[Rev. 11/21/2013 1:04:04 PM--2013]

TITLE 56 - OTHER FINANCIAL INSTITUTIONS

CHAPTER 673 - SAVINGS AND LOAN ASSOCIATIONS

GENERAL PROVISIONS

NRS 673.001           Definitions.

NRS 673.002           “Association” defined.

NRS 673.005           “Combination home and business structure” defined.

NRS 673.0054         “Commissioner” defined.

NRS 673.0056         “Cooperative housing corporation” defined.

NRS 673.0057         “Deposit” defined.

NRS 673.0065         “Director” defined.

NRS 673.007           “Dividend” defined.

NRS 673.008           “Foreign” defined.

NRS 673.009           “Gross income” defined.

NRS 673.011           “Home” defined.

NRS 673.012           “Home loan” defined.

NRS 673.013           “Home property” defined.

NRS 673.014           “Impaired condition” defined.

NRS 673.015           “Improved real estate” defined.

NRS 673.016           “Insured association” defined.

NRS 673.0165         “Interest” defined.

NRS 673.017           “Investment certificate” defined.

NRS 673.0185         “Merger” defined.

NRS 673.019           “Net earnings” defined.

NRS 673.021           “Net earnings available for dividends” defined.

NRS 673.022           “Operating expenses” defined.

NRS 673.023           “Operating income” defined.

NRS 673.024           “Other real estate loan” defined.

NRS 673.025           “Real estate expenses” defined.

NRS 673.026           “Real estate income” defined.

NRS 673.027           “Real estate loan” defined.

NRS 673.031           “Savings account” defined.

NRS 673.032           “Savings liability” defined.

NRS 673.0321         “Service office” defined.

NRS 673.034           “Withdrawal value” defined.

ADMINISTRATION AND ENFORCEMENT

NRS 673.035           Administration of chapter.

NRS 673.03531       Certain relationships between employees of Division of Financial Institutions and association prohibited; termination of prohibited relationship.

NRS 673.039           Records of Commissioner.

NRS 673.040           Commissioner to supervise and make policy.

NRS 673.042           Biennial report of Commissioner: Contents; distribution.

NRS 673.043           Regulations.

NRS 673.0435         Commissioner may secure injunctions and restraining orders.

NRS 673.044           Notices.

NRS 673.045           Amendment or alteration of license by Commissioner; appeal.

NRS 673.046           Application for license: Additional requirements; fingerprints; grounds for refusal to issue license.

NRS 673.048           Suspension or revocation of license: Additional grounds.

NRS 673.050           Proceedings in court to test validity of action by Commissioner or Director.

NRS 673.060           Deposit of money in State Treasury; payment of expenses; exceptions.

FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES

NRS 673.070           Incorporation of domestic associations: Procedure; applicability of chapter 78 of NRS; limitations on advertising for savings and loans.

NRS 673.080           Articles to be approved by Commissioner; application; permission to organize; fees; conditions; regulations; withdrawal of application.

NRS 673.090           Provisions of chapter abridge and enlarge powers and privileges of foreign and domestic associations.

NRS 673.110           Procedure for removing “and loan” from name of domestic association.

NRS 673.112           Branch offices: Definition; establishment and regulation; revocation of approval by Commissioner; advertisement; fees; regulations.

NRS 673.113           Surety bond of association.

NRS 673.114           Service offices: Approval of Commissioner required; revocation of approval.

NRS 673.115           Restrictions on advertising.

NRS 673.117           Use or change of business name; prohibitions.

OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS

NRS 673.207           Directors: Number; filling of vacancies; amendment of bylaws.

NRS 673.208           Persons requiring Commissioner’s approval to serve as director.

NRS 673.209           Removal of director, officer or employee on objection of Commissioner.

NRS 673.211           Removal of director for cause.

NRS 673.212           Fiduciary relationship of directors and officers to association.

NRS 673.213           Directors: Compensation and expenses.

NRS 673.214           Officers: Election; salaries.

NRS 673.215           Directors: Meetings; quorum.

NRS 673.216           Official communication from Commissioner: Read at next board meeting and made part of minutes.

NRS 673.217           Statement of purchases and sales of real estate and loans made or purchased to be considered at regular meeting and made part of minutes.

NRS 673.2176         Notification of change in ownership of stock; application required after certain acquisitions; investigation; costs; waiver.

NRS 673.218           Pensions and retirement plans for officers and employees.

NRS 673.219           Directors: Approval of depositary for money of association.

NRS 673.221           Unlawful acts; penalty.

NRS 673.2211         Liability of directors, officers or other persons.

NRS 673.222           Actions against officers, directors or employees: Payment of expenses of defending action by association; settlements.

POWERS AND PRIVILEGES OF STATE ASSOCIATIONS

NRS 673.225           Certain state associations possess same powers and privileges as federally chartered associations.

NRS 673.227           Land and office buildings of association; limitation on costs.

NRS 673.228           Trustee and custodial powers of association.

STOCKS AND CERTIFICATES

NRS 673.250           Licenses for issuance or sale of stock; contents and conditions of licenses.

NRS 673.260           Annual license: Fees; renewal; penalty; regulations.

NRS 673.270           Licensing of salespersons and solicitors; fees; regulations; withdrawal of applications.

NRS 673.273           Stock, surplus, undivided profits and reserves to include percentage of value of outstanding investment certificates; dividends on permanent stock; stock dividends.

NRS 673.274           Acts prohibited when stock, surplus, undivided profits and reserves below amount specified.

NRS 673.275           Impairment of stock; levy of assessment to repair deficiency; reduction of stock.

NRS 673.2755         Investment certificates: Rights and liabilities of holders; types of certificates; limitation on approval.

RESERVE FOR LOSSES

NRS 673.2758         Requirements.

INVESTMENTS AND BORROWING

NRS 673.276           Permissible investments.

NRS 673.2765         Investments in related service corporations.

NRS 673.2766         Investments in real property for subdivision or residential development.

NRS 673.278           Purchases of loans.

NRS 673.279           Purchases of real property contracts; conditions.

NRS 673.280           Certain federal obligations are legal investments.

NRS 673.281           Restrictions on transfer or encumbrance of note and other obligations held by association.

NRS 673.300           Association may become member and stockholder of Federal Home Loan Bank, borrow money and invest in bonds.

NRS 673.301           Association may issue capital notes; voting rights of holders.

NRS 673.302           Limitation on borrowing.

NRS 673.310           Loans and advances of credit insured by Federal Housing Administrator or Department of Veterans Affairs.

NRS 673.315           Investment in Federal National Mortgage Association.

NRS 673.316           Loans and investments not limited.

APPRAISALS

NRS 673.317           Approval of appraiser by Commissioner required; limitations; revocation; notice of termination of services.

NRS 673.3171         Appraisal of real estate required before granting loan; requirements.

NRS 673.318           Appraisal of real estate at time of acquisition.

NRS 673.319           Specific loss reserve; determination of values by Commissioner.

NRS 673.3191         Reserve for uncollected interest.

INSURANCE OF ACCOUNTS

NRS 673.320           Associations empowered to insure accounts.

LOANS

NRS 673.324           Permissible loans.

NRS 673.3244         Loans to corporations or partnerships.

NRS 673.3255         Loans to finance interest in cooperative housing corporation; first security interests.

NRS 673.3271         Loans to one borrower.

NRS 673.3272         Payment of charges by association for protection of its investments; required advance monthly payments.

NRS 673.330           Limitation on charge for prepayment of loan.

NRS 673.331           Loans prohibited on security of association’s own stock.

NRS 673.332           Property acquired by foreclosure or developed by association; real-estate-owned accounts; subsidiary ledger records.

INTEREST AND DIVIDENDS

NRS 673.333           Apportionment of earnings and payment of interest; determination of percentage rate of declaration; classes of savings accounts; notice of change in method of calculating interest.

NRS 673.336           Restrictions on declaration of dividends.

INVESTORS

NRS 673.340           Minors and married persons; payment as valid discharge of association.

NRS 673.360           Administrators, executors, guardians and trustees; payment as valid discharge of association.

SAFE-DEPOSIT BOXES

NRS 673.373           Notice of overdue rental; opening of box; retention of contents in general vaults; delivery of contents to State Treasurer.

WITHDRAWALS

NRS 673.377           Minimum required available cash, deposits and securities; making and purchasing loans prohibited when minimum not met.

NRS 673.380           Procedure when requests for withdrawals exceed amount available.

NRS 673.390           Order of payment of withdrawals.

NRS 673.420           Notice to Commissioner of inability to pay request for withdrawal on file more than 60 days.

REPORTS, EXAMINATIONS AND AUDITS

NRS 673.430           Annual reports: Filing; form and contents; fees; penalty; regulations.

NRS 673.440           Commissioner may require further information.

NRS 673.450           Hearings, investigations and examinations by Commissioner; powers of Commissioner; biennial examination required.

NRS 673.451           Authorization of Commissioner to investigate business; free access required; compelling attendance of witnesses.

NRS 673.453           Enforcement of subpoena by district court.

NRS 673.455           Examination of holding companies.

NRS 673.460           Examinations outside State; fees and traveling expenses; regulations.

NRS 673.470           Other examinations acceptable in lieu of examination by Commissioner.

NRS 673.480           Authority of Commissioner to make information available to other officers and agencies.

NRS 673.483           Audit of books and accounts.

NRS 673.4835         Independent audit and examination: Payment of assessment; cooperation.

SUSPENSION AND REVOCATION OF CHARTERS

NRS 673.484           Grounds; notice and hearing.

REORGANIZATION; MERGER; CONSOLIDATION

NRS 673.4845         Procedure; approval by association and Commissioner; fee; regulations.

CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP

NRS 673.485           Authority of Commissioner to order discontinuance of unlawful or unsafe practices; special meetings of directors concerning noncompliance.

NRS 673.495           Conservator: Appointment by Commissioner; district court confirmation.

NRS 673.497           Powers of conservator; limitations; expenses; compensation.

NRS 673.499           Receiver: Appointment by Commissioner; court confirmation; powers and authority; compensation.

NRS 673.515           Appeal from judgment enjoining Commissioner or dismissing action to enjoin; bond.

NRS 673.525           Penalty for failure to comply with Commissioner’s demand for possession of property, business and assets.

NRS 673.535           Enforcement by sheriff of demand for possession of property, business and assets; written demand for assistance; duty to enforce.

NRS 673.545           Delivery of schedule of property, assets and collateral to Commissioner; examination of directors, officers or employees by Commissioner.

NRS 673.555           Authority of Commissioner to issue subpoenas and require attendance of parties.

NRS 673.565           Appointment of custodian; bond.

NRS 673.575           Collection of money; preservation of assets.

NRS 673.576           Powers of Commissioner when in possession of business, property and assets.

NRS 673.577           Claims for damages from disaffirmance of executory contract or lease.

NRS 673.580           Procedure upon taking possession of insured association: Federal Deposit Insurance Corporation as liquidator or coliquidator.

NRS 673.590           Delivery of remaining assets to stockholders.

FOREIGN ASSOCIATIONS

NRS 673.595           Activities for which license not required; solicitation or acceptance of deposits prohibited; exception; fee.

NRS 673.597           Conflict of laws; report to Commissioner of forbidden course or act.

CONVERSION INTO FEDERAL ASSOCIATION

NRS 673.600           Conversion authorized.

NRS 673.610           Notice of stockholders’ meeting: Service and proof of service.

NRS 673.620           Majority approval of resolution at stockholders’ meeting required; filing of minutes with Commissioner.

NRS 673.630           Filing of charter or certificate with Commissioner; fee; taxation; regulations.

NRS 673.640           When state supervision ceases; when property and assets vest in association under new name and style; enjoyment of property by converted association.

CONVERSION OF FEDERAL ASSOCIATION

NRS 673.650           Conversion authorized; votes necessary.

NRS 673.660           Time for election of directors after conversion; time directors to hold office.

NRS 673.670           Filing of verified minutes of stockholders’ meeting.

NRS 673.680           Verified copy of minutes as presumptive evidence of holding meeting and action taken.

NRS 673.690           Federal association and directors to take necessary action to incorporate as state association; no minimum amount of capital required.

NRS 673.700           Inclusion of statement of conversion in articles permissible.

NRS 673.710           Time for filing articles of incorporation with Federal Home Loan Bank; number of copies; certification by Secretary of State.

NRS 673.720           Time of association’s cessation as federal association; time of vesting of property in association under new name and style.

NRS 673.730           Enjoyment of property by converted association; association as continuation of previous federal association.

NRS 673.740           Acts permitted executors, administrators and fiduciaries without obtaining court approval.

POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS

NRS 673.750           Powers and privileges same as domestic association; conditions.

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

NRS 673.773           Definitions.

NRS 673.777           “Designated reporter” defined.

NRS 673.783           “Exploitation” defined.

NRS 673.787           “Older person” defined.

NRS 673.793           “Reasonable cause to believe” defined.

NRS 673.797           “Vulnerable person” defined.

NRS 673.803           Training; reporting to designated reporter.

NRS 673.807           Designated reporter: Designation; duty to report; immunity.

UNLAWFUL ACTS; PENALTIES

NRS 673.810           Making false statement concerning financial condition of savings and loan association.

NRS 673.820           Violation of chapter or fraudulent misrepresentation of contract or securities by association; administrative fines.

NRS 673.830           Violation of chapter or sale of securities through fraudulent misrepresentation.

NRS 673.840           Sale or offer to sell securities without license or for failure to secure license or pay fee or penalty.

NRS 673.850           Effect of revocation of license.

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GENERAL PROVISIONS

      NRS 673.001  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 673.002 to 673.034, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1959, 537; A 1969, 966; 1979, 710; 1983, 1771; 1987, 1956)

      NRS 673.002  “Association” defined.  “Association” means a savings and loan association subject to the provisions of this chapter.

      (Added to NRS by 1959, 537; A 1977, 488)

      NRS 673.005  “Combination home and business structure” defined.  “Combination home and business structure” means a building or buildings, including residences for not more than four families, which are used in part for business purposes, if the residential use of such a building is substantial and permanent, not merely transitory. The business use may predominate.

      (Added to NRS by 1959, 537; A 1977, 509)

      NRS 673.0054  “Commissioner” defined.  “Commissioner” means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 1956)

      NRS 673.0056  “Cooperative housing corporation” defined.  “Cooperative housing corporation” means a corporation organized under the laws of this state for the purpose of the cooperative ownership of real estate whereby each of the stockholders or members is entitled, through ownership of stock or a certificate of membership in the corporation, to occupy a house, apartment or other dwelling unit on real estate owned by the corporation.

      (Added to NRS by 1979, 710)

      NRS 673.0057  “Deposit” defined.  “Deposit” means that part of the savings liability of an association which is credited to the account of the holder thereof.

      (Added to NRS by 1969, 961)

      NRS 673.0065  “Director” defined.  “Director” means the Director of the Department of Business and Industry.

      (Added to NRS by 1963, 683; A 1993, 1896)

      NRS 673.007  “Dividend” defined.  “Dividend” means that part of the net earnings of an association which is declared payable by the board of directors to the holders of permanent capital stock.

      (Added to NRS by 1959, 537; A 1969, 967)

      NRS 673.008  “Foreign” defined.  “Foreign,” used in connection with an association, company or corporation, means an association, company or corporation organized or incorporated under the laws of some government other than that of the State of Nevada.

      (Added to NRS by 1959, 538)

      NRS 673.009  “Gross income” defined.  “Gross income” means the sum for an accounting period of the following:

      1.  Operating income.

      2.  Real estate income.

      3.  All profits actually received during such accounting period from the sale of securities, real estate or other property.

      4.  Other nonrecurring income.

      (Added to NRS by 1959, 538)

      NRS 673.011  “Home” defined.  “Home” means a dwelling or dwellings for not more than four families, the principal use of which is for residential purposes. The term includes:

      1.  A dwelling on a farm.

      2.  A dwelling unit of a cooperative housing corporation.

      3.  A mobile home as defined in NRS 489.120, with the wheels removed and skirting added, when set on a foundation located on land which the owner of the home owns or occupies pursuant to a tenancy with a term of 40 years or more.

      (Added to NRS by 1959, 538; A 1977, 509; 1979, 710, 1289)

      NRS 673.012  “Home loan” defined.  “Home loan” means a real estate loan the security for which is home property.

      (Added to NRS by 1959, 538)

      NRS 673.013  “Home property” defined.  “Home property” means real estate on which there is located or will be located, pursuant to a home loan, a home or a combination home and business structure.

      (Added to NRS by 1959, 538)

      NRS 673.014  “Impaired condition” defined.  “Impaired condition” means a condition in which the assets of an association do not have an aggregate value equal to the aggregate amount of liabilities of the association to its creditors, including its savings depositors and all other persons.

      (Added to NRS by 1959, 538; A 1977, 488)

      NRS 673.015  “Improved real estate” defined.  “Improved real estate” means real estate on which there is a structure, or building lots or sites which, by reason of installations and improvements that have been completed, are building lots or sites ready for building construction thereon.

      (Added to NRS by 1959, 538; A 1967, 1014)

      NRS 673.016  “Insured association” defined.  “Insured association” means an association the savings accounts of which are insured wholly or in part by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1959, 538; A 1993, 2806)

      NRS 673.0165  “Interest” defined.  “Interest” means that part of the net earnings of an association which is declared payable from time to time on savings accounts or investment certificates by the board of directors and which represents the primary cost of securing and maintaining savings funds for an association.

      (Added to NRS by 1969, 961)

      NRS 673.017  “Investment certificate” defined.

      1.  “Investment certificate” means any certificate or contract, either paid up or purchasable on an installment basis, which is issued for the purpose of providing a means of investment or savings.

      2.  An accumulative investment certificate is an investment certificate, not full-paid and without an expressed date of maturity, upon which the holder has the option of making payments at such times and in such amounts as the holder elects and as the association permits.

      3.  A full-paid investment certificate is an investment certificate, with or without an expressed date of maturity, for which the association has received the principal amount thereof at or prior to the time of the issuance of the certificate.

      4.  A minimum term investment certificate is an investment certificate for which the association has received a single payment equal to the principal amount thereof and which has a date expressed therein before which notice of intention to withdraw cannot be given, or which requires written notice from the holder to the association for a period specified therein before the expiration of which period notice of intention to withdraw cannot be given. On and after such date, or upon and after the expiration of the specified period following such written notice, each such certificate ceases to be a minimum term investment certificate and becomes a full-paid investment certificate, subject to the same withdrawal rights and restrictions as a full-paid investment certificate.

      (Added to NRS by 1959, 538; A 1963, 457; 1969, 967)

      NRS 673.0185  “Merger” defined.  “Merger” means that consolidation of corporate structures which results in the uniting of substantially all the assets and liabilities of one state-chartered association with those of another such association or with those of a federal association.

      (Added to NRS by 1969, 961)

      NRS 673.019  “Net earnings” defined.  “Net earnings” means gross income for an accounting period less the aggregate of the following:

      1.  Operating expenses.

      2.  Real estate expenses.

      3.  All losses actually sustained during such accounting period from the sale of securities, real estate or other property, or such portion of such losses as shall not have been charged to reserves, pursuant to the provisions of this chapter.

      4.  All interest paid, or due but unpaid, on borrowed money.

      5.  Other nonrecurring charges.

      (Added to NRS by 1959, 539)

      NRS 673.021  “Net earnings available for dividends” defined.  “Net earnings available for dividends” means net earnings for an accounting period less amounts referred to reserves as provided in this chapter.

      (Added to NRS by 1959, 539)

      NRS 673.022  “Operating expenses” defined.

      1.  “Operating expenses” means all expenses actually paid, or due but unpaid, by an association during an accounting period, excluding the following:

      (a) Real estate expenses.

      (b) Interest on borrowed money.

      (c) Other nonrecurring charges.

      2.  That portion of prepaid expenses which is not apportionable to the period may be excluded from operating expenses, in which event operating expenses for future periods shall include that portion of such prepaid expenses apportionable thereto.

      (Added to NRS by 1959, 539)

      NRS 673.023  “Operating income” defined.  “Operating income” means all income actually received by an association during an accounting period, excluding foreclosed real estate income.

      (Added to NRS by 1959, 539)

      NRS 673.024  “Other real estate loan” defined.  “Other real estate loan” means a real estate loan the security for which is improved real estate other than home property.

      (Added to NRS by 1959, 539)

      NRS 673.025  “Real estate expenses” defined.  “Real estate expenses” means all expenses actually paid, or due but unpaid, in connection with the ownership, maintenance and sale of real estate, other than office building or buildings and real estate held for investment, by an association during an accounting period, excluding capital expenditures and losses on the sale of real estate.

      (Added to NRS by 1959, 539)

      NRS 673.026  “Real estate income” defined.  “Real estate income” means all income actually received by an association during an accounting period from real estate owned, other than from office building or buildings and real estate held for investment, excluding profit from sales of real estate.

      (Added to NRS by 1959, 539)

      NRS 673.027  “Real estate loan” defined.  “Real estate loan” means any loan or other obligation secured by real estate, whether in fee or in a leasehold extending or renewable automatically for a period of at least 50 years, or any transaction out of which a lien or claim is created against such real estate.

      (Added to NRS by 1959, 539)

      NRS 673.031  “Savings account” defined.  “Savings account” means that part of the savings liability of the association which is credited to the account of the depositor thereof.

      (Added to NRS by 1959, 539; A 1969, 967; 1977, 488)

      NRS 673.032  “Savings liability” defined.  “Savings liability” means the aggregate amount of savings accounts, including interest credited to such accounts, less withdrawals.

      (Added to NRS by 1959, 540; A 1969, 967)

      NRS 673.0321  “Service office” defined.  “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 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 may require that an association’s name not be displayed at or near a service office.

      (Added to NRS by 1967, 1019; A 1983, 1771; 1987, 1956)

      NRS 673.034  “Withdrawal value” defined.  “Withdrawal value” means the amount credited to a savings account, less lawful deductions therefrom, as shown by the records of the association.

      (Added to NRS by 1959, 540)

ADMINISTRATION AND ENFORCEMENT

      NRS 673.035  Administration of chapter.  The Commissioner shall administer the provisions of this chapter, subject to administrative supervision by the Director. He or she shall make the decisions, determinations and enter the consents and orders necessary or reasonably appropriate to accomplish the purposes of this chapter.

      (Added to NRS by 1961, 763; A 1963, 1076; 1969, 967; 1981, 505; 1983, 1771; 1987, 1956)

      NRS 673.03531  Certain relationships between employees of Division of Financial Institutions and association prohibited; termination of prohibited relationship.

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

      (a) Be directly or indirectly interested in or act on behalf of any 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 or her own real property.

      (b) A secured installment debt.

      (c) An unsecured debt.

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

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

      (Added to NRS by 1963, 472; A 1977, 509; 1983, 1771)

      NRS 673.039  Records of Commissioner.  The Commissioner shall:

      1.  Keep in his or her 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.

      2.  Provide a complete stenographic record of every hearing and proceeding conducted by his or her office and maintain, for no less than 5 years, a transcript of the hearing or proceeding, together with any regulation, order, decision, determination or consent entered in connection with the hearing or proceeding.

      (Added to NRS by 1961, 764; A 1963, 683; 1969, 968; 1971, 811; 1983, 1772; 1987, 1956)

      NRS 673.040  Commissioner to supervise and make policy.  The Commissioner 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.

      [Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A 1961, 762; 1963, 1076; 1983, 1773; 1987, 1957)

      NRS 673.042  Biennial report of Commissioner: Contents; distribution.

      1.  The Commissioner shall, before September 1 of each even-numbered year for the biennium ending June 30 of that year, report to the Governor. The report must:

      (a) Show the condition of all associations reporting to or examined by the Commissioner.

      (b) Be accompanied by a detailed statement of all money received by the Commissioner since his or her last report and the disposition of that money.

      2.  Copies of the reports must be furnished to each association or company licensed under the provisions of this chapter.

      (Added to NRS by 1963, 472; A 1969, 1460; 1973, 264; 1983, 1773; 1987, 1957)

      NRS 673.043  Regulations.

      1.  The Commissioner may adopt such regulations as may be reasonable or necessary to carry out the purposes of this chapter.

      2.  The regulations as originally drafted, and as amended from time to time, must be printed and distributed by the Commissioner to all associations, and become effective not earlier than 30 days from the date of issuance, but before the regulations become effective and within that 30-day period any association may appeal to the Director as to the reasonableness and necessity of any of or all of the regulations.

      (Added to NRS by 1957, 763; A 1961, 764; 1977, 1261; 1983, 1773; 1987, 1957)

      NRS 673.0435  Commissioner may secure injunctions and restraining orders.  The Commissioner 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.

      (Added to NRS by 1969, 962; A 1983, 1773; 1987, 1957)

      NRS 673.044  Notices.  All notices must be in writing. All notices issued or required to be issued by the Commissioner must be sent by registered or certified mail and become effective upon their deposit in the mails.

      (Added to NRS by 1963, 472; A 1983, 1774; 1987, 1957)

      NRS 673.045  Amendment or alteration of license by Commissioner; appeal.  The Commissioner may, for reasonable cause and upon 15 days’ notice, amend or alter any license issued by him or her, but the association may appeal the order of the Commissioner in the manner provided in this chapter.

      (Added to NRS by 1957, 762; A 1961, 764; 1983, 1774; 1987, 1957)

      NRS 673.046  Application for license: Additional requirements; fingerprints; grounds for refusal to issue license.

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

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

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

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

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2005, 1873)

      NRS 673.048  Suspension or revocation of license: Additional grounds.  In addition to any other lawful reasons, the Commissioner may suspend or revoke a license if the licensee has engaged in any act that would be grounds for denying a license pursuant this chapter.

      (Added to NRS by 2005, 1873)

      NRS 673.050  Proceedings in court to test validity of action by Commissioner or Director.  A person affected by any order, ruling, proceeding, act or action of the Commissioner or any person acting on the Commissioner’s behalf and at the Commissioner’s instance, or the Director or any person acting on the Director’s behalf and at the Director’s 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.

      [22.3:51:1931; added 1955, 589]—(NRS A 1961, 765; 1981, 505, 1314; 1983, 1774; 1987, 1958)

      NRS 673.060  Deposit of money in State Treasury; payment of expenses; exceptions.  Except as otherwise provided in NRS 673.080, 673.112 and 673.595:

      1.  All fees, charges for expenses, assessments and other money collected under the provisions of this chapter from foreign and domestic associations, companies and corporations governed by this chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      2.  The compensation provided for by this chapter and all expenses incurred under this chapter must be paid from the money deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      [30:51:1931; 1931 NCL § 970.30]—(NRS A 1959, 121, 541; 1961, 765; 1963, 684; 1965, 1135; 1983, 1321; 2003, 3232)

FORMATION AND ORGANIZATION; BRANCH AND SERVICE OFFICES

      NRS 673.070  Incorporation of domestic associations: Procedure; applicability of chapter 78 of NRS; limitations on advertising for savings and loans.

      1.  Savings and loan associations, except banks, trust companies, licensed brokers, small loan companies, thrift companies and credit unions, whose principal and primary business is to borrow, loan and invest money, shall be incorporated under the provisions of this chapter. For that purpose all of the provisions of chapter 78 of NRS (Private Corporations) which are not in conflict with this chapter are hereby adopted as parts of this chapter, and all the rights, privileges and powers and all the duties and obligations of such domestic corporations and of the officers and stockholders thereof shall be as provided in chapter 78 of NRS except as otherwise provided in this chapter.

      2.  A person, firm, partnership, association or corporation except a savings and loan association incorporated under this chapter shall not conduct or carry on the business of soliciting or advertising for savings deposits and loaning of such savings. This subsection does not apply to banks, trust companies, licensed brokers, thrift companies, credit unions and licensees under chapter 675 of NRS.

      [Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A 1963, 460; 1975, 372; 1977, 488)

      NRS 673.080  Articles to be approved by Commissioner; application; permission to organize; fees; conditions; regulations; withdrawal of application.

      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.

      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.

      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 approval of an application for permission to organize as provided for in this section.

      4.  Persons who desire to organize an association in accordance with this chapter shall first execute in triplicate an application, in the form prescribed by the Commissioner, for permission to organize an association before taking any other action in connection with the organization. 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. 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 requires, 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 to pass upon the application as to:

      (a) The character and responsibility of the applicants;

      (b) The need for the association in the community to be served;

      (c) The reasonable probability of its usefulness and success; and

      (d) Whether such an association can be established without undue injury to any properly conducted existing savings and loan institutions.

      5.  If the Commissioner approves the application he or she 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 of a written protest, the Commissioner 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 after the date of receipt of written notice by registered or certified mail by the parties. The Commissioner shall approve or deny the application within 90 days after the date of the conclusion of the hearing and give all parties written notice of his or her decision on or before that date.

      6.  If the Commissioner approves the application, he or she shall establish as conditions to be met before the issuance of a charter requirements as to:

      (a) The minimum number of shares of common or preferred stock to be subscribed to the association’s permanent capital;

      (b) The minimum amount of paid-in surplus;

      (c) The minimum amount of investment certificates to be paid into the association’s savings accounts upon issuance of a charter to it; and

      (d) Such other requirements as he or she deems necessary or desirable.

Ê At least 75 percent of the capital must be subscribed by bona fide residents of this State or a depository institution or holding company qualified pursuant to the provisions of chapter 666 of NRS or NRS 666A.010 to 666A.400, inclusive. Approval of an application for permission to organize an association does not in any manner obligate the Commissioner to issue a charter, except that when all requirements of this chapter and of the Commissioner have been fulfilled, he or she shall issue a charter.

      7.  The charter expires 180 days after issuance, unless, within that time, the association has obtained insurance of accounts from the Federal Deposit Insurance Corporation. The Commissioner 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.

      8.  An association shall not sell or issue any of its permanent stock until it has first applied for and secured from the Commissioner a license authorizing it to operate as a savings and loan association pursuant to the laws of this State and until it has applied for and secured insurance of accounts in accordance with the regulations of the Federal Deposit Insurance Corporation. This insurance of accounts must be maintained at all times.

      9.  The Commissioner may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.

      10.  The filing fees are:

      (a) For filing an original application, not more than $4,000 for the principal office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.

      (b) If the license is approved for issuance, not more than $2,000 for the principal office before issuance.

      11.  The Commissioner 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.

      12.  Every permission to organize issued by the Commissioner 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.

      13.  Any corporation applying pursuant to 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.

      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. An application seeking approval must be delivered to the Commissioner, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be not less than $200. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.

      15.  An association shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.

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

      17.  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.

      [Part 1:51:1931; A 1933, 78; 1931 NCL § 970]—(NRS A 1957, 755; 1959, 56, 541; 1961, 765; 1963, 460; 1965, 1136; 1969, 95, 969; 1977, 489; 1979, 1289; 1983, 650, 1322, 1774; 1985, 2155; 1987, 1958; 1991, 1810; 1993, 2806; 1995, 1561; 2005, 1874)

      NRS 673.090  Provisions of chapter abridge and enlarge powers and privileges of foreign and domestic associations.  The powers, privileges, duties and restrictions conferred and imposed upon any such association, company or corporation, whether foreign or domestic, existing or 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 chapter, notwithstanding anything to the contrary in their respective articles of incorporation or charters.

      [3:51:1931; 1931 NCL § 970.02]

      NRS 673.110  Procedure for removing “and loan” from name of domestic association.  Any domestic association, which has the words “savings and loan” in its name, may, by filing with the Commissioner 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.

      [15.1:51:1931; added 1955, 589]—(NRS A 1961, 766; 1963, 464; 1983, 1776; 1987, 1960)

      NRS 673.112  Branch offices: Definition; establishment and regulation; revocation of approval by Commissioner; advertisement; fees; regulations.

      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 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. Each application for approval of the establishment and maintenance of a branch office must:

      (a) State the proposed location thereof, the need therefor, the functions to be performed therein, the estimated annual expense thereof and the mode of payment therefor.

      (b) 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 the branch office.

      4.  After receipt of an application the Commissioner 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 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 of a written protest, the Commissioner 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 finds that no undue injury is likely to result, that the establishment and maintenance of the branch office is advisable and will serve the public interest, he or she 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.

      8.  For good cause and after notice to the association, the Commissioner may revoke his or her 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.

      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 the branch office must state clearly the location of the principal office of the association.

      10.  The filing fees are:

      (a) For filing an original application, not more than $400 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.

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

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

      (Added to NRS by 1961, 780; A 1963, 464; 1967, 1014; 1969, 95, 971; 1981, 1314; 1983, 1324, 1777; 1987, 1960; 1991, 1813; 2005, 1876)

      NRS 673.113  Surety bond of association.

      1.  Every association shall maintain bond coverage with a bonding company which is acceptable to the Commissioner and the Federal Deposit Insurance Corporation for an amount to be determined by the Commissioner 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 the bond. The bond must be in the form known as Standard Form No. 22, its equivalent or some other form which may be acceptable to the Federal Deposit Insurance Corporation and the Commissioner. 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 must be placed in the custody of the Commissioner and the original maintained in the office of the association at all times.

      3.  The surety bond must provide that a cancellation thereof, either by the surety company or by the insured, does not become effective until 10 days’ notice in writing is first given to the Commissioner, or unless he or she earlier approves the cancellation in writing.

      4.  When requested by the Commissioner, 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 must comply with the requirements of the Federal Deposit Insurance Corporation.

      (Added to NRS by 1957, 757; A 1959, 542; 1961, 766; 1969, 972; 1983, 1778; 1987, 1962; 1993, 2808)

      NRS 673.114  Service offices: Approval of Commissioner required; revocation of approval.

      1.  No association may open, maintain or conduct a service office without approval from the Commissioner.

      2.  For good cause, and after notice to the association, the Commissioner may revoke his or her approval for the maintenance of a service office.

      (Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1962)

      NRS 673.115  Restrictions on advertising.

      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 that in his or her 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 money may be invested with the association at any place other than the principal office or branch of the association.

      (d) Use the word “deposit” or “deposits” in any form of advertising, unless the use of that 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.

      (Added to NRS by 1957, 762; A 1961, 767; 1969, 973; 1977, 491; 1983, 1779; 1987, 1962)

      NRS 673.117  Use or change of business name; prohibitions.

      1.  Except as otherwise provided in NRS 673.110, a licensee must obtain the approval of the Commissioner before using or changing a business name.

      2.  A licensee shall not:

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

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

      (Added to NRS by 2005, 1873; A 2007, 99)

OFFICERS, DIRECTORS, EMPLOYEES AND CAPITAL STOCKHOLDERS

      NRS 673.207  Directors: Number; filling of vacancies; amendment of bylaws.

      1.  The business and affairs of every association must be managed and controlled by a board of not less than five nor more than 25 directors, of which not more than a minority, but not more than three, may be full-time officers of the association. The persons designated in the articles of incorporation are the first directors.

      2.  Vacancies in the board of directors must be filled by vote of the stockholders at the annual meetings or at a special meeting called for that purpose. The board of directors may fill vacancies occurring on the board, such appointees to serve until the next annual meeting of the stockholders.

      3.  The board of directors of any association may amend the bylaws of the association.

      (Added to NRS by 1967, 1020; A 1969, 961; 1975, 372; 1981, 61)

      NRS 673.208  Persons requiring Commissioner’s approval to serve as director.  No person is eligible to serve as a director of an association without the written permission of the Commissioner if he or she:

      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 or her 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.

      2.  Is a director, officer or employee of any other savings and loan association.

      3.  Is an officer or employee of a commercial bank in this state.

      4.  Is not an investor in the association, owning in his or her 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. 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 or her own right, one-half of the stock or investment certificates.

      5.  Sells or hypothecates all the stock or investment certificates owned by him or her, or so much thereof that he or she ceases to be the owner, free from encumbrances, of the amount of stock or investment certificates required by subsection 4.

      (Added to NRS by 1967, 1020; A 1983, 1779; 1987, 1963)

      NRS 673.209  Removal of director, officer or employee on objection of Commissioner.  If the Commissioner notifies the board of directors of any association, in writing, that he or she has information that any director, officer or employee of the association is failing in the performance of his or her duties, the board of directors shall meet and consider the matter forthwith. The Commissioner must have notice of the time and place of the meeting. If the board of directors finds the Commissioner’s objection to be well founded, the director, officer or employee shall be removed immediately.

      (Added to NRS by 1967, 1020; A 1983, 1780; 1987, 1963)

      NRS 673.211  Removal of director for cause.

      1.  Any director may be removed from office, if he or she has become ineligible pursuant to NRS 673.209, by an affirmative vote of two-thirds of the members of the board of directors at any regular meeting of the board of directors or at any special meeting called for that purpose. Such action shall be ratified at the next meeting of the stockholders.

      2.  No such vote upon removal of a director may be taken until he or she has been advised of the reasons therefor and has had opportunity to submit to the board of directors his or her statement relative thereto, either oral or written. If the director affected is present at the meeting, he or she shall retire after his or her statement has been submitted and prior to the vote upon the matter of his or her removal.

      (Added to NRS by 1967, 1020; A 1977, 492)

      NRS 673.212  Fiduciary relationship of directors and officers to association.  Directors and officers of an association shall be deemed to stand in a fiduciary relation to the association and shall discharge the duties of their respective positions in good faith and with the diligence, care and skill which ordinary, prudent persons would exercise under similar circumstances in a similar position.

      (Added to NRS by 1967, 1021; A 1997, 1623)

      NRS 673.213  Directors: Compensation and expenses.  The directors of an association shall not charge or receive, directly or indirectly, any pay or emolument for their services as directors. This provision shall not prevent the payment of compensation and expenses to officers of the association who are also directors, nor the payment of compensation and expenses to directors for attendance upon meetings of the board of directors, or for special services performed by directors for the association. All such compensation and expenses shall be approved by the board of directors.

      (Added to NRS by 1967, 1021)

      NRS 673.214  Officers: Election; salaries.

      1.  The board of directors of the association shall elect the officers named in the bylaws of the association, which officers shall serve at the pleasure of the board of directors.

      2.  The principal officers’ salaries shall be set by the board of directors.

      (Added to NRS by 1967, 1021)

      NRS 673.215  Directors: Meetings; quorum.

      1.  The board of directors of each association shall hold a regular meeting at least once each quarter, at a time to be designated by it in accordance with its bylaws.

      2.  Special meetings of the board of directors may be held upon notice to each director sufficient to permit his or her attendance. The president or any three members of the board of directors may call a meeting of the board of directors by giving notice to all of the directors.

      3.  At any meeting of the board of directors, a majority of the members constitutes a quorum for the transaction of business.

      (Added to NRS by 1967, 1021; A 1983, 354)

      NRS 673.216  Official communication from Commissioner: Read at next board meeting and made part of minutes.  Every official communication by the Commissioner directed to the board of directors of an association must be read at the next meeting of the board of directors and made a part of the minutes of the meeting.

      (Added to NRS by 1967, 1021; A 1983, 1780; 1987, 1964)

      NRS 673.217  Statement of purchases and sales of real estate and loans made or purchased to be considered at regular meeting and made part of minutes.  The board of directors, by resolution recorded in the minutes, shall designate an officer whose duty it shall be to prepare and submit, at each regular meeting of the board of directors, a written statement of all the purchases and sales of real estate and securities, and of every loan or contract made or purchased since the last regular meeting of the board of directors, describing the collateral securing such loan. The statement, certified by the designated officer to be correct as of the date of the meeting at which submitted, shall be considered by the board of directors at such meeting and be filed as a part of the minute records.

      (Added to NRS by 1967, 1021)

      NRS 673.2176  Notification of change in ownership of stock; application required after certain acquisitions; investigation; costs; waiver.

      1.  An association shall immediately notify the Commissioner of any change or proposed change in ownership of the association’s stock which would result in any person, including a business trust, obtaining 5 percent or more of the association’s outstanding capital stock.

      2.  An application must be submitted to the Commissioner, pursuant to NRS 673.080, by a person who acquires:

      (a) At least 25 percent of an association’s outstanding stock; or

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

Ê Except as otherwise provided in subsection 4, the Commissioner shall conduct an investigation to determine whether the character and responsibility of the applicant is such as to command the confidence of the community in which the association is located. If the Commissioner denies the application, he or she may forbid the applicant from participating in the business of the association.

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

      4.  A savings and loan association may submit a written request to the Commissioner to waive an investigation pursuant to subsection 1. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his or her employment with a financial institution.

      (Added to NRS by 1985, 1346; A 1987, 1964; 1991, 1814)

      NRS 673.218  Pensions and retirement plans for officers and employees.  An association may provide for pensions, retirement plans and other benefits for its officers and employees, and may contribute to the cost thereof in accordance with the plan adopted by its board of directors.

      (Added to NRS by 1967, 1022)

      NRS 673.219  Directors: Approval of depositary for money of association.  The board of directors shall approve the depositary or depositaries for funds of the association.

      (Added to NRS by 1967, 1022)

      NRS 673.221  Unlawful acts; penalty.

      1.  It is unlawful for an officer, director, employee or capital stockholder of an association:

      (a) To solicit, accept or agree to accept, directly or indirectly, from any person other than the association, any gratuity, compensation or other personal benefit for any action taken by the association or for endeavoring to procure any such action.

      (b) To have any interest, direct or indirect, in the purchase at less than its face value of any evidence of a savings account or other indebtedness issued by the association, excluding stock certificates and junior capital notes.

      2.  It is unlawful for any stockholder with more than 5 percent of the outstanding capital stock of an association, or any director or principal officer, to have any interest, direct or indirect, in the proceeds of a loan or of a purchase or sale made by the association, unless the loan, purchase or sale is authorized expressly 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 directors of the association, and an interested director may not take part in the vote. The loan must also conform to federal regulations for the insurance of accounts.

      3.  Any violation of the provisions of this section is a misdemeanor.

      (Added to NRS by 1961, 782; A 1967, 1014; 1977, 510; 1979, 1291)

      NRS 673.2211  Liability of directors, officers or other persons.  Any association director, officer or other person who knowingly and willingly participates in any violation of the laws of this state relative to savings and loan associations is liable for all damage which the savings and loan association, its stockholders, savings depositors or creditors sustain in consequence of such violation.

      (Added to NRS by 1967, 1024; A 1977, 492)

      NRS 673.222  Actions against officers, directors or employees: Payment of expenses of defending action by association; settlements.

      1.  An association shall pay on behalf of or reimburse an officer, director or employee for the expenses of defending an action brought on behalf of the association or the savings account holders, other creditors or borrowers thereof, founded upon any act or acts performed or omitted by such person acting as such officer, director or employee under the following conditions:

      (a) If the person is adjudicated to be not liable, then all reasonable expenses of such litigation shall be paid by the association.

      (b) If the person is held to be liable on certain items and not liable on others, the association shall pay the proportion of the total reasonable expense of the litigation which the items on which he or she is held to be not liable bear to all the items alleged.

      2.  If, in the opinion of the association, any such person is not liable upon the substantive issues alleged, the association is authorized to compromise and settle such claim or litigation in its discretion and to pay the entire expense thereof, including the compromise settlement, if the expense is reasonable. Any action taken by the association under this subsection requires approval by a vote of at least two-thirds of all the directors of the association (an interested director taking no part in the vote), or by a majority vote of the stockholders.

      (Added to NRS by 1961, 783; A 1977, 492)

POWERS AND PRIVILEGES OF STATE ASSOCIATIONS

      NRS 673.225  Certain state associations possess same powers and privileges as federally chartered associations.

      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 Deposit 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.

      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.

      (Added to NRS by 1961, 780; A 1969, 973; 1981, 847; 1983, 1780; 1987, 1964; 1993, 2809)

      NRS 673.227  Land and office buildings of association; limitation on costs.

      1.  An association may purchase or lease property for its office buildings or construct its office buildings on property purchased or leased by it, 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, senior capital notes of the Federal Deposit Insurance Corporation may be included in capital for the purposes of this section.

      (Added to NRS by 1963, 465; A 1967, 1015; 1971, 628; 1983, 1781; 1987, 1965; 1993, 2809)

      NRS 673.228  Trustee and custodial powers of association.

      1.  An association may act as a trustee or custodian as provided by the Federal Employee Retirement Security Act of 1974, as amended or supplemented.

      2.  An association subscribing to trustee and custodial power authorized by this section shall be required to segregate all funds held in such fiduciary capacity from the general assets of the association and keep a separate set of books and records showing in proper detail all transactions engaged in under the authority of this section.

      3.  If individual records are kept of each self-employed individual retirement plan, all funds held in such trust or custodial capacity by the association may be commingled for appropriate purposes of investment.

      4.  No funds held in such fiduciary capacity may be used by the association in the conduct of its business, although such funds may be invested in the savings accounts of the institution if the trust or custodial retirement plan does not prohibit the investment.

      (Added to NRS by 1963, 465; A 1977, 492)

STOCKS AND CERTIFICATES

      NRS 673.250  Licenses for issuance or sale of stock; contents and conditions of licenses.

      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 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.

      4.  The Commissioner 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 ensure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the license.

      [14:51:1931; 1931 NCL § 970.13]—(NRS A 1957, 754; 1959, 57; 1961, 767; 1963, 465; 1979, 1292; 1983, 652, 1781; 1987, 1965)

      NRS 673.260  Annual license: Fees; renewal; penalty; regulations.

      1.  The license specified in NRS 673.250 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 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 is:

      (a) For each home office, not more than $400; and

      (b) For each branch office, not more than $200.

      3.  The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable must be charged for each month or part thereof that the fees are not paid after June 30 of each year.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All sums received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      [Part 15:51:1931; 1931 NCL § 970.14] + [Part 17:51:1931; A 1955, 589]—(NRS A 1959, 542; 1961, 767; 1963, 465; 1965, 1138; 1967, 978; 1973, 730; 1983, 1781; 1987, 1965, 2226; 2003, 3232; 2005, 1877)

      NRS 673.270  Licensing of salespersons and solicitors; fees; regulations; withdrawal of applications.

      1.  No person may, as a soliciting agent, soliciting representative or employee of any 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 or she is first licensed as a salesperson or solicitor for sales of those securities by the Commissioner.

      2.  No person may be licensed for a period of more than 1 year, and he or she may not be licensed until he or she has satisfied the requirements set forth in NRS 673.046.

      3.  For the issuing of any license provided for in this section and for any renewal thereof, the fee of the Commissioner must not be more than $10.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All sums received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      5.  Tellers or other employees of an insured savings and loan association are exempt from the licensing requirements unless their employment entails soliciting sales outside their respective offices as commission salespersons.

      6.  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.

      [Part 15:51:1931; 1931 NCL § 970.14] + [16:51:1931; 1931 NCL § 970.15] + [Part 17:51:1931; A 1955, 589]—(NRS A 1959, 542; 1961, 768; 1965, 1138; 1969, 974; 1983, 1782; 1987, 1966; 2003, 3233; 2005, 1878)

      NRS 673.273  Stock, surplus, undivided profits and reserves to include percentage of value of outstanding investment certificates; dividends on permanent stock; stock dividends.

      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.

      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 the capital notes are outstanding, without the written permission of the Commissioner.

      6.  The Commissioner 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 shall not approve any ratio which would impair the insurance of the association’s accounts by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1957, 758; A 1959, 543; 1961, 768; 1963, 466; 1965, 1466; 1967, 1015; 1983, 652, 1782; 1987, 1966; 1993, 2809)

      NRS 673.274  Acts prohibited when stock, surplus, undivided profits and reserves below amount specified.

      1.  No association whose stock, surplus, undivided profits and reserves are less than the amount specified in NRS 673.273 or approved by the Commissioner may:

      (a) Issue investment certificates or withdrawal accounts except in lieu of investment certificates or withdrawal accounts theretofore issued.

      (b) Receive additional money upon investment certificates or withdrawal accounts other than installment investment certificates or installment withdrawal accounts.

      2.  The provisions of this section do not prohibit the association from crediting to investment certificates the interest earned thereon, or crediting to withdrawable accounts the interest thereon, if the payment of the interest is not otherwise prohibited by the provisions of this chapter.

      (Added to NRS by 1959, 540; A 1969, 974; 1983, 653; 1987, 1967)

      NRS 673.275  Impairment of stock; levy of assessment to repair deficiency; reduction of stock.

      1.  If the Commissioner, as a result of any examination or from any report made to him or her, finds that the common or preferred stock of any association is impaired, he or she 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 is questioned by the association, then upon application filed within 10 days after the notice from the Commissioner 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 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 and of the levy to be given in writing to each stockholder of the association, and the amount of assessment which he or she 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, by reduction of the common or preferred stock. Any stockholder who does not make payment under the assessment shall transfer sufficient stock to the association to pay his or her pro rata share of the assessment, and there is no further liability to the stockholder.

      (Added to NRS by 1957, 758; A 1961, 769; 1983, 654, 1783; 1987, 1967)

      NRS 673.2755  Investment certificates: Rights and liabilities of holders; types of certificates; limitation on approval.

      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. The Commissioner shall not approve any certificates whose issuance would impair the insurance of the association’s accounts by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1963, 458; A 1977, 493; 1983, 654, 1784; 1987, 1968; 1993, 2810)

RESERVE FOR LOSSES

      NRS 673.2758  Requirements.  A reserve for losses shall be maintained by each association, which shall allow for the write-down of assets to their fair market value in accordance with generally accepted accounting principles.

      (Added to NRS by 1969, 962)

INVESTMENTS AND BORROWING

      NRS 673.276  Permissible investments.  An association may invest in:

      1.  Without limit, obligations of, or obligations guaranteed as to principal and interest by, the United States or any state.

      2.  Obligations of the United States Postal Service, whether or not guaranteed as to principal and interest by the United States.

      3.  Stock of a Federal Home Loan Bank of which the association is eligible to be a member.

      4.  Any obligations or consolidated obligations of any Federal Home Loan Bank or Banks.

      5.  Stock or obligations of the Federal Deposit Insurance Corporation.

      6.  Stock or obligations of a national mortgage association or any successor or successors thereto, including the Federal National Mortgage Association.

      7.  Demand, time or savings deposits with any bank, credit union or trust company whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755.

      8.  Stock or obligations of any corporation or agency of the United States or any state, or in deposits therewith to the extent that such a corporation or agency assists in furthering or facilitating the association’s purposes or powers.

      9.  Savings accounts of any insured association licensed by the State and of any federal savings and loan association, if the accounts of the savings and loan association are insured by the Federal Deposit Insurance Corporation.

      10.  Bonds, notes or other evidences of indebtedness which are general obligations of any city, town, county, school district or other municipal corporation or political subdivision of any state.

      11.  Any other investment at the discretion of the association’s directors if, after the investment is made, the association’s accounts remain insurable by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1961, 782; A 1963, 467; 1967, 1016; 1969, 974; 1971, 272; 1975, 1827; 1977, 493; 1979, 710, 1292; 1981, 281; 1983, 655, 1279; 1985, 2249; 1993, 2811; 1999, 1449; 2013, 1249)

      NRS 673.2765  Investments in related service corporations.

      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 Deposit Insurance Corporation and to whatever regulations the Commissioner 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 the investment if its aggregate, outstanding investments, pursuant to subsection 1, would then be in excess of 1 percent of its assets.

      (Added to NRS by 1969, 960; A 1983, 656, 1784; 1987, 1968; 1993, 2811)

      NRS 673.2766  Investments in real property for subdivision or residential development.

      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 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 such other appraiser as may be approved by the Commissioner.

      2.  Within 30 days after the investment is made, the association shall provide the Commissioner 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.

      3.  The Commissioner may require a statement from the association disclosing whether any director, officer or employee of the association has a direct or indirect interest in the real property involved or has had an 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 a required disclosure is unlawful.

      (Added to NRS by 1969, 962; A 1983, 1784; 1985, 2250; 1987, 1968)

      NRS 673.278  Purchases of loans.  The power of an association to make loans shall include:

      1.  The power to purchase loans of any type that the association may make.

      2.  The power to make loans upon the security of loans of any type that the association may make.

      (Added to NRS by 1957, 761; A 1959, 543)

      NRS 673.279  Purchases of real property contracts; conditions.  An association may invest its funds in the purchase of real property contracts under the following conditions only:

      1.  That it must acquire the merchantable title to the property covered by such contracts.

      2.  That the type of property be such as would be eligible for a mortgage or deed of trust loan under this chapter.

      3.  Before making any such purchase, the property shall be appraised and the purchase approved, as in the case of deed of trust loans, by the board or the executive committee of the association.

      (Added to NRS by 1957, 761)

      NRS 673.280  Certain federal obligations are legal investments.  Any savings and loan association may invest its funds, or money in its custody, in the bonds of the Home Owners’ Loan Corporation or in the bonds of any Federal Home Loan Bank, or in consolidated Federal Home Loan Bank bonds, debentures or notes, or in farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or supplemented, and the bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or supplemented.

      [Part 1:61:1935; 1931 NCL § 3695.01]—(NRS A 1959, 32; 1973, 1093; 1977, 494; 1991, 496)

      NRS 673.281  Restrictions on transfer or encumbrance of note and other obligations held by association.

      1.  No association 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. All loans sold must be sold without recourse and, if under a contract to service 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.

      (Added to NRS by 1967, 1022; A 1983, 1785; 1987, 1969)

      NRS 673.300  Association may become member and stockholder of Federal Home Loan Bank, borrow money and invest in bonds.

      1.  Any savings and loan association which may now or hereafter be eligible to become a member of any Federal Home Loan Bank according to the terms of the Federal Home Loan Bank Act of 1932, 12 U.S.C. §§ 1421 to 1449, inclusive, as amended or supplemented, may:

      (a) Subscribe for, purchase, own and hold stock in such Federal Home Loan Bank, and become a member thereof.

      (b) Borrow money from any Federal Home Loan Bank pursuant to the Federal Home Loan Bank Act, as amended or supplemented.

      (c) Invest in the bonds of any Federal Home Loan Bank.

      (d) Give its obligations and pledge securities and conform to the provisions of the Federal Home Loan Bank Act, and to the rules and regulations from time to time fixed and prescribed either by the Federal Home Loan Bank Board or the Federal Home Loan Bank of which it is a member.

      (e) Perform any acts and execute any instruments authorized or required by the Federal Home Loan Bank Act, as amended or supplemented, or by rules and regulations adopted pursuant to the Act.

      2.  All acts authorized by subsection 1 performed prior to March 18, 1935, are hereby validated and confirmed.

      [Part 1:59:1935; 1931 NCL § 972.01] + [2:59:1935; 1931 NCL § 972.02]—(NRS A 1977, 494)

      NRS 673.301  Association may issue capital notes; voting rights of holders.  The power of an association to borrow money and contract debts shall include the power to issue capital notes evidencing such borrowings and to subordinate the same to investment certificates and other liabilities. An association may confer upon the holders of any capital notes, issued or to be issued by the association, such rights to vote in the election of directors and on any other matters as shall be stated and expressed in the articles of incorporation, or in any amendment thereto.

      (Added to NRS by 1967, 1022)

      NRS 673.302  Limitation on borrowing.  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 Deposit 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. The Commissioner shall not approve any borrowing which would impair the insurance of the association’s accounts by the Federal Deposit Insurance Corporation.

      (Added to NRS by 1967, 1022; A 1983, 656, 1785; 1987, 1969; 1993, 2812)

      NRS 673.310  Loans and advances of credit insured by Federal Housing Administrator or Department of Veterans Affairs.

      1.  Subject to such regulations as may be prescribed by the Federal Housing Administrator or Department of Veterans Affairs, savings and loan associations may:

      (a) Make such loans and advances of credit, and purchases of obligations representing the loans and advances of credit, as are eligible for insurance by the Federal Housing Administrator or are guaranteed by the Department of Veterans Affairs, and to obtain such insurance.

      (b) Make such loans secured by mortgages on real property as are eligible for insurance by the Federal Housing Administrator or are guaranteed by the Department of Veterans Affairs, and to obtain such insurance.

      (c) Purchase, invest in and dispose of notes or bonds secured by mortgages insured by the Federal Housing Administrator or guaranteed by the Department of Veterans Affairs, securities of national mortgage associations, and debentures issued by the Department of Veterans Affairs or the Federal Housing Administrator.

      2.  No law of this State, nor any articles of incorporation or bylaws of any savings and loan associations, prescribing the nature, amount or form of security or requiring security upon which loans or advances of credit may be made, prescribing or limiting interest rates upon loans or advances of credit, or prescribing or limiting the period for which loans or advances of credit may be made, applies to loans, advances of credit or purchases made pursuant to subsection 1.

      3.  All loans, advances of credit, and purchases of obligations described in this section made and insured pursuant to the terms of the National Housing Act or Servicemen’s Readjustment Act of 1944 are hereby validated and confirmed.

      [Part 1:58:1935; A 1937, 147; 1939, 43; 1931 NCL § 3652.01] + [Part 2:58:1935; 1931 NCL § 3652.02] + [3:58:1935; 1931 NCL § 3652.03]—(NRS A 1959, 544; 1977, 495; 1995, 1100)

      NRS 673.315  Investment in Federal National Mortgage Association.  Notwithstanding any other provision of law, any savings and loan association organized under the laws of this State, which has as one of its principal purposes the making or purchasing of loans secured by real property mortgages, is authorized to sell such mortgage loans to the Federal National Mortgage Association, a corporation chartered by an Act of Congress, or any successor thereof, and in connection therewith to make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of the Federal National Mortgage Association or any successor thereof, to receive stock evidencing such capital contributions, and to hold or dispose of such stock.

      (Added to NRS by 1957, 527; A 1977, 495)

      NRS 673.316  Loans and investments not limited.

      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 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.

      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.

      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.

      (Added to NRS by 1959, 540; A 1963, 467; 1983, 656, 1785; 1987, 1969)

APPRAISALS

      NRS 673.317  Approval of appraiser by Commissioner required; limitations; revocation; notice of termination of services.  No loan may be made upon the appraisement of, nor 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 for the association. The approval is subject to such limitations as the Commissioner provides, and may be revoked for cause by the Commissioner, after giving due notice to the appraiser and the association and holding a hearing. The association shall give notice in writing to the Commissioner of the termination of the services of any appraiser within 15 days of the termination.

      (Added to NRS by 1959, 540; A 1961, 770; 1963, 468; 1983, 1786; 1987, 1970)

      NRS 673.3171  Appraisal of real estate required before granting loan; requirements.  Every association shall appraise each parcel of real estate prior to the granting of a loan. The appraisal shall be in ink or typed, be dated and identify the security, specify separate valuations for land and improvements, show the fair market value, and be signed in ink. The appraised value shall be the value of the land and the permanent improvements thereon. If the appraisal covers land only, it shall show that the appraisal covers unimproved land, or covers building lots or sites which by reason of installations and improvements are ready for the construction of buildings thereon. The appraisal shall be reviewed by the board of directors, or by a loan committee designated by the board of directors, in which case all actions of the loan committee shall be affirmed at the next board of directors meeting.

      (Added to NRS by 1967, 1022)

      NRS 673.318  Appraisal of real estate at time of acquisition.  Every association shall appraise each parcel of real estate at the time of acquisition thereof. The report of each appraisal must be submitted in writing to the board of directors and must be kept in the records of the association. The Commissioner may require the appraisal of real estate securing loans by an appraiser selected by the Commissioner. The association whose securities are appraised under this section shall pay the expense of the appraisal to the Commissioner upon demand. Money so received must be deposited in the State Treasury pursuant to the provisions of NRS 658.091. Copies of appraisals must be furnished to the association.

      (Added to NRS by 1959, 540; A 1961, 770; 1963, 468; 1965, 1139; 1983, 1786; 1987, 1970; 2003, 3233)

      NRS 673.319  Specific loss reserve; determination of values by Commissioner.

      1.  The Commissioner 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 appraisal of the asset.

      2.  In determining the values of the security properties for a group of loans, the Commissioner may use his or her appraisal of each property or his or her estimate of the total value of the properties based upon his or her 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, of all the group from which the sample was drawn, or of a larger sample of the group than was recommended by the Commissioner.

      3.  If the Commissioner has directed an association to carry a specific loss reserve on its books, the amount so designated for this purpose by the Commissioner cannot be reduced or changed in any manner without his or her written approval.

      4.  The provisions of subsections 2 and 3 are effective on July 1, 1967, but must not be applied retroactively.

      (Added to NRS by 1959, 541; A 1961, 770; 1967, 1017; 1983, 1786; 1987, 1970)

      NRS 673.3191  Reserve for uncollected interest.  A reserve for uncollected interest shall be maintained equivalent to all interest which has been due for 90 days or more and which is carried as income on the books of the association.

      (Added to NRS by 1967, 1022)

INSURANCE OF ACCOUNTS

      NRS 673.320  Associations empowered to insure accounts.  Any association, company or corporation which may be eligible so to do under the terms of the National Housing Act, approved June 27, 1934, which act is also designated as 12 U.S.C. §§ 1701 to 1743, inclusive, is authorized and empowered to insure, pursuant to Title IV of the National Housing Act, any and all of its accounts as such accounts now or hereafter may be defined under Title IV of the National Housing Act and to do and perform all things necessary or convenient to effect such insurance.

      [1:63:1935; 1931 NCL § 3653.01]

LOANS

      NRS 673.324  Permissible loans.

      1.  An association may make any loan which:

      (a) Is secured by real property;

      (b) Is secured by personal property;

      (c) Results from a credit card issued by the association;

      (d) Is unsecured;

      (e) Is made to the United States, its agencies or any governmental agency of the State of Nevada; or

      (f) Is made at the discretion of the association’s directors, if the loan will not impair the insurability of the association’s accounts by the Federal Deposit Insurance Corporation.

      2.  Additional loans or advances on the same property, without intervening liens, shall be deemed to be first liens for the purpose of this chapter.

      (Added to NRS by 1957, 759; A 1969, 975; 1977, 496; 1983, 657; 1993, 2812)

      NRS 673.3244  Loans to corporations or partnerships.

      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,

Ê 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 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.

      (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 their investments in any partnership or corporation to which a loan is made. If any changes in those investments occur, the Commissioner must be notified.

      (Added to NRS by 1967, 1022; A 1983, 658, 1787; 1987, 1971)

      NRS 673.3255  Loans to finance interest in cooperative housing corporation; first security interests.

      1.  An association may invest any of its money in a loan to finance a borrower’s interest in or to refinance his or her existing interest in a cooperative housing corporation if the loan is secured by:

      (a) A first security interest in stock or a certificate of membership in the cooperative housing corporation; and

      (b) An assignment of or lien on the borrower’s interest in the lease or other right of tenancy to a dwelling unit of the cooperative housing corporation.

      2.  A first security interest may exist even though a mortgage or deed of trust encumbers the property owned by the cooperative housing corporation if the stock or certificate of membership in the corporation and the borrower’s lease or other right of tenancy are not encumbered with a prior security interest. For purposes of this chapter, additional loans or advances on the same interest in a cooperative housing corporation, without intervening liens, shall be deemed to be first security interests. For purposes of this chapter, the interest in a cooperative housing corporation which is encumbered by a security interest shall be deemed to be real property and security interest shall be deemed to be a mortgage on real property.

      (Added to NRS by 1983, 660)

      NRS 673.3271  Loans to one borrower.

      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.

      (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 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 the 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 the 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 the borrower. Notwithstanding any other limitations of this section, the loan may be made if the new loan when added to the total balances of all outstanding loans owed to the association by the 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.

      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 the 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 that 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.

      (Added to NRS by 1967, 1023; A 1969, 976; 1977, 511; 1983, 659, 1788; 1987, 1972)

      NRS 673.3272  Payment of charges by association for protection of its investments; required advance monthly payments.

      1.  An association may pay:

      (a) Current or past-due taxes or assessments levied upon secured property;

      (b) Insurance premiums;

      (c) Life insurance premiums on policies that an association may require to be assigned as additional collateral; or

      (d) Other similar charges required for the protection of its investments.

Ê Such payments shall be added to the unpaid loan balance and shall have the same secured status under the deed of trust provisions as the loan itself. No association may require, as a condition of loan approval or in the extension of any other service, that any kind of insurance coverage be purchased from or through the association or from any agency in which a director or officer of the corporation has any interest.

      2.  An association may require advance monthly payments on:

      (a) Principal.

      (b) Interest.

      (c) Taxes.

      (d) Assessments.

      (e) Insurance premiums.

      (f) Other statutory charges accruing upon the secured property.

Ê Each such payment may be equivalent to one-twelfth of the estimated annual amount due. Monthly charges may be adjusted to provide a reasonable method for the payment of estimated taxes, assessments, insurance premiums and other charges. Upon receipt thereof such payments may be carried in a separate trust account or they may be applied to the loan account as a credit upon receipt and debit when disbursed.

      (Added to NRS by 1969, 962)

      NRS 673.330  Limitation on charge for prepayment of loan.  Associations shall not charge for the privilege of prepayment in part or in full of any loan an amount greater than 180 days’ interest on the amount prepaid.

      [20:51:1931; 1931 NCL § 970.19]—(NRS A 1957, 756; 1961, 770; 1975, 1794; 1983, 660)

      NRS 673.331  Loans prohibited on security of association’s own stock.  No association shall loan any of its funds upon the security of its own stock.

      (Added to NRS by 1963, 470)

      NRS 673.332  Property acquired by foreclosure or developed by association; real-estate-owned accounts; subsidiary ledger records.

      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.

Ê Unless the association has received a written waiver from the Commissioner, 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.

      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 money 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 before 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.

      (Added to NRS by 1969, 963; A 1979, 711; 1981, 512; 1983, 1789; 1987, 1973)

INTEREST AND DIVIDENDS

      NRS 673.333  Apportionment of earnings and payment of interest; determination of percentage rate of declaration; classes of savings accounts; notice of change in method of calculating interest.

      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.

      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. The association may appeal any disapproval or reduction by the Commissioner 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 account holder affected by the change by mail within 15 days before the proposed effective date of the change.

      (Added to NRS by 1957, 759; A 1961, 771; 1963, 470; 1969, 976; 1977, 496; 1979, 1295; 1983, 1789; 1987, 1973)

      NRS 673.336  Restrictions on declaration of dividends.  No board of directors of a savings and loan association shall knowingly declare to its stockholders a greater dividend than has actually been earned by the association after providing adequate reserves to meet any other contingent liabilities.

      (Added to NRS by 1957, 759)

INVESTORS

      NRS 673.340  Minors and married persons; payment as valid discharge of association.

      1.  Any savings and loan association and any federal savings and loan association operating in this state may issue savings accounts or investment certificates to minors with the written consent of their parents, trustees or guardians, and to married persons, each in their own right.

      2.  Any payment thereon, or delivery thereof, or of any rights thereunder, to a minor of the age of 14 years or over, or to a married person, or a receipt or acquittance signed by the minor and parent, trustee or guardian or by a married person who holds such savings accounts or investment certificates, is a valid and sufficient release and discharge of the association for any such payment or delivery.

      [1:116:1939; 1931 NCL § 974.10]—(NRS A 1977, 497)

      NRS 673.360  Administrators, executors, guardians and trustees; payment as valid discharge of association.

      1.  A savings account or investment certificate of any association, including a federal savings and loan association, may be purchased and held by any person as administrator, executor, guardian, or as trustee or other fiduciary, in trust for a named beneficiary or beneficiaries.

      2.  Any person holding a savings account as a fiduciary may make payments upon, and withdraw, in whole or in part, the savings account or investment certificate.

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

      [Part 2:116:1939; 1931 NCL § 974.11]—(NRS A 1969, 977; 1977, 498)

SAFE-DEPOSIT BOXES

      NRS 673.373  Notice of overdue rental; opening of box; retention of contents in general vaults; delivery of contents to State Treasurer.

      1.  If the rental due on a safe-deposit box has not been paid for 90 days, the lessor may send a notice by registered or certified mail to the last known address of the lessee stating that the safe-deposit box will be opened and its contents stored at the expense of the lessee unless payment of the rental is made within 30 days. If the rental is not paid within 30 days after the mailing of the notice, the box may be opened in the presence of any officer of the lessor and a notary public. The contents must be sealed in a package by the notary public, who shall write on the outside the name of the lessee and the date of the opening of the box in the presence of the officer. The notary public and the officer shall execute a certificate reciting the name of the lessee, the date of the opening of the box and a list of its contents. The certificate must be included in the package, and a copy of the certificate must be sent by registered or certified mail to the last known address of the lessee. If the contents of the safe-deposit box have been unclaimed by the owner for 3 years or less, the package must then be placed in the general vaults of the lessor at a rental not exceeding the rental previously charged for the box, until such time that the contents will have been unclaimed by the owner for more than 3 years, at which time the lessor shall deliver the package to the State Treasurer in his or her capacity as the Administrator of Unclaimed Property pursuant to the provisions of chapter 120A of NRS.

      2.  If the contents of a safe-deposit box that has been opened pursuant to subsection 1 have been unclaimed by the owner for more than 3 years, the lessor shall deliver the package to the State Treasurer in his or her capacity as the Administrator of Unclaimed Property pursuant to the provisions of chapter 120A of NRS.

      (Added to NRS by 1985, 2248; A 1995, 283; 2001, 1651, 2929)

WITHDRAWALS

      NRS 673.377  Minimum required available cash, deposits and securities; making and purchasing loans prohibited when minimum not met.

      1.  Every association shall have on hand at all times in available money, deposits in banks and credit unions, United States Government bonds, certificates of insured savings and loan associations, Federal Home Loan Bank evidences of indebtedness, time certificates of insured federal and state banks, time certificates of insured credit unions or 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 may prescribe from time to time different amounts required for liquidity purposes, but the amounts must not be less than 4 percent or more than 8 percent.

      2.  A deposit in a bank, credit union or association under the control or the possession of appropriate supervisory authority must not be considered as cash. Except for deposits in a Federal Home Loan Bank, a time deposit established hereafter, whether or not time deposit-open account or deposit evidenced by a certificate of deposit, must not be considered as cash for such purposes unless:

      (a) The member itself made the deposit in question;

      (b) The deposit, together with all other time deposits of the association in the same bank or credit union, does not exceed the greater of:

             (1) One-quarter of 1 percent of the total deposits of the bank or credit union as of the last published statement of condition of the bank or credit union; or

             (2) Fifteen thousand dollars; and

      (c) No consideration was received from a third party in connection with the making of the deposit.

      3.  An association must 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.

      (Added to NRS by 1957, 762; A 1967, 1019; 1977, 498; 1983, 1791; 1985, 2250; 1987, 1974; 1999, 1450)

      NRS 673.380  Procedure when requests for withdrawals exceed amount available.

      1.  Whenever an association has on file more withdrawal requests than can be met in full from current funds, it shall apply to the withdrawals one-half of the monthly receipts, after first deducting the amount necessary to pay the actual and reasonable expenses incurred in the operation of the association and the protection of its assets and reserves set up by it for interest on its savings accounts or certificates.

      2.  Should the one-half of the monthly receipts fail to retire at least 5 percent of the aggregate withdrawal requests, then such portion of the other one-half of the monthly receipts shall be applied as is necessary to retire 5 percent of the total amount on withdrawal order.

      3.  For purposes of this section, “receipts” means all money coming into the hands of the association except borrowed money. Borrowed money shall not be considered receipts for the payment of withdrawals; but all money borrowed from the Federal Home Loan Bank or from any other federal loan agency for the purpose of paying withdrawals may be used for such purpose and shall not be considered as receipts.

      [Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1977, 499)

      NRS 673.390  Order of payment of withdrawals.

      1.  Except as provided in this section, withdrawals must be paid in the order of their filing, and no loans or investments may be made, except by permission of the Commissioner, when any withdrawal request or order has remained on file unpaid for a period of more than 30 days. Any foreign or domestic association, company or corporation may, without the necessity of obtaining permission of the Commissioner, make or purchase loans or investments not exceeding the principal amount of money borrowed by an association, company or corporation from a Federal Home Loan Bank or other federal loan agency. Any such request or order which is not legally payable for reasons other than the restrictions of this section may not be considered as on file.

      2.  Whenever applications for withdrawals reach such an amount that in the opinion of the Commissioner, it would be inexpedient to pay such applications in the order of their filing, then, with the written permission of the Commissioner first obtained, so much as may be directed by the Commissioner 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.

      [Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1961, 772; 1983, 1792; 1987, 1975)

      NRS 673.420  Notice to Commissioner of inability to pay request for withdrawal on file more than 60 days.  Any such foreign or domestic association, company or corporation or its secretary or manager shall immediately notify the Commissioner of its inability to pay a withdrawal request or order which has been on file for a period of more than 60 days.

      [13:51:1931; 1931 NCL § 970.12]—(NRS A 1961, 772; 1983, 1792; 1987, 1975)

REPORTS, EXAMINATIONS AND AUDITS

      NRS 673.430  Annual reports: Filing; form and contents; fees; penalty; regulations.

      1.  Each association doing business in this State shall file annually with the Commissioner 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 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 requires.

Ê 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.

      3.  One section of the annual report must contain such other information as the Commissioner may require to be furnished. This section need not be published and, except as otherwise provided in NRS 239.0115, must be treated as confidential by the Commissioner.

      4.  The Commissioner may impose and collect a fee of not more than $10 for each day the annual report is overdue. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this subsection. Every association shall pay to the Commissioner for supervision and examination a fee based on the rate established pursuant to NRS 658.101.

      5.  All sums received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      [Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1957, 757; 1961, 773; 1963, 470; 1965, 1139; 1967, 979; 1969, 978; 1973, 728; 1977, 499; 1979, 1296; 1983, 1792; 1987, 1975, 2226; 1989, 921; 2003, 3233; 2005, 1878; 2007, 2152)

      NRS 673.440  Commissioner may require further information.  Each such foreign or domestic association, company or corporation shall cause to be supplied to the Commissioner at any time, upon his or her demand, any information which he or she may require as to its condition, affairs or methods.

      [Part 21:51:1931; 1931 NCL § 970.20]—(NRS A 1961, 773; 1983, 1793; 1987, 1976)

      NRS 673.450  Hearings, investigations and examinations by Commissioner; powers of Commissioner; biennial examination required.

      1.  The Commissioner 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 or she 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 or other person designated by him or her to conduct it may:

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

      (b) Administer oaths.

      (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 shall conduct at least once every 2 years an examination of the books and records of each association licensed under this chapter.

      [Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A 1961, 773; 1969, 979; 1979, 1297; 1983, 1793; 1987, 1976)

      NRS 673.451  Authorization of Commissioner to investigate business; free access required; compelling attendance of witnesses.

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

      (a) Any association;

      (b) Any other person engaged in an activity regulated pursuant to the provisions of this chapter; and

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

      2.  For the purpose of examination, the Commissioner or his or her 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 him or her under oath regarding:

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

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

      (Added to NRS by 2005, 1873)

      NRS 673.453  Enforcement of subpoena by district court.

      1.  In case of the refusal of any person to attend or testify or produce any papers required by the subpoena directed to be served under the provision of NRS 673.450, the Commissioner 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 the person or the production of the books and papers;

      (b) The person has been subpoenaed in the manner prescribed in this chapter; and

      (c) The person has failed and refused to attend or produce the papers required by subpoena before the Commissioner in the examination, hearing or investigation named in the subpoena, or has refused to answer questions propounded to him or her in the course of such examination, hearing or investigation,

Ê and asking an order of the court compelling the person to attend and testify or produce the books or papers before the Commissioner.

      2.  The court, upon petition of the Commissioner, shall enter an order directing the 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 or she has not attended or testified or produced the books or papers before the Commissioner. A certified copy of the order must be served upon the person. If it appears to the court that the subpoena was regularly issued by the Commissioner, the court shall thereupon enter an order that the person appear before the Commissioner 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 the person shall be dealt with as for contempt of court.

      (Added to NRS by 1969, 964; A 1983, 1794; 1987, 1977)

      NRS 673.455  Examination of holding companies.

      1.  The Commissioner 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 or her discretion, he or she 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 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.

      3.  No unreasonable supervisory fees may be imposed upon any association by a holding company which controls an association.

      (Added to NRS by 1969, 963; A 1983, 1794; 1987, 1977)

      NRS 673.460  Examinations outside State; fees and traveling expenses; regulations.

      1.  Whenever in connection with an examination it is necessary or expedient that the Commissioner or his or her deputy, or both, leave this State, there must be assessed against the organization under examination a fee of not more than $50 per day for each person while without the State in connection with an examination, together with all actual and necessary expenses.

      2.  The fee charged must be remitted to the Commissioner, who shall deposit the fees in the State Treasury pursuant to the provisions of NRS 658.091.

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

      [Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A 1959, 545; 1961, 774; 1965, 1140; 1983, 1795; 1987, 1978; 2003, 3234; 2005, 1879)

      NRS 673.470  Other examinations acceptable in lieu of examination by Commissioner.  In lieu of making any examination, the Commissioner may accept any examination of any association made by the Federal Home Loan Bank Board, any Federal Home Loan Bank, or the Federal Deposit 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 Deposit Insurance Corporation.

      [Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A 1961, 774; 1983, 1795; 1987, 1978; 1993, 2812)

      NRS 673.480  Authority of Commissioner to make information available to other officers and agencies.  The Commissioner, his or her agents and employees may furnish to the Federal Home Loan Bank Board, or to any Federal Home Loan Bank, or to examiners 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.

      [Part 22:51:1931; A 1933, 78; 1939, 153; 1931 NCL § 970.21]—(NRS A 1961, 774; 1983, 1795; 1987, 1978)

      NRS 673.483  Audit of books and accounts.

      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.

      2.  The Commissioner may prescribe the scope of the audit.

      3.  A certified copy of the audit, including the management and internal control letters relating to the audit, must be furnished to the Commissioner.

      (Added to NRS by 1963, 471; A 1977, 513; 1983, 1795; 1987, 1978)

      NRS 673.4835  Independent audit and examination: Payment of assessment; cooperation.  Each association shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with the audits and examinations performed pursuant thereto.

      (Added to NRS by 1987, 827)

SUSPENSION AND REVOCATION OF CHARTERS

      NRS 673.484  Grounds; notice and hearing.  The Commissioner may after notice and hearing suspend or revoke the charter of any association for:

      1.  Repeated failure to abide by the provisions of this chapter or the regulations adopted thereunder.

      2.  Failure to pay a tax as required pursuant to the provisions of chapter 363A of NRS.

      (Added to NRS by 1967, 980; A 1977, 96; 1983, 1796; 1987, 1978; 2003, 20th Special Session, 226)

REORGANIZATION; MERGER; CONSOLIDATION

      NRS 673.4845  Procedure; approval by association and Commissioner; fee; regulations.

      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. The 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, who shall satisfy himself or herself 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 not more than $300. The responsibility for payment of the fee must be shared equally by the associations participating in each proposed plan.

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

      (Added to NRS by 1969, 966; A 1977, 500, 1262; 1981, 1316; 1983, 1796; 1987, 1978; 2005, 1879)

CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP

      NRS 673.485  Authority of Commissioner to order discontinuance of unlawful or unsafe practices; special meetings of directors concerning noncompliance.

      1.  If the Commissioner finds as the result of any examination or from any report made to him or her 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 of this state, or is conducting its business in an unsafe or injurious manner, he or she 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 may order the corporate secretary to call a special directors’ meeting to consider the matter of noncompliance.

      3.  The meeting 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 must be limited to the matter of noncompliance and remedies therefor and the notice of such meeting must set forth in detail the Commissioner’s discontinuance order and order to call a directors’ meeting.

      4.  Action taken at the meeting is binding upon the officers of the association.

      (Added to NRS by 1957, 763; A 1961, 774; 1969, 979; 1983, 1796; 1987, 1979)

      NRS 673.495  Conservator: Appointment by Commissioner; district court confirmation.

      1.  The Commissioner may, with the prior approval of the board, appoint a conservator for an 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 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 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 or any of his or her 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 that false reports have been filed with his or her office.

      2.  The conservator may be the Commissioner, his or her 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 or her appointment. 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.

      (Added to NRS by 1957, 763; A 1959, 546; 1961, 774; 1969, 980; 1983, 1797; 1987, 1980)

      NRS 673.497  Powers of conservator; limitations; expenses; compensation.

      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 must show the Commissioner’s approval of the action.

      (c) The power to accept new savings accounts and additions to existing accounts, which must become segregated accounts and amounts, if the Commissioner 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 must be paid by the association.

      4.  The amount of compensation for the conservator must be determined by the court and paid by the association. When either the Commissioner or his or her deputy has been appointed conservator, the compensation 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 may prescribe.

      7.  The conservator shall return the association to the board of directors if the conditions complained of by the Commissioner have been removed within 12 months after his or her appointment. If no change has been effected within that time, a receiver may be appointed by the Commissioner as provided in this chapter.

      (Added to NRS by 1969, 964; A 1975, 373; 1977, 501; 1983, 1798; 1987, 1980)

      NRS 673.499  Receiver: Appointment by Commissioner; court confirmation; powers and authority; compensation.

      1.  If the Commissioner 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,

Ê the Commissioner may appoint a receiver for the association, which may be the Commissioner, his or her 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 the appointment. The court has exclusive jurisdiction to determine the issues and all related matters. Such proceedings must be given precedence over other cases pending in the court, and must in every way be expedited. The court shall confirm the appointment if it finds that one or more grounds exist, and a certified copy of the order of the court confirming the appointment is evidence thereof. In the case of an insured association, the appointment by the Commissioner of a receiver under this section 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 is filed, confirmation of such appointment or denial of confirmation has not been issued by the court. The receiver has all the powers and authority of a conservator plus the power to liquidate, and has such other powers and authority as may be expressed in the order of the court. If the Commissioner, or his or her deputy, or examiner is appointed receiver, he or she shall receive no additional compensation, but if another person is appointed, then the compensation of the receiver, as determined by the court, must be paid from the assets of the association.

      2.  If the association is an institution insured by the Federal Deposit Insurance Corporation, the Federal Deposit Insurance Corporation 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, if the loan or purchase is approved by the court.

      3.  The procedure in such receivership action must be in all other respects in accordance with the practice in the 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 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.

      (Added to NRS by 1969, 965; A 1983, 1798; 1987, 1981; 1993, 2812)

      NRS 673.515  Appeal from judgment enjoining Commissioner or dismissing action to enjoin; bond.  An appeal from a judgment enjoining the Commissioner from further proceedings and directing him or her 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 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, pending the appeal, from further proceedings and direct him or her, 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.

      (Added to NRS by 1957, 764; A 1961, 775; 1983, 1800; 1987, 1982)

      NRS 673.525  Penalty for failure to comply with Commissioner’s demand for possession of property, business and assets.  Whenever the Commissioner 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.

      (Added to NRS by 1957, 764; A 1961, 775; 1967, 648; 1983, 1800; 1987, 1982)

      NRS 673.535  Enforcement by sheriff of demand for possession of property, business and assets; written demand for assistance; duty to enforce.  If the demand of the Commissioner for the possession of the property, business and assets is not complied with within 24 hours after service of the demand, the Commissioner may call to his or her assistance the sheriff of the county in which the principal place of business of an association is located, by giving the sheriff written demand. The sheriff shall enforce the demands of the Commissioner.

      (Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1982)

      NRS 673.545  Delivery of schedule of property, assets and collateral to Commissioner; examination of directors, officers or employees by Commissioner.  When the Commissioner takes possession of the property, business and assets of any association, the president and secretary of an 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 may at any time examine under oath any president, secretary, officer, director, agent or employee of the association, to determine whether or not all the property, assets or collateral have been transferred and delivered into his or her possession.

      (Added to NRS by 1957, 764; A 1961, 776; 1983, 1800; 1987, 1983)

      NRS 673.555  Authority of Commissioner to issue subpoenas and require attendance of parties.  The Commissioner may issue subpoenas and require the attendance of parties for examination.

      (Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)

      NRS 673.565  Appointment of custodian; bond.  When the Commissioner takes possession of the business, property and assets of an association, he or she may appoint a custodian. The Commissioner may require a good and sufficient bond from the custodian and place the custodian in charge as the Commissioner’s representative.

      (Added to NRS by 1957, 765; A 1961, 776; 1983, 1800; 1987, 1983)

      NRS 673.575  Collection of money; preservation of assets.  When the Commissioner takes possession of the property, business and assets of an association, he or she may collect all money due to such association and give receipt therefor. The Commissioner may do such other acts as are necessary or expedient to collect, conserve or protect the association’s business, property and assets.

      (Added to NRS by 1957, 765; A 1961, 776; 1983, 1801; 1987, 1983)

      NRS 673.576  Powers of Commissioner when in possession of business, property and assets.  If the Commissioner is in possession of the business, property and assets of an association, whether or not he or she is liquidating the affairs of the association, the Commissioner may:

      1.  Pay and discharge any secured claims against the association. No secured claim 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 before 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 may be proposed or consented to by the Commissioner, conservator or receiver. The number of staff members which are required or needed for the operation of the association must be determined by the Commissioner.

      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 must be made within 6 months after obtaining knowledge of the existence of the contract or lease.

      (Added to NRS by 1957, 765; A 1961, 776; 1969, 981; 1983, 1801; 1987, 1983)

      NRS 673.577  Claims for damages from disaffirmance of executory contract or lease.  Claims for damages resulting from the disaffirmance of an executory contract or lease by the Commissioner 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 the lease 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 the disaffirmance.

      (Added to NRS by 1957, 765; A 1961, 777; 1983, 1801; 1987, 1984)

      NRS 673.580  Procedure upon taking possession of insured association: Federal Deposit Insurance Corporation as liquidator or coliquidator.

      1.  The Commissioner may, if he or she takes possession of any association whose savings accounts are to any extent insured by the Federal Deposit Insurance Corporation, tender to the Federal Deposit Insurance Corporation the appointment as statutory liquidator of the association. If he or she does not make a tender as sole statutory liquidator, he or she shall tender to the Federal Deposit Insurance Corporation the appointment as statutory coliquidator to act jointly with the Commissioner. The coliquidatorship may not exist for more than 1 year from the date of tender, at the expiration of which time the Commissioner becomes the sole liquidator except as otherwise provided by this section. The Commissioner shall tender to the Federal Deposit 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 Deposit 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 Deposit Insurance Corporation accepts the appointment as sole liquidator, it possesses all the powers and privileges of the Commissioner as statutory liquidator of a possessed savings and loan association and is subject to all duties of the Commissioner 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 Deposit Insurance Corporation accepts the appointment as coliquidator, it possesses all the powers and privileges jointly with the Commissioner and is subject to the duties jointly with the Commissioner.

      3.  If the Federal Deposit Insurance Corporation accepts the appointment as coliquidator or liquidator, it shall file its acceptance with the Commissioner 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 vests in the Federal Deposit Insurance Corporation without the execution of any conveyance, assignment, transfer or endorsement. Upon filing its acceptance of appointment as coliquidator, the possession and title vests in the Commissioner and the corporation jointly. If the Federal Deposit Insurance Corporation does not qualify as sole liquidator at or before the time provided for the expiration of the coliquidatorship, the corporation must be wholly divested of the joint title and possession, and the sole title and possession vests in the Commissioner. 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. 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 Deposit 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 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 must be determined in accordance with the applicable provisions of the laws of this state.

      [Part 22.2:51:1931; added 1955, 589]—(NRS A 1961, 777; 1977, 501; 1983, 1801; 1987, 1984; 1993, 2813)

      NRS 673.590  Delivery of remaining assets to stockholders.

      1.  Whenever, in the case of any association which has issued common or preferred stock, the Commissioner or the Federal Deposit 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 shall call a meeting of the stockholders of the savings and loan association.

      2.  Notice of the meeting 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 or her last known address.

      3.  At the meeting the Commissioner shall deliver to the stockholders all the property and effects of the association remaining in his or her possession except its records, which must be retained by him or her as part of the records of his or her office. Upon transfer and delivery he or she 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.

      [22.4:51:1931; added 1955, 589]—(NRS A 1959, 57; 1961, 779; 1977, 503; 1983, 660, 1803; 1987, 1985; 1993, 2814)

FOREIGN ASSOCIATIONS

      NRS 673.595  Activities for which license not required; solicitation or acceptance of deposits prohibited; exception; fee.

      1.  A foreign association whose activities are limited to any one or more of those enumerated in NRS 80.015 need not be licensed under this chapter.

      2.  Except as otherwise provided in chapter 666 of NRS and NRS 666A.010 to 666A.400, inclusive, a foreign association may not solicit or accept deposits in this state, but if it was licensed before July 1, 1985, under the provisions of this section then in force, it may renew that license annually subject to all the provisions, and upon payment of the fee, then in force.

      (Added to NRS by 1969, 962; A 1979, 1297; 1983, 1325, 1803; 1985, 2158; 1989, 627; 1991, 1317; 1995, 1564)

      NRS 673.597  Conflict of laws; report to Commissioner of forbidden course or act.

      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 the other governing body conflict with any of the provisions of this chapter, the provisions of the laws of this governing body prevail as to each conflict.

      2.  Whenever any foreign organization follows a course or performs any act which is forbidden to any domestic organization under the terms of this chapter, it shall report to the Commissioner all of the facts relating thereto.

      [Part 12:51:1931; A 1933, 78; 1955, 589]—(NRS A 1959, 57; 1961, 772; 1969, 978; 1983, 1792; 1985, 2251; 1987, 1986)

CONVERSION INTO FEDERAL ASSOCIATION

      NRS 673.600  Conversion authorized.  Any savings and loan association eligible to become a member of the Federal Home Loan Bank, may convert itself into a federal savings and loan association pursuant to the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468, inclusive, with the same effect as though originally incorporated under that act, and the proceedings to effect the conversion shall be as outlined in NRS 673.610 to 673.640, inclusive.

      [Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)

      NRS 673.610  Notice of stockholders’ meeting: Service and proof of service.

      1.  A meeting of the stockholders shall be held upon not less than 10 days’ written notice to each stockholder, served either personally or by mail, postage prepaid, directed to him or her at his or her last known post office address and containing a statement of the time, place and the purpose for which the meeting is called.

      2.  Proof by affidavit of due service of the notice shall be filed in the office of the corporation before or at the time of the meeting.

      [Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1977, 503)

      NRS 673.620  Majority approval of resolution at stockholders’ meeting required; filing of minutes with Commissioner.

      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 the meeting, verified by the affidavit of the president or vice president and the secretary of the meeting, must be filed in the Office of the Commissioner 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.

      [Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779; 1977, 504; 1983, 1804; 1987, 1986)

      NRS 673.630  Filing of charter or certificate with Commissioner; fee; taxation; regulations.

      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 a copy of the charter of authorization issued to the association by the supervising federal regulatory body or a certificate showing the organization of the association as a federal savings and loan association, certified by the supervising federal regulatory body. Upon filing with the Commissioner, 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 not more than $40 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.

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

      [Part 1:60:1935; 1931 NCL § 973.01]—(NRS A 1961, 779; 1969, 981; 1977, 504; 1983, 1804; 1987, 1986; 2005, 1880)

      NRS 673.640  When state supervision ceases; when property and assets vest in association under new name and style; enjoyment of property by converted association.

      1.  At the time when the conversion becomes effective, the company, association or corporation shall cease to be supervised by this state, but shall continue as a body corporate converted pursuant to the provisions of the Home Owners’ Loan Act of 1933 and subject to examination and regulation pursuant to that act.

      2.  All the property of the state company, association or corporation, including all its right, title and interest in and to all property of whatever kind, whether real, personal or mixed, and things in action, and every right, privilege, interest and asset of any conceivable value of benefit then existing, belonging or pertaining to it, or which would inure to it, shall immediately by operation of law, and without any conveyance or transfer, and without any further act or deed be vested in and become the property of the federal savings and loan association. The federal savings and loan association shall have, hold and enjoy the same in its own right as fully and to the same extent as the same was possessed, held and enjoyed by the state company, association or corporation.

      3.  The federal savings and loan association as of the time of taking effect of such conversion shall succeed to all the rights, obligations and relations of the state company, association or corporation.

      [2:60:1935; 1931 NCL § 973.02]

CONVERSION OF FEDERAL ASSOCIATION

      NRS 673.650  Conversion authorized; votes necessary.  Any federal savings and loan association may convert itself into a savings and loan association under the laws of this State upon a vote of 51 percent or more of the votes of members of the federal savings and loan association cast at any regular or special meeting called to consider the action.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 504)

      NRS 673.660  Time for election of directors after conversion; time directors to hold office.  At the meeting the members shall also vote upon the directors who shall be the directors of the savings and loan association after conversion takes effect, to hold office until the next annual meeting and until their successors are elected and qualified.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 504)

      NRS 673.670  Filing of verified minutes of stockholders’ meeting.  Copies of the minutes of the proceedings of the meeting, verified by the affidavit of the president or vice president and the secretary or an assistant secretary, must be filed in the Office of the Commissioner and, in duplicate, with the Federal Home Loan Bank of which the association is a member, within 10 days after the meeting.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961, 780; 1983, 1805; 1987, 1987)

      NRS 673.680  Verified copy of minutes as presumptive evidence of holding meeting and action taken.  The verified copies of the minutes of the meeting, when filed as required by NRS 673.670, shall be presumptive evidence of the holding and action of such meeting.

      [Part 1:140:1939; 1931 NCL § 974.30]

      NRS 673.690  Federal association and directors to take necessary action to incorporate as state association; no minimum amount of capital required.

      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 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.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1961, 780; 1977, 505; 1983, 1805; 1987, 1987)

      NRS 673.700  Inclusion of statement of conversion in articles permissible.  The directors may, if they so desire, insert in the articles of incorporation the following statement: “This association (company or corporation) is incorporated by conversion from a federal savings and loan association.”

      [Part 1:140:1939; 1931 NCL § 974.30]

      NRS 673.710  Time for filing articles of incorporation with Federal Home Loan Bank; number of copies; certification by Secretary of State.  Within 10 days after the filing of the articles of incorporation with the Secretary of State, there shall be filed with the Federal Home Loan Bank of which such association is a member two copies of the articles of incorporation, certified by the Secretary of State.

      [Part 1:140:1939; 1931 NCL § 974.30]

      NRS 673.720  Time of association’s cessation as federal association; time of vesting of property in association under new name and style.  Upon the filing of the articles of incorporation with the Secretary of State, the association ceases to be a federal savings and loan association and thereafter is a savings and loan association. All of the property of the association, including all of its right, title and interest in and to all property of every kind and character, whether real, personal or mixed, immediately by operation of law, without any conveyance or transfer and without any further act or deed, vests in the association under its new name and style as a savings and loan association, and under its new jurisdiction.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)

      NRS 673.730  Enjoyment of property by converted association; association as continuation of previous federal association.  The savings and loan association shall have, hold and enjoy the property mentioned in NRS 673.720 in its own right as fully and to the same extent as the property was possessed, held and enjoyed by it as a federal savings and loan association, and the savings and loan association continues to be responsible for all of the obligations of the federal savings and loan association to the same extent as though the conversion had not taken place. It is expressly declared that the savings and loan association is merely a continuation of the federal savings and loan association under a new name, a new jurisdiction and such revision of its corporate structure as may be considered necessary for its proper operation under the new jurisdiction.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)

      NRS 673.740  Acts permitted executors, administrators and fiduciaries without obtaining court approval.  Every executor, administrator, trustee, guardian, receiver, fiduciary, public corporation, political subdivision, public instrumentality, charitable, educational and eleemosynary institution, bank, savings bank, trust company, financial institution, insurance company, or cemetery association, without the necessity of obtaining court approval, may:

      1.  Vote in person or by proxy in favor of converting a federal savings and loan association into a savings and loan association, or may approve the determination so to convert.

      2.  Exchange any shares, share accounts or other rights or claims for securities issued by the savings and loan association, and may continue to hold as a legal investment any securities so received.

      [Part 1:140:1939; 1931 NCL § 974.30]—(NRS A 1977, 505)

POWERS AND PRIVILEGES OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS

      NRS 673.750  Powers and privileges same as domestic association; conditions.  Every federal savings and loan association incorporated under the provisions of the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468, inclusive, as amended or supplemented, having its principal place of business in the State of Nevada, and the holders of shares or share accounts issued by the association, respectively, have all the rights, powers and privileges, and are entitled to the same exemptions and immunities granted, respectively, to savings and loan associations organized under the laws of this State and to the holders of savings accounts, investment certificates or guaranty stock of state associations.

      [1:129:1939; 1931 NCL § 974.20]—(NRS A 1963, 472; 1977, 506)

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

      NRS 673.773  Definitions.  As used in NRS 673.773 to 673.807, inclusive, unless the context otherwise requires, the words and terms defined in NRS 673.777 to 673.797, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 1490)

      NRS 673.777  “Designated reporter” defined.  “Designated reporter” means a person designated by an association to receive reports of known or suspected exploitation of an older person or vulnerable person pursuant to NRS 673.807.

      (Added to NRS by 2007, 1490)

      NRS 673.783  “Exploitation” defined.  “Exploitation” has the meaning ascribed to it in subsection 2 of NRS 200.5092.

      (Added to NRS by 2007, 1490)

      NRS 673.787  “Older person” defined.  “Older person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.

      (Added to NRS by 2007, 1490)

      NRS 673.793  “Reasonable cause to believe” defined.  “Reasonable cause to believe” has the meaning ascribed to it in NRS 200.50925.

      (Added to NRS by 2007, 1490)

      NRS 673.797  “Vulnerable person” defined.  “Vulnerable person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.

      (Added to NRS by 2007, 1491)

      NRS 673.803  Training; reporting to designated reporter.

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

      (a) May, as part of his or her regular duties for the association, 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 director, officer or employee is employed by the association or assumes the position.

      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.  A director, 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, 1491)

      NRS 673.807  Designated reporter: Designation; duty to report; immunity.

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

      2.  If a director, 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 a director, 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.  A director, 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, 1491)

UNLAWFUL ACTS; PENALTIES

      NRS 673.810  Making false statement concerning financial condition of savings and loan association.  Any person who knowingly makes, utters, circulates or transmits to another, or others, any statement untrue in fact, derogatory to the financial condition of any such association doing business in this state, with intent to injure the association, or who counsels, aids, procures or induces another to originate, make, utter, transmit or circulate any such statement or rumor, with like intent, is guilty of a misdemeanor.

      [31:51:1931; 1931 NCL § 970.21]—(NRS A 1967, 649; 1977, 506)

      NRS 673.820  Violation of chapter or fraudulent misrepresentation of contract or securities by association; administrative fines.  In addition to any other remedy or penalty:

      1.  Any association which violates any provisions of this chapter or fraudulently misrepresents the terms of any contract or of any securities, and thereby secures a sale therefor, shall be punished by an administrative fine of not more than $10,000 and forfeiture and revocation of all licenses issued to it under the provisions of this chapter.

      2.  The Commissioner may impose an administrative fine of not more than $10,000 upon a person who:

      (a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or

      (b) Violates any provision of this chapter or any regulation adopted pursuant thereto.

      [Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967, 649; 1977, 506; 2005, 1880)

      NRS 673.830  Violation of chapter or sale of securities through fraudulent misrepresentation.  Any person who shall violate any provision of this chapter or sell any securities as the result of any fraudulent misrepresentation shall be guilty of a misdemeanor, and the license issued to him or her shall be forfeited and revoked.

      [Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1967, 649)

      NRS 673.840  Sale or offer to sell securities without license or for failure to secure license or pay fee or penalty.  Any person doing business in this state, as described in NRS 673.070, who:

      1.  Sells or offers for sale within this state any securities of any company, association or corporation which has not received the license provided for in NRS 673.080 and 673.250;

      2.  Fails to secure the license provided for in NRS 673.270; or

      3.  Fails to pay a fee or penalty as provided in NRS 673.430,

Ê is guilty of a misdemeanor for each such violation.

      [Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1963, 472; 1967, 649; 1989, 922)

      NRS 673.850  Effect of revocation of license.  The revocation of any license issued under any of the provisions of this chapter shall, from the date of such revocation, place the association to whom it was issued in the same legal status and subject to the same prohibitions and penalties as one to whom no license has been issued.

      [Part 18:51:1931; 1931 NCL § 970.17]—(NRS A 1977, 506)