[Rev. 11/21/2013 1:02:56 PM--2013]

CHAPTER 666A - FOREIGN BANKS

GENERAL PROVISIONS

NRS 666A.010        Definitions.

NRS 666A.020        “Agency” defined.

NRS 666A.030        “Branch” defined.

NRS 666A.040        “Federal” defined.

NRS 666A.050        “Foreign” defined.

NRS 666A.060        “Representative office” defined.

NRS 666A.070        “State” defined.

LICENSING

NRS 666A.080        State branch or agency: License required; exemptions from licensing.

NRS 666A.090        State branch or agency: Application and fee for license; limitation on licensing; withdrawal of application.

NRS 666A.100        State branch or agency: Amendment of license.

NRS 666A.110        State representative office: License required; exemption from licensing.

NRS 666A.120        State representative office: Application and fees for license; appointment of Commissioner as agent for service of process; regulations; withdrawal of application.

NRS 666A.130        State representative office: Prerequisites to issuance of license; issuance and contents of license.

NRS 666A.140        Posting of license; transfer or assignment of license prohibited.

OPERATION

NRS 666A.150        State branch or agency: Powers, duties, limitations and restrictions.

NRS 666A.160        State branch or agency: Engaging in fiduciary activities; regulations.

NRS 666A.170        State branch or agency: Acting as agent.

NRS 666A.180        State branch or agency: Maintenance of registered office and registered agent.

NRS 666A.190        State branch or agency: Change of registered office or registered agent.

NRS 666A.200        State branch or agency: Amendment of articles of incorporation.

NRS 666A.210        State branch or agency: Segregation of assets; priority of creditors.

NRS 666A.220        State branch or agency: Notification regarding insurance of deposits and credit balances.

NRS 666A.230        State branch or agency: Limitations on payment of interest on deposits.

NRS 666A.240        State branch or agency: Deposit of assets.

NRS 666A.250        State branch or agency: Maintenance of assets.

NRS 666A.260        State branch: Maintenance of reserve against deposits.

NRS 666A.270        State representative office: Authorized activities; approval of additional activities.

NRS 666A.280        Maintenance of books, accounts and other records.

NRS 666A.290        Notification of merger or acquisition of control.

NRS 666A.300        Relocation of office.

NRS 666A.310        Closure of office.

SUPERVISION AND CONTROL

NRS 666A.320        Authority of Commissioner.

NRS 666A.330        Examinations by Commissioner; fee for examinations.

NRS 666A.340        Filing of reports with Commissioner.

NRS 666A.350        State branch or agency: Authority and grounds for suspension or revocation of license.

NRS 666A.360        State branch or agency: Immediate suspension or revocation of license.

NRS 666A.370        State branch or agency: Seizure and liquidation of property and business.

NRS 666A.380        State representative office: Revocation of license.

MISCELLANEOUS PROVISIONS

NRS 666A.390        Service of processes, notices and demands.

NRS 666A.400        Establishment of interstate branches in this State.

_________

GENERAL PROVISIONS

      NRS 666A.010  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 666A.020 to 666A.070, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1995, 1537)

      NRS 666A.020  “Agency” defined.  “Agency” means an office or other place of business of a foreign bank located in this state at which credit balances are maintained incidental to or arising out of the exercise of banking powers, checks are paid or money is loaned, but at which deposits are not accepted from citizens or residents of the United States.

      (Added to NRS by 1995, 1537)

      NRS 666A.030  “Branch” defined.  “Branch” of a foreign bank means an office or other place of business located in this state at which deposits are received.

      (Added to NRS by 1995, 1537)

      NRS 666A.040  “Federal” defined.  “Federal” when used to modify the word “agency” or “branch” or the term “representative office” means licensed by the Comptroller of the Currency.

      (Added to NRS by 1995, 1537)

      NRS 666A.050  “Foreign” defined.  “Foreign” means organized under the law of a foreign country or a colony, dependency or possession of a foreign country, or of Puerto Rico, Guam, American Samoa, the Virgin Islands or a territory of the United States.

      (Added to NRS by 1995, 1537)

      NRS 666A.060  “Representative office” defined.  “Representative office” means an office of a foreign bank which is not a federal or state branch or agency or a subsidiary of a foreign bank.

      (Added to NRS by 1995, 1537)

      NRS 666A.070  “State” defined.  “State” when used to modify the word “agency” or “branch” or the term “representative office” means licensed pursuant to the provisions of this chapter.

      (Added to NRS by 1995, 1537)

LICENSING

      NRS 666A.080  State branch or agency: License required; exemptions from licensing.

      1.  Except as otherwise provided in subsection 2, a foreign bank shall not transact business in this state except at a state branch or agency for which it has been issued a license pursuant to this chapter.

      2.  A foreign bank:

      (a) Which maintains a federal branch or agency in this state may transact business authorized under federal law or regulation in that branch or agency.

      (b) Which does not maintain a state branch or agency may make loans in this state secured by real property in this state.

      (c) Organized under the law of a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands may operate an interstate branch in this state as if it were a state bank.

      3.  Transaction of business by a subsidiary of a foreign bank does not constitute transaction of business by the parent bank.

      (Added to NRS by 1995, 1537)

      NRS 666A.090  State branch or agency: Application and fee for license; limitation on licensing; withdrawal of application.

      1.  A foreign bank which desires to obtain a license under this chapter to establish and maintain a state branch or agency shall submit an application to the Commissioner pursuant to NRS 666.315. The application must contain:

      (a) The same information as required by the Board of Governors of the Federal Reserve System for an application to establish a branch or agency, as the case may be, in the United States; and

      (b) The information required pursuant to NRS 666.315,

Ę and must be accompanied by the fee required by that section.

      2.  A foreign bank which is licensed under this chapter to establish and maintain a state branch or agency may not concurrently maintain a federal branch or agency in this State. A foreign bank which maintains a federal branch or agency in this State may not concurrently be licensed under this chapter to maintain a state branch or agency.

      3.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

      (Added to NRS by 1995, 1538; A 2005, 1847)

      NRS 666A.100  State branch or agency: Amendment of license.

      1.  A foreign bank which is licensed to establish and maintain a state branch or agency shall secure an amended license if it changes its corporate name, changes the duration of its corporate existence or desires to pursue in this state other or additional purposes than those set forth in its previous application under this chapter for a license, by making application therefor to the Commissioner.

      2.  The requirements with respect to the form and contents of an application under subsection 1, the manner of its execution, the filing of duplicate originals thereof with the Commissioner, the issuance of an amended license and the effect thereof are the same as in the case of an initial application for a license to establish and maintain a state branch or agency.

      (Added to NRS by 1995, 1543)

      NRS 666A.110  State representative office: License required; exemption from licensing.

      1.  No foreign bank may establish or maintain a state representative office unless the foreign bank is licensed by the Commissioner to maintain a state representative office.

      2.  A foreign bank that maintains a federal agency or branch in this state may establish or maintain one or more federal representative offices in this state.

      (Added to NRS by 1995, 1540)

      NRS 666A.120  State representative office: Application and fees for license; appointment of Commissioner as agent for service of process; regulations; withdrawal of application.

      1.  The application for a license to establish and maintain a state representative office must be made in writing under oath and be in such form and contain such information as the Commissioner may require. The application must be accompanied by a fee of not more than $400. A fee of not more than $200 must be paid annually to renew the license.

      2.  The Commissioner shall require a foreign bank to include as part of its application to establish and maintain a state representative office an instrument irrevocably appointing the Commissioner and the Commissioner’s successors in office to be the foreign bank’s agent to receive service of any lawful process in any proceeding against the foreign bank or any of its successors which arises out of a transaction with its state representative office, with the same force and validity as if served on the foreign bank or its successor, as the case may be. The appointment must be in such form and contain such information as the Commissioner may require.

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

      4.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

      (Added to NRS by 1995, 1540; A 2005, 1848)

      NRS 666A.130  State representative office: Prerequisites to issuance of license; issuance and contents of license.

      1.  A foreign bank making an application for a license to establish and maintain a state representative office must deliver to the Commissioner two duplicate originals of the application.

      2.  The Commissioner shall issue a license to a foreign bank to establish and maintain a state representative office if the Commissioner finds that:

      (a) The foreign bank is of good character and sound financial standing;

      (b) The management of the foreign bank and the proposed management of the state representative office are adequate; and

      (c) The convenience and needs of persons to be served by the proposed state representative office will be advantageously served.

      3.  If the Commissioner determines to issue a license to a foreign bank to establish and maintain a state representative office, the Commissioner shall, when all fees have been paid as required by this chapter, issue the license.

      4.  Each license issued to a foreign bank to establish and maintain a state representative office must state fully the name of the foreign bank to which the license is issued, the address or addresses at which the state representative office is to be located and such other information as the Commissioner may require.

      (Added to NRS by 1995, 1540)

      NRS 666A.140  Posting of license; transfer or assignment of license prohibited.

      1.  Each foreign bank which is licensed to establish and maintain a state branch, agency or representative office shall post its license in a conspicuous place at such branch, agency or office.

      2.  A license issued by the Commissioner pursuant to this chapter is not transferable or assignable.

      (Added to NRS by 1995, 1541)

OPERATION

      NRS 666A.150  State branch or agency: Powers, duties, limitations and restrictions.

      1.  Except as otherwise provided in this chapter or in regulations adopted by the Commissioner, a foreign bank operating at a state branch or agency has the same rights, privileges and powers as a Nevada bank at the same location, including the eligibility to exercise fiduciary powers, and is subject to the same duties, restrictions, penalties, liabilities, conditions and limitations that would apply under the laws of this state to a Nevada bank doing business at the same location, but:

      (a) A state branch may not accept from citizens or residents of the United States deposits other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers, but it may accept deposits from persons who are not citizens or residents of the United States;

      (b) A state agency may not accept any deposits from citizens or residents of the United States other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers, but it may accept deposits from persons who are not citizens or residents of the United States; and

      (c) A state branch or agency is not required to maintain federal deposit insurance and the Commissioner may, by regulation or order, exclude or exempt uninsured state branches or agencies from, or otherwise modify the applicability to uninsured state branches or agencies of, any law or regulation of this state that is generally applicable to insured Nevada banks, or that would otherwise be applicable to an insured Nevada bank doing business at the same location, taking into account applicable limitations on the privileges of state branches and agencies and on their power to take retail deposits.

      2.  Any limitation or restriction based on the stockholders’ or members’ equity of a Nevada bank shall be deemed to refer, as applied to a state branch or agency, to the dollar equivalent of the stockholders’ or members’ equity of the foreign bank, and if the foreign bank has more than one state branch or agency in this state, the business transacted by all the state branches and agencies must be aggregated in determining compliance with the limitation.

      3.  The Commissioner may adopt such additional, or modify the applicability of any existing, standards, conditions or requirements, by regulation, as the Commissioner deems necessary to ensure the safety and soundness and the protection of creditors of the operations of branches and agencies of foreign banks in this state.

      (Added to NRS by 1995, 1538; A 1997, 1003)

      NRS 666A.160  State branch or agency: Engaging in fiduciary activities; regulations.

      1.  No foreign bank which is licensed to establish and maintain a state branch or agency may engage in fiduciary activities at that office unless the foreign bank first obtains a certificate of authority from the Commissioner to engage in fiduciary activities there.

      2.  An application to obtain a certificate of authority to engage in fiduciary activities must be in such form and contain such information as the Commissioner may require and must be accompanied by a fee of not more than $1,000. The Commissioner shall issue a certificate of authority to engage in fiduciary activities to a foreign bank making an application under this section if the Commissioner finds that the foreign bank will exercise fiduciary powers in accordance with the laws and regulations of this State.

      3.  A foreign bank which holds a certificate of authority issued pursuant to this section may engage at its state branch or agency in fiduciary activities to the same extent and in the same manner as if the foreign bank were a Nevada bank.

      4.  A foreign bank which holds a certificate of authority issued pursuant to this section shall file reports and be subject to examination and supervision to the same extent and in the same manner as if the foreign bank were a Nevada bank.

      5.  The Commissioner may suspend or revoke a certificate to engage in fiduciary activities issued pursuant to this section if the Commissioner finds that:

      (a) Conditions exist which would authorize the Commissioner to revoke or suspend the foreign bank’s license to establish and maintain a state branch or agency; or

      (b) Any fact or condition exists which, if it had existed at the time of the foreign bank’s original application to obtain a certificate of authority to engage in fiduciary activities, would have resulted in the Commissioner’s refusing to issue the certificate of authority.

      6.  The Commissioner shall adopt regulations establishing the amount of the application fee required pursuant to this section.

      (Added to NRS by 1995, 1539; A 2005, 1848)

      NRS 666A.170  State branch or agency: Acting as agent.

      1.  A state branch of a foreign bank licensed under this chapter may receive deposits and renew time deposits, and a state branch or agency of such a bank may close loans, service loans and receive payments on loans and other obligations, as an agent for any depository institution affiliated with the foreign bank, including branches, agencies and other offices of the same foreign bank located in other states, generally in accordance with the same terms, conditions, procedures and requirements that are applicable under the laws and regulations of this state to such activities as an agent which may be conducted by Nevada banks.

      2.  A state branch or agency of a foreign bank acting in this state as an agent in accordance with the provisions of this section must not be considered a branch of the affiliated depository institution, but no state branch or agency may act as agent for a branch or agency of an affiliated foreign bank other than the foreign bank which has been licensed to transact business in this state pursuant to this chapter.

      3.  A state branch or agency of a foreign bank licensed under this chapter may not:

      (a) Conduct any activity as an agent under this section which that office is prohibited from conducting as a principal under any applicable federal or state law, including the acceptance of impermissible deposits; or

      (b) As a principal, have an agent conduct any activity under this section which that office is prohibited from conducting under any applicable federal or state law, including the acceptance of impermissible deposits.

      4.  A state branch or agency of a foreign bank licensed under this chapter may act as an agent for a depository institution affiliated with the foreign bank only on terms that are consistent with safe and sound banking practices and all applicable regulations of the Commissioner.

      5.  A state branch may receive deposits or renew time deposits, and a state branch or agency may close loans, service loans or receive payments on loans and other obligations, as an agent for persons other than those for whom such agency activities are specifically authorized by this section, if the Commissioner so authorizes by regulation.

      (Added to NRS by 1995, 1539)

      NRS 666A.180  State branch or agency: Maintenance of registered office and registered agent.  A foreign bank which is licensed to establish and maintain a state branch or agency shall have and continuously maintain in this state:

      1.  A registered office which may be, but need not be, the same as its place of business in this state; and

      2.  A registered agent, who may be a natural person who resides in this state and maintains a business office at the registered office or a corporation authorized to transact business in this state which maintains a business office at the registered office.

      (Added to NRS by 1995, 1541)

      NRS 666A.190  State branch or agency: Change of registered office or registered agent.

      1.  A foreign bank which is licensed to establish and maintain a state branch or agency may from time to time change the address of its registered office, and shall change its registered agent if:

      (a) The registered agent ceases to act for any reason;

      (b) The registered agent becomes disqualified or incapacitated to act; or

      (c) It revokes the appointment of its registered agent.

      2.  Any change of registered office or registered agent under this section may be effected by filing within 10 business days after the change two duplicate originals of a statement setting forth the details with respect to the change and the effective date thereof, in such form and containing such information as the Commissioner may require.

      (Added to NRS by 1995, 1542)

      NRS 666A.200  State branch or agency: Amendment of articles of incorporation.  If the articles of incorporation of a foreign bank which is licensed to maintain a state branch or agency are amended, the foreign bank shall forthwith file in the Office of the Commissioner a copy of the amendment authenticated by the proper officer of the country of the foreign bank’s organization, but the filing thereof does not of itself enlarge or alter the purpose or purposes which the foreign bank is authorized to pursue in the transaction of its business in this state, nor authorize the foreign bank to transact business in this state under any name other than the name set forth in its license, nor extend the duration of its corporate existence.

      (Added to NRS by 1995, 1542)

      NRS 666A.210  State branch or agency: Segregation of assets; priority of creditors.

      1.  Each foreign bank which is licensed to establish and maintain a state branch or agency in this state shall keep the assets of its business in this state separate from the assets of its business outside this state.

      2.  The creditors of the business in this state conducted by a foreign bank at and recorded on the books of its state branch or agency are entitled to absolute priority over other creditors with respect to the assets of the foreign bank’s offices in this state.

      (Added to NRS by 1995, 1544)

      NRS 666A.220  State branch or agency: Notification regarding insurance of deposits and credit balances.  Each foreign bank which is licensed to establish and maintain a state branch or agency shall, in a manner established by the Commissioner, give notice that deposits and credit balances in that office are not insured by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1995, 1544)

      NRS 666A.230  State branch or agency: Limitations on payment of interest on deposits.  A foreign bank which is licensed to establish and maintain a state branch or agency is subject to the same limitations with respect to the payment of interest on deposits as a state bank which is a member of the Federal Reserve System.

      (Added to NRS by 1995, 1544)

      NRS 666A.240  State branch or agency: Deposit of assets.

      1.  Each foreign bank which is licensed to establish and maintain a state branch or agency shall keep on deposit, in accordance with such regulations as the Commissioner may adopt, with unaffiliated Nevada banks which the foreign bank designates and the Commissioner approves, interest-bearing bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state, or of a city, county, town, school district, or instrumentality of this state or guaranteed by this state, or dollar deposits, or obligations of the International Bank for Reconstruction and Development, or obligations issued by the Inter-American Development Bank, or obligations of the Asian Development Bank, or obligations issued by the African Development Bank, or such other assets as the Commissioner by regulation permits, to an aggregate amount to be determined by the Commissioner, based upon principal amount or market value, whichever is lower, in the case of the above-described securities, and subject to such limitations as the Commissioner prescribes.

      2.  The Commissioner may from time to time require that the assets deposited pursuant to this section be maintained by the foreign bank in such amount, in such form and subject to such conditions as the Commissioner deems necessary or desirable for the maintenance of a sound financial condition, the protection of depositors and the public interest, and to maintain public confidence in the business of the state branch or agency. The Commissioner may give credit to reserves required to be maintained with a federal reserve bank in or outside this state pursuant to federal law, in accordance with such regulations as the Commissioner may adopt.

      3.  So long as it continues business in the ordinary course, a foreign bank is entitled to collect interest on securities deposited pursuant to this section and from time to time exchange, examine and compare the securities.

      (Added to NRS by 1995, 1545)

      NRS 666A.250  State branch or agency: Maintenance of assets.

      1.  Each foreign bank which is licensed to establish and maintain a state branch or agency shall hold in this state currency, bonds, notes, debentures, drafts, bills of exchange or other evidence of indebtedness, including loan participation agreements or certificates, or other obligations payable in the United States or in United States money or, with the prior approval of the Commissioner, in money freely convertible into United States money, or such other assets as the Commissioner by regulation permits, in an amount which bears such relationship as the Commissioner prescribes to liabilities of the foreign bank payable at or through its state branch or agency, including acceptances, but excluding amounts due and other liabilities to other offices, agencies or branches of, and wholly owned, except for a nominal number of directors’ shares, subsidiaries of, the foreign bank and such other liabilities as the Commissioner determines.

      2.  For the purposes of this section, the Commissioner shall value marketable securities at principal amount or market value, whichever is lower, may determine the value of any nonmarketable bond, note, debenture, draft, bill of exchange, other evidence of indebtedness, including agreements for or certificates of participation in loans, or of any other asset or obligation held or owed to the foreign bank or its state branch or agency in this state, and in determining the amount of assets for the purpose of computing the ratio of assets to liabilities, may by regulation exclude in whole or in part any particular asset.

      3.  If, by reason of the existence or the potential occurrence of unusual and extraordinary circumstances, the Commissioner deems it necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, creditors and the public interest, and to maintain public confidence in the business of a state branch or agency, the Commissioner may, subject to such terms and conditions as the Commissioner may prescribe, require a foreign bank to deposit the assets required to be held in this state pursuant to this section with such Nevada banks or credit unions as the Commissioner may designate.

      4.  The assets held to satisfy the relationship of assets to liabilities prescribed by the Commissioner pursuant to this section may include obligations of any person for money borrowed from a foreign bank holding a license to establish and maintain a state branch or agency only to the extent that the total of such obligations of any person are not more than 10 percent of the assets considered for purposes of this section.

      (Added to NRS by 1995, 1545; A 1999, 1543)

      NRS 666A.260  State branch: Maintenance of reserve against deposits.

      1.  Except as otherwise provided in subsection 2, a foreign bank which is licensed to establish and maintain a state branch shall at all times maintain a reserve against the deposits of the state branch as may from time to time be required to be maintained, pursuant to regulations issued by the Board of Governors of the Federal Reserve System, by a Nevada bank which is a member of the Federal Reserve System. The reserve must be maintained with a Nevada bank or national bank which the foreign bank designates and the commissioner approves.

      2.  A foreign bank which is required to maintain reserves pursuant to the authority granted the Board of Governors of the Federal Reserve System in section 7(a)(1)(B) of the federal International Banking Act (12 U.S.C. § 3105(a)(1)(b)) is exempt from the requirements of this section.

      (Added to NRS by 1995, 1546)

      NRS 666A.270  State representative office: Authorized activities; approval of additional activities.

      1.  A foreign bank which is licensed to establish and maintain a state representative office may, subject to such regulations as the Commissioner may prescribe:

      (a) Solicit loans and in connection therewith assemble information concerning credit, inspect and appraise property, secure information on titles, prepare applications for loans and make recommendations with respect to action thereon, solicit investors to purchase loans from the foreign bank and search for investors to contract with the foreign bank for servicing of loans;

      (b) Solicit new business;

      (c) Conduct research; and

      (d) Perform administrative functions.

Ę Any other activity, except as provided in subsection 2, which the foreign bank seeks to conduct at the office is subject to the prior written approval of the Commissioner.

      2.  A state representative office may approve credit if the foreign bank:

      (a) Gives 45 days’ prior written notice to the Commissioner; and

      (b) The Commissioner does not object within the 45-day period to that activity by the state representative office.

      (Added to NRS by 1995, 1541)

      NRS 666A.280  Maintenance of books, accounts and other records.  Each foreign bank which is licensed to establish and maintain a state branch, agency or representative office shall make, keep and preserve at the office all such books, accounts and other records relating to the business of the office in such form, in such manner and for such time as the Commissioner may provide.

      (Added to NRS by 1995, 1544)

      NRS 666A.290  Notification of merger or acquisition of control.  A foreign bank which is licensed to establish and maintain a state branch, agency or representative office shall file with the Commissioner a notice, in such form and containing such information as the Commissioner may prescribe, no later than 14 calendar days after the foreign bank becomes aware of any acquisition of control of the foreign bank or merges with another foreign bank.

      (Added to NRS by 1995, 1543)

      NRS 666A.300  Relocation of office.

      1.  No foreign bank which is licensed to establish and maintain a state branch, agency or representative office may relocate the office unless the Commissioner first approves the relocation and issues an amended license authorizing the foreign bank to maintain the office at the new site.

      2.  An application by a foreign bank under this section must be in such form and contain such information as the Commissioner requires.

      3.  If an application made by a foreign bank pursuant to this section is approved and all conditions precedent to the issuance of an amended license authorizing the foreign bank to maintain the office at the new site have been fulfilled, the Commissioner shall issue an amended license.

      4.  Promptly after a foreign bank which is licensed to maintain a state branch, agency or representative office relocates the office, the foreign bank shall surrender to the Commissioner its previous license for the office.

      (Added to NRS by 1995, 1543)

      NRS 666A.310  Closure of office.

      1.  No foreign bank which is licensed to establish and maintain a state branch, agency or representative office may close that office without obtaining the prior written approval of the Commissioner. An application by a foreign bank under this section must be in such form and include such information as the Commissioner requires.

      2.  If the Commissioner finds that the closing of the office will not be substantially detrimental to the public convenience and advantage, the Commissioner shall approve the application.

      3.  If an application by a foreign bank under this section is approved and all conditions precedent to the closing have been fulfilled, the foreign bank may close the office and shall promptly thereafter surrender to the Commissioner the license which authorized it to maintain the office.

      (Added to NRS by 1995, 1546)

SUPERVISION AND CONTROL

      NRS 666A.320  Authority of Commissioner.

      1.  The Commissioner has all of the powers granted to the Commissioner by the laws of this state to the same extent and in the same manner as if a state branch, agency or representative office were a Nevada bank.

      2.  If, after notice and a hearing, the Commissioner finds that any person has violated any provision of this chapter or of any regulation or order issued under this chapter, the Commissioner may, in addition to any other remedy or action available to the Commissioner under the laws of this state, order the violator to pay to the Commissioner a civil penalty in such a manner and in such an amount as the Commissioner determines by regulation, consistent with the penalties provided for Nevada banks.

      3.  To carry out the purposes of this chapter, the Commissioner may:

      (a) Enter into cooperative, coordinating or information-sharing agreements with any other bank supervisory agency or any organization affiliated with or representing one or more bank supervisory agencies;

      (b) With respect to periodic examination or other supervision of a foreign bank that maintains a state branch, agency or representative office, accept reports of examinations performed by, and reports submitted to, other bank supervisory agencies in lieu of conducting examinations, or of receiving reports, as might otherwise be required under this chapter; and

      (c) Enter into joint examinations or joint enforcement actions with any other bank or supervisory agency having concurrent jurisdiction over any foreign bank, but the Commissioner may at any time take any such actions independently if the Commissioner determines that such actions are necessary or appropriate to carry out the Commissioner’s responsibilities under this chapter and to ensure compliance with the laws of this state.

      (Added to NRS by 1995, 1543)

      NRS 666A.330  Examinations by Commissioner; fee for examinations.

      1.  A state branch, agency or representative office is subject to examination by the Commissioner to the same extent and in the same manner as if the state branch, agency or representative office were a Nevada bank.

      2.  In conducting an examination pursuant to this section, the Commissioner:

      (a) Is entitled to full access to the offices, books, accounts, papers, records, files, safes and vaults of each office; and

      (b) May require the attendance of and examine under oath all persons whose testimony may be required relative to the activities of the office.

      3.  A foreign bank which is licensed to establish and maintain a state branch, agency or representative office shall pay a fee for conducting the examination and the expenses of preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.

      (Added to NRS by 1995, 1543)

      NRS 666A.340  Filing of reports with Commissioner.

      1.  Each foreign bank which is licensed to establish and maintain a state branch, agency or representative office shall file with the Commissioner such reports, at such times, as the Commissioner may by regulation require.

      2.  Each report filed with the Commissioner under this chapter or under any regulation adopted under this chapter must be in such form and contain such information, be signed in such manner and be verified in such manner as the Commissioner may require.

      (Added to NRS by 1995, 1544)

      NRS 666A.350  State branch or agency: Authority and grounds for suspension or revocation of license.  If, after notice and a hearing, the Commissioner finds any of the following with respect to a foreign bank which is licensed to establish and maintain a state branch or agency, the Commissioner may issue an order suspending or revoking the license of the foreign bank:

      1.  The foreign bank has violated any provision of this chapter or of any regulation or order issued under this chapter or any provision of any other applicable law, regulation or order;

      2.  The foreign bank is transacting activities in this state or elsewhere in an unsafe or unsound manner;

      3.  The foreign bank or any of its state branches or agencies is in an unsafe or unsound condition;

      4.  The foreign bank has ceased to operate any of its offices in this state without the prior approval of the Commissioner in accordance with this chapter;

      5.  The foreign bank is insolvent in that it has ceased to pay its debts in the ordinary course of business, it cannot pay its debts as they become due or its liabilities exceed its assets;

      6.  The foreign bank has suspended payment of its obligations, has made an assignment for the benefit of its creditors or has admitted in writing its inability to pay its debts as they become due;

      7.  The foreign bank has applied for an adjudication of bankruptcy, reorganization, arrangement or other relief under any foreign or domestic law on bankruptcy, reorganization, insolvency or moratorium, or any person has applied for any such relief under such a law against the foreign bank and the foreign bank has by any affirmative act approved of or consented to the action or the relief has been granted;

      8.  A receiver, liquidator or conservator has been appointed for the foreign bank or any proceeding for such an appointment or any similar proceeding has been initiated in the country of the foreign bank’s organization;

      9.  The existence of the foreign bank or the authority of the foreign bank to transact banking business under the laws of the country of the foreign bank’s organization has been suspended or terminated; or

      10.  Any fact or condition exists which, if it had existed at the time when the foreign bank applied for its license to transact business in this state, would have been a ground for denying the application.

      (Added to NRS by 1995, 1546)

      NRS 666A.360  State branch or agency: Immediate suspension or revocation of license.

      1.  If the Commissioner finds that any of the factors set forth in NRS 666A.350 are true with respect to any foreign bank which is licensed to maintain a state branch or agency and that it is necessary for the protection of the interests of creditors of the foreign bank’s business in this state or, in any case, for the protection of the public interest that the Commissioner immediately suspend or revoke the license of the foreign bank, the Commissioner may issue an order suspending or revoking the license of the foreign bank.

      2.  Within 30 days after an order is issued pursuant to subsection 1, the foreign bank to which the order is issued may file with the Commissioner a request for a hearing on the order. If the Commissioner fails to commence the hearing within 15 business days after the request is filed with the Commissioner, or within such longer period as the foreign bank consents to, the order shall be deemed rescinded. Within 30 days after the hearing, the Commissioner shall affirm, modify or rescind the order. Otherwise, the order shall be deemed rescinded.

      3.  The right of any foreign bank to which an order is issued pursuant to subsection 1 to petition for judicial review of the order is not affected by the failure of the foreign bank to petition the commissioner for a hearing on the order pursuant to subsection 2.

      (Added to NRS by 1995, 1547)

      NRS 666A.370  State branch or agency: Seizure and liquidation of property and business.

      1.  If the Commissioner finds that any of the factors set forth in NRS 666A.350 are true with respect to any foreign bank which is licensed to establish and maintain a state branch or agency and that it is necessary for the protection of the interests of the creditors of the foreign bank’s business in this state or for the protection of the public interest that the Commissioner take immediate possession of the property and business of the foreign bank, the Commissioner may by order take possession of the property and business of the foreign bank in this state and retain possession until the foreign bank resumes business in this state or is finally liquidated. The foreign bank may, with the consent of the Commissioner, resume business in this state upon such conditions as the Commissioner may prescribe.

      2.  If the Commissioner takes possession of the property and business of a foreign bank pursuant to subsection 1, the foreign bank may, within 10 days, apply to the district court in the county in which the primary office of the foreign bank in this state is located to enjoin further proceedings. The court may, after citing the Commissioner to show cause why further proceedings should not be enjoined and after a hearing, dismiss the application or enjoin the Commissioner from further proceedings and order the Commissioner to surrender the property and business of the foreign bank to the foreign bank or make further order as may be just.

      3.  The Commissioner or the foreign bank may appeal from the judgment of the court having jurisdiction over any proceedings under subsection 2 in the manner provided by law for appeals from the judgment of a district court. If the Commissioner appeals from the judgment of the district court, the appeal operates as a stay of the judgment and the Commissioner need not post any bond.

      4.  If the Commissioner takes possession of the property and business of a foreign bank pursuant to subsection 1, the Commissioner shall conserve or liquidate the property and business of the foreign bank pursuant to the laws of this state as if the foreign bank were a Nevada bank, with absolute priority given to the creditors of the business in this state conducted by the foreign bank at and recorded on the books of its state branch or agency.

      5.  When the Commissioner has completed the liquidation of the property and business of a foreign bank, the Commissioner shall transfer any remaining assets to the foreign bank in accordance with such orders as the court may issue. However, if the foreign bank has an office in another state of the United States which is in liquidation and the assets of that office appear to be insufficient to pay in full the creditors of that office, the court shall order the Commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover the insufficiency. If there are two or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the Commissioner to distribute the remaining assets among the liquidators of those offices in such manner as the court finds equitable.

      (Added to NRS by 1995, 1547)

      NRS 666A.380  State representative office: Revocation of license.  The Commissioner, after notice and opportunity for a hearing, may revoke a license to establish and maintain a state representative office if the Commissioner finds that:

      1.  The foreign bank has violated any provision of this chapter or any other law or regulation of this state; or

      2.  Any fact or condition exists which, if it had existed at the time of the foreign bank’s original application for the license, would have been a ground for refusing to issue the license.

      (Added to NRS by 1995, 1541)

MISCELLANEOUS PROVISIONS

      NRS 666A.390  Service of processes, notices and demands.

      1.  In the case of a foreign bank which is licensed to establish and maintain a state branch or agency, service of process in any suit, action or proceeding or service of any notice or demand required or permitted by law to be served on a foreign corporation may be made on the foreign bank by service thereof on the registered agent of the foreign bank in this state. If a foreign bank fails to appoint or maintain a registered agent upon whom service of legal process or service of any such notice or demand may be had, or if the registered agent cannot with reasonable diligence be found at the registered office of the foreign bank, or if the license of the foreign bank’s state branch or agency is revoked, the Commissioner by operation of law is irrevocably authorized as the agent of the foreign bank to accept service of any process or service of any notice or demand required or permitted by law to be served on the foreign bank.

      2.  In the case of a foreign bank which is licensed to establish and maintain a state representative office, service of process in any suit, action or proceeding or service of any notice or demand required or permitted by law to be served on a foreign corporation may be made on the foreign bank by service thereof on the Commissioner.

      3.  Service on the Commissioner in accordance with this section of any process, notice or demand against a foreign bank must be made by delivering to and leaving with the Commissioner, or with any official having charge of the Commissioner’s office, duplicate copies of the process, notice or demand. If any process, notice or demand is served on the Commissioner, the Commissioner shall immediately cause a copy thereof to be forwarded by certified mail addressed to the foreign bank at its principal office as the address appears in the Commissioner’s records. Any service so had on the Commissioner is returnable in not less than 30 days.

      4.  This chapter does not limit or affect the right to serve any process, notice or demand required or permitted by law to be served upon a foreign corporation in any other manner permitted by law.

      5.  The Commissioner shall keep a record of all processes, notices and demands served upon the Commissioner under this section and shall record therein the time of service and the Commissioner’s action with reference thereto.

      (Added to NRS by 1995, 1542)

      NRS 666A.400  Establishment of interstate branches in this State.

      1.  Except as otherwise provided in subsection 2, an out-of-state foreign bank may establish an interstate Nevada branch in the same manner, including by merger or other transaction under section 44 of the Federal Deposit Insurance Act and comparable provisions of the laws of this State, with Nevada banks or other institutions, as, and subject to the same criteria, standards, conditions, requirements and procedures applicable to the establishment of interstate branches in this State by, an out-of-state bank having the same home state in the United States.

      2.  The Commissioner:

      (a) Shall apply to the establishment of an initial interstate branch, and subsequent intrastate state branches, of any out-of-state foreign bank the same criteria, standards, conditions, requirements and procedures applicable under this chapter or regulations adopted thereunder to the establishment of an initial state branch, and of subsequent intrastate Nevada branches, respectively by other foreign banks;

      (b) May apply any other criterion, standard, condition, requirement or provision of the laws or regulations of this State that the Commissioner determines to be substantially equivalent to or consistent with a criterion, standard, condition, requirement or provision of federal law or regulation generally applicable to the establishment of branches in the United States by foreign banks or specifically applicable to the establishment of a branch in the United States by the applicant foreign bank; and

      (c) May by regulation allow an out-of-state foreign bank:

             (1) To acquire or merge with another foreign bank maintaining a state branch or agency and thereafter continue such operations as its own; and

             (2) To acquire or establish an interstate Nevada branch through any other means not inconsistent with section 5 of the federal International Banking Act (12 U.S.C. § 3103).

      3.  As used in this section, the words and terms defined in NRS 666.006 and 666.008 have the meanings ascribed to them in those sections.

      (Added to NRS by 1995, 1548)