estate-owned account must be set up for the property acquired and a separate subsidiary ledger or other appropriate record must be maintained therefor. The amount carried in the account must be the sum of the unpaid principal balance of the loan plus foreclosure costs, less any advance payments and any funds held in the loans-in-process account at the time of acquisition, together with:

      (a) Any amounts paid after acquisition for real property taxes which have accrued prior to acquisition;

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

      (c) Necessary acquisition costs and costs of insurance premiums.

      4.  The subsidiary ledger record or other appropriate record on each property acquired must indicate:

      (a) The type and character of the property acquired.

      (b) All capitalized items of investment with related costs.

      (c) Former loan or contract of sale account numbers.

      Sec. 248.  NRS 673.333 is hereby amended to read as follows:

      673.333  1.  The apportionment of earnings or payment of interest by declaration of the board of directors must be made semiannually on June 30 and December 31 of each year, or quarterly on those dates, and on March 31 and September 30 of each year.

 


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ê1983 Statutes of Nevada, Page 1790 (Chapter 581, SB 418)ê

 

by declaration of the board of directors must be made semiannually on June 30 and December 31 of each year, or quarterly on those dates, and on March 31 and September 30 of each year.

      2.  The percentage rate of the declaration must be determined by the board of directors as it deems expedient for the safety and security of all savings depositors, but if the percentage rate is excessive, unjust or inequitable, it is subject to disapproval of, and reduction by the [commissioner. However, the] administrator. The association may appeal any disapproval or reduction by the [commissioner] administrator to the director.

      3.  No association may be required to pay or credit interest on accounts of $10 or less which show no entries of debit or credit for a period of 2 years, except for accumulated interest credits.

      4.  Except as otherwise provided in this chapter, interest must be declared on the participation value of each account at the beginning of the interest period, plus payments on the account made during the interest period, less amounts withdrawn, which for interest purposes must be deducted from the latest previous payments on the account, computed at the rate for the time invested, determined as provided in this section.

      5.  The date of investment is the date of actual receipt by the association, except that the board of directors may fix a date, which may not be later than the 10th day of the month, for determining the date of investment on which interest is computed. A date later than the 10th may be set if it is permissible for federal associations. If permitted by federal regulations, as amended, the board of directors may permit investments to receive interest calculated from the date of actual receipt.

      6.  In addition to the classes of savings accounts provided for in this chapter, an association may, with the approval of its board of directors, authorize additional classes of savings accounts which will conform to those types or classes, which have been established by the Federal Home Loan Bank Board by regulation or which may be authorized by it.

      7.  Except when prescribed for all associations by federal regulation, any association which changes its method of calculating interest on its savings accounts so as to decrease the effective yield of that account shall notify each accountholder affected by the change by mail within 15 days before the proposed effective date of the change.

      Sec. 249.  NRS 673.339 is hereby amended to read as follows:

      673.339  1.  When any savings depositor has neither paid in nor withdrawn any money from his savings account in the association for 7 consecutive years, and his whereabouts is unknown to the association and he has not responded to a letter from the association inquiring as to his whereabouts, sent by regular, certified or registered mail to his last-known address, the association may transfer his account to a dormant accounts fund.

 


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ê1983 Statutes of Nevada, Page 1791 (Chapter 581, SB 418)ê

 

      2.  Any savings deposit in the dormant accounts fund [shall] must not participate in earnings of an association except by permissive action of the board of directors.

      3.  The savings depositor, or his or its executor, administrator, successor or assign, may claim the amount so transferred from his account to the dormant accounts fund at any time after the transfer.

      4.  Should the association be placed in liquidation while any savings account remains credited in the dormant accounts fund and before any valid claim has been made thereto, the savings account so credited, upon order of the [commissioner] administrator and without any escheat proceedings, escheats to the State of Nevada.

      Sec. 250.  NRS 673.377 is hereby amended to read as follows:

      673.377  1.  Every association shall have on hand at all times in available funds, bank deposits, United States Government bonds, certificates of insured savings and loan associations not in excess of the insurable limitations, federal home-loan bank evidences of indebtedness, time certificates of insured federal and state banks or of any indebtedness of any United States Government instrumentality which is by statute fully guaranteed, a sum not less than 5 percent of the aggregate of savings accounts and investment certificates to enable it to pay withdrawals in excess of receipts and to meet accruing expenses. The [commissioner] administrator may prescribe from time to time different amounts required for liquidity purposes, but such amounts [shall] must not be less than 4 percent or more than 8 percent.

      2.  A deposit in a bank or association under the control or the possession of appropriate supervisory authority shall not be considered as cash. Except for deposits in a federal home-loan bank, a time deposit established hereafter, whether time deposit-open account or deposit evidenced by a certificate of deposit, shall not be considered as cash for such purposes unless:

      (a) Such member itself made the deposit in question;

      (b) The deposit, together with all other time deposits of the association in the same bank, does not exceed the greater of one-quarter of 1 percent of such bank’s total deposits as of the bank’s last-published statement of condition or $15,000; and

      (c) No consideration was received from a third party in connection with the making of the deposit.

      3.  An association shall not make or purchase any loan, other than advances on the sole security of its savings accounts, at any time when its liquidity drops below the required level. For the purpose of this section, a loan is deemed to have been made as of the date the borrower executed the security instrument, and a loan is deemed to have been purchased as of the date of the payment therefor.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1792 (Chapter 581, SB 418)ê

 

      Sec. 251.  NRS 673.390 is hereby amended to read as follows:

      673.390  1.  [Withdrawals shall] Except as provided in this section, withdrawals must be paid in the order of their filing, and no loans or investments [shall] may be made, except by permission of the [commissioner,] administrator, when any withdrawal request or order has remained on file unpaid for a period of more than 30 days . [; as provided:

      (a)] Any such foreign or domestic association, company or corporation may, without the necessity of obtaining permission of the [commissioner,] administrator, make or purchase loans or investments not exceeding the principal amount of [moneys] money borrowed by such association, company or corporation from a federal home-loan bank or other federal loan agency . [; and

      (b)] Any such request or order which is not legally payable for reasons other than the restrictions of this section shall not be considered as on file.

      2.  Whenever applications for withdrawals [shall] reach such an amount that [,] in the opinion of the [commissioner,] administrator, it would be inexpedient to pay such applications in the order of their filing, then, with the written permission of the [commissioner] administrator first [had and] obtained, so much as may be directed by the [commissioner] administrator of the money available to pay withdrawals may, each month, be prorated upon the amounts of all applications for withdrawals on file, irrespective of the order of filing.

      Sec. 252.  NRS 673.410 is hereby amended to read as follows:

      673.410  1.  If any association, company or corporation organized or incorporated under the laws of any governing body other than the State of Nevada is doing business in this state under the provisions of this chapter, and the laws of such other governing body conflict with any of the provisions of NRS 673.380 and 673.390, the provisions of the laws of this governing body shall prevail as to each such conflict.

      2.  Whenever any such foreign organization follows a course or performs any act which is forbidden to any domestic organization under the terms of NRS 673.380 and 673.390, it shall report to the [commissioner] administrator all of the facts relating thereto.

      Sec. 253.  NRS 673.420 is hereby amended to read as follows:

      673.420  Any such foreign or domestic association, company or corporation or its secretary or manager shall immediately notify the [commissioner] administrator of its inability to pay any such withdrawal request or order which has been on file for a period of more than 60 days.

      Sec. 254.  NRS 673.430 is hereby amended to read as follows:

      673.430  1.  Each association doing business in this state shall file annually with the [commissioner] administrator on or before March 1, a sworn statement in two sections.

      2.  One section of the annual report must contain, in such form and detail as the [commissioner] administrator may prescribe, the following:

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1793 (Chapter 581, SB 418)ê

 

detail as the [commissioner] administrator may prescribe, the following:

      (a) The amount of authorized capital by classes and the par value of each class of stock.

      (b) A statement of its assets, liabilities and capital accounts as of the immediately preceding December 31.

      (c) Any other facts which the [commissioner] administrator may require.

This section must be furnished in duplicate, one certified copy to be returned, for publication at least two times in a newspaper having a general circulation in each county in which the association maintains an office. Publication must be completed on or before May 1, and proof of publication must be filed in the office of the [commissioner.] administrator.

      3.  One section of the annual report must contain such other information as the [commissioner] administrator may require to be furnished. This section need not be published and must be treated as confidential by the [commissioner.] administrator.

      4.  Every association shall pay to the [commissioner] administrator for supervision and examination:

      (a) An annual fee of $200 for its home office, and $100 for each branch office open as of the immediately preceding December 31.

      (b) An annual assessment computed as of the immediately preceding December 31 at the rate of 15 cents per $1,000 of total assets.

      5.  The [commissioner] administrator shall determine from the annual statement the amount due from each association and submit a bill to the association for the amount by March 15. A penalty of 10 percent of the fee payable must be charged for each month or part of a month that the fees are not paid after April 15 of each year.

      6.  All sums so received by the [commissioner] administrator must be delivered to the state treasurer and paid into the state general fund.

      Sec. 255.  NRS 673.440 is hereby amended to read as follows:

      673.440  Each such foreign or domestic association, company or corporation shall cause to be supplied to the [commissioner] administrator at any time, upon his demand, any information which he may require as to its condition, affairs or methods.

      Sec. 256.  NRS 673.450 is hereby amended to read as follows:

      673.450  1.  The [commissioner is authorized to] administrator may conduct or cause to be conducted such hearings, investigations or examinations of the books and records, wherever they may be, relating to the affairs of such organizations as he may deem expedient and in aid of the proper administration of the provisions of this chapter.

      2.  In connection with the conduct of any hearing, investigation or examination, the [commissioner] administrator or other person designated by him to conduct it may:

      (a) Compel the attendance of any person by subpena.

      (b) Administer oaths.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1794 (Chapter 581, SB 418)ê

 

      (c) Examine any person under oath concerning the business and conduct of affairs of any association subject to the provisions of this chapter, and require the production of any books, papers, records, money and securities relevant to the inquiry. Any willful false swearing is perjury and is punishable as such.

      3.  The [commissioner] administrator shall conduct at least once every 2 years an examination of the books and records of each association licensed under this chapter.

      Sec. 257.  NRS 673.453 is hereby amended to read as follows:

      673.453  1.  In case of the refusal of any person to attend or testify or produce any papers required by the subpena directed to be served under the provision of NRS 673.450, the [commissioner] administrator may report to the district court in and for the county in which the examination, hearing or investigation is pending by petition, setting forth that:

      (a) Due notice has been given of the time and place of attendance of such person or the production of the books and papers;

      (b) Such person has been subpenaed in the manner prescribed in this chapter; and

      (c) Such person has failed and refused to attend or produce the papers required by subpena before the [commissioner] administrator in the examination, hearing or investigation named in the subpena, or has refused to answer questions propounded to him in the course of such examination, hearing or investigation,

and asking an order of the court compelling such person to attend and testify or produce the books or papers before the [commissioner.] administrator.

      2.  The court, upon petition of the [commissioner,] administrator, shall enter an order directing such person to appear before the court at a time and place to be fixed by the court in such order, the time to be not more than 10 days from the date of the order, and then and there show cause why he has not attended or testified or produced the books or papers before the [commissioner.] administrator. A certified copy of the order [shall] must be served upon such person. If it appears to the court that the subpena was regularly issued by the [commissioner,] administrator, the court shall thereupon enter an order that such person appear before the [commissioner] administrator at the time and place fixed in the order and testify or produce the required books or papers; and upon failure to obey the order such person shall be dealt with as for contempt of court.

      Sec. 258.  NRS 673.455 is hereby amended to read as follows:

      673.455  1.  The [commissioner] administrator may, at the time of examining a savings and loan association, inspect the books, ledgers and minutes of any corporation which is registered or required to be registered under section 408 of the National Housing Act as a holding company whenever, in his discretion, he considers it advisable to ascertain facts which may relate to transactions between the holding company and the affiliated association.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1795 (Chapter 581, SB 418)ê

 

company whenever, in his discretion, he considers it advisable to ascertain facts which may relate to transactions between the holding company and the affiliated association. The provisions of NRS 673.450 apply to the examination of such corporation.

      2.  Upon making findings to that end, the [commissioner] administrator may order the discontinuance of borrowing or lending, selling or buying of assets, extending credit or guaranteeing obligations of the holding company which has been undertaken without the written approval of the [commissioner.] administrator.

      3.  No unreasonable supervisory fees may be imposed upon any association by a holding company which controls such association.

      Sec. 259.  NRS 673.460 is hereby amended to read as follows:

      673.460  1.  Whenever in connection with such examinations it [shall be] is necessary or expedient that the [commissioner] administrator or his deputy, or both, [shall] leave this state, there [shall] must be assessed against the organization under examination a fee of $25 per pay for each such [commissioner and deputy] person while without the state in such connection, together with all actual and necessary expenses.

      2.  The fee so charged [shall] must be remitted to the [commissioner,] administrator, who shall deliver [the same] it to the state treasurer forthwith, and such fees shall be paid into the state general fund . [in the state treasury.]

      Sec. 260.  NRS 673.470 is hereby amended to read as follows:

      673.470  In lieu of making any examination, the [commissioner] administrator may accept any examination of any association made by the Federal Home Loan Bank Board, any federal home-loan bank, or the Federal Savings and Loan Insurance Corporation, or may examine any such institution in conjunction with the Federal Home Loan Bank Board, a federal home-loan bank, or the Federal Savings and Loan Insurance Corporation.

      Sec. 261.  NRS 673.480 is hereby amended to read as follows:

      673.480  The [commissioner,] administrator, his agents and employees may furnish to the Federal Home Loan Bank Board, or to any federal home-loan bank, or to examiners [duly] appointed by the Federal Home Loan Bank Board or any federal home-loan bank, or to any federal loan agency, copies of any instruments concerning, and may disclose any information with reference to, the conditions or affairs of any such foreign or domestic association, company or corporation.

      Sec. 262.  NRS 673.483 is hereby amended to read as follows:

      673.483  1.  Each association shall, at least once each year, cause its books and accounts to be audited at its own expense by a certified public accountant or firm of such accountants selected by the association and approved by the [commissioner.] administrator.

      2.  The [commissioner] administrator may prescribe the scope of the audit.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1796 (Chapter 581, SB 418)ê

 

      3.  A certified copy of the audit, including the management and internal control letters relating to the audit, [shall] must be furnished to the [commissioner.] administrator.

      Sec. 263.  NRS 673.484 is hereby amended to read as follows:

      673.484  The [commissioner] administrator may after notice and hearing suspend or revoke the charter of any association for repeated failure to abide by the provisions of this chapter or the regulations adopted thereunder.

      Sec. 264.  NRS 673.4845 is hereby amended to read as follows:

      673.4845  1.  An association may reorganize, merge or consolidate with another state or federal association, if the reorganization, merger or consolidation is based upon a plan which has been adopted by the board of directors and approved at a regular or special stockholders’ meeting which has been called to consider the action. Such an approval must rest on a favorable vote of a majority of the voting power of the association as established by its articles.

      2.  Any such plan for reorganization, merger or consolidation must be approved by the [commissioner,] administrator, who shall satisfy himself that the plan, if approved, would be equitable for the stockholders of the affected association or associations and would not impair the usefulness or success of other properly conducted associations in the community. In submitting an application for approval of any such plan, each association proposing to reorganize, merge or consolidate must provide a comprehensive review of its present financial statement and a projected view of the financial statement of the reorganized, merged or consolidated association.

      3.  Unless its action is specifically authorized by or taken in conformity with this chapter, no association may, directly or indirectly:

      (a) Reorganize, merge or consolidate.

      (b) Assume liability to pay savings accounts or other liabilities of any financial institution or any other organization, person or entity.

      (c) Transfer assets to any financial institution or any other organization, person or entity in consideration of the transferee’s assumption of liability for any portion of the transferor’s savings accounts, deposits or other liability.

      (d) Acquire the assets of any financial institution or any other organization, person or entity.

      4.  Each application which is made under this section must be accompanied by a fee payment of $150. The responsibility for payment of the fee must be shared equally by the associations participating in each proposed plan.

      Sec. 265.  NRS 673.485 is hereby amended to read as follows:

      673.485  1.  If the [commissioner] administrator finds as the result of any examination or from any report made to him or to any association doing business in this state or from any report made to any of its investors that the association is violating the provisions of its articles of incorporation, charter, bylaws, or any law in this state, or is conducting its business in an unsafe or injurious manner, he may by an order addressed to such association direct a discontinuance of such violations or unsafe or injurious practices and a conformity with all the requirements of law.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1797 (Chapter 581, SB 418)ê

 

articles of incorporation, charter, bylaws, or any law in this state, or is conducting its business in an unsafe or injurious manner, he may by an order addressed to such association direct a discontinuance of such violations or unsafe or injurious practices and a conformity with all the requirements of law.

      2.  If an association does not comply with such order, the [commissioner] administrator may order the corporate secretary to call a special directors’ meeting to consider the matter of noncompliance.

      3.  The meeting [shall] must be held no later than 60 days after issuance of the order to hold the meeting, unless otherwise restrained by court order or by the board. The business of the meeting [shall] must be limited to the matter of noncompliance and remedies therefor and the notice of such meeting [shall] must set forth in detail the [commissioner’s] administrator’s discontinuance order and order to call a directors’ meeting.

      4.  Action taken at the meeting [shall be] is binding upon the officers of the association.

      Sec. 266.  NRS 673.495 is hereby amended to read as follows:

      673.495  1.  The [commissioner] administrator may, with the prior approval of the board, appoint a conservator for such association if any of the following occur:

      (a) The association does not comply with any order given pursuant to NRS 673.485, within the time specified therein.

      (b) It appears to the [commissioner] administrator that the association is in an unsafe condition or is conducting its business in an unsafe or injurious manner such as to render its further proceeding hazardous to the public or to any or all of its investors.

      (c) The [commissioner] administrator finds that the association’s assets are impaired to such an extent that, after deducting all liabilities other than to its investors they do not equal or exceed the sum of the value of its outstanding savings accounts and investment certificates and the par value of its outstanding stock.

      (d) The association refuses to submit its books, papers and accounts to the inspection of the [commissioner] administrator or any of his examiners, deputies or assistants.

      (e) Any officer of the association refuses to be examined upon oath concerning the affairs of the association.

      (f) It appears to the [commissioner] administrator that false reports have been filed with his office.

      2.  The conservator may be the [commissioner,] administrator, his deputy or any person qualified for such appointment.

      3.  Immediately upon appointment, the conservator shall petition the district court of the county in which the home office of the association is located for confirmation of his appointment. [Such court shall have] The court has exclusive jurisdiction to determine the issues and all related matters and it shall give precedence to such conservatorship proceedings and expedite the proceedings in every way.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1798 (Chapter 581, SB 418)ê

 

      Sec. 267.  NRS 673.497 is hereby amended to read as follows:

      673.497  1.  The conservator confirmed or appointed by the court has all the power expressed in the court order and the following:

      (a) All the rights, powers and privileges possessed by the directors, officers and stockholders.

      (b) The power to request the resignation of or remove any director, officer or employee for cause and upon written notice, which [shall] must show the [commissioner’s] administrator’s approval of such action.

      (c) The power to accept new savings accounts and additions to existing accounts, which [shall] must become segregated accounts and amounts, if the [commissioner] administrator so orders in writing, not subject to offset and not available for liquidating any indebtedness of an association existing at the time the conservator was appointed.

      2.  The conservator may not:

      (a) Retain special counsel or other experts without prior approval of the court;

      (b) Incur any expenses other than normal operating expenses; or

      (c) Liquidate assets except in the normal course of operations or for the preservation of existing asset values.

      3.  All expenses of the association during the conservatorship [shall] must be paid by the association.

      4.  The amount of compensation for the conservator [shall] must be determined by the court and paid by the association. When either the [commissioner] administrator or his deputy has been appointed conservator, the compensation [shall] must be paid to the state treasurer.

      5.  During the conservatorship, debtors to the association shall continue to make payments to the association as may be required under the terms of their respective contracts.

      6.  Savings account depositors may, with the approval of the conservator, withdraw all or any part of their savings accounts under the provisions of this chapter or under such regulations as the [commissioner] administrator may prescribe.

      7.  The conservator shall return the association to the board of directors if the conditions complained of by the [commissioner] administrator have been removed within 12 months [of] after his appointment. If no such change has been effected within that time, a receiver may be appointed by the [commissioner] administrator as provided in this chapter.

      Sec. 268.  NRS 673.499 is hereby amended to read as follows:

      673.499  1.  If the [commissioner] administrator finds that any association:

      (a) Is in an impaired condition;

      (b) Is engaging in practices which threaten to result in an impaired condition; or

      (c) Is in violation of an order or injunction, as provided in NRS 673.495, which has become final in that the time to appeal has expired without appeal or a final order entered from which there can be no appeal,

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1799 (Chapter 581, SB 418)ê

 

673.495, which has become final in that the time to appeal has expired without appeal or a final order entered from which there can be no appeal,

the [commissioner] administrator may appoint a receiver for such association, which may be the [commissioner,] administrator, his deputy or any other person, and upon such appointment shall apply immediately to a court of general jurisdiction in the county in which the home office of the association is located for confirmation of such appointment, and such court [shall have] has exclusive jurisdiction to determine the issues and all related matters. Such proceedings [shall] must be given precedence over other cases pending in such court, and [shall] must in every way be expedited. Such court shall confirm such appointment if it finds that one or more such grounds exist, and a certified copy of the order of the court confirming such appointment [shall be] is evidence thereof. In the case of an insured association, the appointment by the [commissioner] administrator of a receiver under this section [shall constitute] constitutes an official determination of a public authority of this state pursuant to which a receiver is appointed for the purpose of liquidation as contemplated by and within the meaning of section 406 of the National Housing Act of 1934, as amended, if, within 10 days after the date the application of the [commissioner] administrator is filed, confirmation of such appointment or denial of confirmation has not been issued by the court. Such receiver [shall have] has all the powers and authority of a conservator plus the power to liquidate, and [shall have] has such other powers and authority as may be expressed in the order of the court. If the [commissioner,] administrator, or his deputy, or examiner is appointed receiver, he shall receive no additional compensation, but if another person is appointed, then the compensation of the receiver, as determined by the court, [shall] must be paid from the assets of the association.

      2.  If the association is an institution insured by the Federal Savings and Loan Insurance Corporation, the Federal Savings and Loan Insurance Corporation [shall] must be tendered appointment as receiver or coreceiver. If it accepts such appointment, it may, nevertheless, make loans on the security of or purchase at public or private sale any part or all of the assets of the association of which it is receiver or coreceiver, [provided such] if the loan or purchase is approved by such court.

      3.  The procedure in such receivership action [shall] must be in all other respects in accordance with the practice in such court, including all rights of appeal and review. The directors, officers and attorneys of an association in office at the time of the initiation of any proceeding under this section or under NRS 673.495 are expressly authorized to contest any such proceeding and [shall] must be reimbursed for reasonable expenses and attorney fees by the association or from its assets. Any court having any such proceeding before it shall allow and order paid reasonable expenses and attorney fees for such directors, officers and attorneys.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1800 (Chapter 581, SB 418)ê

 

order paid reasonable expenses and attorney fees for such directors, officers and attorneys.

      Sec. 269.  NRS 673.515 is hereby amended to read as follows:

      673.515  An appeal from a judgment enjoining the [commissioner] administrator from further proceedings and directing him to surrender the business, property and assets to the association does not operate as a stay of the judgment, unless the trial court in its discretion so orders. If an appeal from the judgment is taken by the [commissioner] administrator no bond need be given. If the judgment dismisses the action an appeal therefrom does not operate as a stay of the judgment but the court rendering such judgment may, in its discretion, enjoin the [commissioner,] administrator, pending the appeal, from further proceedings and direct him, pending the appeal, to surrender such business, property and assets to the association, if a bond is given in an amount not less than 10 percent of the cash on hand or on deposit.

      Sec. 270.  NRS 673.525 is hereby amended to read as follows:

      673.525  Whenever the [commissioner] administrator demands possession of the property, business and assets of any association, pursuant to NRS 673.485 to 673.577, inclusive, the refusal of any officer, agent, employee or director of such association to comply with the demand is a misdemeanor.

      Sec. 271.  NRS 673.535 is hereby amended to read as follows:

      673.535  If the demand of the [commissioner] administrator for the possession of the property, business and assets is not complied with within 24 hours after service of the demand, the [commissioner] administrator may call to his assistance the sheriff of the county in which the principal place of business of such association is located, by giving the sheriff written demand. The sheriff shall enforce the demands of the [commissioner.] administrator.

      Sec. 272.  NRS 673.545 is hereby amended to read as follows:

      673.545  When the [commissioner] administrator takes possession of the property, business and assets of any association, the president and secretary of such association shall make a schedule of all its property, assets and collateral held by it as security for loans and make an oath that such schedule sets forth all such property, assets and collateral. The president and secretary shall deliver the schedule, and the possession of all property, assets and collateral not previously delivered to the [commissioner. The commissioner] administrator. The administrator may at any time examine under oath any president, secretary, officer, director, agent or employee of the association, to determine whether or not all such property, assets or collateral have been transferred and delivered into his possession.

      Sec. 273.  NRS 673.555 is hereby amended to read as follows:

      673.555  The [commissioner] administrator may issue subpenas and require the attendance of parties for examination.

      Sec. 274.  NRS 673.565 is hereby amended to read as follows:

      673.565  When the [commissioner] administrator takes possession of the business, property and assets of an association, he may appoint a custodian.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1801 (Chapter 581, SB 418)ê

 

of the business, property and assets of an association, he may appoint a custodian. The [commissioner] administrator may require a good and sufficient bond from the custodian and place him in charge as his representative.

      Sec. 275.  NRS 673.575 is hereby amended to read as follows:

      673.575  When the [commissioner] administrator takes possession of the property, business and assets of an association, he may collect all money due to such association and give receipt therefor. The [commissioner] administrator may do such other acts as are necessary or expedient to collect, conserve or protect the association’s business, property and assets.

      Sec. 276.  NRS 673.576 is hereby amended to read as follows:

      673.576  If the [commissioner] administrator is in possession of the business, property and assets of an association, whether or not he is liquidating the affairs of such association, the [commissioner] administrator may:

      1.  Pay and discharge any secured claims against the association. No secured claim [shall] may be paid in an amount larger than the value of the security at the time of payment.

      2.  Pay administrative or current expenses incurred prior to the taking of possession which are necessary or convenient to the orderly or economic liquidation or preservation of the assets, and pay all wages or salaries, in amounts not exceeding such amounts as are normally paid to officers and employees. No salary increases [shall] may be proposed or consented to by the [commissioner,] administrator, conservator or receiver. The number of staff members which are required or needed for the operation of the association [shall] must be determined by the [commissioner.] administrator.

      3.  Disaffirm any executory contracts, including leases, to which the association is a party, and disaffirm any partially executed contracts, including leases, to the extent that they remain executory. The disaffirmance [shall] must be made within 6 months after obtaining knowledge of the existence of the contract or lease.

      Sec. 277.  NRS 673.577 is hereby amended to read as follows:

      673.577  Claims for damages resulting from the disaffirmance of an executory contract or lease by the [commissioner] administrator may be filed and allowed. No claim of a landlord for damages resulting from the disaffirmance of an unexpired lease of real property or under any covenant of such lease [shall] may be allowed in an amount exceeding the rent reserved by the lease, without acceleration, for the year succeeding the date of the surrender of the premises plus the amount of any unpaid accrued rent without acceleration. Any such claim must be filed within 30 days of the date of such disaffirmance.

      Sec. 278.  NRS 673.580 is hereby amended to read as follows:

      673.580  1.  The [commissioner] administrator may, if he takes possession of any association whose savings accounts are to any extent insured by the Federal Savings and Loan Insurance Corporation, tender to the Federal Savings and Loan Insurance Corporation the appointment as statutory liquidator of the association.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1802 (Chapter 581, SB 418)ê

 

insured by the Federal Savings and Loan Insurance Corporation, tender to the Federal Savings and Loan Insurance Corporation the appointment as statutory liquidator of the association. If he does not make a tender as sole statutory liquidator, he shall tender to the Federal Savings and Loan Insurance Corporation the appointment as statutory coliquidator to act jointly with the [commissioner.] administrator. The coliquidatorship shall not be for more than 1 year from the date of tender, at the expiration of which time the [commissioner] administrator shall become the sole liquidator except as otherwise provided by this section. The [commissioner] administrator shall tender to the Federal Savings and Loan Insurance Corporation the appointment as sole statutory liquidator of the association whenever the corporation has become subrogated to the rights of 90 percent of the liability of the association on savings accounts. If the Federal Savings and Loan Insurance Corporation becomes subrogated as to all the savings accounts in the association, it may then exercise all the powers and privileges conferred upon it by this chapter without court approval.

      2.  If the Federal Savings and Loan Insurance Corporation accepts the appointment as sole liquidator it [shall possess] possesses all the powers and privileges of the [commissioner] administrator as statutory liquidator of a possessed savings and loan association and [shall be] is subject to all duties of the [commissioner] administrator as sole liquidator, except insofar as the powers and privileges or duties are in conflict with federal laws, and except as otherwise provided in this chapter, unless the association resumes business pursuant to the provisions of this chapter. If the Federal Savings and Loan Insurance Corporation accepts the appointment as coliquidator, it [shall possess] possesses such powers and privileges jointly with the [commissioner and shall be] administrator and is subject to the duties jointly with the [commissioner.] administrator.

      3.  If the Federal Savings and Loan Insurance Corporation accepts the appointment as coliquidator or liquidator, it shall file its acceptance with the [commissioner] administrator and the clerk of the district court. The corporation may act without bond. Upon filing its acceptance of appointment as sole liquidator, the possession of and title to all the assets, business and property of the association [shall vest] vests in the Federal Savings and Loan Insurance Corporation without the execution of any conveyance, assignment, transfer or endorsement. Upon filing its acceptance of appointment as coliquidator, the possession and title [shall be vested] vests in the [commissioner] administrator and the corporation jointly. If the Federal Savings and Loan Insurance Corporation does not qualify as sole liquidator at or before the time provided for the expiration of the coliquidatorship, the corporation [shall] must be wholly divested of the joint title and possession, and the sole title and possession [shall vest] vests in the [commissioner.] administrator. The vesting of title and possession of the property of the association does not render the property subject to any claims by the federal corporation, except those which are encumbered by it with respect to the association and its property.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1803 (Chapter 581, SB 418)ê

 

property subject to any claims by the federal corporation, except those which are encumbered by it with respect to the association and its property. Whether or not it serves as liquidator or coliquidator, the corporation may make loans on the security of or may purchase with the approval of the court, except as otherwise provided in this chapter, all or any part of the assets of any association, the savings accounts of which are to any extent insured by it. In the event of a purchase, the corporation shall pay a reasonable price.

      4.  Whether or not the Federal Savings and Loan Insurance Corporation serves as liquidator, whenever it pays or makes available for payment the savings accounts of any association in liquidation which are insured by it, it [shall be] is subrogated upon the surrender and transfer to it of the savings accounts. The surrender and transfer do not affect any right which the transferor has in any savings accounts which are not paid or made available for payment or any right to participate in the distribution of the net proceeds remaining from the disposition of the assets of the association. The rights of the investors and creditors of the association [shall] must be determined in accordance with the applicable provisions of the laws of this state.

      Sec. 279.  NRS 673.590 is hereby amended to read as follows:

      673.590  1.  Whenever, in the case of any association which has issued common or preferred stock, the [commissioner] administrator or the Federal Savings and Loan Insurance Corporation has fully liquidated all claims other than claims of the stockholders, and has made due provision for all known or unclaimed liabilities, excepting claims of stockholders, and has paid all expenses of liquidation, the [commissioner] administrator shall call a meeting of the stockholders of the savings and loan association.

      2.  Notice of the meeting [shall] must be given by:

      (a) Five publications in a 30-day period in one or more newspapers published in the county in which the principal office of the association is located; and

      (b) Letter to each stockholder mailed to his last-known address.

      3.  At the meeting the [commissioner] administrator shall deliver to the stockholders all the property and effects of the association remaining in his possession except its records, which must be retained by him as part of the records of his office. Upon transfer and delivery he is discharged from any further liability to the association or its creditors, and thereafter the association is in the same position as though it had never been authorized to transact a savings and loan business.

      Sec. 280.  NRS 673.595 is hereby amended to read as follows:

      673.595  1.  Every foreign association which desires to do any business or maintain an office of the kind provided for in this chapter must apply to the [commissioner] administrator for a license to transact that business or maintain that office in this state.

      2.  Every applicant for a license shall pay a fee of $250. The [commissioner] administrator shall issue a license to an applicant if he is satisfied that the issuance of the license is consistent with the purpose of this chapter.

 


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ê1983 Statutes of Nevada, Page 1804 (Chapter 581, SB 418)ê

 

[commissioner] administrator shall issue a license to an applicant if he is satisfied that the issuance of the license is consistent with the purpose of this chapter. The [commissioner] administrator may revoke any such license when he is satisfied that the licensed activity or any part of it is not consistent with the purposes of this chapter. Every licensed foreign association shall pay an annual fee of $200.

      3.  At the time of making an application, every foreign association shall provide written consent to whatever examination or investigation the [commissioner] administrator may desire to make during the license period. The [commissioner] administrator shall charge the foreign association $30 per hour for the time spent on the examination or investigation by state examiners.

      4.  The provisions of chapter 80 of NRS apply to all foreign associations licensed under the provisions of this section. For the purposes of this section, activities conducted by any foreign association, which are limited to any one or more of those enumerated in NRS 80.240, do not constitute doing business or require that the association be licensed.

      Sec. 281.  NRS 673.620 is hereby amended to read as follows:

      673.620  1.  At a meeting of the stockholders held as provided in NRS 673.610, the stockholders may, by the affirmative vote of the majority of the stockholders present, in person or by proxy, declare by resolution the determination to convert the state company, association or corporation into a federal savings and loan association.

      2.  A copy of the minutes of such meeting, verified by the affidavit of the president or vice president and the secretary of the meeting, [shall] must be filed in the office of the [commissioner] administrator within 10 days after the date of the meeting. The sworn copy of the proceedings of the meeting, when so filed, is presumptive evidence of the holding and the action of the meeting.

      Sec. 282.  NRS 673.630 is hereby amended to read as follows:

      673.630  1.  After the holding of the meeting of stockholders, the state company, association or corporation shall take such action, in the manner prescribed or authorized by the laws of the United States or the rules and regulations promulgated pursuant thereto, as shall make it a federal savings and loan association, and there shall thereupon be filed in the office of the [commissioner] administrator a copy of the charter of authorization issued to the association by the Federal Home Loan Bank Board or a certificate showing the organization of the association as a federal savings and loan association, certified by the Federal Home Loan Bank Board. Upon such filing with the [commissioner,] administrator, the association ceases to be a state savings and loan association, but retains all rights, privileges and exemptions of a domestic association of the same kind and character.

      2.  A fee of $20 [shall] must accompany the copy of the charter of authorization.

      3.  Federal associations so converted and their members are subject to the same form of taxation and on the same basis as state associations and their stockholders.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1805 (Chapter 581, SB 418)ê

 

      Sec. 283.  NRS 673.670 is hereby amended to read as follows:

      673.670  Copies of the minutes of the proceedings of such meeting, verified by the affidavit of the president or vice president and the secretary or an assistant secretary, [shall] must be filed in the office of the [commissioner] administrator and, in duplicate, with the federal home-loan bank of which the association is a member, within 10 days after such meeting.

      Sec. 284.  NRS 673.690 is hereby amended to read as follows:

      673.690  1.  After the meeting, the federal association shall take such action in the manner prescribed and authorized by the laws of this state as shall make it a savings and loan association of this state, and the directors elected at the meeting shall file such documents and follow such procedures as are required by the laws of this state in the case of the original incorporation of a savings and loan association.

      2.  A savings and loan association incorporated by conversion from a federal savings and loan association shall not be required to comply with any of the provisions of law or any regulation adopted by the [commissioner] administrator relating to the minimum amounts of capital required to be subscribed in connection with the original incorporation of a savings and loan association under the laws of this state.

      Sec. 285.  Chapter 675 of NRS is hereby amended by adding thereto a new section which shall read as follows:

      1.  Except as provided in subsection 3, 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.  An 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 secured installment debt or an unsecured debt.

      4.  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 appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.

      Sec. 286.  NRS 675.020 is hereby amended to read as follows:

      675.020  [When] As used in this chapter, [the following words and terms shall have the following meanings] unless the context [clearly requires a different meaning:] otherwise requires:

 

 


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ê1983 Statutes of Nevada, Page 1806 (Chapter 581, SB 418)ê

 

and terms shall have the following meanings] unless the context [clearly requires a different meaning:] otherwise requires:

      1.  “Administrator” means the administrator of financial institutions.

      2.  “Amount of cash advance” means the amount of cash or its equivalent actually received by a borrower or paid out at his direction or on his behalf.

      [2.]3.  “Amount of loan obligation” means the amount of cash advance plus the aggregate of charges added thereto pursuant to authority of this chapter.

      [3.]4.  “Community” means a contiguous area of the same economic unit or metropolitan area as determined by the [superintendent,] administrator, and may include all or part of [an incorporated] a city or several towns or cities.

      [4.]5.  “License” means a license, issued under the authority of this chapter, to make loans in accordance with the provisions of this chapter, at a single place of business.

      [5.]6.  “Licensee” means a person to whom one or more licenses have been issued.

      [6.]7.  “Person” includes natural persons, copartnerships, associations, trusts, corporations and any other legal entities.

      [7.  “Superintendent” means the superintendent of banks.]

      Sec. 287.  NRS 675.060 is hereby amended to read as follows:

      675.060  1.  No person [shall] may engage in the business of lending in amounts of $10,000 or less and contract for, exact or receive, directly or indirectly, on or in connection with any such loan, any charges, whether for interest, compensation, consideration or expense, which in the aggregate are greater than the interest that the lender would be permitted by law to charge for a loan of money if he were not a licensee under this chapter, except as provided in and authorized by this chapter, and without first having obtained a license from the [superintendent.] administrator.

      2.  For the purpose of this section a loan shall be deemed to be in the amount of $10,000 or less if the net amount or value advanced to or on behalf of the borrower, after deducting all payments for interest, principal, expenses and charges of any nature taken substantially contemporaneously with the making of the loan, does not exceed $10,000.

      Sec. 288.  NRS 675.090 is hereby amended to read as follows:

      675.090  1.  Application for a license [shall] must be in writing, under oath, and in the form prescribed by the [superintendent.] administrator.

      2.  The application [shall:] must:

      (a) Give the general location where the business is to be conducted.

      (b) Contain such further relevant information as the [superintendent] administrator may require, including the names and addresses of the partners, officers, directors or trustees, and of such of the principal owners or members as will provide the basis for the investigations and findings contemplated by NRS 675.110 and 675.120.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1807 (Chapter 581, SB 418)ê

 

      Sec. 289.  NRS 675.100 is hereby amended to read as follows:

      675.100  1.  At the time of making the application, the applicant shall pay to the [superintendent] administrator $100 as a fee for investigating the application, and $500 as a license fee when granted for the period ending on the last day of the current calendar year.

      2.  If the license is granted after June 30 in any year the license fee is $100.

      Sec. 290.  NRS 675.110 is hereby amended to read as follows:

      675.110  1.  Upon the filing of the application and the payment of the fees, the [superintendent] administrator shall investigate the facts concerning the application and the requirements provided for in NRS 675.120.

      2.  At least 20 days before entering the order granting or denying the application, he shall mail a notice of the receipt of the application to each licensee having a place of business in the community where the applicant proposes to do business and he may mail such a notice to such other persons, associations and institutions as he may see fit.

      3.  The [superintendent] administrator may hold a hearing on the application at a time not less than 30 days from the date the application was filed nor more than 60 days from that date. The hearing must be held in the office of the [superintendent] administrator or such other place as he may designate. Notice in writing of the hearing must be sent to the applicant and to any licensee to which a notice of the application had been given and to such other persons as the [superintendent] administrator may see fit, at least 10 days before the date set for the hearing.

      4.  The [superintendent] administrator shall make his order granting or denying the application within 10 days from the date of the closing of the hearing, unless the period is extended by written agreement between the applicant and the [superintendent.] administrator.

      Sec. 291.  NRS 675.120 is hereby amended to read as follows:

      675.120  If the [superintendent] administrator finds:

      1.  That the financial responsibility, experience, character and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently, within the purposes of this chapter; and

      2.  That allowing the applicant to engage in business will promote the convenience and advantage of the community in which the licensed office is to be located; and

      3.  That the applicant has available for the operation of the business at the specified location liquid assets of at least $50,000,

he shall thereupon enter an order granting the application, and file his findings of fact together with the transcript of any hearing held under this chapter, and forthwith issue and deliver a license to the applicant.

      Sec. 292.  NRS 675.140 is hereby amended to read as follows:

      675.140  On or before December 20 of each year, each licensee shall pay to the [superintendent] administrator $500 for each license held by him as a license fee for the succeeding calendar year.

 


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ê1983 Statutes of Nevada, Page 1808 (Chapter 581, SB 418)ê

 

pay to the [superintendent] administrator $500 for each license held by him as a license fee for the succeeding calendar year.

      Sec. 293.  NRS 675.145 is hereby amended to read as follows:

      675.145  In addition to the annual fee provided by NRS 675.140, the [superintendent] administrator shall assess and collect from each licensee the reasonable cost of auditing the books and records of such licensee.

      Sec. 294.  NRS 675.150 is hereby amended to read as follows:

      675.150  1.  If the [superintendent] administrator finds that any applicant does not possess the requirements specified in this chapter, he shall enter an order denying the application and forthwith notify the applicant of the denial, returning the license fee but retaining the investigation fee.

      2.  Within 10 days after the entry of such an order, he shall file his findings and a summary of the evidence supporting them and shall forthwith deliver a copy thereof to the applicant.

      Sec. 295.  NRS 675.170 is hereby amended to read as follows:

      675.170  1.  The [superintendent shall have authority to make] administrator may adopt regulations and make orders for the administration and enforcement of this chapter, in addition hereto and not inconsistent herewith.

      2.  Every regulation [shall] must be promulgated by an order, and any ruling, demand, requirement or similar administrative act may be promulgated by an order.

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

      4.  A copy of every order promulgating a regulation and of every other order containing a requirement of general application [shall] must be mailed to each licensee at least 20 days before the effective date thereof.

      Sec. 296.  NRS 675.210 is hereby amended to read as follows:

      675.210  Not more than one place of business [shall] may be maintained under the same license. The [superintendent] administrator may issue additional licenses to the same licensee for other business locations upon compliance with all the provisions of this chapter governing issuance of a single license. Nothing herein [shall be deemed to require] requires a license for any place of business devoted to accounting, recordkeeping or administrative purposes only.

      Sec. 297.  NRS 675.220 is hereby amended to read as follows:

      675.220  1.  No change in the place of business of a licensee to a location outside of the original city or town [shall] may be permitted under the same license.

      2.  When a licensee wishes to change his place of business within the same city or town, he shall give written notice thereof to the [superintendent,] administrator, who shall investigate the facts.

 


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ê1983 Statutes of Nevada, Page 1809 (Chapter 581, SB 418)ê

 

[superintendent,] administrator, who shall investigate the facts. If the [superintendent] administrator finds:

      (a) That allowing the licensee to engage in business in the proposed location is not detrimental to the convenience and advantage of the community; and

      (b) That the proposed location is reasonably accessible to borrowers under existing loan contracts,

he shall enter an order permitting the change and shall amend the license accordingly.

      3.  If the [superintendent] administrator does not so find he shall enter an order denying the licensee such permission in the manner specified in and subject to the provisions of NRS 675.150.

      Sec. 298.  NRS 675.230 is hereby amended to read as follows:

      675.230  No licensee [shall] may conduct the business of making loans under this chapter 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 [superintendent.] administrator.

      Sec. 299.  NRS 675.260 is hereby amended to read as follows:

      675.260  1.  Annually, on or before April 15, each licensee shall file with the [superintendent] administrator a report of operations of the licensed business for the preceding calendar year.

      2.  The report must be made under oath and must be in the form and contain information prescribed by the [superintendent.] administrator.

      3.  If any person or affiliated group holds more than one license in the state, it may file a composite annual report.

      Sec. 300.  NRS 675.380 is hereby amended to read as follows:

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

      (a) Any licensee;

      (b) Any other person engaged in the business described in NRS 675.060 or participating in such business as principal, agent, broker or otherwise; and

      (c) Any person who the [superintendent] administrator has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not such person [shall claim] claims to be within the authority or beyond the scope of this chapter.

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

 


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ê1983 Statutes of Nevada, Page 1810 (Chapter 581, SB 418)ê

 

      3.  For the purposes of this section, any person who [shall advertise for, solicit, or hold] advertises for, solicits, or holds himself out as willing to make loan transactions in the amount or of the value of $10,000 or less [shall be] is presumed to be engaged in the business described in NRS 675.060.

      Sec. 301.  NRS 675.390 is hereby amended to read as follows:

      675.390  The [superintendent shall have authority to] administrator may require the attendance of any person and [to] examine him under oath relative to loans or business regulated by this chapter or to the subject matter of any examination, investigation or hearing, and may require the production of books, accounts, papers and records.

      Sec. 302.  NRS 675.400 is hereby amended to read as follows:

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

      2.  For each examination the [superintendent] administrator shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and preparing and typing the examination report.

      3.  All money collected by the [superintendent] administrator pursuant to subsection 2 must be deposited in the state general fund.

      Sec. 303.  NRS 675.410 is hereby amended to read as follows:

      675.410  If the [superintendent] administrator finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of such license pending investigation, he may, upon 5 days’ written notice and a hearing, enter an order suspending such license for a period not exceeding 20 days, pending a hearing upon the revocation.

      Sec. 304.  NRS 675.420 is hereby amended to read as follows:

      675.420  Any licensee may surrender any license by delivering it to the [superintendent] administrator with written notice of its surrender, but such surrender [shall] does not affect his civil or criminal liability for acts committed prior thereto.

      Sec. 305.  NRS 675.430 is hereby amended to read as follows:

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

      2.  An action may be brought on the relation of the attorney general and the [superintendent] administrator to enjoin such person from engaging in or continuing such 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.

 


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ê1983 Statutes of Nevada, Page 1811 (Chapter 581, SB 418)ê

 

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 such action is brought [shall have power and jurisdiction to] may impound, and [to] 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 may deem reasonably necessary to prevent violations of this chapter through or by means of the use of such property and business. Such receiver, when appointed and qualified, [shall have] has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as [shall] may from time to time be conferred upon him by the court.

      Sec. 306.  NRS 675.440 is hereby amended to read as follows:

      675.440  1.  If the [superintendent] administrator has reason to believe that grounds for revocation or suspension of a license exist, he 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 such hearing, the [superintendent] administrator shall 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 [shall] must include any prior temporary suspension. A copy of such order [shall] must be sent by registered or certified mail to the licensee.

      3.  The grounds for revocation or suspension of a license [shall be:

      (a) That the] are that:

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

      (b) The licensee, either knowingly or without any exercise of due care to prevent [the same,] it, has violated any provision of this chapter, or any lawful [rule or] regulation [promulgated hereunder; or] adopted under it;

      (c) Any fact or condition exists which would have justified the [superintendent] administrator in denying the licensee’s original application for a license hereunder; or

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

      4.  Any revocation or suspension shall apply 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 shall become effective 5 days after being entered unless the order specifies otherwise or a stay is granted.

 


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ê1983 Statutes of Nevada, Page 1812 (Chapter 581, SB 418)ê

 

      Sec. 307.  Chapter 676 of NRS is hereby amended by adding thereto a new section which shall read as follows:

      “Administrator” means the administrator of financial institutions.

      Sec. 308.  NRS 676.010 is hereby amended to read as follows:

      676.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 676.020 to [676.090,] 676.080, inclusive, and section 307 of this act have the meanings [assigned] ascribed to them in [such] those sections.

      Sec. 309.  NRS 676.110 is hereby amended to read as follows:

      676.110  No person, firm, company or corporation may engage in the business of debt adjusting except as provided in and authorized by this chapter, and without first having obtained a license from the [superintendent.] administrator.

      Sec. 310.  NRS 676.120 is hereby amended to read as follows:

      676.120  1.  Application for a license [shall] must be in writing, under oath and in the form prescribed by the [superintendent.] administrator.

      2.  The application shall:

      (a) Give the business name, location of the office, names and address of all officers and directors, if a corporation or association, and names and addresses of partners, if a copartnership.

      (b) Be accompanied by a copy of the fictitious name certificate or the articles of incorporation, where applicable.

      (c) Contain such further relevant information as the [superintendent] administrator may require.

      Sec. 311.  NRS 676.130 is hereby amended to read as follows:

      676.130  At the time of making the application, the applicant shall:

      1.  Pay to the [superintendent] administrator $100 as a fee for investigation of the application and $200 as a license fee for each office, which satisfies the fee requirement for the period ending on the last day of the current calendar year.

      2.  Furnish and maintain in effect a satisfactory bond to the State of Nevada, [duly] executed by an admitted surety company approved by the [superintendent,] administrator, in the amount of $10,000, or an appropriate substitute pursuant to NRS 676.135, conditioned upon the faithful accounting of all money collected upon accounts and entrusted to the licensee, or its employees or agents.

      3.  Provide a blank copy of the debt-adjustment contract which will be used by the licensee in its business.

      Sec. 312.  NRS 676.135 is hereby amended to read as follows:

      676.135  1.  An applicant for a license may deposit with any bank or trust company authorized to do business in this state, with the permission of the [superintendent,] administrator, as a substitute for the surety bond required by NRS 676.130:

      (a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;

      (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or

 

 


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ê1983 Statutes of Nevada, Page 1813 (Chapter 581, SB 418)ê

 

States or any agency or instrumentality thereof, or guaranteed by the United States; or

      (c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state, in an aggregate amount, based upon principal amount or market value, whichever is lower.

The deposit must be in a form approved by the [superintendent.] administrator.

      2.  The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond. With the approval of the [superintendent,] administrator, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the [superintendent.] administrator.

      3.  Any interest or dividends earned on the deposit accrue to the account of the depositor.

      4.  The deposit must be an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the [superintendent.] administrator.

      Sec. 313.  NRS 676.140 is hereby amended to read as follows:

      676.140  Upon the filing of the application and the payment of fees, the [superintendent] administrator shall investigate the facts concerning the application and the requirements provided for in NRS 676.150.

      Sec. 314.  NRS 676.150 is hereby amended to read as follows:

      676.150  If the [superintendent] administrator finds that:

      1.  The financial responsibility, experience, character and general fitness of the applicant and of the associates, directors or officers thereof are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly and efficiently, within the purposes of this chapter; and

      2.  Allowing the applicant to engage in business will promote the convenience and advantage of the community in which the licensed office is to be located,

he shall issue and deliver a license to the applicant.

      Sec. 315.  NRS 676.160 is hereby amended to read as follows:

      676.160  1.  On or before December 1 of each year, each licensee may apply to the [superintendent] administrator for a renewal of its license.

      2.  The application [shall] must be on the form prescribed by the [superintendent and shall] administrator and must be accompanied by a fee of $200 and a bond, as in the case of the original application.

      3.  Each license, as renewed, [shall remain] remains in force until surrendered, suspended or revoked as provided in this chapter.

      Sec. 316.  NRS 676.200 is hereby amended to read as follows:

      676.200  Not more than one office may be maintained under the same license. The [superintendent] administrator may issue additional licenses to the same licensee for other offices upon compliance with the provisions of this chapter governing issuance of a single license.

 


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ê1983 Statutes of Nevada, Page 1814 (Chapter 581, SB 418)ê

 

licenses to the same licensee for other offices upon compliance with the provisions of this chapter governing issuance of a single license.

      Sec. 317.  NRS 676.210 is hereby amended to read as follows:

      676.210  Any licensee may surrender any license by delivering it to the [superintendent] administrator with written notice of its surrender, but such surrender [shall] does not affect any civil or criminal liability for acts committed prior thereto.

      Sec. 318.  NRS 676.220 is hereby amended to read as follows:

      676.220  Each licensee shall:

      1.  Open and maintain a separate trust account in a state bank or national bank doing business in this state. All [moneys] money received from debtors for the benefit of creditors [shall] must be deposited in, and all payments to creditors [shall] must be disbursed from, this account.

      2.  Keep and use such books and accounting records as are in accord with sound and accepted accounting practices.

      3.  Maintain a separate record or ledger card for the account of each debtor, showing the amount of [moneys] money received from and disbursed on behalf of each debtor.

      4.  Maintain a separate record, in a form approved by the [superintendent,] administrator, or ledger card for each creditor, identifying the particular debtor-source of [moneys] money and showing the amount of [moneys] money disbursed in accordance with the appropriate debt-adjustment contract.

      5.  Preserve all such books and accounting records for at least 7 years after making the final entry therein.

      Sec. 319.  NRS 676.230 is hereby amended to read as follows:

      676.230  1.  Annually, on or before April 15, each licensee shall file with the [superintendent] administrator a report of operations of the licensed business for the preceding calendar year.

      2.  Such report [shall] must give information with respect to the financial operations of the licensee.

      3.  Such reports [shall] must be made under oath and [shall] must be in the form prescribed by the [superintendent.] administrator.

      Sec. 320.  NRS 676.260 is hereby amended to read as follows:

      676.260  Each licensee shall:

      1.  Make remittances to creditors within 10 days after receipt of the monthly remittance from the debtor.

      2.  Furnish a written statement of account to the debtor at least once every 90 days. If the licensee has been doing business for more than 1 year, the [superintendent] administrator may waive the requirement of this subsection as he shall determine.

      3.  Provide account information to the debtor verbally when requested during normal business hours.

      Sec. 321.  NRS 676.270 is hereby amended to read as follows:

      676.270  1.  For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the [superintendent] administrator or his [duly] authorized representative may at any time and shall, at least once every year, investigate the business and examine the books, accounts, papers and records of any licensee.

 


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ê1983 Statutes of Nevada, Page 1815 (Chapter 581, SB 418)ê

 

chapter or of securing information lawfully required under this chapter, the [superintendent] administrator or his [duly] authorized representative may at any time and shall, at least once every year, investigate the business and examine the books, accounts, papers and records of any licensee.

      2.  For the purpose of examination the [superintendent] administrator or his [duly] authorized representatives must be allowed free access to the offices, files, safes and vaults of such licensees.

      3.  For each examination the [superintendent] administrator shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and in preparing and typing the examination report, but the total fee must not exceed $800 for any regular examination or investigation unless some irregularity is disclosed during the course of such regular examination warranting special or additional investigation or examination. If such an irregularity is disclosed, the licensee shall pay for the additional investigation required by reason of the irregularity at a reasonable rate for each man-hour so required.

      Sec. 322.  NRS 676.280 is hereby amended to read as follows:

      676.280  1.  The [superintendent] administrator may require the attendance of any person and examine him under oath with regard to the debt adjustment business regulated by this chapter or the subject matter of any examination, investigation or hearing.

      2.  The [superintendent] administrator may require the production of books, accounts, papers and records in aid of any examination, investigation or hearing.

      Sec. 323.  NRS 676.290 is hereby amended to read as follows:

      676.290  1.  The [superintendent] administrator may, pursuant to the procedure provided in this chapter, deny, suspend or revoke any license for which application has been made or which has been issued under the provisions of this chapter if he finds, as to the licensee, its associates, directors or officers, grounds for such action.

      2.  Any one of the following grounds may provide the requisite grounds for such denial, suspension or revocation:

      (a) Conviction of a felony or of a misdemeanor involving moral turpitude.

      (b) Violation of any of the provisions of this chapter or [rules and] regulations of the [superintendent.] administrator.

      (c) Fraud or deceit in procuring the issuance of the license.

      (d) Continuous course of unfair conduct.

      (e) Insolvency, filing in bankruptcy, receivership or assigning for the benefit of creditors by any licensee or applicant for a license under this chapter.

      Sec. 324.  NRS 676.300 is hereby amended to read as follows:

      676.300  If the [superintendent] administrator finds that any one of the requisite grounds for denial, suspension or revocation of the license exists and that the enforcement of this chapter requires the immediate suspension of such license, he may, upon 5 days’ written notice and a hearing, enter an order suspending such license for a period not exceeding 20 days, pending the holding of a hearing as prescribed in NRS 676.310.

 


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ê1983 Statutes of Nevada, Page 1816 (Chapter 581, SB 418)ê

 

immediate suspension of such license, he may, upon 5 days’ written notice and a hearing, enter an order suspending such license for a period not exceeding 20 days, pending the holding of a hearing as prescribed in NRS 676.310.

      Sec. 325.  NRS 676.310 is hereby amended to read as follows:

      676.310  1.  The [superintendent] administrator may, after notice and hearing, enter an order:

      (a) Denying a license to any applicant who fails to establish, at such hearing, its financial responsibility, experience, character and general fitness to engage in debt adjusting; or

      (b) Revoking the license of a licensee who fails to overcome, at such hearing, the probable cause for such revocation found by the [superintendent.] administrator.

      2.  The denial, suspension or revocation of a license, as provided in this chapter, [shall] does not impair nor affect the obligation under any lawful debt-adjusting contract.

      Sec. 326.  Chapter 677 of NRS is hereby amended by adding thereto the provisions set forth as sections 327 and 328 of this act.

      Sec. 327.  “Administrator” means the administrator of financial institutions.

      Sec. 328.  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 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 appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.

 


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ê1983 Statutes of Nevada, Page 1817 (Chapter 581, SB 418)ê

 

120 days after the date of his appointment or employment or the discovery of the prohibited act.

      Sec. 329.  NRS 677.020 is hereby amended to read as follows:

      677.020  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 677.030 to 677.140, inclusive, and section 327 of this act have the meanings ascribed to them in those sections.

      Sec. 330.  NRS 677.070 is hereby amended to read as follows:

      677.070  “Community” means a contiguous area of the same economic unit or metropolitan area, as determined by the [director,] administrator, and may include all or part of [an incorporated] a city or several towns or cities.

      Sec. 331.  NRS 677.150 is hereby amended to read as follows:

      677.150  When authorized by the [director,] administrator, as provided in this chapter, a corporation may be formed by three or more persons in accordance with the laws of this state to engage in business under this chapter.

      Sec. 332.  NRS 677.160 is hereby amended to read as follows:

      677.160  The request for authority to engage in business under this chapter [shall] must be set forth in an application in such form and containing such information as the [director] administrator may require and [shall] must be accompanied by a filing fee of $250.

      Sec. 333.  NRS 677.170 is hereby amended to read as follows:

      677.170  1.  At the time of filing an application for authorization to engage in business under this chapter, the applicant shall file with the [director] administrator a bond or an irrevocable letter of credit in the sum of $1,000,000, upon which the applicant is the obligor.

      2.  If the applicant files a bond it [shall] must be signed by one or more sureties approved by the [director,] administrator, whose liability as sureties need not exceed that amount in the aggregate.

      3.  If the applicant files an irrevocable letter of credit it [shall] must be issued by a bank approved by the [director] administrator and whose deposits are insured by the Federal Deposit Insurance Corporation.

      4.  The bond or letter of credit [shall] must be conditioned that the obligor shall:

      (a) Faithfully conform to and abide by the provisions of this chapter and all regulations adopted by the [director] administrator under this chapter.

      (b) Pay to the state and to any person all money that becomes due or owing to the state or to such person from the obligor under the provisions of this chapter.

      5.  The terms of the bond or letter of credit [shall] must be approved by the [director.] administrator.

      6.  A licensee which proposes to issue certificates shall file with the [director] administrator a fidelity bond providing fidelity coverage on each officer, director and employee of $100,000. The fidelity bond may be either a banker’s blanket bond or a finance company’s blanket bond, but [shall] must be written by an insurer who has been approved by the [director.]

 


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ê1983 Statutes of Nevada, Page 1818 (Chapter 581, SB 418)ê

 

be either a banker’s blanket bond or a finance company’s blanket bond, but [shall] must be written by an insurer who has been approved by the [director.] administrator.

      Sec. 334.  NRS 677.180 is hereby amended to read as follows:

      677.180  Upon the filing of an application, the [director] administrator 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 funds 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.  Such other facts and circumstances bearing on the proposed licensee as in the opinion of the [director] administrator may be relevant.

      Sec. 335.  NRS 677.190 is hereby amended to read as follows:

      677.190  The [director] administrator shall not approve the application unless he ascertains to his 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, shareholders and other investors (except thrift certificate holders) 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.

 


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ê1983 Statutes of Nevada, Page 1819 (Chapter 581, SB 418)ê

 

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.

      Sec. 336.  NRS 677.220 is hereby amended to read as follows:

      677.220  If the [director] administrator approves an application for authority to form a corporation to engage in business under this chapter, he 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 [director] administrator shall deliver one copy to the applicant and retain the other copy.

      Sec. 337.  NRS 677.230 is hereby amended to read as follows:

      677.230  The [director] administrator may establish the basis upon which reasonable and adequate reserves [shall] must be created and maintained, which [shall] must be no less than 3 percent of thrift certificates in cash and due from banks and savings and loans, and 5 percent of thrift certificates in United States treasury bills or notes, short-term obligations of the federal or state government or money deposited in a bank or savings and loan association in this state which is federally insured. For the purposes of this section, “short-term” means having a maturity of 2 years or less.

      Sec. 338.  NRS 677.240 is hereby amended to read as follows:

      677.240  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 [director] administrator who shall issue his written authorization of such change, if the [director] administrator finds such change of place of business would not justify a negative finding.

      Sec. 339.  NRS 677.250 is hereby amended to read as follows:

      677.250  When authorized by the [director] administrator 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 the state.

      Sec. 340.  NRS 677.260 is hereby amended to read as follows:

      677.260  The request for authority to establish a branch office [shall] must be set forth in an application in such form and containing such information as the [director] administrator may require and [shall] must be accompanied by an application fee of $100 for each new branch office.

      Sec. 341.  NRS 677.270 is hereby amended to read as follows:

      677.270  1.  The [director] administrator shall not approve an application for a branch office until he has ascertained to his satisfaction that the facts set forth in the application are true and:

 


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ê1983 Statutes of Nevada, Page 1820 (Chapter 581, SB 418)ê

 

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

      (b) That the licensee has the capital required by this chapter.

      2.  The [director] administrator must give his approval or denial for a branch application to the licensee within 45 days from the date of application to open a branch office unless the [director] administrator gives notice within the original 45-day period that he is extending the period for decision for a term not to exceed an additional 45 days.

      Sec. 342.  NRS 677.280 is hereby amended to read as follows:

      677.280  When the [director] administrator has approved an application for permission to establish a branch office and the applicant pays to the [director] administrator an additional fee of $100 for a certificate of authorization to transact business, the [director] administrator shall issue a certificate in duplicate authorizing the opening and operation of the branch office and specifying the date on which it may be opened and the place where it will be located. The [director] administrator shall deliver one copy to the applicant and shall retain the other copy.

      Sec. 343.  NRS 677.290 is hereby amended to read as follows:

      677.290  The failure of a licensee to open and operate a branch office within 6 months after the [director] administrator approves the application therefor automatically terminates the right of the licensee to open the branch office.

      Sec. 344.  NRS 677.300 is hereby amended to read as follows:

      677.300  When authorized by the [director,] administrator, a licensee may change the location of a branch office from one location to another. The [director] administrator must give his approval or denial to the licensee within 25 days from the date of application for a change in branch location unless the [director] administrator gives notice within the original 25-day period that he 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 [director] administrator permitting the operating of the branch office.

      Sec. 345.  NRS 677.320 is hereby amended to read as follows:

      677.320  1.  With the prior written approval of the [director,] administrator, a licensee may close or discontinue the operation of any branch office if public notice thereof is given in such manner as the [director] administrator 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 [director.] administrator.

      Sec. 346.  NRS 677.330 is hereby amended to read as follows:

      677.330  1.  The [director] administrator may authorize a licensee to operate mobile offices to serve areas other than cities whose population exceeds 25,000.

 


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ê1983 Statutes of Nevada, Page 1821 (Chapter 581, SB 418)ê

 

licensee to operate mobile offices to serve areas other than cities whose population exceeds 25,000.

      2.  Those areas must be served by the licensee’s mobile unit at least once each 30 days. No area may be served by more than two licensees. Each mobile unit 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.

      Sec. 347.  NRS 677.340 is hereby amended to read as follows:

      677.340  1.  No person doing business under the authority of any law of this state or of the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions or persons licensed under chapter 675 of NRS is eligible to become a licensee under this chapter, nor does this chapter apply to any business transacted by any such person under the authority of and as permitted by any such law. A subsidiary of a parent corporation one or more of whose other subsidiaries is engaged in any of the activities listed in this subsection is not eligible to be licensed under this chapter. This chapter does not apply to any bona fide pawnbroking business transacted under a pawnbroker’s license.

      2.  Except to the extent that persons enumerated in subsection 1 are expressly so permitted by law, a person shall not engage in the business of lending in gross amounts of $3,500 or more, and contract for, exact or receive, directly or indirectly, on or in connection with any such loan, any charges, whether for interest, compensation, consideration or expense, in any manner other than that permitted by NRS 99.050 or this chapter, and without first having obtained a license from the [director] administrator.

      3.  For the purpose of this section a loan shall be deemed to be in the gross amount of $3,500 or more if the total amount or value advanced to or on behalf of the borrower, after including all payments for interest, principal, expenses and charges of any nature taken substantially contemporaneously with the making of the loan is in a gross amount of $3,500 or more.

      Sec. 348.  NRS 677.360 is hereby amended to read as follows:

      677.360  1.  Each applicant shall pay, in addition to the application fee, a license fee of $250 if the license is granted after June 30 or a license fee of $500 if the license is granted before July 1.

      2.  On or before December 20 of each year, each licensee shall pay to the [director] administrator the sum of $500 for each license held by him as a license fee for the succeeding calendar year.

      Sec. 349.  NRS 677.370 is hereby amended to read as follows:

      677.370  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 [director.] administrator.

 


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ê1983 Statutes of Nevada, Page 1822 (Chapter 581, SB 418)ê

 

      Sec. 350.  NRS 677.380 is hereby amended to read as follows:

      677.380  1.  The [director may make] administrator 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 [shall] must be in writing, [shall] must state its effective date and the date of its promulgation, and [shall] must be entered in an indexed permanent book which [shall be] is a public record.

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

      Sec. 351.  NRS 677.400 is hereby amended to read as follows:

      677.400  1.  Annually, on or before May 15, unless the [director] administrator grants a written extension, each licensee shall file with the [director] administrator 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 and include balance sheets at the beginning and end of the year, statement of income and expenses for the period, reconciliation of surplus or net worth with the balance sheets, schedule of assets used and useful in the licensed business, size of loans, analysis of charges, including monthly average number and amount of loans outstanding, analysis of delinquent accounts, court actions undertaken to effect collection, and any further statistical information reasonably prescribed by the [director.] administrator.

      3.  The report must be made under oath and be in the form prescribed by the [director.] administrator.

      4.  If any person or affiliated group holds more than one license in the 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.

      Sec. 352.  NRS 677.410 is hereby amended to read as follows:

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

      2.  A licensee shall make other special reports to the [director] administrator as the [director] administrator may from time to time require.

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

 


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ê1983 Statutes of Nevada, Page 1823 (Chapter 581, SB 418)ê

 

administrator 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 [director] administrator may require the company to take such action as he deems appropriate to permit an independent accountant to remove such qualification from the report, certificate or opinion.

      Sec. 353.  NRS 677.420 is hereby amended to read as follows:

      677.420  Every licensee shall notify the [director] administrator of every change in the officers, directors and managing personnel of the company and of each branch of the company within 15 days of such change. Such report [shall] must include a complete identification of each person.

      Sec. 354.  NRS 677.430 is hereby amended to read as follows:

      677.430  1.  At least once each year, the [director] administrator or his [duly] 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 [director] administrator shall charge and collect from the licensee a reasonable fee for each man-hour expended in conducting the examination and preparing and typing the examination report.

      Sec. 355.  NRS 677.440 is hereby amended to read as follows:

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

      (a) Any licensee;

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

      (c) Any person who the [director] administrator has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not such person claims to be within the authority or beyond the scope of this chapter.

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

      Sec. 356.  NRS 677.450 is hereby amended to read as follows:

      677.450  The [director] administrator may require the attendance of any person and may examine him 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.

 


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ê1983 Statutes of Nevada, Page 1824 (Chapter 581, SB 418)ê

 

      Sec. 357.  NRS 677.460 is hereby amended to read as follows:

      677.460  The [director] administrator may provide by [rule,] regulation or order for the charging off of assets considered to be of little or no value.

      Sec. 358.  NRS 677.470 is hereby amended to read as follows:

      677.470  In addition to the annual fee provided by this chapter, the [director] administrator shall assess and collect from each licensee the reasonable cost of auditing the books and records of such licensee.

      Sec. 359.  NRS 677.480 is hereby amended to read as follows:

      677.480  If it appears to the [director] administrator that any company is conducting business in an unsafe or injurious manner, he may by written order direct the discontinuance of any such unsafe or injurious practices.

      Sec. 360.  NRS 677.490 is hereby amended to read as follows:

      677.490  Any licensee may surrender any license by delivering it to the [director] administrator with written notice of its surrender, but such surrender does not affect his civil or criminal liability for acts committed prior to the surrender.

      Sec. 361.  NRS 677.500 is hereby amended to read as follows:

      677.500  If the [director] administrator finds that probable cause for revocation of any license exists and that enforcement of this chapter requires immediate suspension of such license pending investigation, he may, upon 5 days’ written notice and without a hearing, enter an order suspending such license for a period not exceeding 20 days pending the holding of a hearing.

      Sec. 362.  NRS 677.510 is hereby amended to read as follows:

      677.510  1.  If the [director] administrator has reason to believe that grounds for revocation or suspension of a license exist, he 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 such hearing, the [director] administrator shall 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 [shall] must include any prior temporary suspension. A copy of such order [shall] must be sent by registered or certified mail to the licensee.

      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 [the same,] it, has violated any provision of this chapter, or any lawful regulation promulgated under this chapter;

      (c) Any fact or condition exists which would have justified the [director] administrator in denying the licensee’s original application for a license hereunder; or

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

 


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ê1983 Statutes of Nevada, Page 1825 (Chapter 581, SB 418)ê

 

the license was issued, or has failed to remain open for the conduct of such 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.

      Sec. 363.  NRS 677.530 is hereby amended to read as follows:

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

      2.  An action may be brought on the relation of the attorney general and the [director] administrator to enjoin such person from engaging in or continuing such 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 such 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 such 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 him by the court.

      Sec. 364.  NRS 677.540 is hereby amended to read as follows:

      677.540  Whenever it appears to the [director] administrator that:

      1.  The capital of any licensee is impaired;

      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 such condition that it is unsound or unsafe for it to transact business;

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

 

 


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ê1983 Statutes of Nevada, Page 1826 (Chapter 581, SB 418)ê

 

[director] administrator made pursuant to this chapter unless the enforcement of such order is restrained in a proceeding brought by the licensee;

      9.  Any licensee has sold or issued thrift certificates 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 reasonably would have warranted the [director] administrator in disapproving the application,

the [director] administrator may forthwith take possession of the property and business of such licensee and retain possession until such licensee resumes business or its affairs are finally liquidated as provided in this chapter. Such licensee, with the consent of the [director,] administrator, may resume business upon such conditions as he may prescribe.

      Sec. 365.  NRS 677.550 is hereby amended to read as follows:

      677.550  1.  The [director] administrator may order a licensee to suspend the payment of its liabilities or limit the payment of its liabilities in such manner as he prescribes, if it appears to the [director] administrator that such action is necessary for the protection of the licensee, its investors 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 [director] administrator 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 an investor without first crediting thereon the investment liability of the licensee to such investor-borrower.

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

      Sec. 366.  NRS 677.560 is hereby amended to read as follows:

      677.560  Whenever the [director] administrator has taken possession of the property and business of any licensee, such licensee, within 10 days after such 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 [director] administrator 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 [director] administrator from further proceedings and direct him to surrender the property and business to such licensee, or make such further order as may be just.

 


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ê1983 Statutes of Nevada, Page 1827 (Chapter 581, SB 418)ê

 

      Sec. 367.  NRS 677.570 is hereby amended to read as follows:

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

      Sec. 368.  NRS 677.620 is hereby amended to read as follows:

      677.620  1.  A licensee shall not have outstanding at any time its thrift certificates, exclusive of those hypothecated with the licensee issuing them, in an aggregate sum in excess of 10 times the aggregate amount of its paid-up and unimpaired capital and unimpaired surplus.

      2.  If a licensee has operated under this chapter for 1 year or more and during its most recent fiscal year has been profitable, the [director] administrator may increase the ratio of thrift certificates to paid up and unimpaired capital and unimpaired surplus 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 [director] administrator shall give his approval or denial of the application for an increased ratio to the licensee in writing with supporting reasons within 30 days from the date of application by the licensee unless the [director] administrator gives notice within the original 30-day period that he is extending the period for deci-sion for a term not to exceed an additional 30 days. The [director] administrator may, for reasonable cause, decrease the ratio permitted under this subsection at any time, but not below the ratio prescribed in subsection 1.

      3.  No licensee may have total borrowings, exclusive of thrift certificates, which exceed the larger of:

      (a) Five times its capital and surplus; or

      (b) The face amount of its total thrift certificates outstanding at the time a borrowing is made.

      4.  Each licensee shall establish a thrift insurance guarantee fund immediately upon beginning business, as a special account with an initial balance of $15,000. Money cannot be withdrawn from the fund or the account put to any other use without the permission of the [director.] administrator. Money in the fund may be invested only in obligations of the United States, this or any other state, or a bank or savings and loan association whose principal office is in this state and whose deposits are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. At the end of each fiscal year of the licensee an amount equal to three-tenths of 1 percent of the licensee’s outstanding thrift certificates must be added to the fund, until the fund balance reaches $1,000,000. Interest earned on the principal of the fund [shall] must not be withdrawn except as permitted for other money of the fund, but may be credited against the required addition.

 


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ê1983 Statutes of Nevada, Page 1828 (Chapter 581, SB 418)ê

 

except as permitted for other money of the fund, but may be credited against the required addition.

      Sec. 369.  NRS 677.630 is hereby amended to read as follows:

      677.630  1.  A licensee may purchase, hold and convey real property 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 under securities held by it. A licensee shall not bid at any such sale 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 paid-up capital and surplus 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 for the purpose of subdividing or developing for residential uses. An investment for this purpose must not exceed the market value of the property as evidenced by an appraisal prepared within 120 days before the investment by a member of the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers or the Independent Fee Appraisers Society, or by an appraiser approved by the [director.] administrator. Before the investment is made:

             (1) The licensee shall provide the [director] administrator with a certified copy of one or more appraisal reports and a report from a title insurer which shows the chain of title and the amount of consideration for which the title was transferred, if that information is available, for at least 3 years.

             (2) The director may require a statement from the licensee disclosing whether or not any director, officer or employee of the licensee has, or has had within the last 3 years, any direct or indirect interest in the property. For the purposes of this paragraph, “interest” includes ownership of stock in a corporation which has an interest in the property.

If the total amount to be invested in undeveloped real property is more than 1 percent of the total savings accounts of the licensee, the investment may not be made without the written approval of the [director.] administrator. 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.

      Sec. 370.  NRS 677.640 is hereby amended to read as follows:

      677.640  A licensee shall not make loans or sell or negotiate thrift certificates or thrift passbooks 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 [director.]

 


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ê1983 Statutes of Nevada, Page 1829 (Chapter 581, SB 418)ê

 

notary public, or in association or conjunction with any other business unless authority to do so is given by the [director.] administrator.

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

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.

      Sec. 371.  NRS 677.810 is hereby amended to read as follows:

      677.810  Any 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 any person any loan from such licensee, or the purchase or discount of any note, contract or other obligation or property by such licensee;

      2.  Knowingly receives or possesses himself of any of its property otherwise than in payment of a just demand, or with 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; or

      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 such books as required by law, or to exhibit or allow [the same] them to be inspected or extracts to be taken therefrom by the [director] administrator or his deputies or investigators, or alters, conceals, destroys or removes any book or record,

shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.

      Sec. 372.  NRS 677.850 is hereby amended to read as follows:

      677.850  Every officer or employee of any company who sells thrift certificates knowing:

      1.  That the company is insolvent; or

      2.  That the sale violates any provision of this chapter or any order or regulation of the [director,] administrator,

is guilty of a gross misdemeanor.

      Sec. 373.  Chapter 678 of NRS is hereby amended by adding thereto the provisions set forth as sections 374 and 375 of this act.

      Sec. 374.  “Administrator” means the administrator of financial institutions.

      Sec. 375.  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 credit union chartered by this state;

 


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ê1983 Statutes of Nevada, Page 1830 (Chapter 581, SB 418)ê

 

      (b) Receive, directly or indirectly, any payment from any such credit union;

      (c) Be indebted to any state credit union;

      (d) Engage in the negotiation of loans for others with any such credit union; or

      (e) Obtain credit or services from a state credit union 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 state credit union while in office.

      3.  Any officer or employee of the division of financial institutions may be indebted to a credit union on the same terms as are available to the public generally upon:

      (a) A mortgage loan on his 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 or share accounts with credit unions to the greatest amount insured, receive interest on those deposits or shares and borrow money secured by a pledge of those deposits or shares.

      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 appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.

      Sec. 376.  NRS 678.010 is hereby amended to read as follows:

      678.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678.020 to 678.240, inclusive, and section 374 of this act have the meanings ascribed to them in such sections.

      Sec. 377.  NRS 678.250 is hereby amended to read as follows:

      678.250  The [commissioner of credit unions] administrator shall administer the provisions of this chapter, subject to administrative supervision by the director and the credit union advisory council. He shall make the decisions and determinations and adopt regulations which are necessary or reasonably appropriate to accomplish the purposes of this chapter.

      Sec. 378.  NRS 678.260 is hereby amended to read as follows:

      678.260  The [commissioner] administrator shall:

      1.  Adopt a regulation establishing the minimum surety bond coverage required of credit unions in relation to the amount of property under their control.

 


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ê1983 Statutes of Nevada, Page 1831 (Chapter 581, SB 418)ê

 

      2.  Maintain the original application of every credit union in a permanent file.

      3.  Maintain for at least 6 years, every report filed by a credit union with the division [.] of financial institutions.

      4.  Deposit all fees, charges for expenses, assessments and other [moneys] money which are collected pursuant to the provisions of this chapter or any regulation promulgated thereunder, in the state treasury to the credit of the appropriate account within the state general fund for the use of the department of commerce. At the end of a fiscal year the unused balance of any amounts collected pursuant to this chapter [shall] does not revert to the state general fund.

      5.  Prepare copies of articles of incorporation and bylaws consistent with the provisions of this chapter which may be used by persons interested in organizing a credit union.

      Sec. 379.  NRS 678.270 is hereby amended to read as follows:

      678.270  The [commissioner] administrator may:

      1.  Adopt regulations, subject to the advice and consent of the credit union advisory council, establishing chartering, supervisory and examination fees; and

      2.  Cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of this chapter.

      Sec. 380.  NRS 678.290 is hereby amended to read as follows:

      678.290  1.  The credit union advisory council, consisting of five members appointed by the governor, is hereby created to consult with, advise and make recommendations to the [commissioner] administrator in all matters pertaining to credit unions.

      2.  The governor shall appoint members who have tested credit union experience from a list of recommended names submitted by the Nevada Credit Union League.

      3.  After the initial terms, members serve terms of 4 years, except when appointed to fill unexpired terms.

      4.  The chairman of the advisory council [shall] must be elected annually by and from the members thereof.

      5.  The meetings of the advisory council must be held at such times and places as the chairman or [commissioner] the administrator determines, but at least once every 6 months.

      6.  Council members are entitled to receive a salary of $60 for each day’s attendance at a meeting of the council and the per diem allowances and travel expenses provided for state officers and employees.

      Sec. 381.  NRS 678.310 is hereby amended to read as follows:

      678.310  1.  The secretary of state shall not issue any certificate of incorporation to any credit union authorizing it to do business in this state until the articles of incorporation are approved by the [commissioner.] administrator.

      2.  An amendment to such articles of incorporation may not be filed by the secretary of state without the written approval thereof by the [commissioner.]

 


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ê1983 Statutes of Nevada, Page 1832 (Chapter 581, SB 418)ê

 

filed by the secretary of state without the written approval thereof by the [commissioner.] administrator.

      3.  Not less than seven persons who are residents of Nevada, have a common bond and are of legal age who desire to organize a credit union under this chapter shall first execute in triplicate an application, upon forms to be issued by the [commissioner,] administrator, for permission to organize such an association. The applicants shall submit with or include in their application:

      (a) A copy of the articles of incorporation which [shall] must comply with the provisions of NRS 81.440 except where such provisions conflict with the provisions of this chapter.

      (b) The par value of the shares which [shall] must be in $5 multiples, not less than $5, and not more than $25.

      (c) The names and addresses of the applicants and an itemized account of the financial condition of the applicants and the proposed credit union.

      (d) The name, which [shall] must include the words “credit union,” and the principal place of business.

      (e) Any other additional information which the [commissioner] administrator may require to determine the character and responsibility of the applicants and the need for a credit union in the community to be served.

      (f) The incorporators shall submit a set of proposed bylaws to the [commissioner] administrator with their application and the bylaws when approved by the [commissioner] administrator are effective upon filing the articles of incorporation.

The [commissioner] administrator shall approve or disapprove the application within 30 days following its receipt.

      4.  Every application for permission to organize, as provided for in this section, [shall] must be accompanied by an application fee and a fee payment to cover expenses attendant upon the investigation required for such approval. The amount of the fees [shall] must be established by regulation adopted by the [commissioner.] administrator.

      5.  The subscribers for a credit union charter shall not transact any business until formal approval of the charter has been received.

      Sec. 382.  NRS 678.320 is hereby amended to read as follows:

      678.320  1.  The articles of incorporation or bylaws may be amended as provided in the bylaws. Any amendment to the articles of incorporation or bylaws [shall] do not become effective until approved in writing by the [commissioner.] administrator.

      2.  The [commissioner] administrator shall not charge any fee for approving amendments to the articles of incorporation or bylaws of any credit union organized pursuant to this chapter.

      Sec. 383.  NRS 678.330 is hereby amended to read as follows:

      678.330  1.  A credit union may maintain, with the approval of the [commissioner,] administrator, offices at locations other than its main office if the maintenance of such offices is reasonably necessary to furnish service to its members.

 


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ê1983 Statutes of Nevada, Page 1833 (Chapter 581, SB 418)ê

 

main office if the maintenance of such offices is reasonably necessary to furnish service to its members.

      2.  A credit union may change its principal place of business within this state upon providing written notice to the division [.] of financial institutions.

      3.  A credit union may share office space with one or more credit unions and contract with a corporation to provide facilities or personnel.

      Sec. 384.  NRS 678.370 is hereby amended to read as follows:

      678.370  The directors of a credit union shall:

      1.  Purchase a blanket fidelity bond in accordance with the regulations of the [commissioner] administrator which provides the credit union with protection against losses from misappropriation, defalcation in breach of trust, negligence, acts of God or nature, fire, burglary, [holdup] robbery or other cause over which the bonded officers, employers and agents had no control;

      2.  Declare dividends in the manner prescribed in the bylaws;

      3.  Determine the interest rate to be charged on loans and paid on deposits;

      4.  Limit the number of shares and the amount of deposits which may be owned by any member;

      5.  Establish the compensation of all employees and officers;

      6.  Establish the maximum secured and unsecured loan which may be made to any one member;

      7.  Designate a depository or depositories for the funds of the credit union;

      8.  Suspend or remove any member who fails to perform or negligently performs his assigned duties;

      9.  Establish compensation to be paid any employee, officer or other persons performing services on behalf of the credit union;

      10.  Determine from time to time the interest rate, consistent with the provisions of this chapter, which [shall] will be charged on loans;

      11.  Authorize interest refunds to members from income earned and received in proportion to interest paid by them on such classes of loans. Such refunds [shall be] are subject to conditions imposed by the board.

      Sec. 385.  NRS 678.390 is hereby amended to read as follows:

      678.390  1.  The board may appoint an audit committee to make an annual audit of the financial records of the credit union and any interim audits as may be deemed necessary by the board or as may be directed by the [commissioner.] administrator. A copy of the report must be submitted to the board and the [commissioner] administrator and a summary presented to the members at the next annual meeting.

      2.  The audit committee may by unanimous vote suspend any director, officer or member of the credit union following an audit, for any violation of this chapter, the charter or bylaws or for any other practice which the audit committee deems to be unsafe or unauthorized. In such cases, the audit committee shall call a special meeting of the members not less than 7 nor more than 21 days following the suspension and the suspension must be ratified or overturned by the members.

 


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ê1983 Statutes of Nevada, Page 1834 (Chapter 581, SB 418)ê

 

such cases, the audit committee shall call a special meeting of the members not less than 7 nor more than 21 days following the suspension and the suspension must be ratified or overturned by the members.

      3.  Any member of the audit committee may be suspended by the board for the same reasons and in the same manner as in subsection 2.

      4.  The audit committee may by a majority vote call a special meeting of the members to consider any violation of this chapter, the charter or bylaws or any practice of the credit union deemed by the audit committee to be unsafe or unauthorized.

      5.  In lieu of having an audit committee the board of directors may employ the services of a public accountant or credit union auditing service to complete the necessary audit of the records of the credit union.

      Sec. 386.  NRS 678.410 is hereby amended to read as follows:

      678.410  If the [commissioner] administrator notifies the board in writing that he has information that any director, officer or employee of such credit union is failing in the performance of his duties, the board shall meet and consider such matter forthwith. The [commissioner] administrator shall have notice of the time and place of such meeting. If the board of directors finds the [commissioner’s] administrator’s objection to be well founded, such director, officer or employee shall be removed immediately.

      Sec. 387.  NRS 678.420 is hereby amended to read as follows:

      678.420  1.  At the organizational meeting and within 30 days following each annual meeting, the directors shall elect, from their own number, the executive officers of the corporation. Such officers [shall] must be designated as:

      (a) Chairman of the board;

      (b) Vice chairman of the board;

      (c) Treasurer; and

      (d) Secretary.

The treasurer and secretary may be the same person.

      2.  The treasurer or general manager shall give a fidelity bond with good and sufficient surety in an amount and character to be determined by the board in compliance with regulations prescribed by the [commissioner.] administrator.

      3.  Each officer shall serve a term of 1 year or until such time as successors are chosen and have [duly] qualified.

      4.  The duties of each officer [shall] must be as prescribed in the bylaws of the credit union.

      Sec. 388.  NRS 678.430 is hereby amended to read as follows:

      678.430  Within 30 days following the election of the executive officers, the secretary shall submit to the [commissioner] administrator a list of the names and addresses of the directors, officers and committee members who have been elected or appointed.

 


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ê1983 Statutes of Nevada, Page 1835 (Chapter 581, SB 418)ê

 

      Sec. 389.  NRS 678.470 is hereby amended to read as follows:

      678.470  A credit union may, subject to the regulations or approval of the [commissioner:] administrator:

      1.  Receive from its members or from the members of another credit union deposits which are payable on demand and honor requests for withdrawals in the form of checks or drafts.

      2.  Receive deposits from the state treasurer which are payable on demand pursuant to the provisions of chapter 356 of NRS.

      3.  Borrow from any source in accordance with the policy established by the board of directors and discount and sell any eligible obligations.

      4.  Sell all or any part of its assets or purchase all or any part of the assets of another credit union.

      Sec. 390.  NRS 678.670 is hereby amended to read as follows:

      678.670  1.  Prior to the payment of any dividend, the gross earnings of the credit union must be determined. From the gross earnings a regular reserve against losses [shall] must be set aside according to the following schedule:

      (a) Until the regular reserve equals 7.5 percent of the outstanding loans and risk assets, all credit unions with assets of $500,000 or less shall withhold 10 percent of the gross earnings. Thereafter, 5 percent of the gross income [shall] must be withheld until the regular reserve reaches 10 percent of the outstanding loans and risk assets.

      (b) Whenever a credit union has assets of more than $500,000 and has been in operation for at least 4 years, it shall maintain its regular reserve as follows:

             (1) Until the regular reserve equals 4 percent of the outstanding loans and risk assets, the credit union shall withhold 10 percent of its gross earnings.

             (2) Thereafter, until the regular reserve equals 6 percent of its outstanding loan and risk assets, the credit union shall withhold 5 percent of its gross earnings.

      (c) Whenever the regular reserve falls below the required levels, it [shall] must be replenished by regular contributions sufficient to maintain the regular reserve at the levels required by paragraphs (a) and (b).

      2.  All entrance fees, charges and transfer fees shall, after the payment of organizational expenses, be added to the regular reserve.

      3.  The regular reserve belongs to the credit union and [shall] must not be distributed except on liquidation of the credit union or in accordance with a plan approved by the [commissioner.] administrator.

      Sec. 391.  NRS 678.680 is hereby amended to read as follows:

      678.680  In addition to regular reserve, special reserves to protect the interest of members [shall] must be established when:

      1.  Required by regulations issued by the [commissioner;] administrator; or

      2.  Directed by the board of the credit union.

 


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ê1983 Statutes of Nevada, Page 1836 (Chapter 581, SB 418)ê

 

      Sec. 392.  NRS 678.750 is hereby amended to read as follows:

      678.750  1.  A credit union may purchase insurance on the lives of its members in an amount equal to their respective shares, deposits and loan balances or any of them.

      2.  A credit union may enter into cooperative marketing arrangements for its members covering such services as group life insurance, temporary disability coverage, health and accident plans and such other programs which are demonstrated to be in the interest of improving the economic and social conditions of the credit union’s members.

      3.  A credit union must apply to the [commissioner] administrator for approval of a plan of insurance for members’ accounts, either pursuant to the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.), or under a contract or policy of insurance issued by an insurer holding a certificate of authority to transact insurance in this state, and take all actions necessary to maintain an insured status thereunder.

      4.  The [commissioner] administrator shall make available reports of the financial condition of credit unions, reports of examinations made pursuant to NRS 678.790 and any other reports that may be required by the insurer and deemed appropriate by the [commissioner.] administrator. If a credit union is closed because of bankruptcy or insolvency, the [commissioner] administrator may appoint a liquidating agent.

      Sec. 393.  NRS 678.760 is hereby amended to read as follows:

      678.760  Funds not used in loans to members may be invested in:

      1.  Securities, obligations, participations or other instruments of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in these instruments;

      2.  Obligations of this state or any political subdivision thereof;

      3.  Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or savings and loan association;

      4.  Loans to or shares or deposits of other credit unions as permitted by the bylaws;

      5.  Capital shares, obligations or preferred stock issues of any agency or association organized either as a stock company, mutual association or membership corporation if the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions, and the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;

      6.  Shares of a cooperative society organized under the laws of this state or the United States in a total amount not exceeding 10 percent of the shares, deposits and surplus of the credit union;

      7.  Stocks and bonds of United States corporations to a maximum of 5 percent of members’ shares, except that such an investment must be limited to stocks or bonds yielding income which are approved by the [commissioner;] administrator; and

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1837 (Chapter 581, SB 418)ê

 

of 5 percent of members’ shares, except that such an investment must be limited to stocks or bonds yielding income which are approved by the [commissioner;] administrator; and

      8.  Loans to any credit union association, national or state, of which the credit union is a member, except that such an investment must be limited to 1 percent of the shares, capital deposits and unimpaired surplus of the credit union.

      Sec. 394.  NRS 678.780 is hereby amended to read as follows:

      678.780  1.  Every credit union organized under this chapter shall submit an annual financial report for the calendar year to the [commissioner] administrator on or before the 1st day of February on forms supplied by him for that purpose.

      2.  Any credit union that does not submit such report within 15 days after the due date is subject to a penalty of $5 for each day the report remains delinquent, which the [commissioner] administrator may forgive for good cause shown.

      Sec. 395.  NRS 678.800 is hereby amended to read as follows:

      678.800  1.  Any credit union may, with the approval of the [commissioner,] administrator, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of each credit union joining in the merger and approved by the affirmative vote of a majority of the members of each credit union present at meetings called for such purpose.

      2.  After agreement by the directors and approval by the members of each credit union, the chairman and secretary of each credit union shall execute a certificate of merger, which [shall] must set forth:

      (a) The time and place of the meeting of the board of directors at which the plan was agreed upon;

      (b) The vote in favor of adoption of the plan;

      (c) A copy of the resolution or other action by which the plan was agreed upon;

      (d) The time and place of the meeting of the members at which the plan agreed upon was approved; and

      (e) The vote by which the plan was approved by the members.

      3.  A copy of each of the certificates executed pursuant to subsection 2 and a copy of the plan of merger agreed upon by the merging credit unions [shall] must be forwarded to the division of financial institutions for certification and returned to the merging credit unions within 30 days.

      4.  After a merger is effected, all property, property rights and interest of the merged credit union [shall vest] vests in the surviving credit union without deed, endorsement or other instrument of transfer, and all debts, obligations and liabilities of the merged credit union shall be deemed to have been assumed by the surviving credit union under whose charter the merger was effected.

      5.  This section is to be liberally construed to permit a credit union chartered under this chapter to merge with a credit union chartered under any other provisions of law.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1838 (Chapter 581, SB 418)ê

 

chartered under this chapter to merge with a credit union chartered under any other provisions of law.

      Sec. 396.  NRS 678.810 is hereby amended to read as follows:

      678.810  1.  A credit union chartered under the laws of this state may be converted to a credit union chartered under the laws of any other state or under the laws of the United States, subject to regulations adopted by the [commissioner.] administrator.

      2.  A credit union chartered under the laws of the United States or of any other state may convert to a credit union chartered under the laws of this state. To effect such a conversion, a credit union must comply with all the requirements of the authority under which it was originally chartered and the requirements of the [commissioner] administrator and file proof of such compliance with the [commissioner.] administrator.

      Sec. 397.  Section 2 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 2.  As used in sections 2 to 14, inclusive, of [this act,] Senate Bill No. 122 of this session, unless the context otherwise requires:

       1.  “Bank holding company” means a company:

       (a) Which directly or indirectly owns or controls 25 percent or more of the voting stock of a bank licensed by the [superintendent;] administrator;

       (b) Which controls the election of a majority of the directors of a bank; or

       (c) For the benefit of whose stockholders 25 percent or more of the voting stock of a bank is held by one or more trustees.

       2.  “Business trust” means an organization in which a business or property is conveyed to trustees who manage the business or property for the benefit of the holders of the beneficial interest in the trust. The term does not include a voting trust.

       3.  “Company” means any corporation, business trust, association or similar entity, but does not include:

       (a) A natural person; or

       (b) A corporation of which a majority of the stock is owned by the United States or any state.

      Sec. 398.  Section 3 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 3.  1.  There is a rebuttable presumption that a company which directly or indirectly owns, controls or has the power to vote less than 5 percent of the voting stock of a bank does not control the bank.

       2.  An estate, trust, guardianship or conservatorship is not by virtue of its ownership or control of stock of a bank a bank holding company unless it is:

       (a) A business trust; or

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1839 (Chapter 581, SB 418)ê

 

       (b) A voting trust which by its terms or by law does not expire within 10 years after the date of its establishment.

       3.  A company is not a bank holding company by virtue of its ownership or control of stock which:

       (a) Was acquired in the ordinary course of securing or collecting a debt which the company previously contracted in good faith; and

       (b) Is held only as long as is necessary to sell the stock on a reasonable basis.

       4.  A bank holding company which is domiciled outside of Nevada and which does not control a bank licensed by the [superintendent] administrator is not under the jurisdiction of this state until it applies for approval to acquire control of such a bank. A bank holding company which is domiciled outside of Nevada must receive the approval of the [superintendent] administrator before acquiring control of a bank licensed by the [superintendent.] administrator.

      Sec. 399.  Section 4 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 4.  1.  The [superintendent] administrator may adopt such regulations as may be necessary to carry out the provisions of sections 2 to 14, inclusive, of [this act.] Senate Bill No. 122 of this session.

       2.  The [superintendent] administrator may require bank holding companies to submit reports under oath to determine whether they have complied with the provisions of sections 2 to 14, inclusive, of [this act] Senate Bill No. 122 of this session and any regulations adopted pursuant to this section.

      Sec. 400.  Section 5 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 5.  1.  Except as provided in subsection 4, a person who desires to form a bank holding company after July 1, 1983, must be approved by the [superintendent] administrator before forming the company.

       2.  The application for approval must include such information with respect to the financial condition, operations, management and intercompany relationships of the applicant and related matters, as the [superintendent] administrator may deem necessary or appropriate.

       3.  The [superintendent] administrator shall approve the application if he determines that the applicant or its officers, directors and stockholders are of such character and fitness that any bank acquired by the applicant will be operated in a safe, prudent and profitable manner.

       4.  The [superintendent] administrator may accept copies of federal registration in lieu of requiring an application for approval of a bank holding company.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1840 (Chapter 581, SB 418)ê

 

      Sec. 401.  Section 6 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 6.  1.  A bank holding company must receive the approval of the [superintendent] administrator before acquiring a bank.

       2.  The application for approval must include such information with respect to the financial condition, operations, management and intercompany relationships of the bank which is to be acquired and the bank holding company as the [superintendent] administrator may deem necessary or appropriate.

       3.  In considering the application for approval, the [superintendent] administrator shall consider:

       (a) The financial condition of the bank holding company and any banks owned by it;

       (b) The probable effect of the acquisition on:

             (1) The bank holding company;

             (2) Any banks owned by the bank holding company; and

             (3) The bank which is to be acquired; and

       (c) The effect of the acquisition upon competition in banking.

      Sec. 402.  Section 7 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 7.  1.  Any transfer of stock or trust certificates of a bank holding company by sale, gift or otherwise, which will result in giving the person who receives the shares voting control of the bank holding company must be approved by the [superintendent] administrator before the transfer.

       2.  The [superintendent] administrator shall not approve a transfer if he determines that the person who will gain control has been removed from a position as a director, officer or employee of a bank holding company, bank or other financial institution pursuant to an order of a state or federal agency.

       3.  The [superintendent] administrator may disapprove the transfer if in his opinion the person who will gain control does not meet the requirements for an officer, director or stockholder set forth in subsection 3 of section 5 of [this act.] Senate Bill No. 122 of this session.

      Sec. 403.  Section 8 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 8.  1.  If the [superintendent] administrator determines that a director, officer or employee of a bank holding company has been negligent, dishonest, reckless or incompetent in connection with his duties, the [superintendent] administrator may issue a written order requiring the person to be removed from his position.

       2.  The person affected by the order of the [superintendent] administrator may petition the district court for the judicial district in which the bank holding company is located to set aside the order.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1841 (Chapter 581, SB 418)ê

 

administrator may petition the district court for the judicial district in which the bank holding company is located to set aside the order. The court may affirm, modify or set aside the order.

       3.  If a director, officer or employee is not removed in accordance with an order of the [superintendent] administrator and the [superintendent] administrator has reasonable cause to believe that the continued participation of the person in the affairs of the bank holding company will place it in an unsafe or unsound condition, the [superintendent] administrator may apply to the district court for the judicial district in which the bank holding company is located for a temporary restraining order and an injunction prohibiting the person from participating in the affairs of the bank holding company.

      Sec. 404.  Section 9 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 9.  If the board of directors of a bank holding company neglects or refuses to remove a person pursuant to an order of the [superintendent] administrator and the company subsequently incurs losses because of that person’s activities, the written order of the [superintendent] administrator is conclusive evidence, in any action against the directors or a director for recovery of those losses, of the negligence of the directors in failing to act upon the order.

      Sec. 405.  Section 10 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 10.  1.  If the [superintendent] administrator has reasonable cause to believe that a bank holding company:

       (a) Is engaging, has engaged or is about to engage in any unsafe or unsound practice in connection with the bank holding company or a bank which it owns or controls; or

       (b) Is violating, has violated or is about to violate a law, regulation or condition imposed in a written agreement between the [superintendent] administrator and the bank holding company,

the [superintendent] administrator may issue and serve upon the company a notice of the charges against the company.

       2.  A notice issued pursuant to subsection 1 must contain a statement of the facts which constitute the violation or unsafe or unsound practice and must set a time and place for a hearing to determine whether the [superintendent] administrator should issue an order to cease and desist from the activity. The hearing must be held not less than 20 nor more than 60 days after service of the notice unless an earlier or later date is set by the director of the department of commerce at the request of the bank holding company.

      Sec. 406.  Section 11 of Senate Bill No. 122 of this session is hereby amended to read as follows:

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1842 (Chapter 581, SB 418)ê

 

       Sec. 11.  1.  If a representative of the bank holding company does not appear at the hearing, the company shall be deemed to have consented to the issuance of an order to cease and desist.

       2.  If the bank holding company consents to the issuance of the order or if the [superintendent] administrator determines at the hearing that the company has engaged in or will engage in the activity charged, the [superintendent] administrator may issue and serve upon the company an order to cease and desist from the activity.

       3.  The order may, by mandatory or prohibitory provisions, require the bank holding company and its directors, officers, employees and agents not to engage in the activity to which the order applies and to take action to correct conditions resulting from that activity.

       4.  An order issued pursuant to this section becomes effective at the time specified in the order and remains effective as provided in it unless it is stayed, modified or set aside by the [superintendent] administrator or a reviewing court.

      Sec. 407.  Section 12 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 12.  1.  If the [superintendent] administrator determines that the existing or threatened activity specified in a notice of charges is likely to:

       (a) Cause insolvency or substantial dissipation of the assets or earnings of a bank which is owned or controlled by the bank holding company; or

       (b) Seriously prejudice the interests of the depositors in such a bank, the [superintendent] administrator may issue a temporary order requiring the bank holding company to cease and desist from the activity.

       2.  The temporary order becomes effective when served upon the bank holding company and remains effective until it is set aside by the [superintendent] administrator or a reviewing court or a permanent order is issued against the bank.

      Sec. 408.  Section 13 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 13.  1.  Within 10 days after a bank holding company has been served with a temporary order to cease and desist, the company may apply to the district court for the judicial district in which the company is located for an injunction limiting or setting aside the order until the hearing is held pursuant to the notice of charges.

       2.  If a bank holding company violates or threatens to violate a temporary order, the [superintendent] administrator may apply to the district court for the judicial district in which the bank holding company is located for an injunction prohibiting the company from violating the order.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1843 (Chapter 581, SB 418)ê

 

      Sec. 409.  Section 13.5 of Senate Bill No. 122 of this session is hereby amended to read as follows:

       Sec. 13.5.  1.  The [superintendent] administrator may apply to the district court for an order compelling compliance with any provision of sections 2 to 13, inclusive, of [this act.] Senate Bill No. 122 of this session. The court may award the [superintendent] administrator the costs of bringing the action and attorney’s fees.

       2.  The [superintendent] administrator may bring an action against a person who violates a court order or injunction issued pursuant to this section or sections 2 to 13, inclusive, of [this act] Senate Bill No. 122 of this session to recover a civil penalty of not more than $10,000 for each violation.

      Sec. 410.  Section 2 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 2.  1.  A licensee shall post each license in a conspicuous place in the office to which it pertains.

       2.  A license may not be transferred or assigned unless the [commissioner] administrator gives his written approval.

      Sec. 411.  Section 3 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 3.  1.  As used in this section, “change of control” means:

       (a) A transfer of voting stock which results in giving a person, directly or indirectly, the power to direct the management and policy of a mortgage company; or

       (b) A transfer of at least 10 percent of the outstanding voting stock of a mortgage company.

       2.  The [commissioner] administrator must approve a transfer of voting stock of a mortgage company which constitutes a change of control.

       3.  The owner, president, chief executive officer or a partner shall apply to the [commissioner] administrator for approval of a transfer of voting stock in his mortgage company which constitutes a change of control. The application must contain information which shows that the requirements of this chapter for obtaining a license will be satisfied after the change of control.

      Sec. 412.  Section 4 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 4.  1.  The fund for mortgage investors is hereby created as a special revenue fund. Except as otherwise provided in subsection 2, a balance of not more than $1,000,000 must be maintained in the fund, to be used for satisfying claims against persons licensed under this chapter.

       2.  Any interest earned on the money in the fund must be credited to the fund and must be accounted for as separate income. The balance in the fund may be increased to more than $1,000,000 only if the amount over $1,000,000 is from interest earned on the money in the fund and is not collected from persons licensed under this chapter.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1844 (Chapter 581, SB 418)ê

 

$1,000,000 only if the amount over $1,000,000 is from interest earned on the money in the fund and is not collected from persons licensed under this chapter.

       3.  The [commissioner] administrator shall administer the fund.

      Sec. 413.  Section 5 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 5.  1.  After a licensee has transacted business in this state as a mortgage company for 2 consecutive years, the [commissioner] administrator shall relieve him of the requirement of depositing a bond or letter of credit if he pays the annual fee pursuant to subsection 2.

       2.  Each licensee who is relieved of the requirement of depositing a bond or letter of credit, shall pay by June 30 of each year, in addition to the fee for renewal, a fee for claims against persons licensed under this chapter, to be deposited in the state treasury for credit to the fund for mortgage investors. The initial amount of this fee is $500. After the fund reaches a balance of $1,000,000, the [commissioner] administrator shall establish this fee as a percentage of the volume of loans in dollars originated in this state in the preceding calendar year by each mortgage company. The percentage must be established at such a rate that the balance in the fund under normal circumstances is not reduced substantially below $1,000,000.

       3.  If, after July 1, 1985, the balance in the fund is less than $100,000, the [commissioner] administrator shall establish and collect from each licensee required to pay the annual fee pursuant to subsection 2, at the time that fee is paid, an assessment in an amount which is sufficient to increase the balance to at least $100,000. The [commissioner] administrator may establish and collect such an assessment only once in any 1 year.

      Sec. 414.  Section 5.5 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 5.5.  1.  A claim for payment from the fund for mortgage investors must be filed with the [commissioner.] administrator.

       2.  The [commissioner] administrator shall approve a claim for any actual unpaid losses incurred by the claimant and request payment from the available money in the fund in an amount not exceeding $100,000 per licensee if:

       (a) The claimant has obtained a final judgment in any court of competent jurisdiction against a licensee under this chapter, upon grounds of fraud, misrepresentation or deceit with reference to any transaction for which a license is required under this chapter; or

       (b) The licensee, pursuant to NRS 645B.100 to 645B.160, inclusive, has had his license permanently revoked upon grounds of fraud, misrepresentation or deceit with reference to any transaction for which a license is required under this chapter.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1845 (Chapter 581, SB 418)ê

 

fraud, misrepresentation or deceit with reference to any transaction for which a license is required under this chapter.

       3.  If there is an insufficient amount of money in the fund to satisfy any claim that may be made pursuant to this section, the [commissioner] administrator may designate a receiver to represent the interests of the claimants affected or petition a court to make payments from the fund in any manner that it may find equitable.

      Sec. 415.  Section 5.7 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 5.7.  If the [commissioner] administrator pays any amount of money from the fund for mortgage investors to a claimant, the [commissioner] administrator is subrogated to all rights of the claimant against the licensee or any other person relating to the loss, and the claimant shall assign all his right, title and interest in the claim to the [commissioner] administrator on behalf of the fund. Any amount recovered by the [commissioner] administrator pursuant to this section must be deposited in the state treasury for credit to the fund.

      Sec. 416.  Section 5.9 of Assembly Bill No. 138 of this session is hereby amended to read as follows:

       Sec. 5.9.  If the [commissioner] administrator pays any amount of money from the fund for mortgage investors in settlement of a claim or toward the satisfaction of a judgment against a licensee who has not been relieved of the requirement of depositing a bond or letter of credit, the [commissioner] administrator may, on behalf of the fund, commence an action to recover against the bond or letter of credit. Any amount recovered by the [commissioner] administrator pursuant to this section must be deposited in the state treasury for credit to the fund.

      Sec. 417.  NRS 649.043, 649.415, 649.425, 657.025, 657.065, 669.060, 673.0055, 673.0351, 673.0353, 673.0354, 676.090, 677.080, 678.060 and 678.280 are hereby repealed.

      Sec. 418.  The regulations of the superintendent of banks, the commissioner of savings associations, the director of the department of commerce, adopted pursuant to chapter 677 of NRS, and the commissioner of credit unions in effect on June 30, 1983, become regulations of the administrator of financial institutions and remain in effect until such time as they are revised by the administrator.

      Sec. 419.  The legislative counsel shall, in preparing the supplement to Nevada Revised Statutes with respect to any section which is not amended by this act or is further amended by another act:

      1.  Appropriately correct any reference to an officer or agency whose designation is changed by this act.

      2.  If an internal reference is made to a section repealed by this act, delete the reference or correct it by reference to the superseding section, if any.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1846 (Chapter 581, SB 418)ê

 

      Sec. 420.  Sections 1, 6, 11, 13, 15, 16, 19, 40, 41, 50, 112, 120, 134, 137, 139, 176, 195, 218, 230, 233, 234, 235, 237, 240, 241, 245, 246, 249, 279 and sections 397 to 416, inclusive, of this act shall become effective at 12:01 a.m. on July 1, 1983.

 

________

 

 

CHAPTER 582, AB 536

Assembly Bill No. 536–Assemblymen Vergiels, Jeffrey, Stewart and Kovacs

CHAPTER 582

AN ACT relating to gaming; providing for administrative resolution of certain gaming disputes; providing for judicial review; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 463 of NRS is hereby amended by adding thereto the provisions as set forth in sections 2 to 8, inclusive, of this act.

      Sec. 2.  1.  Except as provided in sections 2 to 8, inclusive, of this act, gaming debts not evidenced by a credit instrument are void and unenforceable and do not give rise to any administrative or civil cause of action.

      2.  A claim by a patron of a licensee for payment of a gaming debt not evidenced by a credit instrument may be resolved by the board in accordance with sections 3 to 8, inclusive, of this act.

      Sec. 3.  1.  Whenever a licensee refuses payment of alleged winnings to a patron, the licensee shall immediately notify the board. The board, through an agent, shall conduct whatever investigation it deems necessary and shall determine whether or not payment should be made.

      2.  The board’s agent shall notify the board, the licensee and the patron of his decision resolving the dispute, in writing, within 30 days after the date when the board first received notification from the licensee.

      3.  Failure to notify the board as provided in subsection 1 is grounds for disciplinary action pursuant to NRS 463.310 and 463.312.

      Sec. 4.  1.  Within 20 days after the date of the agent’s written decision, the aggrieved party may file a petition with the board requesting a hearing to reconsider the decision. The petition must set forth the basis of the request for reconsideration.

      2.  If no petition for reconsideration is filed within 20 days after the date of the agent’s decision, the decision shall be deemed final action on the matter and is not subject to reconsideration by the board or to review by the commission or any court.

      3.  The party requesting the hearing must provide a copy of the petition to the other party.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1847 (Chapter 582, AB 536)ê

 

      4.  Within 15 days after service of the petition, the responding party may answer the allegations contained therein by filing a written response with the board.

      5.  The board shall schedule a hearing and may conduct the hearing as provided in subsection 4 of NRS 463.110, except that notice of the date, time and place of the hearing must be provided by the board to both parties.

      6.  The hearing must be conducted in accordance with subsections 10 to 12, inclusive, paragraphs (b) to (g), inclusive, of subsection 13 and subsections 14 to 17, inclusive, of NRS 463.312, except that the board must be substituted for the commission.

      Sec. 5.  1.  The party seeking reconsideration bears the burden of showing that the agent’s decision should be reversed or modified.

      2.  After the hearing, the board may sustain, modify or reverse the agent’s decision. The decision by the board must be in writing and must include findings of fact. A copy of the board’s decision must be delivered or mailed forthwith to each party or to his attorney of record.

      Sec. 6.  1.  The decision of the board is subject to judicial review pursuant to NRS 463.315, except that the board may not entertain a petition for rehearing.

      2.  The party requesting judicial review shall bear all of the costs of transcribing the proceedings before the board and of transmitting the record on review.

      Sec. 7.  A licensee shall pay a patron’s claim within 20 days after the decision directing him to do so becomes final. Failure to pay within that time is grounds for disciplinary action pursuant to NRS 463.312.

      Sec. 8.  The commission may adopt such regulations as it deems necessary to carry out the provisions of sections 3 to 8, inclusive, of this act.

      Sec. 9.  This act shall become effective upon passage and approval and applies only to transactions occurring on or after that date.

 

________

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1848ê

 

CHAPTER 583, AB 543

Assembly Bill No. 543–Committee on Commerce

CHAPTER 583

AN ACT relating to liens; requiring notice of lis pendens to be filed under certain circumstances; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 108.239 is hereby amended to read as follows:

      108.239  1.  Liens may be enforced by an action in any court of competent jurisdiction, on setting out in the complaint the particulars of the demand, with a description of the premises to be charged with the lien.

      2.  At the time of filing the complaint and issuing the summons, the plaintiff shall cause a notice to be published at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons holding or claiming liens under the provisions of NRS 108.221 to 108.246, inclusive, on the premises to file with the clerk and serve on the plaintiff and also on the defendant, if the defendant is within the state or is represented by counsel, written statements of the facts constituting their liens, together with the dates and amounts thereof. The statements must be filed within 10 days of the last publication of the notice. The plaintiff and other parties adversely interested must be allowed 5 days to answer the statements.

      3.  If it appears from the records of the county recorder that there are other lien claims recorded against the same premises at the time of the commencement of the action, the plaintiff shall, in addition to and after the initial publication of the notice as provided in subsection 2, mail to those other lien claimants, by registered or certified mail, or deliver in person a copy of the notice as published.

      4.  At the time of any change in the venue of the action, the plaintiff shall record a notice of pendency of the action, in the manner provided in NRS 14.010, and include in the notice the court and county to which the action is changed.

      5.  The court shall enter judgment according to the right of the parties, and shall, by decree, proceed to hear and determine the claims in a summary way, or may, if it be the district court, refer the claims to a master to ascertain and report upon the liens and the amount justly due thereon. All liens not so exhibited shall be deemed to be waived in favor of those which are so exhibited.

      [5.]6.  On ascertaining the whole amount of the liens with which the premises are justly chargeable, as provided in NRS 108.221 to 108.246, inclusive, the court shall cause the premises to be sold in satisfaction of the liens and costs, including costs of suit, and any party in whose favor judgment may be rendered may cause the premises to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.

 


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ê1983 Statutes of Nevada, Page 1849 (Chapter 583, AB 543)ê

 

satisfaction of the liens and costs, including costs of suit, and any party in whose favor judgment may be rendered may cause the premises to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.

      [6.]7.  If the proceeds of sale, after the payment of costs, are not sufficient to satisfy the whole amount of the liens included in the decree of sale, the proceeds must be apportioned according to the right of the several parties. If the proceeds of the sale amount to more than the sum of the liens and the cost of sale, the remainder must be paid over to the owner of the property.

      [7.]8.  Each party whose claim is not satisfied in the manner provided in this section is entitled to personal judgment for the residue against the party legally liable for it if that person has been personally summoned or has appeared in the action.

      Sec. 2.  NRS 14.010 is hereby amended to read as follows:

      14.010  1.  In an action for the foreclosure of a mortgage upon real property, or affecting the title or possession of real property, the plaintiff, at the time of filing the complaint, and the defendant, at the time of filing his answer, [when] if affirmative relief is claimed in [such answer, or at any time afterwards, may] the answer, shall file with the recorder of the county in which the property, or some part thereof, is situated, a notice of the pendency of the action, containing the names of the parties, the object of the action [,] and a description of the property [,] in that county affected thereby, and the defendant [may] shall also in [such] the notice state the nature and extent of the relief claimed in the answer.

      2.  A notice of an action affecting real property, which action is pending in any United States District Court for the District of Nevada may be recorded and indexed in the same manner and in the same place as provided with respect to actions pending in courts of this state.

      3.  From the time of filing [,] only, [shall] the pendency of the action [be] is constructive notice to a purchaser or [incumbrancer] encumbrancer of the property affected thereby; and in case of the foreclosure of [such] the mortgage , all purchasers or [incumbrancers,] encumbrancers, by unrecorded deed or other instrument in writing made [prior to] before the filing of [such] the notice, and [subsequent to] after the date of [such] the mortgage, shall be deemed [and held] purchasers or [incumbrancers subsequent to] encumbrancers after the filing of [such] the notice, and subject thereto, unless they can show that at the time of filing the notice the plaintiff had actual notice of [such] the purchase or [incumbrance.] encumbrance.

 

________

 

 


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ê1983 Statutes of Nevada, Page 1850ê

 

CHAPTER 584, AB 570

Assembly Bill No. 570–Assemblymen Collins, Price, Chaney, Schofield, Joerg, Bergevin, Stone, Perry, Nevin, Marvel, Brady, Fay, Bogaert, Nicholas, DuBois, Sedway, Francis, Bilyeu, Kerns, Craddock, Berkley, Humke, Redelsperger, Thompson, Sader, Thomas, Zimmer, Coffin, Beyer, Jeffrey, Stewart, Getto, Ham, Banner, Bourne, Kovacs, Dini and Vergiels

CHAPTER 584

AN ACT to amend an act entitled “An Act incorporating the City of North Las Vegas, in Clark County, Nevada, and defining the boundaries thereof, under a new charter; and providing other matters properly relating thereto,” approved April 26, 1971, as amended.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  The above-entitled act, being chapter 573, Statutes of Nevada 1971, as amended, is hereby further amended by adding Article VIIA to read as follows:

 

ARTICLE VIIA

 

Revitalization and Redevelopment

 

       Sec. 7A.010  Legislative declaration.  The legislature by the inclusion of this article in this charter declares that:

       1.  All of the property which is to be acquired by the city pursuant to this article must be owned, operated, administered and maintained for and on behalf of all of the people of the city.

       2.  The exercise by the city for the purposes, powers, rights, privileges, immunities and duties which are established, granted, conferred and imposed in this article promotes the public health, safety, prosperity, security, comfort, convenience and general welfare of all of the people of the state and will be of special benefit to the inhabitants of the city and the property within the city.

       3.  The provisions in this article which involve the purposes, powers, rights, privileges, immunities, liabilities, duties and disabilities with respect to the city will serve a public purpose.

       4.  The necessity for this article results from:

       (a) The large population growth in the urban areas which are included within the city and its environs, which constitutes in the aggregate a significant portion of the state’s population;

       (b) The numerous capital improvements and large amount of improved real property which is situate within the urban areas;

       (c) The need for capital improvements within certain areas within the city to provide needed services, facilities and other improvements for public use;

       (d) The existence of blighted or deteriorating areas within the city which constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety and general welfare of the people of the state, and particularly of the city;

 

 


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ê1983 Statutes of Nevada, Page 1851 (Chapter 584, AB 570)ê

 

city which constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety and general welfare of the people of the state, and particularly of the city;

       (e) The lack of municipally owned capital improvements and the blighted or deteriorating areas which present difficulties and handicaps beyond remedy and control solely by the regulatory processes in the exercise of the police power; and

       (f) Deficiencies which also constitute an economic and social liability which imposes onerous municipal burdens which decrease the tax base and reduce tax revenues, aggravate traffic hazards and the improvement of the traffic facilities.

       5.  The menace which results from the foregoing factors is becoming increasingly direct and substantial in its significance and effect.

       6.  The benefits which the city will derive from the remedying of these deficiencies by making available additional revenues to defray indirectly the costs of undertakings within the city which are authorized by NRS 268.672 to 268.740, inclusive, and the redevelopment of blighted or deteriorating areas within the city will inure to the inhabitants and the property owners of the city as a whole, will be of general benefit to those people and will be of special benefit to the taxable real property within a tax increment area and to the owners of that property.

       7.  The method of paying the bond requirements of the securities which are issued pursuant to this article is equitable and enables the city to issue securities to defray the cost of any project.

       8.  A general law cannot be made applicable to the city or to the properties, powers, rights, privileges, immunities, liabilities, duties and disabilities which pertain to the city, as provided in this article, because of the number of atypical factors and special conditions with respect to them.

       9.  For the accomplishment of the purposes which are provided in this section, each of the provisions of this article must be broadly construed.

       Sec. 7A.020  Definitions.  Except as is provided in this article or where the context otherwise requires, the terms which are used or referred to in this article are as defined in NRS 268.672 to 268.740, inclusive, and, except as is otherwise provided in those sections, as defined in NRS 350.500 to NRS 350.720, inclusive, but the definitions which are contained in sections 7A.030 to 7A.110, inclusive, of this charter, except where the context otherwise requires, govern the construction of this article.

       Sec. 7A.030  “Bond requirements” defined.  “Bond requirements” means the principal of, any prior redemption premiums due in connection with and the interest on the designated bonds or other securities.

 


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ê1983 Statutes of Nevada, Page 1852 (Chapter 584, AB 570)ê

 

       Sec. 7.040.  “Cost of undertaking” defined.  “Cost of the undertaking,” or any phrase of similar import, means the “cost of any project” as the latter phrase is defined in NRS 350.516.

       Sec. 7A.050  “Engineer” defined.  “Engineer,” without further qualification, means the city engineer or a firm of engineers which is employed by the city in connection with any undertaking or any project or the exercise of any power which is authorized in this article.

       Sec. 7A.060  “Facilities” defined.

       1.  “Facilities” means buildings, structures, utilities or other properties which pertain to any undertaking or project which is authorized in this article, including without limitation income-producing facilities and facilities which are acquired with the proceeds of bonds or other securities which are issued under that article.

       2.  The term includes all of the properties, real, personal, mixed or otherwise, which are acquired by the city or the public body, as the case may be, by any undertaking for any one or more projects through purchase, condemnation, construction or otherwise and are used in connection with any of those projects and related services or in any way which pertains to those projects or services, whether they are situate within or without, or both within and without, the corporate boundaries of the city or the territorial limits of the public body, as the case may be.

       Sec. 7A.070  “Mailed notice,” “notice by mail” defined.  “Mailed notice” and “notice by mail” each means the giving by the engineer, city clerk or any of their deputies, as determined by the city council, of any designated written or printed notice which must be addressed to any designated person, or to the last known owner of each tract in any tax increment area, at his last known address by the deposit, at least 20 days before the designated hearing or other time or event, in the United States mails, postage prepaid as first-class mail.

       Sec. 7A.080  “Posting” defined.  “Posting” means posting any required notice in three public places at or near the site of any designated undertaking or project at least 20 days before the designated hearing or other time or event.

       Sec. 7A.090  “Tax increment account” defined.  “Tax increment account” means a special account which is created pursuant to subsection 3 of section 7A.210 of this charter and the other provisions in this article which are supplemental to it.

       Sec. 7A.100  “Tax increment area” defined.  “Tax increment area” means the area which is specially benefited by an undertaking under this article, is designated by ordinance, as provided in subsection 3 of section 7A.210 of this charter, and in which is located the taxable property the assessed valuation of which is the basis for the allocation of tax proceeds to any tax increment account under section 7A.230 of this charter.

 


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ê1983 Statutes of Nevada, Page 1853 (Chapter 584, AB 570)ê

 

       Sec. 7A.110  “Undertaking” defined.  “Undertaking” means any enterprise to acquire, improve or equip (or any combination thereof) any project which is authorized in NRS 268.672 to 268.740, inclusive, and to defray the cost of that enterprise, wholly or in part, by the issuance of the city’s bonds or other securities which are payable, wholly or in part, from tax proceeds which are allocated to any tax increment account that pertains to the enterprise pursuant to section 7A.230 of this charter.

       Sec. 7A.120  Requirements for posting.

       1.  The posting of any notice which is required by this article must be verified by the affidavit or certificate of the engineer, city clerk, deputy or other person who posted the notice. The affidavit or certificate must be filed with the city clerk and retained in the records of the city at least until all of the bonds and other securities which pertain to any tax increment account have been paid in full or any claim which relates to those bonds or securities is barred by a statute of limitations.

       2.  The affidavit or certificate of posting is prima facie evidence of the posting of the notice in accordance with the requirements of this section.

       Sec. 7A.130  Requirements for notice by mail.

       1.  The name and address of any property owner to whom notice is required by this article may be obtained from the records of the county assessor or from any source which the clerk or the engineer deems to be reliable. Any list of the names and addresses which pertain to any tax increment area may be revised from time to time, but the list need not be revised more frequently than at 12-month intervals, if the list is needed for a period longer than 12 months.

       2.  The mailing of any notice which is required by this article must be verified by the affidavit or certificate of the engineer, city clerk, deputy, or other person who mailed the notice. The affidavit or certificate must be filed with the city clerk and, retained in the records of the city at least until all of the bonds and other securities which pertain to any tax increment account have been paid in full or any claim which relates to those bonds or securities is barred by a statute of limitations.

       3.  The affidavit or certificate of mailing is prima facie evidence of the mailing of the notice in accordance with the requirements of this section.

       Sec. 7A.140  Requirements for publication.

       1.  Any publication which is required by this article, except as otherwise expressly provided or necessarily implied in this article, must be made at least once a week for 3 consecutive weeks by three weekly insertions, the first publication being at least 15 days before the designated time or event. Unless it is otherwise stated, it is not necessary that publication be made on the same day of the week in each of the 3 calendar weeks, but not less than 14 days must intervene between the first publication and the last publication.

 


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ê1983 Statutes of Nevada, Page 1854 (Chapter 584, AB 570)ê

 

the week in each of the 3 calendar weeks, but not less than 14 days must intervene between the first publication and the last publication.

       2.  Publication is complete, if more than one insertion is required, on the day of the last publication.

       3.  Any publication which is required by this article must be verified by the affidavit of the publisher, which must be filed with the city clerk and retained in the records of the city at least until all of the bonds and other securities which pertain to any tax increment account have been paid in full or any claim which relates to those bonds or securities is barred by a statute of limitations.

       4.  The affidavit of publication is prima facie evidence of the publication of the notice in accordance with the requirements of this section.

       Sec. 7A.150  Authorization of tax increment area.

       1.  Except as is provided in subsections 2 and 3, the city council, on behalf of the city and in its name, may at any time designate a tax increment area within the city to create a special account for the payment of bonds or other securities which are issued to defray the cost of the acquisition, improvement or equipment (or any combination thereof) of any project which is authorized in NRS 268.672 to 268.740, inclusive, including without limitation the condemnation of property for the undertaking, as are supplemented by NRS 350.500 to 350.720, inclusive, except as is otherwise provided in this article.

       2.  A tax increment area may not be created by the city council if the total land area of the tax increment area exceeds 10 percent of the total land area, or if the total initial assessed valuation of the tax increment area exceeds 10 percent of the total assessed valuation of the taxable property which is situate within the city. As used in this subsection, “initial assessed valuation” means the assessed value as shown on the assessment roll which was last equalized before the designation of the area.

       3.  The right of way property of a railroad company which is under the jurisdiction of the Interstate Commerce Commission must not be included in a tax increment area unless the inclusion of that property is mutually agreed upon by the city council and the railroad company.

       Sec. 7A.160  Limitation upon acquisition of facilities.

       1.  The city may not acquire, as a part of its facilities, any property which, at the time of its acquisition, competes in any area with then-existing properties of a public body which provides the same or a similar function or service in the area, but the facilities of the city may complement the existing properties of a public body by providing in that area supplemental functions or services, if the existing properties provide inadequate functions or services.

 


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ê1983 Statutes of Nevada, Page 1855 (Chapter 584, AB 570)ê

 

services, if the existing properties provide inadequate functions or services.

       2.  The city may acquire properties of any public body which are situate in the city as one undertaking or a project of the city or an interest in that undertaking or project.

       Sec. 7A.170  Initiating procedure.

       1.  Whenever the city council is of the opinion that the interests of the city require any undertaking which is to be financed under this article, the governing body by resolution shall direct the engineer to prepare:

       (a) Preliminary plans and a preliminary estimate of the cost of the undertaking, including without limitation all of the estimated financing costs which are to be capitalized with the proceeds of the city’s securities and all other estimated incidental costs which relate to the undertaking;

       (b) A statement of the proposed tax increment area which pertains to the undertaking, the last finalized amount of the assessed valuation of the taxable property in the area and the amount of taxes (including in the amount the sum of all unpaid taxes, whether or not they are delinquent) which resulted from the last taxation of the property, based upon the records of the county assessor and the county treasurer; and

       (c) A statement of the estimated amount of the tax proceeds which are to be credited annually to the tax increment account during the term of the proposed securities which will be payable from those tax proceeds.

       2.  The resolution must describe the undertaking in general terms.

       3.  The resolution must state:

       (a) What part or portion of the expense of the undertaking must be paid with the proceeds of the securities which are issued by the city in anticipation of tax proceeds and are to be credited to the tax increment account and payable wholly or in part from those tax proceeds;

       (b) How the remaining part or portion of the expenses, if any, is to be financed; and

       (c) The basic security and any additional security for the payment of the securities of the city which pertain to the undertaking.

       4.  The resolution need not describe minutely each particular tract of taxable real property which is proposed to be included within the tax increment area, but may simply designate the tax increment area or its location in such a manner that the various tracts of taxable real property and taxable personal property which are situate within the tax increment area may be ascertained and determined to be either within or without the proposed tax increment area.

 


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ê1983 Statutes of Nevada, Page 1856 (Chapter 584, AB 570)ê

 

       5.  The engineer shall forthwith file with the city clerk the preliminary plans, estimate of cost and statements.

       6.  Upon the filing of the preliminary plans, estimate of cost and statements, the city council shall examine them, and, if it finds them to be satisfactory, by resolution provisionally order the undertaking.

       Sec. 7A.180  Provisional order resolution; notice of hearing.

       1.  In the provisional order resolution, the city council must set the time, which must be at least 20 days after the adoption of the resolution, and the place when and where any representative of the Federal Government, the state or any public body or any person who resides in the city or owns taxable personal or real property in the city, or any representative of that person, may appear before the governing body and be heard concerning the propriety and advisability of the undertaking.

       2.  Notice of that hearing must be given:

       (a) By mail;

       (b) By posting; and

       (c) By publication.

       3.  The notice must:

       (a) Describe the undertaking and the project which relates to it (without mentioning minor details or incidentals);

       (b) State the preliminary estimate of the cost of the undertaking, including all incidental costs, as are stated in the engineer’s report which was filed with the city council pursuant to subsection 5 of section 7A.170 of this charter;

       (c) Describe the proposed tax increment area which pertains to the undertaking, the last finalized amount of the assessed valuation of the taxable property in the area and the amount of taxes (including in the amount the sum of all unpaid taxes, whether or not they are delinquent) which resulted from the last taxation of the property, based upon the records of the county assessor and the county treasurer;

       (d) State what part or portion of the expense of the undertaking must be paid with the proceeds of the securities which are issued by the city in anticipation of tax proceeds and are to be credited to the tax increment account and payable wholly or in part from those tax proceeds;

       (e) State how the remaining part or portion of the expenses, if any, is to be financed;

       (f) State the basic security and any additional security for the payment of the securities of the city which pertain to the undertaking;

       (g) State the estimated amount of the tax proceeds which are to be credited annually to the tax increment account which pertains to the undertaking during the term of the proposed securities which are payable from those tax proceeds and the estimated amount of any net revenue which will be derived annually from the operation of the project which pertains to the undertaking and is pledged for the payment of the securities;

 

 


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ê1983 Statutes of Nevada, Page 1857 (Chapter 584, AB 570)ê

 

which are payable from those tax proceeds and the estimated amount of any net revenue which will be derived annually from the operation of the project which pertains to the undertaking and is pledged for the payment of the securities;

       (h) State the estimated aggregate principal amount which is to be borrowed through the issuance of the securities, (excluding proceeds of those securities to fund or refund outstanding securities) and the estimated total bond requirements of the securities;

       (i) State whether or not the governing body finds, determines and declares that the estimated tax proceeds which will be credited to the tax increment account and any net pledged revenue which will be derived annually from the operation of the project which pertains to the undertaking will be fully sufficient to pay the bond requirements of the securities as they become due; and

       (j) The time and place when and where the city council will consider the ordering of the undertaking and hear all of the complaints, protests, objections and other relevant comments with respect to it which may be made in writing by any natural person or body corporate which is designated in subsection 1 and filed with the city clerk at least 3 days before the hearing or made orally at the hearing by any natural person who is designated in subsection 1.

       4.  All of the proceedings may be modified or rescinded, wholly or in part, by resolution which is adopted by the city council at any time before the passage of the ordinance which orders the undertaking and creates the tax increment area and the tax increment account which pertains to the undertaking pursuant to subsection 3 of section 7A.210 of this charter.

       5.  No substantial change in the undertaking, the preliminary estimates, the proposed tax increment area or other statements which relate to the undertaking may be made after the first publication, posting or mailing of the notice to property owners, whichever occurs first, except for the deletion of a portion of the undertaking and property from the proposed tax increment area, unless the city council, after ordering that change, provides for another provisional order hearing on all of the matters in the premises and for a notice of the hearing in the same manner as is provided in this article for the initial hearing, but a subsequent finalization of the amount of the assessed valuation of the taxable property in the tax increment area or a subsequent levy of taxes may not adversely affect the proceedings which are taken under this article.

       6.  The engineer also has the right to make minor changes in, and to develop the undertaking with respect to, the time, plans and materials which enter into the undertaking at any time before its completion.

 


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ê1983 Statutes of Nevada, Page 1858 (Chapter 584, AB 570)ê

 

       Sec. 7A.190  Provisional order hearing.

       1.  At the time and place of the hearing, or at any adjournment of the hearing, the city council must proceed to read and consider all of the written complaints, protests, objections and other relevant comments which have been properly made and filed with the city clerk and to hear all oral comments which relate to the undertaking.

       2.  After the hearing has been concluded, after all of the written complaints, protests, objections and other relevant comments have been read and considered, and after the city council has heard and considered all of the oral comments which were made by persons who have an interest in the undertaking and has also considered any other relevant material which was offered, if the city council determines that the undertaking, or any part of it, is not in the public interest, the city council by resolution must make an order to that effect and may modify the proposed tax increment area to conform to that order. Thereupon, the undertaking or that part of the undertaking which was determined against by the order must stop and may not be begun again until the adoption of a new resolution.

       3.  Any complaint, protest or objection to the regularity, validity and correctness of the proceedings which were taken and the instruments which were made before the date of the hearing are deemed to have been waived unless they were presented in writing at the time and in the manner which is specified in this article.

       Sec. 7A.200  Appeal from adverse order.  If any person or public body, the state or the Federal Government filed a written complaint, protest or objection as provided in paragraph (j) of subsection 3 of section 7A.050 of this charter, that person or public body, the state or the Federal Government, as the case may be, may commence, within 30 days after the city council has finally passed upon its complaint, protest or objection by resolution pursuant to subsection 2 of section 7A.190 of this charter or by ordinance pursuant to subsection 3 of section 7A.210 of this charter, an action or suit in any court of competent jurisdiction to correct or set aside the determination, but thereafter all actions or suits which attack the validity of the proceedings or the determination of the city council, or both, are perpetually barred.

       Sec. 7A.210  Final order of undertaking.

       1.  After the provisional order hearing and the consideration of all of the matters in the premises, or, in the event of the material change other than the deletion of a part of the undertaking and any modification of the tax increment area to conform to that deletion pursuant to subsection 2 of section 7A.190 of this charter, after the supplemental provisional order hearing and the consideration of any supplemental matters in the premises, the city council shall determine whether or not to proceed under this article. If it has ordered any modification and desires to proceed, it shall direct the engineer appropriately to modify the plans, estimates and statements which were filed by him with the city clerk pursuant to subsection 5 of section 7A.170 of this charter.

 


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ê1983 Statutes of Nevada, Page 1859 (Chapter 584, AB 570)ê

 

has ordered any modification and desires to proceed, it shall direct the engineer appropriately to modify the plans, estimates and statements which were filed by him with the city clerk pursuant to subsection 5 of section 7A.170 of this charter.

       2.  The engineer shall appropriately modify those plans, estimates and statements and forthwith file the modified plans, estimates and statements with the city clerk.

       3.  When the plans, estimates and statements are prepared, filed with the city clerk and are satisfactory to the city council, the city council shall by ordinance overrule all of the complaints, protests and objections which were not otherwise acted upon, unconditionally order the undertaking as modified, if modified, describe the tax increment area which pertains to the undertaking and create the tax increment account for the undertaking.

       4.  The ordinance may be introduced and adopted at one meeting by the unanimous vote of the entire city council as if an emergency exists and may be effective upon its adoption and publication by title, or it may be introduced and adopted as a regular measure, pursuant to section 2.110 of this charter.

       Sec. 7A.220  Amendment of ordinance.

       1.  The city council may amend an ordinance which was adopted pursuant to subsection 3 of section 7A.210 of this charter by adopting a supplemental ordinance, which must be introduced and adopted as a regular measure, to:

       (a) Modify the undertaking by specifying new projects or removing or modifying projects which were specified in the original ordinance;

       (b) Add areas to or remove areas from a tax increment area; or

       (c) Make such other changes, additions or deletions as the city council determines will further its objectives within the tax increment area.

       2.  If a proposed amendment would add any area to or remove any area from a tax increment area, notice by mail of the meeting of the city council at which the proposed amendment will be considered must be given to the last known owner or owners of each tract of land which is proposed to be added or removed.

       3.  The amount of taxes to be allocated to a tax increment account pursuant to subsection 2 of section 7A.230 of this charter must be computed separately for the original tax increment area and each addition of land to the original tax increment area.

       Sec. 7A.230  Allocation, division and disposition of tax proceeds.  After the effective date of the ordinance which unconditionally orders the undertaking and provides for the tax increment financing, any tax which is levied upon the taxable property in the tax increment area each year by or for the benefit of the state, the city and any public body must be divided as follows:

       1.  That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the tax increment area, as is shown on the assessment roll which is used in connection with the taxation of the property by the taxing agency, as that roll was last equalized before the effective date of the ordinance, must be allocated to and, when the taxes are collected, paid into the funds of the respective taking agencies as taxes by or for the taxing agencies as the taxes on all other property are paid.

 


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ê1983 Statutes of Nevada, Page 1860 (Chapter 584, AB 570)ê

 

rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the tax increment area, as is shown on the assessment roll which is used in connection with the taxation of the property by the taxing agency, as that roll was last equalized before the effective date of the ordinance, must be allocated to and, when the taxes are collected, paid into the funds of the respective taking agencies as taxes by or for the taxing agencies as the taxes on all other property are paid.

       2.  That portion of the levied taxes each year which are in excess of that amount must be allocated to and, when the taxes are collected, paid into the tax increment account which pertains to the undertaking to pay the bond requirements of any loan or any money which is advanced to, or any indebtedness, whether it is funded, refunded, assumed or otherwise incurred by, the city to finance or refinance, in whole or in part, the undertaking. Until the total assessed valuation of the taxable property in the tax increment area exceeds the total assessed value of the taxable property in the area, as shown by the last equalized assessment roll which is referred to in subsection 1, all of the taxes which are levied and collected upon the taxable property in the area must be paid into the funds of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all of the money which is thereafter received from taxes upon the taxable property in the area must be paid into the funds of the respective taxing agencies as the taxes on all other property are paid.

       3.  For the purposes of this section, the last equalized assessment roll which is referred to in subsection 1 is the assessment roll which was in existence on the 15th day of April which immediately precedes the effective date of the ordinance which unconditionally orders the undertaking and provides for the tax increment financing.

       Sec. 7A.240  Municipal securities.

       1.  The city may issue, to defray, wholly or in part, the cost of the undertaking, the following securities:

       (a) Notes;

       (b) Warrants;

       (c) Interim debentures;

       (d) Bonds; and

       (e) Temporary bonds.

       2.  Any net revenue which is derived from the operation of the project which is acquired, improved or equipped (or any combination thereof) under the undertaking must be pledged for the payment of the securities, and those securities must be made payable from that net pledged revenue, as the bond requirements of the securities become due from time to time, in accordance with the bond ordinance, trust indenture, or other proceedings which authorize the issuance of the securities or otherwise pertains to their issuance.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1861 (Chapter 584, AB 570)ê

 

bond ordinance, trust indenture, or other proceedings which authorize the issuance of the securities or otherwise pertains to their issuance.

       3.  Additionally, the securities:

       (a) Must be made payable from tax proceeds which are accounted for in the tax increment account; and

       (b) May, at the city’s option, be made payable from the taxes which are levied by the city against all of the taxable property within the city, without limitation of rate or amount except for the limitation which is provided in section 2 of article 10 of the Nevada constitution. (The city may also issue general obligation securities which are authorized by any law other than this article and are made payable from taxes without also making those securities payable from the net pledged revenues or tax proceeds which are accounted for in a tax increment account, or from both these revenue sources.)

       4.  Securities which are payable only in the manner which is provided in either paragraph (a) of subsection 3 or both subsection 2 and paragraph (a) of subsection 3 are special obligations of the city, are neither in their issuance subject to debt limitation which is specified in subsection 1 of section 7.010 of this charter or is otherwise imposed by law, nor, while they are outstanding, do they exhaust the city’s debt-incurring power under subsection 1 of section 7.010 of this charter or other law and may be issued under the provisions of the NRS 350.500 to 350.720, inclusive, except as is otherwise provided in this article, without any compliance with the provisions of NRS 350.001 to 350.006, inclusive, or NRS 350.020 to 350.070, inclusive, and without any approval or other preliminaries, except as is provided in NRS 350.500 to 350.720, inclusive.

       5.  Securities which are payable from taxes in the manner which is provided in paragraph (b) of subsection 3, regardless of whether or not they are also payable in the manner which is provided only in paragraph (a) of that subsection or in both subsection 2 and paragraph (a) of subsection 3, must be general obligations of the city, are in their issuance subject to the debt limitation which is specified in subsection 1 of section 7.010 of this charter or is otherwise imposed by law and, while they are outstanding, exhaust the city’s debt-incurring power under subsection 1 of section 7.010 of this charter or other law, and those securities may be issued under NRS 350.500 to 350.720, inclusive, only after the issuance of city bonds is approved under the provisions of:

       (a) NRS 350.001 to 350.006, inclusive; and

       (b) NRS 350.020 to 350.070, inclusive, except for the issuance of notes or warrants pursuant to NRS 350.500 to 350.720, inclusive, which are payable out of the current year’s revenues and are not to be funded with the proceeds of interim debentures or bonds in the absence of approval under the provisions of the law which are designated in paragraphs (a) and (b).

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1862 (Chapter 584, AB 570)ê

 

the absence of approval under the provisions of the law which are designated in paragraphs (a) and (b).

       6.  In the proceedings for the making of loans or the acquisition of any advance of money or the incurring of any indebtedness, whether it is funded, refunded, assumed or otherwise, for the purpose of financing or refinancing, in whole or in part, the undertaking, wholly or in part, the city shall irrevocably pledge that portion of the taxes which is mentioned in subsection 2 of section 7A.230 of this charter for the payment of the bond requirements of the loans, advances or indebtedness. The provisions in NRS 350.500 to 350.720, inclusive, which pertain to net pledged revenues apply to the pledge to secure the payment of the tax increment bonds.

       Sec. 7A.250  Cooperative powers.  The city also has the following powers:

       1.  To accept contributions or loans from the Federal Government, the state or any public body (or any combination of those entities) to finance the planning, acquisition, improvement, equipping, maintenance and operation of any enterprise which pertains to an undertaking in which the city is authorized to engage and to enter into contracts and cooperate with and accept cooperation from the Federal Government, the state or any public body (or any combination of those entities) in the planning, acquisition, improvement, equipping, maintenance and operation and in the financing of the planning, acquisition, improvement, equipping, maintenance and operation of that enterprise in accordance with any legislation which Congress, the state legislature or any governing body or legislative body of any public body (or any combination of those bodies) may have adopted or may, after the effective date of this charter, adopt, under which aid, assistance and cooperation may be furnished by the Federal Government, the state or public body (or any combination of those entities) in the planning, acquisition, improvement, equipping, maintenance and operation or in the financing of the planning, acquisition, improvement, equipping, maintenance and operation of any enterprise, including without limitation the costs of engineering, architectural and economic investigations and studies, surveys, designs, plans, working drawings, specifications, procedures and other action which is preliminary to the acquisition, improvement or equipping of any project and to do anything which is necessary in order to avail itself of the aid, assistance and cooperation which may be available under any federal or state legislation which is now in existence or may, after the effective date of this charter, be enacted.

       2.  To enter into and perform, without any election, joint operating or service contracts and agreements, acquisition, improvement, equipment or disposal contracts or other arrangements, for any term which does not exceed 50 years, with the Federal Government, the state and any public body (or any combination of those entities) with respect to the undertaking, and any project or property which pertains thereto, whether it is acquired by the city, by the Federal Government, by the state or by any public body, and to accept grants and contributions from the Federal Government, the state, any public body, or any person (or any combination of those entities) in connection with those contracts, agreements and arrangements.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1863 (Chapter 584, AB 570)ê

 

improvement, equipment or disposal contracts or other arrangements, for any term which does not exceed 50 years, with the Federal Government, the state and any public body (or any combination of those entities) with respect to the undertaking, and any project or property which pertains thereto, whether it is acquired by the city, by the Federal Government, by the state or by any public body, and to accept grants and contributions from the Federal Government, the state, any public body, or any person (or any combination of those entities) in connection with those contracts, agreements and arrangements.

       3.  To enter into and perform, without any election, when it is determined by the city council to be in the public interest, contracts and agreements, for any term which does not exceed 50 years, with the Federal Government, the state, any public body or any person (or any combination of those entities) for the provision and operation by the city of any facilities, whether or not they pertain to the undertaking of the city or any project which relates to that undertaking and the payment periodically by the Federal Government, the state, the public body or the person (or any combination of those entities) to the city of amounts which are at least sufficient, if any, in the determination of the city council, to compensate the city for the cost of providing, operating and maintaining the facilities which serve the Federal Government, the state, the public body or the person, or otherwise.

       4.  To enter into and perform, without any election, contracts and agreements with the Federal Government, the state, any public body or any person (or combination of those entities) for or with respect to the planning, construction, lease or other acquisition, improvement, equipping, operation, maintenance, disposal and financing of any property which pertains to the facilities of the city or to any undertaking or any project of the city, or otherwise, including without limitation any contract or agreement for any term which does not exceed 50 years.

       5.  To cooperate with and act in conjunction with the Federal Government or any of its engineers, officers, boards, commissions or departments, or with the state or any of its engineers, officers, boards, commissions or departments, or with any public body or with any person in the acquisition, improvement or equipping of any facilities or any project which is authorized for the city or for any other work, act or purpose which is provided for in this article and to adopt and carry out any definite plan or system of work for that purpose.

       6.  To cooperate with the Federal Government, the state or any public body (or any combination of those entities) by an agreement with any or all of those entities by which the city may:

       (a) Acquire and provide, without cost to the cooperating entity, the land, easements and rights of way which are necessary for the acquisition, improvement or equipping (or any combination thereof) of any properties which pertain to the undertaking or any other facility;

 

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1864 (Chapter 584, AB 570)ê

 

acquisition, improvement or equipping (or any combination thereof) of any properties which pertain to the undertaking or any other facility;

       (b) Hold and save harmless the cooperating entity free from any claim for damages which may arise from the acquisition, improvement, equipping, maintenance and operation (or any combination thereof) of any facility;

       (c) Maintain and operate any facility in accordance with the regulations which are prescribed by the cooperating entity; and

       (d) Adopt and enforce regulations, if any, with respect to the facilities and which are satisfactory to the cooperating entity.

       7.  To provide, by any contract, for any term which does not exceed 50 years, or otherwise, without an election:

       (a) For the joint use of the personnel, equipment and facilities of the city, the Federal Government, the state and any public body (or any combination of those entities) including without limitation public buildings which are constructed by or under the supervision of the city council or by the governing body or legislative body of the other party to the contract, upon such terms and agreements and within such areas within the city as may be determined, for the promotion and protection of the public health, safety, prosperity, security, comfort, convenience, general welfare and property of the inhabitants of the city, the Federal Government, the state, any public body and any person of interest, as the case may be; and

       (b) For the joint employment of clerks, stenographers and other employees which pertain to the facilities, any project or the undertaking which now exist or may, after the effective date of this charter, be established in the city upon such terms and conditions as may be determined for the equitable apportionment of the expenses which result from that employment.

       8.  In connection with any facility of the city, or any part of any facility which is acquired or proposed in connection with an undertaking, or with any project, to consult with any regulatory or other agency of the Federal Government, the state or any public body and to submit plans, specifications or other instruments or documents (or any combination thereof) to that governmental agency for its review, recommendations and other comments.

       Sec. 7A.260  Public purpose.  The exercise of any power which is authorized in this article by the city council on behalf of the city has been determined and is hereby declared to effect a public purpose, and any undertaking which is authorized in this article also effects a public purpose.

       Sec. 7A.270  Sufficiency of article.

       1.  This article, without reference to other statutes of the state, except as is otherwise expressly provided in this article, constitutes full authority for the exercise of the powers which are granted in this article.

 


…………………………………………………………………………………………………………………

ê1983 Statutes of Nevada, Page 1865 (Chapter 584, AB 570)ê

 

full authority for the exercise of the powers which are granted in this article.

       2.  No other law with respect to the exercise of any power which is granted in this article that provides for an election, requires an approval or in any way impedes or restricts the carrying out of the acts which are authorized by this article to be done may be construed as applying to any proceeding which is taken under this article or act done pursuant to this article, except as is provided in this article.

       3.  The powers which are granted by this article are in addition and supplemental to, and not in substitution for any other law, and the limitations which are imposed by this article do not affect the powers which are granted by any other law.

       4.  No part of this article repeals or affects any other law or part thereof, it being intended that this article merely provides a separate method of accomplishing its objectives, rather than the exclusive one.

      Sec. 2.  Section 2.280 of Article II of the above-entitled act, being chapter 573, Statutes of Nevada 1971, as amended by chapter 723, Statutes of Nevada 1973, at page 1440, is hereby amended to read as follows:

       Sec. 2.280  Powers of city council: Provision of utilities.  1.  The city council may:

       [1.](a) Provide, by contract, franchise and public enterprise, for any utility to be furnished to the city for residents located either within or without the city.

       [2.](b) Provide for the construction and maintenance of any facilities necessary for the provision of all such utilities.

       [3.](c) Prescribe, revise and collect rates, fees, tolls and charges for the services, facilities or commodities furnished by any municipally-operated or municipally-owned utility or undertaking [, and notwithstanding] . Notwithstanding any provision of this charter to the contrary or in conflict herewith, no rates, frees, tolls or charges for the services, facilities or commodities furnished by any municipally-operated or municipally- owned utility or undertaking [shall] may be prescribed, revised, amended or altered, increased or decreased, without [the procedure as set forth in this subsection] this procedure first being followed [.] :

       [(a)](1) There [shall] must be filed with the city clerk schedules of rates, fees, tolls or charges which [shall must be open to public inspection, showing all rates, fees, tolls or charges which the city has established and which are in force at the time for any service performed or product furnished in connection therewith by any utility controlled and operated by the city.

       [(b)](2) No changes [shall] may be made in any schedule so filed with the city clerk except upon 30 days’ notice to the inhabitants of the city and a public hearing held thereon. Notice of such a proposed change or changes [shall] must be given by at least two publications in a newspaper published in the city during the 30-day period [prior to] before the hearing thereon.

 


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ê1983 Statutes of Nevada, Page 1866 (Chapter 584, AB 570)ê

 

a proposed change or changes [shall] must be given by at least two publications in a newspaper published in the city during the 30-day period [prior to] before the hearing thereon.

       [(c)](3) At the time set for the hearing on the proposed change, any person may appear and be heard and offer any evidence in support of or against the proposed change.

       [(d)](4) Every utility operated by the city shall furnish reasonably adequate service and facilities, and the charges made for any service rendered or to be rendered, or for any service in connection therewith or incidental thereto, [shall] must be just and reasonable.

       [4.](d) Provide, by ordinance, for an additional charge to each household within the city for the provision of utilities of up to 25 cents per month. If such a charge is provided for, the city council shall, by ordinance, provide for the expenditure of that money for any purpose relating to the beautification of the city.

       2.  Any charges due for services, facilities or commodities furnished by the city or by any utility operated by the city under this section is a lien upon the property which the service is rendered and [shall] must be perfected by filing with the county recorder of Clark county of a statement by the city clerk stating the amount due and unpaid and describing the property subject to the lien. Each such lien [shall:] must:

       (a) Be coequal with the latest lien thereon to secure the payment of general taxes.

       (b) Not be subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.

       (c) Be prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes.

 

________

 

 

CHAPTER 585, SB 472

Senate Bill No. 472–Senator Wagner

CHAPTER 585

AN ACT relating to children; clarifying and revising various provisions relating to the establishment of the relationship of parent and child and the obligation of support; and providing other matters properly relating thereto.

 

[Approved May 26, 1983]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE

AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 126 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  The provisions of NRS 126.241 to 126.281, inclusive, and sections 2 to 5, inclusive, of this act, apply to all parents of all children, whether or not legitimated.

 


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ê1983 Statutes of Nevada, Page 1867 (Chapter 585, SB 472)ê

 

      Sec. 3.  A judgment or order for the support of a child ordinarily must be for periodic payments which may vary in amount. In the best interest of the child, a lump sum payment or the purchase of an annuity may be ordered in lieu of periodic payments of support.

      Sec. 4.  Any court establishing or enforcing an order for the support of a child, in determining the amount to be paid, shall consider the relevant facts, including the:

      1.  Needs of the child.

      2.  Standard of living and circumstances of the parents.

      3.  Relative financial means of the parents.

      4.  Earning ability of the parents.

      5.  Need and capacity of the child for education.

      6.  Age of the child.

      7.  Financial resources and the earning ability of the child.

      8.  Responsibility of the parents for the support of others.

      9.  Value of services contributed by the custodial parent.

      10.  Assistance paid by public agencies to support the child.

      11.  Reasonably related expenses of the mother’s pregnancy and confinement.

      Sec. 5.  Any demand in writing to the parent or parents not having physical custody for payment of support on behalf of a minor child, mailed to the last known address of the parent or parents, tolls the running of the statute of limitations for the bringing of an action for that support.

      Sec. 6.  NRS 126.021 is hereby amended to read as follows:

      126.021  As used in this chapter, unless the context otherwise requires:

      1.  “Custodial parent” means the parent of a child born out of wedlock who has been awarded physical custody of the child or, if no award of physical custody [award] has been made by a court, the parent with whom the child resides.

      2.  “Nonsupporting parent” means the parent of a child born out of wedlock who has failed to provide an equitable share of his child’s necessary maintenance, education and support.

      3.  “Parent and child relationship” means the legal relationship existing between a child and his natural or adoptive parents incident to which the law confers or imposes rights, privileges, duties and obligations. It includes the mother and child relationship and the father and child relationship.

      Sec. 7.  NRS 126.041 is hereby amended to read as follows:

      126.041  The parent and child relationship between a child and:

      1.  The natural mother may be established by proof of her having given birth to the child, or under this chapter or NRS 201.025.

      2.  The natural father may be established under this chapter , NRS 130.245 or NRS 201.025.

      3.  An adoptive parent may be established by proof of adoption.

 


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ê1983 Statutes of Nevada, Page 1868 (Chapter 585, SB 472)ê

 

      Sec. 8.  NRS 126.051 is hereby amended to read as follows:

      126.051  1.  A man is presumed to be the natural father of a child if:

      (a) He and the child’s natural mother are or have been married to each other and the child is born during the marriage, or within 285 days after the marriage is terminated by death, annulment, declaration of invalidity or divorce, or after a decree of separation is entered by a court.

      (b) He and the child’s natural mother were cohabiting for at least 6 months before the period of conception and continued to cohabit [during that period.] through the period of conception.

      (c) Before the child’s birth, he and the child’s natural mother have attempted to marry each other by a marriage solemnized in apparent compliance with law, although the attempted marriage is invalid or could be declared invalid, and:

             (1) If the attempted marriage could be declared invalid only by a court, the child is born during the attempted marriage, or within 285 days after its termination by death, annulment, declaration of invalidity or divorce; or

             (2) If the attempted marriage is invalid without a court order, the child is born within 285 days after the termination of cohabitation.

      (d) [After the child’s birth, he and the child’s natural mother have married or attempted to marry each other by a marriage solemnized in apparent compliance with law, although the attempted marriage is invalid or could be declared invalid, and:

             (1) He has acknowledged his paternity of the child in writing;

             (2) With his consent, he is named as the child’s father on the child’s birth certificate; or

             (3) He is obligated to support the child under a written voluntary promise or by court order.

      (e)] While the child is under the age of majority, he receives the child into his home and openly holds out the child as his natural child.

      [(f)](e) At any time he acknowledges or admits his paternity of the child in a writing filed with the state registrar of vital statistics.

      2.  The state registrar of vital statistics shall promptly inform the natural mother of the filing of an acknowledgment, and the presumption is nullified if she disputes the acknowledgment in a writing filed with the registrar within 60 days after this notice is given. Each acknowledgment filed [is to] must be maintained by the registrar in a sealed confidential file until it is consented to by the mother and any other presumed father. This does not preclude access by an appropriate state official incident to his official responsibility concerning the parentage of the child. The acknowledgment must not be made public unless the mother affirmatively consents to the acknowledgment or a court adjudicates parentage. Each acknowledgment must be signed by the person filing it, and contain:

      (a) The name and address of the person filing the acknowledgment;

 


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ê1983 Statutes of Nevada, Page 1869 (Chapter 585, SB 472)ê

 

      (b) The name and last-known address of the mother of the child; and

      (c) The date of birth of the child, or, if the child is unborn, the month and year in which the child is expected to be born.

If another man is presumed under this section to be the child’s father, acknowledgment of paternity may be effected only with the written consent of the presumed father or after the presumption has been rebutted by a court decree. Acknowledgment [of] by both parents as to the parentage of a child makes the child legitimate from birth, and the birth [shall] must be documented as provided in chapter 440 of NRS.

      3.  A presumption under this section may be rebutted in an appropriate action only by clear and convincing evidence. If two or more presumptions arise which conflict with each other, the presumption which on the facts is founded on the weightier considerations of policy and logic controls. The presumption is rebutted by a court decree establishing paternity of the child by another man.

      Sec. 9.  NRS 126.071 is hereby amended to read as follows:

      126.071  1.  [A child, his natural mother, or a man presumed to be his father under paragraph (a), (c) or (d) of subsection 1 of NRS 126.051, may bring an action:

      (a) At any time for the purpose of declaring the existence of the father and child relationship presumed under paragraph (a), (c) or (d) of subsection 1 of NRS 126.051; or

      (b) For the purpose of declaring the nonexistence of the father and child relationship presumed under paragraph (a), (c) or (d) of subsection 1 of NRS 126.051 only if the action is brought within a reasonable time after obtaining knowledge of relevant facts, but in no event later than 5 years after the child’s birth. After the presumption has been rebutted, paternity of the child by another man may be determined in the same action, if he has been made a party.

      2.  Any interested party may bring an action at any time for the purpose of determining the existence or nonexistence of the father and child relationship presumed under paragraph (b), (e) or (f) of subsection 1 of NRS 126.051.

      3.  An action to determine the existence of the father and child relationship with respect to a child who has no presumed father under NRS 126.051 may be brought by the child, the mother or personal representative of the child, the welfare division of the department of human resources, the personal representative or a parent of the mother if the mother has died or is a minor, a man alleged or alleging himself to be the father, or the personal representative or a parent of the alleged father if the alleged father has died or is a minor.

      4.  Regardless of its terms, an agreement, other than an agreement approved by the court in accordance with subsection 2 of NRS 126.141 between an alleged or presumed father and the mother or child, does not bar an action under this section.

 


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ê1983 Statutes of Nevada, Page 1870 (Chapter 585, SB 472)ê

 

between an alleged or presumed father and the mother or child, does not bar an action under this section.

      5.]  A child, his natural mother, a man presumed or alleged to be his father or an interested third party may bring an action pursuant to this chapter to declare the existence or nonexistence of the father and child relationship.

      2.  If an action under this section is brought before the birth of the child, all proceedings must be stayed until after the birth, except service of process and the taking of depositions to perpetuate testimony.

      Sec. 10.  NRS 126.081 is hereby amended to read as follows:

      126.081  1.  [Except as otherwise provided in subsection 3, an action brought by or on behalf of a child whose paternity has not been determined] An action brought under this chapter to declare the existence or nonexistence of the father and child relationship is not barred until 3 years after the child reaches the age of majority.

      2.  [Except as otherwise provided in NRS 41.210 to 41.260, inclusive, and in this chapter, an action to determine the existence of the father and child relationship as to a child who has no presumed father under NRS 126.051 may not be brought other than by or on behalf of the child later than 3 years after the birth of the child, or July 1, 1982, whichever is later.

      3.  The welfare division of the department of human resources acting on behalf of a child receiving public assistance may bring an action to establish paternity within 1 year after the child becomes a recipient of public assistance or within 3 years after the birth of the child, whichever is later.

      4.  NRS 126.071 and this section do] This section does not alter the time within which a right of inheritance or a right to a succession may be asserted beyond the time provided by law relating to distribution and closing of decedents’ estates or to the determination of heirship, or otherwise.

      Sec. 11.  NRS 126.101 is hereby amended to read as follows:

      126.101  The child must be made a party to the action. If he is a minor he must be represented by his general guardian or a guardian ad litem appointed by the court. The child’s mother or father may not represent the child as guardian or otherwise. The court may appoint the welfare division of the department of human resources as guardian ad litem for the child. The natural mother, each man presumed to be the father under NRS 126.051, and each man alleged to be the natural father must be made parties . [or, if not subject to the jurisdiction of the court, be given notice of the action and an opportunity to be heard.] The court may align the parties.

      Sec. 12.  NRS 126.105 is hereby amended to read as follows:

      126.105  [In] Whenever service of process is required in an action brought under this chapter to determine the existence or nonexistence of the father and child relationship, [unless the person mentioned is a party to the action:

 

 


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ê1983 Statutes of Nevada, Page 1871 (Chapter 585, SB 472)ê

 

of the father and child relationship, [unless the person mentioned is a party to the action:

      1.  Except as otherwise provided in subsection 2, every person identified as the natural father or a possible natural father must be given notice of the proceeding in the manner provided by Rule 4(d) of N.R.C.P. or, where applicable, as provided in NRS 126.091.

      2.  Where a person is alleged to be, is presumed to be or claims to be the father and a determination is sought that he is not the father, he may be served as provided in Rule 4(e) of N.R.C.P. if his place of residence is unknown or he is not subject to the jurisdiction of the court.

      3.  The natural mother must be given notice in a manner prescribed by the court.] it may be made pursuant to Rule 4 of N.R.C.P. or by registered mail with proof of actual receipt.

      Sec. 13.  NRS 126.141 is hereby amended to read as follows:

      126.141  1.  On the basis of the information produced at the pretrial hearing, the judge, master or referee conducting the hearing shall evaluate the probability of determining the existence or nonexistence of the father and child relationship in a trial and whether a judicial declaration of the relationship would be in the best interest of the child. On the basis of the evaluation, an appropriate recommendation for settlement must be made to the parties, which may include any of the following:

      (a) That the action be dismissed with or without prejudice.

      (b) That the matter be compromised by an agreement among the alleged father, the mother and the child, in which the father and child relationship is not determined but in which a defined economic obligation, fully secured by payment or otherwise, is undertaken by the alleged father in favor of the child and, if appropriate, in favor of the mother, subject to approval by the judge, master or referee conducting the hearing. In reviewing the obligation undertaken by the alleged father in a compromise agreement, the judge, master or referee conducting the hearing shall consider the best interest of the child, in the light of the factors enumerated in [subsection 5 of NRS 126.161,] section 4 of this act, discounted by the improbability, as it appears to him, of establishing the alleged father’s paternity or nonpaternity of the child in a trial of the action. In the best interest of the child, the court may order that the alleged father’s identity be kept confidential. In that case, the court may designate a person or agency to receive from the alleged father and disburse on behalf of the child all amounts paid by the alleged father in fulfillment of obligations imposed on him.

      (c) That the alleged father voluntarily acknowledge his paternity of the child.

      2.  If the parties accept a recommendation made in accordance with subsection 1, judgment may be entered accordingly.

      3.  If a party refuses to accept a recommendation made under subsection 1 and blood tests have not been taken, the court shall require the parties to submit to blood tests, if practicable.

 


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ê1983 Statutes of Nevada, Page 1872 (Chapter 585, SB 472)ê

 

the parties to submit to blood tests, if practicable. Thereafter the judge, master or referee shall make an appropriate final recommendation. If a party refuses to accept the final recommendation, the action must be set for trial.

      4.  The guardian ad litem may accept or refuse to accept a recommendation under this section.

      5.  The pretrial hearing may be terminated and the action set for trial if the judge, master or referee conducting the hearing finds unlikely that all parties would accept a recommendation he might make under subsection 1 or 3.

      Sec. 14.  (Deleted by amendment.)

      Sec. 15.  NRS 126.161 is hereby amended to read as follows:

      126.161  1.  The judgment or order of the court determining the existence or nonexistence of the parent and child relationship is determinative for all purposes.

      2.  If the judgment or order of the court is at variance with the child’s birth certificate, the court shall order that a new birth certificate be issued as provided in NRS 440.270 to 440.340, inclusive.

      3.  If the child is a minor residing in this state, the judgment or order must provide for his support.

      4.  The judgment or order may contain any other provision directed against the appropriate party to the proceeding, concerning the duty of support, the custody and guardianship of the child, visitation privileges with the child, the furnishing of bond or other security for the payment of the judgment, or any other matter in the best interest of the child.

      5.  The judgment or order may direct the father to pay the reasonable expenses of the mother’s pregnancy and confinement.

      [4.  Support judgments or orders ordinarily must be for periodic payments which may vary in amount. In the best interest of the child, a lump sum payment or the purchase of an annuity may be ordered in lieu of periodic payments of support.] The court may limit the father’s liability for past support of the child to the proportion of the expenses already incurred which the court deems just.

      [5.  In determining the amount to be paid by a parent for support of the child and the period during which the duty of support is owed, a court enforcing the obligation of support shall consider the relevant facts, including the:

      (a) Needs of the child.

      (b) Standard of living and circumstances of the parents.

      (c) Relative financial means of the parents.

      (d) Earning ability of the parents.

      (e) Need and capacity of the child for education.

      (f) Age of the child.

      (g) Financial resources and the earning ability of the child.

      (h) Responsibility of the parents for the support of others.

      (i) Value of services contributed by the custodial parent.

 


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ê1983 Statutes of Nevada, Page 1873 (Chapter 585, SB 472)ê

 

      (j) Assistance paid by public agencies to support the child, and reasonably related expenses of the mother’s pregnancy and confinement.]

      Sec. 16.  (Deleted by amendment.)

      Sec. 17.  NRS 126.191 is hereby amended to read as follows:

      126.191  The court has continuing jurisdiction to modify [or revoke a] the judgment or order [:

      1.  For future education and support; and

      2.  With respect to matters listed in subsections 3 and 4 of NRS 126.161 and subsection 2 of NRS 126.181,] as to custody, visitation or support, except that a court entering a judgment or order for the payment of a lump sum or the purchase of an annuity [under subsection 4 of NRS 126.161] as provided in section 3 of this act may specify that the judgment or order may not be modified or revoked.

      Sec. 18.  NRS 126.201 is hereby amended to read as follows:

      126.201  1.  At the pretrial hearing and in further proceedings, any party may be represented by counsel. [The court shall appoint counsel for] If a party [who] is financially unable to obtain counsel [.] , the court may appoint counsel to represent that party with respect to the determination of the existence or nonexistence of the parent and child relationship and the duty of support, including without limitation the expenses of the mother’s pregnancy and confinement, medical expenses for the birth of the child and support of the child from birth until trial.

      2.  If a party is financially unable to pay the cost of a transcript, the court shall furnish on request a transcript for purposes of appeal.

      Sec. 19.  NRS 126.231 is hereby amended to read as follows:

      126.231  Any interested party may bring an action to determine the existence [or nonexistence] of a mother and child relationship. Insofar as practicable, the provisions of this chapter applicable to the father and child relationship apply to that action.

      Sec. 20.  NRS 126.241 is hereby amended to read as follows:

      126.241  1.  The parents of a child [born out of wedlock and not legitimated] (in this chapter referred to as “the child”) [owe] have a duty to provide the child necessary maintenance, education, and support.

      2.  They are also liable, in the event of the child’s death, for its funeral expenses.

      3.  The father is also liable to pay the expenses of the mother’s pregnancy and confinement.

      4.  The obligation of the parent to support the child under the laws for the support of poor relatives applies to children born out of wedlock.

      Sec. 21.  NRS 126.251 is hereby amended to read as follows:

      126.251  [1.  Either parent may recover from the other a reasonable share of the necessary support of the child.

 


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ê1983 Statutes of Nevada, Page 1874 (Chapter 585, SB 472)ê

 

      2.]  Where the parents of a child are separated, the physical custodian of the child may recover from the parent without physical custody a reasonable portion of the cost of care, support, education and maintenance provided by the physical custodian. In the absence of a [previous demand in writing (served personally or by registered or certified letter addressed to the nonsupporting parent at his last-known residence),] court order, the parent who has physical custody may recover not more than [3] 4 years’ support furnished before the bringing of the action . [may be recovered from the nonsupporting parent.]

      Sec. 22.  NRS 126.261 is hereby amended to read as follows:

      126.261  1.  The obligation of support imposed on the parents of a child [born out of wedlock] also creates a cause of action on behalf of the legal representatives of either of them, or on behalf of third persons or public agencies furnishing support or defraying the reasonable expenses thereof.

      2.  In the absence of a court order, reimbursement from the nonsupporting parent is limited to not more than 4 years’ support furnished before the bringing of the action.

      Sec. 23.  (Deleted by amendment.)

      Sec. 24.  NRS 126.281 is hereby amended to read as follows: