[Rev. 11/21/2013 1:01:41 PM--2013]

TITLE 55 - BANKS AND RELATED ORGANIZATIONS

CHAPTER 657 - GENERAL PROVISIONS

GENERAL PROVISIONS

NRS 657.005           Definitions.

NRS 657.016           “Bank,” “commercial bank,” “banking company” and “banking corporation” defined.

NRS 657.026           “Commissioner” defined.

NRS 657.035           “Demand deposits” defined.

NRS 657.037           “Depository institution” defined.

NRS 657.039           “Derivative transaction” defined.

NRS 657.040           “Division of Financial Institutions” defined.

NRS 657.045           “Insolvency” defined.

NRS 657.055           “Net earnings” defined.

NRS 657.058           “Nevada” defined.

NRS 657.064           “Savings deposit” defined.

NRS 657.070           “Stockholders’ equity” and “members’ equity” defined.

NRS 657.075           “Surplus” defined.

NRS 657.085           “Time deposit” defined.

NRS 657.095           Applicability of chapters 78, 86 and 92A of NRS.

MISCELLANEOUS

NRS 657.105           Effect of title on powers, privileges, duties and restrictions of corporations, companies, associations and natural persons.

NRS 657.120           Fees and charges: Imposition and collection by financial institution; limitations.

NRS 657.130           Committees to review compliance: Definitions; confidentiality and privilege.

NRS 657.140           Loan agreements: Certain provisions for recovery prohibited; exceptions.

FINANCIAL INSTITUTIONS

General Provisions

NRS 657.150           Definitions.

NRS 657.160           “Financial institution” defined.

NRS 657.170           “License” defined.

 

Licenses; Business Names; Investigations

NRS 657.180           License to operate or manage: Additional requirements; fingerprints; grounds for refusal to issue license.

NRS 657.190           Suspension or revocation of license to operate or manage: Additional grounds.

NRS 657.200           Use or change of business name; prohibitions.

NRS 657.210           Authorization of Commissioner to investigate business; free access required; compelling attendance of witnesses.

 

Exploitation of Older Persons or Vulnerable Persons

NRS 657.220           Definitions.

NRS 657.230           “Designated reporter” defined.

NRS 657.240           “Exploitation” defined.

NRS 657.250           “Older person” defined.

NRS 657.260           “Reasonable cause to believe” defined.

NRS 657.270           “Vulnerable person” defined.

NRS 657.280           Training; reporting to designated reporter.

NRS 657.290           Designated reporter: Designation; duty to report; immunity.

_________

 

GENERAL PROVISIONS

      NRS 657.005  Definitions.  As used in this title, unless the context otherwise requires, the words and terms defined in NRS 657.016 to 657.085, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1971, 965; A 1985, 737, 2148; 1987, 1897; 1995, 1549; 1997, 974; 2013, 636)

      NRS 657.016  “Bank,” “commercial bank,” “banking company” and “banking corporation” defined.  “Bank,” “commercial bank,” “banking company” or “banking corporation” means a corporation or limited-liability company that is chartered by this State, another state or the United States and conducts the business of receiving money as demand deposits or otherwise carries on a banking or banking and trust business. The terms do not include a thrift company engaged in business pursuant to chapter 677 of NRS.

      (Added to NRS by 1971, 965; A 1985, 737; 1989, 2031; 1995, 473, 1549; 1997, 974)

      NRS 657.026  “Commissioner” defined.  “Commissioner” means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 1897)

      NRS 657.035  “Demand deposits” defined.  “Demand deposits” means all deposits the immediate withdrawal of which can be legally required upon a proper written request for such payment.

      (Added to NRS by 1971, 965)

      NRS 657.037  “Depository institution” defined.  “Depository institution” means any bank, savings and loan association, savings bank, thrift company, credit union or other institution, whether chartered by this State, another state or the Federal Government, which:

      1.  Holds or receives deposits, savings or share accounts;

      2.  Issues certificates of deposit; or

      3.  Provides to its customers other depository accounts which are subject to withdrawal by checks, drafts or other instruments or by electronic means to effect payment to a third party.

      (Added to NRS by 1985, 2147; A 1989, 2032; 1995, 1549)

      NRS 657.039  “Derivative transaction” defined.  “Derivative transaction” has the meaning ascribed to it in 12 U.S.C. § 84(b)(3).

      (Added to NRS by 2013, 636)

      NRS 657.040  “Division of Financial Institutions” defined.  “Division of Financial Institutions” means the Division of Financial Institutions of the Department of Business and Industry.

      (Added to NRS by 1983, 1721; A 1993, 1894)

      NRS 657.045  “Insolvency” defined.  “Insolvency” means 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 Commissioner.

      4.  When the undivided profits and surplus are inadequate to cover losses of the bank and the stockholders’ or members’ equity of the bank has been reduced below the requirements of law.

      (Added to NRS by 1971, 965; A 1983, 1721; 1987, 1897; 1997, 974)

      NRS 657.055  “Net earnings” defined.  “Net earnings” means the excess of the gross earnings of any bank over the expenses and losses chargeable against such earnings.

      (Added to NRS by 1971, 965)

      NRS 657.058  “Nevada” defined.  “Nevada” when used to modify:

      1.  The word “bank” or the term “depository institution” means organized under the laws of this State; and

      2.  The term “national bank” means having its headquarters within this State.

      (Added to NRS by 1995, 1549)

      NRS 657.064  “Savings deposit” defined.  “Savings deposit” means a deposit or account:

      1.  With respect to which the depository institution may require the depositor to give written notice of withdrawal not less than 7 days before a withdrawal, but from which the depositor may otherwise make withdrawals without giving written notice; and

      2.  Which is not payable on a specific date or at the expiration of a specified time after the date of deposit.

      (Added to NRS by 1985, 737)

      NRS 657.070  “Stockholders’ equity” and “members’ equity” defined.  “Stockholders’ equity” or “members’ equity” means the capital, surplus and retained earnings of a bank.

      (Added to NRS by 1997, 974)

      NRS 657.075  “Surplus” defined.  “Surplus” means a fund created pursuant to the provisions of this title by a bank from payments by stockholders or members or from the bank’s net earnings or undivided profits which, to the amount specified and by any additions thereto set apart and designated as such, is not available for the payment of dividends and cannot be used for the payment of expenses or losses while the bank has undivided profits.

      (Added to NRS by 1971, 965; A 1995, 473)

      NRS 657.085  “Time deposit” defined.  “Time deposit” means a deposit which:

      1.  The depositor does not have a right to withdraw for a period of 7 days or more after the date of deposit; and

      2.  Is payable at the expiration of a specified time not less than 7 days after the date of deposit.

      (Added to NRS by 1971, 965; A 1985, 737)

      NRS 657.095  Applicability of chapters 78, 86 and 92A of NRS.  The provisions of chapters 78, 86 and 92A of NRS that are not in conflict with this title are hereby adopted as a part of this title.

      (Added to NRS by 1971, 966; A 1995, 473; 1997, 975)

MISCELLANEOUS

      NRS 657.105  Effect of title on powers, privileges, duties and restrictions of corporations, companies, associations and natural persons.

      1.  The powers, privileges, duties and restrictions conferred and imposed upon any corporation, company, association or natural person, existing and doing business under the laws of this State, are hereby abridged, enlarged or modified, as each particular case may require, to conform to the provisions of this title, notwithstanding anything to the contrary in its respective articles of incorporation, articles of organization or charter.

      2.  As used in this section, “doing business under the laws of this State” does not include the lending of money to a person who is not a resident of this State, whether or not the bank which extended the credit or serviced the loan is located in this State.

      (Added to NRS by 1971, 966; A 1989, 2032; 1995, 473)

      NRS 657.120  Fees and charges: Imposition and collection by financial institution; limitations.

      1.  A financial institution may impose and collect a fee or charge, not to exceed an amount specified in or limited by specific statute, for any service it provides to a customer, if the fee or charge is clearly and conspicuously disclosed in writing to the customer before the customer receives the service. A financial institution must provide a customer with written notice of any increase in the fee or charge at least 10 days before the increase becomes effective.

      2.  A fee or charge for the presentation for payment, on a single business day, of multiple checks drawn by a customer on an account for which there is an insufficient balance to pay all the checks, must be determined as if the checks drawn in a single series or class were presented:

      (a) In the order the checks were written;

      (b) From the lowest check number to the highest check number; or

      (c) In order of ascending amounts, the check for the smallest sum being presented first.

      3.  As used in this section, “financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B, 645E or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.

      (Added to NRS by 1989, 566; A 1999, 3809)

      NRS 657.130  Committees to review compliance: Definitions; confidentiality and privilege.

      1.  As used in this section, unless the context otherwise requires:

      (a) “Committee to review compliance” means one or more persons assigned or engaged by a financial institution to test, review or evaluate its conduct, transactions or potential transactions, policies or procedures for the purpose of monitoring and improving or enforcing compliance with state and federal statutes and regulations requiring safe, sound and fair lending practices, including, without limitation, acts concerning equal credit opportunity, fair housing, fair lending, flood zone protection, housing and financial discrimination, truth in lending and financial reporting to federal or state regulatory agencies.

      (b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B or 645E of NRS, or a similar institution chartered or licensed pursuant to federal law. The term includes, without limitation, a holding company, affiliate or subsidiary of such an institution.

      2.  Except as otherwise voluntarily authorized by the financial institution:

      (a) A document prepared for or created by a committee to review compliance is confidential and privileged, and is not subject to discovery or admissible in evidence in a civil action of this State, even if it has been submitted to a governmental or regulatory agency of this State, the United States or a foreign government.

      (b) A member of a committee to review compliance or a person who acted under the direction of the committee cannot be required to testify in a civil action concerning the contents of a document described in paragraph (a) or concerning the discussions or conclusions of, or the actions taken by, the committee.

      (Added to NRS by 1995, 1784; A 1999, 3809)

      NRS 657.140  Loan agreements: Certain provisions for recovery prohibited; exceptions.

      1.  Except as otherwise provided in subsection 2, a financial institution shall not include in any loan agreement a provision that allows the financial institution to recover, take, appropriate or otherwise apply as a setoff against any debt or liability owing to the financial institution under the loan agreement money from an account unrelated to the loan agreement to the extent the money is exempt from execution pursuant to paragraph (y) of subsection 1 of NRS 21.090.

      2.  The provisions of subsection 1 do not apply to a provision in a loan agreement that specifically authorizes automatic withdrawals from an account.

      3.  The provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived. Any provision included in an agreement that conflicts with this section is void.

      4.  As used in this section:

      (a) “An account unrelated to the loan agreement” includes, without limitation, an account pledged as security under the loan agreement, unless the specific account pledged as security is conspicuously described in the loan agreement.

      (b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B, 645E or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.

      (Added to NRS by 2005, 382; A 2007, 3027)

FINANCIAL INSTITUTIONS

General Provisions

      NRS 657.150  Definitions.  As used in NRS 657.150 to 657.290, inclusive, unless the context otherwise requires, the words and terms defined in NRS 657.160 and 657.170 have the meanings ascribed to them in those sections.

      (Added to NRS by 2005, 1841; A 2007, 1490)

      NRS 657.160  “Financial institution” defined.  “Financial institution” means a depository institution or any other institution regulated pursuant to this title. The term includes, without limitation, a holding company, affiliate or subsidiary of such an institution.

      (Added to NRS by 2005, 1841)

      NRS 657.170  “License” defined.  “License” means any license, certificate, registration, permit or similar type of authorization.

      (Added to NRS by 2005, 1841)

Licenses; Business Names; Investigations

      NRS 657.180  License to operate or manage: Additional requirements; fingerprints; grounds for refusal to issue license.

      1.  In addition to any other requirements set forth by specific statute, each person who applies for a license to operate a financial institution and each person who will serve as a director, officer, manager or member acting in a managerial capacity for such a financial institution must submit:

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

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

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

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

             (4) Has not had a license to operate a financial institution suspended or revoked within the 10 years immediately preceding the date of the application.

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

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

      2.  In addition to any other lawful reasons, the Commissioner may refuse to issue a license to operate a financial institution if the person who applies for the license or any person who will serve as a director, officer, manager or member acting in a managerial capacity for the financial institution:

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

      (b) Has previously been refused a license to operate a financial institution or has had such a license suspended or revoked.

      (c) Has participated in any act which was a basis for the refusal or revocation of a license to operate a financial institution.

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

      (Added to NRS by 2005, 1841)

      NRS 657.190  Suspension or revocation of license to operate or manage: Additional grounds.  In addition to any other lawful reasons, the Commissioner may suspend or revoke a license to operate a financial institution if the person who holds the license or any person who serves as a director, officer, manager or member acting in a managerial capacity for the financial institution has engaged in any act that would be grounds for denying a license pursuant to NRS 657.180.

      (Added to NRS by 2005, 1842)

      NRS 657.200  Use or change of business name; prohibitions.

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

      2.  A financial institution shall not:

      (a) Use any business name which is identical or similar to a business name used by another financial institution or which may mislead or confuse the public.

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

      (Added to NRS by 2005, 1842)

      NRS 657.210  Authorization of Commissioner to investigate business; free access required; compelling attendance of witnesses.

      1.  For the purpose of discovering violations of this title or of securing information lawfully required under this title, the Commissioner or the Commissioner’s 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 an activity for which a license is required pursuant to the provisions of this title; and

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

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

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

      (a) Any transaction or business regulated pursuant to the provisions of this title; or

      (b) The subject matter of any audit, examination, investigation or hearing.

      (Added to NRS by 2005, 1842)

Exploitation of Older Persons or Vulnerable Persons

      NRS 657.220  Definitions.  As used in NRS 657.220 to 657.290, inclusive, unless the context otherwise requires, the words and terms defined in NRS 657.230 to 657.270, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 1488)

      NRS 657.230  “Designated reporter” defined.  “Designated reporter” means a person designated by a financial institution to receive reports of known or suspected exploitation of an older person or vulnerable person pursuant to NRS 657.290.

      (Added to NRS by 2007, 1488)

      NRS 657.240  “Exploitation” defined.  “Exploitation” has the meaning ascribed to it in subsection 2 of NRS 200.5092.

      (Added to NRS by 2007, 1488)

      NRS 657.250  “Older person” defined.  “Older person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.

      (Added to NRS by 2007, 1488)

      NRS 657.260  “Reasonable cause to believe” defined.  “Reasonable cause to believe” has the meaning ascribed to it in NRS 200.50925.

      (Added to NRS by 2007, 1489)

      NRS 657.270  “Vulnerable person” defined.  “Vulnerable person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.

      (Added to NRS by 2007, 1489)

      NRS 657.280  Training; reporting to designated reporter.

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

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2007, 1489)

      NRS 657.290  Designated reporter: Designation; duty to report; immunity.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2007, 1489)