[Rev. 11/21/2013 1:05:47 PM--2013]

CHAPTER 678 - CREDIT UNIONS

GENERAL PROVISIONS

NRS 678.010           Definitions.

NRS 678.020           “Account” defined.

NRS 678.030           “Beneficiary” defined.

NRS 678.040           “Board” defined.

NRS 678.050           “Chair” defined.

NRS 678.061           “Commissioner” defined.

NRS 678.070           “Credit union” defined.

NRS 678.080           “Demand” defined.

NRS 678.090           “Department” defined.

NRS 678.100           “Deposits” defined.

NRS 678.110           “Director” defined.

NRS 678.120           “Dividend” defined.

NRS 678.125           “Fixed assets” defined.

NRS 678.130           “Immediate family” defined.

NRS 678.140           “Loan officer” defined.

NRS 678.145           “Member” defined.

NRS 678.150           “Merger” defined.

NRS 678.160           “Multiple-party account” defined.

NRS 678.170           “Net contribution” defined.

NRS 678.180           “Party” defined.

NRS 678.190           “Payment” defined.

NRS 678.210           “Proof of death” defined.

NRS 678.220           “Sums on deposit” defined.

NRS 678.230           “Trust account” defined.

NRS 678.240           “Withdrawal” defined.

ADMINISTRATION

NRS 678.250           Administration of chapter; regulations of Commissioner.

NRS 678.260           Duties of Commissioner; regulations.

NRS 678.270           Powers of Commissioner concerning regulations and legal actions.

NRS 678.275           Certain relationships between employee of Division of Financial Institutions and licensee prohibited; termination of prohibited relationship.

NRS 678.282           Application for license: Additional requirements; fingerprints; grounds for refusal to issue license.

NRS 678.284           Suspension or revocation of license: Additional grounds.

NRS 678.286           Use or change of business name; prohibitions.

NRS 678.288           Authorization of Commissioner to investigate business; free access required; compelling attendance of witnesses.

NRS 678.290           Credit Union Advisory Council.

FORMATION

NRS 678.300           Requirement of incorporation; exceptions; applicability of NRS 81.410 to 81.540, inclusive; perpetual existence.

NRS 678.310           Procedure for incorporation; fees set by regulation.

NRS 678.320           Amendment of articles of incorporation; bylaws.

NRS 678.330           Offices; principal place of business.

NRS 678.340           Fiscal year.

FOREIGN CREDIT UNIONS

NRS 678.342           Certificate of authority required.

NRS 678.343           Application for certificate of authority: Filing; form; contents; withdrawal of application.

NRS 678.3435         Fee for initial investigation; annual fees; costs for additional investigations; regulations.

NRS 678.344           Requirements for issuance of certificate.

NRS 678.345           Applicable law; filing of annual report.

NRS 678.3455         Application for certificate of authority to open branch offices.

NRS 678.346           Examination of records; revocation of certificate.

NRS 678.347           Applicability of provisions of chapter 80 of NRS.

DIRECTORS, OFFICERS AND COMMITTEES

NRS 678.350           Board of directors: Number, election and terms of members; procedure for filling vacancy.

NRS 678.360           Board of directors: Responsibilities; meetings; executive committee.

NRS 678.370           Board of directors: Duties.

NRS 678.380           Board of directors: Powers.

NRS 678.390           Appointment of audit committee: Duties; powers; suspension of member; employment of certified or registered public accountant.

NRS 678.400           Credit committee; loan officer.

NRS 678.410           Removal of director, officer or employee on objection of Commissioner.

NRS 678.420           Officers: Election; designation; bonds; terms; duties.

NRS 678.430           List of directors, officers and committee members.

NRS 678.440           Fiduciary relationship of directors and officers.

NRS 678.450           Compensation and expenses of directors, officers and members.

POWERS AND PRIVILEGES

NRS 678.460           General powers; waiver or modification of law by Commissioner.

NRS 678.470           Receiving and paying out deposits; borrowing, selling and purchasing assets.

NRS 678.480           Fees and assessments.

NRS 678.490           Membership in other credit union or organization; performance of certain services.

NRS 678.500           Donations and contributions.

MEMBERSHIP; ACCOUNTS

NRS 678.510           Eligibility for membership.

NRS 678.520           Eligibility of minor; limitations.

NRS 678.530           Subscription to and transfer of shares; lien for sums due; reduction in shares.

NRS 678.540           Real and personal property subject to taxation.

NRS 678.550           Meetings of members.

NRS 678.560           Savings deposits; special clubs and accounts.

NRS 678.570           Multiple-party accounts: Authorization; disbursement of money; limitations.

NRS 678.630           Payment of trust accounts.

NRS 678.650           Right to setoff against multiple-party accounts.

RESERVES; DIVIDENDS

NRS 678.670           Regular reserves.

NRS 678.680           Special reserves.

NRS 678.690           Assets qualified for reserves.

NRS 678.700           Dividends.

LOANS; INVESTMENTS

NRS 678.710           Loans to members: Application; approval; limitations; participation loans; payment.

NRS 678.720           Loans to members: Extension of previous maximum credit; review.

NRS 678.730           Loans to and guaranties by directors and members of committees.

NRS 678.740           Security for loans.

NRS 678.750           Insurance of members and accounts.

NRS 678.755           Approval of private insurer and contract of insurance; regulations; reserve.

NRS 678.760           Authorized investments.

NRS 678.765           Limitation on investment in fixed assets.

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

NRS 678.767           Definitions.

NRS 678.769           “Designated reporter” defined.

NRS 678.771           “Exploitation” defined.

NRS 678.773           “Older person” defined.

NRS 678.775           “Reasonable cause to believe” defined.

NRS 678.777           “Vulnerable person” defined.

NRS 678.778           Training; reporting to designated reporter.

NRS 678.779           Designated reporter: Designation; duty to report; immunity.

RECORDS AND REPORTS; EXAMINATIONS

NRS 678.780           Annual financial report.

NRS 678.790           Examinations and audits; exceptions; fees.

NRS 678.795           Independent audit and examination: Payment of assessment; cooperation.

MERGER; CONVERSIONS

NRS 678.800           Merger; fees set by regulation; regulations.

NRS 678.810           Conversions; fee set by regulation.

DISSOLUTION AND LIQUIDATION

NRS 678.820           Voluntary dissolution.

NRS 678.830           Involuntary dissolution: Suspension of operations; corrective actions; declaration of insolvency; liquidation.

NRS 678.835           Involuntary dissolution: Appointment of liquidating agent for credit union closed by bankruptcy or insolvency.

NRS 678.840           Procedure for liquidation.

CENTRAL CREDIT UNIONS

NRS 678.850           Organization and operation; rights and powers.

NRS 678.860           Membership.

NRS 678.870           Voting representatives.

NRS 678.875           Regular reserves.

PENALTIES

NRS 678.880           Use of words “credit union” or conducting business as credit union by person not organized as credit union; spreading false report concerning management or finances of credit union.

NRS 678.890           Administrative fines.

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GENERAL PROVISIONS

      NRS 678.010  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678.020 to 678.240, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1975, 376; A 1983, 1830; 1985, 784; 1987, 2013)

      NRS 678.020  “Account” defined.  “Account” means a contract of deposit of funds between a member and a credit union and includes deposits, member or share accounts and other like arrangements regardless of whether they may be characterized as refundable capital investments.

      (Added to NRS by 1975, 376)

      NRS 678.030  “Beneficiary” defined.  “Beneficiary” means any person to whom the deposits of an account are to be paid upon the occurrence of a specified condition.

      (Added to NRS by 1975, 376)

      NRS 678.040  “Board” defined.  “Board” means the board of directors of a credit union formed pursuant to the provisions of this chapter.

      (Added to NRS by 1975, 376)

      NRS 678.050  “Chair” defined.  “Chair” means the chair of the board of a credit union.

      (Added to NRS by 1975, 376)

      NRS 678.061  “Commissioner” defined.  “Commissioner” means the Commissioner of Financial Institutions.

      (Added to NRS by 1987, 2013)

      NRS 678.070  “Credit union” defined.  “Credit union” means a cooperative, nonprofit corporation, organized for the purposes of promoting thrift among its members and creating a source of credit for such members at a fair and reasonable rate of interest.

      (Added to NRS by 1975, 376)

      NRS 678.080  “Demand” defined.  “Demand” means a request for withdrawal or payment in accordance with all conditions of the account and bylaws of the credit union.

      (Added to NRS by 1975, 376)

      NRS 678.090  “Department” defined.  “Department” means the Department of Business and Industry.

      (Added to NRS by 1975, 376; A 1993, 1896)

      NRS 678.100  “Deposits” defined.  “Deposits” means that part of the savings liability of a credit union which is credited to the account of the holder thereof.

      (Added to NRS by 1975, 377)

      NRS 678.110  “Director” defined.  “Director” means the Director of the Department.

      (Added to NRS by 1975, 377; A 1993, 1897)

      NRS 678.120  “Dividend” defined.  “Dividend” means that part of the net earnings of an association which is declared payable by the board to the holders of record of permanent capital stock.

      (Added to NRS by 1975, 377)

      NRS 678.125  “Fixed assets” defined.  “Fixed assets” means the real property which constitutes the premises of a credit union or any of its offices, and the furniture, fixtures and equipment of the credit union.

      (Added to NRS by 1985, 783)

      NRS 678.130  “Immediate family” defined.  “Immediate family” includes any relative, by consanguinity or marriage, of a member living in the member’s household and includes foster and adopted children.

      (Added to NRS by 1975, 377)

      NRS 678.140  “Loan officer” defined.  “Loan officer” means the officer appointed by the board of directors or by the credit committee to process all applications for loans from the members of the credit union.

      (Added to NRS by 1975, 377)

      NRS 678.145  “Member” defined.  “Member” means a person who has an account with a credit union and meets the qualifications for membership specified in the articles of incorporation and bylaws of the credit union.

      (Added to NRS by 1985, 783)

      NRS 678.150  “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 corporation with those of another such corporation or with those of a federal corporation.

      (Added to NRS by 1975, 377)

      NRS 678.160  “Multiple-party account” defined.

      1.  “Multiple-party account” means:

      (a) An account in the name of two or more persons, any one or more of whom may make withdrawals;

      (b) An account in the name of one or more persons as trustee for one or more beneficiaries;

      (c) An account established for deposit of funds of a partnership, joint venture or other association; or

      (d) An account controlled by two or more persons as the duly authorized agents or trustees for a corporation, unincorporated association, charitable or civil organization or any trust, except trusts of deposits evidenced solely by the form of the deposit.

      2.  At least one party to a multiple-party account shall be a member of the credit union in which the account is established.

      (Added to NRS by 1975, 377)

      NRS 678.170  “Net contribution” defined.  “Net contribution” means the sum of all deposits which a party to a multiple-party account has made added to any dividends or interest due, less all withdrawals. It includes, in addition, any deposit life insurance proceeds added to the account because of the death of a party whose net contribution is in question.

      (Added to NRS by 1975, 377)

      NRS 678.180  “Party” defined.  “Party” means any person who, by the terms of the account, has a present right of withdrawal in a multiple-party account. Unless the context indicates otherwise, it includes a guardian, conservator-trustee, personal representative, assignee, an attaching creditor of a party or a trustee. This term does not include any named beneficiary.

      (Added to NRS by 1975, 377)

      NRS 678.190  “Payment” defined.  “Payment” means the withdrawal and payment of sums on deposit on the directive of a party.

      (Added to NRS by 1975, 377)

      NRS 678.210  “Proof of death” defined.  “Proof of death” means a death certificate or other statement issued by an appropriate official which indicates that a named person is deceased.

      (Added to NRS by 1975, 377)

      NRS 678.220  “Sums on deposit” defined.  “Sums on deposit” means the balance payable on a multiple-party account including interest, dividends and any deposit life insurance proceeds added to the account because of the death of a party.

      (Added to NRS by 1975, 377)

      NRS 678.230  “Trust account” defined.  “Trust account” means any account which states that a party is a trustee for one or more identified persons, including but not limited to minors.

      (Added to NRS by 1975, 378)

      NRS 678.240  “Withdrawal” defined.  “Withdrawal” means payment to a party or a third person pursuant to a directive of a party.

      (Added to NRS by 1975, 378)

ADMINISTRATION

      NRS 678.250  Administration of chapter; regulations of Commissioner.  The Commissioner shall administer the provisions of this chapter, subject to administrative supervision by the Director. The Commissioner shall make the decisions and determinations and adopt regulations which are necessary or reasonably appropriate to accomplish the purposes of this chapter.

      (Added to NRS by 1975, 378; A 1977, 96; 1983, 1830; 1987, 2013; 2013, 62)

      NRS 678.260  Duties of Commissioner; regulations.  The Commissioner shall:

      1.  Adopt a regulation establishing the minimum surety bond required of credit unions in relation to the amount of property under their control.

      2.  Adopt a regulation that sets forth the records a credit union must keep and prescribes the period for which those records must be retained.

      3.  Maintain the original application of every credit union in a permanent file.

      4.  Maintain for at least 6 years, every report filed by a credit union with the Division of Financial Institutions.

      5.  Except as otherwise provided in NRS 678.800 and 678.810, deposit all fees, charges for expenses, assessments and other money which is collected pursuant to the provisions of this chapter or any regulation adopted pursuant thereto in the State Treasury pursuant to the provisions of NRS 658.091.

      6.  Prepare copies of articles of incorporation and bylaws consistent with the provisions of this chapter which may be used by persons interested in organizing a credit union.

      (Added to NRS by 1975, 378; A 1977, 102; 1983, 1328, 1639, 1830, 2015; 1985, 784; 1987, 2013; 1989, 924; 1999, 1452; 2003, 3234)

      NRS 678.270  Powers of Commissioner concerning regulations and legal actions.  The Commissioner may:

      1.  Adopt regulations, subject to the advice of the Credit Union Advisory Council, establishing chartering, supervisory and examination fees; and

      2.  Cause appropriate legal action to be taken in the district court of any county to secure an injunction or order restraining a violation of this chapter.

      (Added to NRS by 1975, 378; A 1983, 1831; 1987, 2013; 2013, 63)

      NRS 678.275  Certain relationships between employee of Division of Financial Institutions and licensee prohibited; termination of prohibited relationship.

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

      (a) Be directly or indirectly interested in or act on behalf of any credit union chartered by this state;

      (b) Receive, directly or indirectly, any payment from any such credit union;

      (c) Be indebted to any state credit union;

      (d) Engage in the negotiation of loans for others with any such credit union; or

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

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

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

      (a) A mortgage loan on his 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 or share accounts with credit unions to the greatest amount insured, receive interest on those deposits or shares and borrow money secured by a pledge of those deposits or shares.

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

      (Added to NRS by 1983, 1829)

      NRS 678.282  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, 1889)

      NRS 678.284  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, 1890)

      NRS 678.286  Use or change of business name; prohibitions.

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

      2.  A licensee shall not:

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

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

      (Added to NRS by 2005, 1890)

      NRS 678.288  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 credit union;

      (b) Any other person engaged in an activity for which a license is required 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 shall have and be given free access to the offices and places of business, files, safes and vaults of such persons.

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

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

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

      (Added to NRS by 2005, 1890)

      NRS 678.290  Credit Union Advisory Council.

      1.  The Credit Union Advisory Council, consisting of five members appointed by the Governor, is hereby created to consult with, advise and make recommendations to the Commissioner in all matters pertaining to credit unions.

      2.  The Governor shall appoint members who have tested credit union experience from a list of recommended names submitted by the Nevada Credit Union League.

      3.  After the initial terms, members serve terms of 4 years, except when appointed to fill unexpired terms.

      4.  The Chair of the Advisory Council must be elected annually by and from the members thereof.

      5.  The meetings of the Advisory Council may be held at such times and places as the Chair or Commissioner determines and may be held regularly at least once every 6 months.

      6.  Council members are entitled to receive a salary of $60 for each day’s attendance at a meeting of the Council.

      (Added to NRS by 1975, 378; A 1977, 1263; 1981, 71, 1996; 1983, 1449, 1831; 1985, 447; 1987, 2013)

FORMATION

      NRS 678.300  Requirement of incorporation; exceptions; applicability of NRS 81.410 to 81.540, inclusive; perpetual existence.

      1.  Except for a credit union organized under the Federal Credit Union Act or a foreign credit union which has been issued a certificate of authority by the Commissioner, any credit union whose principal business is to borrow, loan and invest money on behalf of its members and which issues membership certificates must be incorporated under the provisions of this chapter. For that purpose, the provisions of NRS 81.410 to 81.540, inclusive, which are not in conflict with the provisions of this chapter, apply to such corporations and to the officers and stockholders thereof, except as otherwise provided in NRS 678.342 to 678.347, inclusive.

      2.  A credit union organized under the provisions of this chapter has perpetual existence, subject to dissolution as provided in this chapter.

      (Added to NRS by 1975, 379; A 1977, 890; 1983, 2015; 1985, 315; 1987, 2014)

      NRS 678.310  Procedure for incorporation; fees set by regulation.

      1.  The Secretary of State shall not issue any certificate of incorporation to any credit union authorizing it to do business in this state until the articles of incorporation are approved by the Commissioner.

      2.  An amendment to the articles of incorporation may not be filed by the Secretary of State without the written approval of the Commissioner.

      3.  Not less than seven persons who are residents of Nevada, have a common bond and are of legal age who desire to organize a credit union under this chapter shall first execute in triplicate an application, upon forms to be issued by the Commissioner, for permission to organize an association. The applicants shall submit with or include in their application:

      (a) A copy of the articles of incorporation which must comply with the provisions of NRS 81.440 except where those provisions conflict with the provisions of this chapter.

      (b) The par value of the shares, which must be $5 or some multiple thereof.

      (c) The names and addresses of the applicants and an itemized account of the financial condition of the applicants and the proposed credit union.

      (d) The name, which must include the words “credit union,” and the principal place of business.

      (e) Any additional information which the Commissioner may require to determine the character and responsibility of the applicants and the need for a credit union in the community to be served.

Ê The incorporators shall submit a set of proposed bylaws to the Commissioner with their application and the bylaws when approved by the Commissioner are effective upon filing the articles of incorporation. The Commissioner shall approve or disapprove the application within 30 days following its receipt.

      4.  Every application for permission to organize, as provided for in this section, must be accompanied by an application fee and a fee payment to cover expenses attendant upon the investigation required for approval. The amount of the fees must be established by regulation adopted by the Commissioner.

      5.  The subscribers for a credit union charter shall not transact any business until formal approval of the charter has been received.

      (Added to NRS by 1975, 379; A 1977, 890; 1983, 1639, 1831, 2016; 1987, 2014)

      NRS 678.320  Amendment of articles of incorporation; bylaws.

      1.  The articles of incorporation or bylaws may be amended as provided in the bylaws. Any amendment to the articles of incorporation or bylaws do not become effective until approved in writing by the Commissioner.

      2.  The Commissioner shall not charge any fee for approving amendments to the articles of incorporation or bylaws of any credit union organized pursuant to this chapter.

      (Added to NRS by 1975, 380; A 1977, 891; 1983, 1832; 1987, 2015)

      NRS 678.330  Offices; principal place of business.

      1.  A credit union may maintain, with the approval of the Commissioner, offices at locations other than its main office if the maintenance of the offices is reasonably necessary to furnish service to its members.

      2.  A credit union may change its principal place of business within this state upon providing written notice to the Division of Financial Institutions.

      3.  A credit union may share office space with one or more credit unions and contract with a corporation to provide facilities or personnel.

      (Added to NRS by 1975, 380; A 1983, 1832; 1987, 2015)

      NRS 678.340  Fiscal year.  The fiscal year of all credit unions organized under this chapter shall end on the last day of December.

      (Added to NRS by 1975, 380)

FOREIGN CREDIT UNIONS

      NRS 678.342  Certificate of authority required.  No credit union organized under the laws of another state may commence or transact any business or maintain an office in this state without first obtaining a certificate of authority from the Commissioner.

      (Added to NRS by 1983, 2014; A 1983, 1645; 1987, 2015)

      NRS 678.343  Application for certificate of authority: Filing; form; contents; withdrawal of application.  Each application for an initial certificate of authority submitted by a foreign credit union must be filed with the Commissioner on a form prescribed by him or her and must include:

      1.  A copy of the instrument or authority by which the credit union was created and a copy of its bylaws.

      2.  A statement of its membership, if not contained in its bylaws.

      3.  A copy of the most recent report submitted by the credit union to the authorized officer of the state in which it was organized.

      4.  Any other information required by the Commissioner.

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

      (Added to NRS by 1983, 2014; A 1983, 1646; 1987, 177, 2015; 2005, 1890)

      NRS 678.3435  Fee for initial investigation; annual fees; costs for additional investigations; regulations.

      1.  The Commissioner shall charge and collect a fee of not more than $1,000 for an initial investigation from each foreign credit union which applies for certification. The fee is not refundable. An annual fee of not more than $1,000 must be paid by each foreign credit union for its initial office and not more than $200 for each branch office. Costs for additional examinations and investigations must be paid by the credit union at an hourly rate deemed reasonable by the Commissioner.

      2.  The Commissioner shall by regulation determine the amount of the fees required pursuant to this section.

      (Added to NRS by 1987, 177; A 2005, 1891)

      NRS 678.344  Requirements for issuance of certificate.  The Commissioner shall issue a certificate of authority to a foreign credit union if he or she is satisfied that:

      1.  The members of the credit union to be served in this State are adequately protected by any form of security which is comparable to that required of credit unions organized under the provisions of this chapter.

      2.  The officer who supervises the credit union in the state in which it was organized has authorized it to do business in Nevada and agrees to furnish, upon request, copies of reports relating to the credit union.

      3.  The members to be served in this State have a need for the service and adequate service is not available through existing credit unions.

      4.  A registered agent has been designated.

      5.  The state in which the credit union was organized issues comparable authorization to credit unions organized under the provisions of this chapter.

      (Added to NRS by 1983, 2014; A 1983, 1646; 1985, 784; 1987, 2015; 2007, 2727)

      NRS 678.345  Applicable law; filing of annual report.  A foreign credit union which has been issued a certificate of authority shall:

      1.  Serve its members in this state in accordance with its bylaws and the laws of the state in which it was organized, except where those laws conflict with the provisions of this chapter.

      2.  File with the Commissioner a copy of its annual report at the time it files a similar report with the officer of the state in which it was organized.

      (Added to NRS by 1983, 2014; A 1983, 1646; 1987, 2016)

      NRS 678.3455  Application for certificate of authority to open branch offices.  A foreign credit union which has been issued a certificate of authority may apply to the Commissioner for a certificate of authority to open one or more branch offices in this state. Such an application must be made on a form prescribed by the Commissioner.

      (Added to NRS by 1987, 177)

      NRS 678.346  Examination of records; revocation of certificate.  The Commissioner may:

      1.  Examine the records of any foreign credit union which holds a certificate of authority issued by the Commissioner at any time he or she deems necessary.

      2.  Revoke a certificate of authority issued to a credit union if he or she finds that the credit union has violated any provision of this chapter or the regulations of the Commissioner.

      (Added to NRS by 1983, 2015; A 1983, 1647; 1987, 2016)

      NRS 678.347  Applicability of provisions of chapter 80 of NRS.  The provisions of chapter 80 of NRS which are not in conflict with the provisions of this chapter apply to any foreign credit union which holds a certificate of authority to transact business or maintain an office in this State.

      (Added to NRS by 1983, 2015)

DIRECTORS, OFFICERS AND COMMITTEES

      NRS 678.350  Board of directors: Number, election and terms of members; procedure for filling vacancy.

      1.  The business affairs of a credit union shall be directed by an odd-numbered board of not fewer than five directors to be elected at the annual meetings by and from the members, and an audit and credit committee if appointed by the board. The persons designated in the articles of incorporation shall be the first directors.

      2.  All members of the board and such committees shall hold office for such terms as the bylaws may provide.

      3.  Vacancies in the board of directors shall be filled by vote of the members at the annual meeting or at a special meeting called for that purpose. The board may fill any vacancies occurring in the board until successors elected at the annual meeting or special meeting have qualified. The board shall also fill vacancies in the credit and audit committees.

      (Added to NRS by 1975, 380)

      NRS 678.360  Board of directors: Responsibilities; meetings; executive committee.

      1.  The board of directors is responsible for the general direction of the affairs, funds and records of the credit union and shall meet as often as necessary to accomplish their duties, but not less than once a month.

      2.  The board may appoint an executive committee of not less than three directors who may be authorized, by a majority vote of the whole board, to act for the board subject to any conditions or limitations the board may prescribe.

      (Added to NRS by 1975, 380)

      NRS 678.370  Board of directors: Duties.  The directors of a credit union shall:

      1.  Purchase a blanket fidelity bond in accordance with the regulations of the Commissioner which provides the credit union with protection against losses from misappropriation, defalcation in breach of trust, negligence, acts of God or nature, fire, burglary, robbery or other cause over which the bonded officers, employers and agents had no control;

      2.  Declare dividends in the manner prescribed in the bylaws;

      3.  Determine the interest rate to be charged on loans and paid on deposits;

      4.  Limit the number of shares and the amount of deposits which may be owned by any member;

      5.  Establish the compensation of all employees and officers;

      6.  Establish the maximum secured and unsecured loan which may be made to any one member;

      7.  Designate a depository or depositories for the money of the credit union;

      8.  Suspend or remove any member who fails to perform or negligently performs his or her assigned duties;

      9.  Establish compensation to be paid any employee, officer or other persons performing services on behalf of the credit union;

      10.  Determine from time to time the interest rate, consistent with the provisions of this chapter, which will be charged on loans; and

      11.  Authorize interest refunds to members from income earned and received in proportion to interest paid by them on such classes of loans. Such refunds are subject to conditions imposed by the board.

      (Added to NRS by 1975, 380; A 1983, 1833; 1987, 2016)

      NRS 678.380  Board of directors: Powers.  The directors may:

      1.  Act upon applications for membership or appoint membership officers from the members of the credit union to act upon membership applications subject to conditions imposed by the board. If membership officers are appointed they shall submit at each board meeting a list of approved or pending applications for membership.

      2.  Invest surplus funds or designate an officer or committee to be responsible for making investments subject to rules and procedures established by the board of directors.

      3.  Authorize the employment of persons necessary to carry on the business of the credit union.

      4.  Authorize the conveyance of property.

      5.  Borrow or lend money to carry on the functions of the credit union.

      6.  Appoint any special committees which the board feels necessary to carry on the business of the credit union.

      7.  Perform or authorize any action not inconsistent with this chapter and not specifically reserved by the bylaws for the members.

      8.  Employ a general manager to be in charge of operations or, in lieu thereof, designate the treasurer to act as general manager and be in active charge of the affairs of the credit union.

      9.  Amend the bylaws of the credit union.

      (Added to NRS by 1975, 381)

      NRS 678.390  Appointment of audit committee: Duties; powers; suspension of member; employment of certified or registered public accountant.

      1.  The board may appoint an audit committee to make an annual audit of the financial records of the credit union and any interim audits as may be deemed necessary by the board or as may be directed by the Commissioner. A copy of the report must be submitted to the board and the Commissioner and a summary presented to the members at the next annual meeting.

      2.  The audit committee may by unanimous vote suspend any director, officer or member of the credit union following an audit, for any violation of this chapter, the charter or bylaws or for any other practice which the audit committee deems to be unsafe or unauthorized. In such cases, the audit committee shall call a special meeting of the members not less than 7 nor more than 21 days following the suspension and the suspension must be ratified or overturned by the members.

      3.  Any member of the audit committee may be suspended by the board for the same reasons and in the same manner as provided in subsection 2.

      4.  The audit committee may by a majority vote call a special meeting of the members to consider any violation of this chapter, the charter or bylaws or any practice of the credit union deemed by the audit committee to be unsafe or unauthorized.

      5.  The board of directors or the audit committee may employ the services of a certified public accountant or a registered public accountant to complete the necessary audit of the records of the credit union.

      (Added to NRS by 1975, 381; A 1981, 1813; 1983, 1640, 1833, 2016; 1987, 2017)

      NRS 678.400  Credit committee; loan officer.

      1.  The board may appoint a:

      (a) Credit committee consisting of an odd number of members of the credit union, but not less than three members; or

      (b) Loan officer.

      2.  If a credit committee is appointed by the board, it shall hold such meetings as the business of the credit union may require but it shall meet at least once a month to consider applications for loans. A loan may not be made unless it is approved by a majority of the members of the committee who are present at the meeting at which the application is considered.

      3.  The credit committee may appoint a loan officer from among its members and delegate to him or her the power to approve loans. Only one member of the credit committee may be appointed as loan officer or assistant loan officer.

      4.  If a loan is not approved by a loan officer, the application for the loan must be reviewed by the credit committee or the board of directors, whomever appointed the loan officer. All the members of the credit committee or the board present at the review must approve the application before the loan may be made.

      5.  For purposes of internal control, a loan officer may not disburse funds of the credit union for any loan which has been approved by him or her in his or her capacity as loan officer.

      (Added to NRS by 1975, 382; A 1983, 2017)

      NRS 678.410  Removal of director, officer or employee on objection of Commissioner.  If the Commissioner notifies the board in writing that he or she has information that any director, officer or employee of a credit union is failing in the performance of his or her duties, the board shall meet and consider such 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, such director, officer or employee shall be removed immediately.

      (Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

      NRS 678.420  Officers: Election; designation; bonds; terms; duties.

      1.  At the organizational meeting and within 30 days following each annual meeting, the directors shall elect, from their own number, the executive officers of the corporation. The officers must be designated as:

      (a) Chair of the board;

      (b) Vice chair of the board;

      (c) Treasurer; and

      (d) Secretary.

Ê The treasurer and secretary may be the same person.

      2.  The treasurer or general manager shall give a fidelity bond with good and sufficient surety in an amount and character to be determined by the board in compliance with regulations prescribed by the Commissioner.

      3.  Each officer shall serve a term of 1 year or until such time as successors are chosen and have qualified.

      4.  The duties of each office must be as prescribed in the bylaws of the credit union.

      (Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)

      NRS 678.430  List of directors, officers and committee members.  Within 30 days following the election of the executive officers, the secretary shall submit to the Commissioner a list of the names and addresses of the directors, officers and committee members who have been elected or appointed.

      (Added to NRS by 1975, 383; A 1983, 1834; 1987, 2018)

      NRS 678.440  Fiduciary relationship of directors and officers.  Directors and officers of an association shall be deemed to stand in a fiduciary relation to the credit union 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 similar positions.

      (Added to NRS by 1975, 383; A 1997, 1623)

      NRS 678.450  Compensation and expenses of directors, officers and members.

      1.  A director or committee member may not be compensated for his or her services except that he or she may be provided reasonable life, health, accident and similar insurance protection.

      2.  Any member of the credit union may be reimbursed for necessary expenses incidental to the performance of credit union business. All such expenses shall be approved by the board.

      3.  Subsection 1 does not apply to officers of the credit union who also serve as members of the board or a committee.

      (Added to NRS by 1975, 383)

POWERS AND PRIVILEGES

      NRS 678.460  General powers; waiver or modification of law by Commissioner.  Every credit union organized under the provisions of this chapter:

      1.  Has all the powers granted by NRS 81.500 that are not inconsistent with the provisions of this chapter and in addition thereto, the powers enumerated in NRS 678.470 to 678.500, inclusive; and

      2.  May exercise any authority and perform all acts that a federal credit union may exercise or perform, with the consent and written approval of the Commissioner. The Commissioner may, by regulation, waive or modify a requirement of Nevada law if the corresponding requirement for federal credit unions has been or is eliminated or modified.

      (Added to NRS by 1975, 386; A 2001, 2050)

      NRS 678.470  Receiving and paying out deposits; borrowing, selling and purchasing assets.  A credit union may, subject to the regulations or approval of the Commissioner:

      1.  Receive from its members or from the members of another credit union deposits which are payable on demand and honor requests for withdrawals in the form of checks or drafts.

      2.  Receive deposits from the State Treasurer which are payable on demand pursuant to the provisions of chapter 356 of NRS.

      3.  Borrow from any source in accordance with the policy established by the board of directors and discount and sell any eligible obligations.

      4.  Sell all or any part of its assets or purchase all or any part of the assets of another credit union.

      (Added to NRS by 1975, 386; A 1981, 1368; 1983, 1835; 1987, 2018)

      NRS 678.480  Fees and assessments.  A credit union may:

      1.  Require, at the discretion of the directors, the payment of an entrance fee or annual membership fee of any person admitted to membership;

      2.  Collect, receive and disburse moneys and charge a fee for services rendered in connection with the sale of negotiable checks, money orders and other money-type instruments and for such other purposes as may provide benefit or convenience to its members; and

      3.  Assess charges to members in accordance with the bylaws for failure to promptly meet their obligations to the credit union.

      (Added to NRS by 1975, 387)

      NRS 678.490  Membership in other credit union or organization; performance of certain services.  A credit union may:

      1.  Hold membership in other credit unions organized under this chapter, in the Nevada Credit Union League and in other organizations composed of credit unions;

      2.  Perform such tasks and missions as may be requested by the Federal Government, the State of Nevada or any agency or political subdivision thereof, including, without limitation, a city, county or school district, when approved by the board of directors and not inconsistent with the provisions of this chapter;

      3.  Act as fiscal agent for and receive deposits from the Federal Government, the State of Nevada or an agency or political subdivision thereof, including, without limitation, a city, county or school district; and

      4.  Perform trust services for its members, including the trust estates of deceased members, and act as a custodian of qualified pension funds of self-employed individuals under the provisions of 26 U.S.C. §§ 861 et seq.

      (Added to NRS by 1975, 387; A 1999, 1453)

      NRS 678.500  Donations and contributions.  A credit union may:

      1.  Contribute to, support or participate in any nonprofit service facility whose services will benefit the credit union or its membership; and

      2.  Make donations or contributions to any nonprofit civic, charitable or community organization as authorized by the board of directors.

      (Added to NRS by 1975, 387)

MEMBERSHIP; ACCOUNTS

      NRS 678.510  Eligibility for membership.

      1.  The membership of a particular credit union shall be limited to the subscribers to the articles of incorporation and such other persons who have:

      (a) The common bond set forth in the bylaws;

      (b) Paid the entrance fee provided in the bylaws;

      (c) Subscribed for one or more shares and have paid the initial installment thereon; and

      (d) Complied with other requirements specified in the articles of incorporation or bylaws.

      2.  The common bond required for membership in credit unions organized under the provisions of this chapter may include, but are not limited to persons who:

      (a) Have a similar occupation, association or interest;

      (b) Reside within an identifiable neighborhood, community or rural district; or

      (c) Are employed by the same employer,

Ê and members of the immediate families of such persons.

      3.  Any member of a credit union who loses the bond that is characteristic of all other members may be permitted to retain his or her membership in the credit union at the discretion of the board of directors.

      (Added to NRS by 1975, 383)

      NRS 678.520  Eligibility of minor; limitations.

      1.  Shares may be issued to and deposits received from a minor and such minor may withdraw the shares and deposits, including the dividends and interest thereon. For purposes of making deposits, share investments and withdrawals a minor shall be deemed of legal age.

      2.  A minor under 16 years of age is not entitled to vote in the meeting of the members either personally or through his or her parent or guardian. A person may not become a director until he or she has reached the age of majority.

      (Added to NRS by 1975, 383)

      NRS 678.530  Subscription to and transfer of shares; lien for sums due; reduction in shares.

      1.  Shares may be subscribed to, paid for and transferred in such manner as the bylaws may prescribe. A certificate shall not be issued to denote ownership of a share in a credit union.

      2.  The credit union may impress a lien on the shares, deposits, accumulated dividends or interest of a member in his or her individual, joint or trust account for any sum due the credit union from such member or for any loan endorsed by him or her.

      3.  If the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders, the credit union may, by a majority vote of the entire membership, order a reduction in the shares of each of its shareholders to divide the loss proportionately among the members. If thereafter the credit union realizes from such assets a greater amount than was fixed by the order of reduction, such excess shall be divided among the shareholders whose assets were reduced, but only to the extent of such reduction.

      (Added to NRS by 1975, 387)

      NRS 678.540  Real and personal property subject to taxation.  The real property and any tangible personal property owned by a credit union organized pursuant to this chapter or any other provision of law is subject to taxation to the same extent as other similar property is taxed.

      (Added to NRS by 1975, 394; A 1985, 1182)

      NRS 678.550  Meetings of members.

      1.  The annual meeting and any special meetings of the members of the credit union shall be held at the time and place and in the manner indicated in the bylaws.

      2.  A member may not vote by proxy, but a society, association, copartnership or corporation having membership in the credit union may be represented and vote by one of its members or shareholders if such person has been fully authorized by the governing body of the society, association, copartnership or corporation to represent it.

      3.  At all meetings a member has but one vote irrespective of his or her share holdings.

      (Added to NRS by 1975, 386)

      NRS 678.560  Savings deposits; special clubs and accounts.

      1.  A credit union may receive savings deposits from its members, subject to such conditions and such return as may be established by the board.

      2.  Christmas clubs, vacation clubs and other thrift accounts may be operated in accordance with the provisions of the bylaws.

      (Added to NRS by 1975, 383)

      NRS 678.570  Multiple-party accounts: Authorization; disbursement of money; limitations.

      1.  A credit union may enter into multiple-party accounts to the same extent that they may enter into single-party accounts. Any multiple-party account may be paid, on demand, to any one or more of the parties unless the terms of the account expressly stipulate that joint signatures are required.

      2.  A credit union is not required to inquire as to the source of funds received for deposit to a multiple-party account or to inquire as to the proposed application of any sum withdrawn from an account.

      3.  A multiple-party account may be created with any person designated by the credit union member, but a joint tenant shall not be permitted to vote, obtain loans or hold office unless he or she is a qualified member.

      (Added to NRS by 1975, 385)

      NRS 678.630  Payment of trust accounts.

      1.  Any account payable to a trustee for another person may be paid to the trustee on demand.

      2.  The protection provided a credit union in subsection 1 has no bearing on the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in, or withdrawn from, multiple-party accounts.

      (Added to NRS by 1975, 385; A 2011, 1483)

      NRS 678.650  Right to setoff against multiple-party accounts.  Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, when a party to a multiple-party account is indebted to a credit union, the credit union has a right to setoff against the entire amount of the account.

      (Added to NRS by 1975, 386)

RESERVES; DIVIDENDS

      NRS 678.670  Regular reserves.

      1.  Before the payment of any dividend, the gross earnings of the credit union must be determined. From the gross earnings a regular reserve against losses must be set aside according to the following schedule:

      (a) Until the regular reserve equals 7.5 percent of the outstanding loans and risk assets, all credit unions with assets of $500,000 or less shall withhold 10 percent of the gross earnings. Thereafter, 5 percent of the gross income must be withheld until the regular reserve reaches 10 percent of the outstanding loans and risk assets.

      (b) Whenever a credit union has assets of more than $500,000 and has been in operation for at least 4 years, it shall maintain its regular reserve as follows:

             (1) Until the regular reserve equals 4 percent of the outstanding loans and risk assets, the credit union shall withhold 10 percent of its gross earnings.

             (2) Thereafter, until the regular reserve equals 6 percent of its outstanding loan and risk assets, the credit union shall withhold 5 percent of its gross earnings.

      (c) Whenever the regular reserve falls below the required levels, it must be replenished by regular contributions sufficient to maintain the regular reserve at the levels required by paragraphs (a) and (b).

      2.  The regular reserve belongs to the credit union and must not be distributed except on liquidation of the credit union or in accordance with a plan approved by the Commissioner.

      (Added to NRS by 1975, 387; A 1977, 891; 1983, 1641, 1835, 2018; 1987, 2018)

      NRS 678.680  Special reserves.  In addition to regular reserve, special reserves to protect the interest of members must be established when:

      1.  Required by regulations issued by the Commissioner; or

      2.  Directed by the board of the credit union.

      (Added to NRS by 1975, 388; A 1983, 1835; 1987, 2019)

      NRS 678.690  Assets qualified for reserves.  For the purpose of establishing the reserves required by NRS 678.670 and 678.680, all assets except the following are considered risk assets:

      1.  Cash on hand;

      2.  Deposits or shares in federal or state banks, savings and loan associations and credit unions;

      3.  Assets which are insured by, fully guaranteed as to principal and interest by, or due from the United States Government, its agencies, the Federal National Mortgage Association or the Government National Mortgage Association;

      4.  Loans to other credit unions;

      5.  Loans to members of the credit union which are fully secured by the shares of the member applying therefor;

      6.  Loans to students insured under the provisions of the Higher Education Act of 1965, 20 U.S.C. §§ 1071 et seq., or similar state insurance programs;

      7.  Loans insured under the National Housing Act, as amended, 12 U.S.C. § 1703, by the Federal Housing Administration;

      8.  Shares or deposits in central credit unions organized under the provisions of NRS 678.850, or of any other state law or the Federal Credit Union Act of 1934, as amended, 12 U.S.C. §§ 1751 et seq.;

      9.  Common trust investments which deal in investments authorized by this chapter;

      10.  Prepaid expenses;

      11.  Accrued interest on nonrisk investments;

      12.  Furniture and equipment;

      13.  Land and buildings; and

      14.  A deposit for insurance for members’ accounts required pursuant to subsection 3 of NRS 678.750.

      (Added to NRS by 1975, 388; A 1981, 1814; 1999, 1453)

      NRS 678.700  Dividends.

      1.  The board may, after provision for the required reserves, declare a dividend to be paid from the remaining net earnings at a rate, interval and upon such shares as they determine. Dividends shall be paid on all paid-up shares outstanding at the close of the period for which the dividend is declared.

      2.  Shares which become fully paid-up during such dividend period and are outstanding at the close of the period are entitled to a proportional part of such dividend.

      3.  Dividend credit for a month may be accrued on shares which are or become fully paid up during that month.

      (Added to NRS by 1975, 388)

LOANS; INVESTMENTS

      NRS 678.710  Loans to members: Application; approval; limitations; participation loans; payment.

      1.  A credit union may make loans to members in accordance with the provisions of the bylaws upon receipt of approval by the credit committee or loan officer at a rate of interest agreed upon by the credit union and member.

      2.  Every application for a loan must be made in writing upon a form furnished by the credit union which has been approved by the board. The application must include the purpose for which the loan is desired and the security, if any, offered.

      3.  A loan must not be made to any member in an aggregate amount in excess of 10 percent of the credit union’s unimpaired capital and surplus.

      4.  A credit union may participate with other credit unions, corporations or financial institutions in making loans to credit union members.

      5.  A member may receive a loan in installments or in one sum and may pay the whole or any part of his or her loan on any day on which the office of the credit union is open for business.

      (Added to NRS by 1975, 389; A 1981, 1596)

      NRS 678.720  Loans to members: Extension of previous maximum credit; review.

      1.  The credit committee or loan officer may approve, at his or her own discretion or upon application by a member, an extension of the maximum credit any member had previously been allowed. If an extension of credit is permitted, applications for loans within the credit limitation need no further consideration so long as the aggregate obligation of the member does not exceed the credit limit.

      2.  The credit committee or loan officer shall, at least once each year, review all extensions of credit and any extension of credit shall expire if the member becomes more than 90 days delinquent in his or her obligations to the credit union.

      (Added to NRS by 1975, 390)

      NRS 678.730  Loans to and guaranties by directors and members of committees.

      1.  A credit union may make loans to its directors and to members of its committees, except that any loan or aggregate of loans to any one director or member of a committee which is more than $30,000 plus pledged shares must be approved by the board.

      2.  A credit union may permit its directors and members of its committees to act as guarantor or endorser of loans to other members, except that when such a loan standing alone or when added to any outstanding loan to the guarantor is more than $30,000, approval of the board is required.

      (Added to NRS by 1975, 390; A 1983, 2018; 1999, 1454)

      NRS 678.740  Security for loans.

      1.  In addition to generally accepted types of security, the endorsement of a note by a guarantor or assignment of shares or wages, in a manner consistent with the laws of this state, shall be deemed security within the meaning of this chapter.

      2.  The credit committee or loan officer, subject to the provisions of this chapter and the bylaws, is responsible for determining the adequacy of security for any loans.

      (Added to NRS by 1975, 390)

      NRS 678.750  Insurance of members and accounts.

      1.  A credit union may purchase insurance on the lives of its members in an amount equal to their respective shares, deposits and balances on a loan or any of them.

      2.  A credit union may enter into cooperative marketing arrangements for its members covering such services as group life insurance, coverage for temporary disability, plans for health and accident and such other programs which are demonstrated to be in the interest of improving the economic and social conditions of the credit union’s members.

      3.  A credit union must apply to the Commissioner for approval of a plan of insurance for members’ accounts, either pursuant to the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.), or under a contract of insurance issued by an insurer, which must be approved by the Commissioner and the Commissioner of Insurance pursuant to NRS 678.755. The issuance of such a contract is not transacting insurance under title 57 of NRS.

      4.  The Commissioner shall make available reports of the financial condition of credit unions, reports of examinations made pursuant to NRS 678.790 and any other reports that may be required by the insurer and deemed appropriate by the Commissioner.

      (Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836; 1985, 785; 1987, 2019)

      NRS 678.755  Approval of private insurer and contract of insurance; regulations; reserve.

      1.  In determining whether a private insurer is acceptable to issue a contract for the insurance of deposits, the Commissioner and the Commissioner of Insurance must consider:

      (a) The value of the insurer’s capital.

      (b) The ratio of the insurer’s assets, including reinsurance, which are readily available to cover any losses incurred by depositors, to its insured deposits. This ratio must be adequate to reimburse depositors for any losses which they may incur and may not be less than the ratio maintained by the share insurance fund established under the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).

      (c) The qualifications of the directors, officers and managers of the insurance company.

      (d) The insurer’s articles of incorporation and its bylaws and all amendments thereto.

      (e) The insurer’s policies for investments.

      (f) The form of all insurance contracts entered into by the insurer, including contracts for reinsurance.

      (g) The insurer’s requirements for premiums or deposits.

      (h) The insurer’s policies for the management of risk.

      (i) Such other considerations as the Commissioner may provide by regulation which are necessary to carry out the provisions of this act.

      2.  The Commissioner and the Commissioner of Insurance shall not approve a contract of insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection afforded by the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.) to the depositors.

      3.  After a private insurer obtains the approval of the Commissioner and the Commissioner of Insurance, the Commissioner, after consultation with the Commissioner of Insurance may, for cause, require the insurer to establish and maintain for such a time as the Commissioner may require, a reserve, in cash or United States treasury bills or notes, in an amount fixed by the Commissioner. If required, the reserve must be kept in an account approved by the Commissioner in a federally insured financial institution located in this state.

      (Added to NRS by 1985, 783; A 1987, 2019)

      NRS 678.760  Authorized investments.  Money not used in loans to members may be invested in:

      1.  Securities, obligations, participations or other instruments of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in these instruments;

      2.  Obligations of this state or any political subdivision thereof, including, without limitation, a city, county or school district;

      3.  Certificates of deposit or passbook type accounts issued by a state or national bank, mutual savings bank or savings and loan association;

      4.  Loans to or shares or deposits of other credit unions as permitted by the bylaws;

      5.  Capital shares, obligations or preferred stock issues of any agency or association organized either as a stock company, mutual association or membership corporation if the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions, and the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;

      6.  Shares of a cooperative society organized under the laws of this state or the United States in a total amount not exceeding 10 percent of the shares, deposits and surplus of the credit union;

      7.  Stocks and bonds of United States corporations to a maximum of 5 percent of unallocated reserves, except that such an investment must be limited to stocks or bonds yielding income which are approved by the Commissioner;

      8.  Loans to any credit union association, national or state, of which the credit union is a member, except that such an investment must be limited to 1 percent of the shares, capital deposits and unimpaired surplus of the credit union; and

      9.  Negotiable obligations of federal or state banks.

      (Added to NRS by 1975, 389; A 1981, 1815; 1983, 1280, 1641, 1836; 1987, 2020; 1989, 1675; 1999, 1454; 2013, 1251)

      NRS 678.765  Limitation on investment in fixed assets.  A credit union must not invest in fixed assets without the prior approval of the Commissioner if the aggregate value of the credit union’s existing fixed assets exceeds 7 percent of its total assets.

      (Added to NRS by 1985, 783; A 1987, 2021)

EXPLOITATION OF OLDER PERSONS OR VULNERABLE PERSONS

      NRS 678.767  Definitions.  As used in NRS 678.767 to 678.779, inclusive, unless the context otherwise requires, the words and terms defined in NRS 678.769 to 678.777, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 1494)

      NRS 678.769  “Designated reporter” defined.  “Designated reporter” means a person designated by a credit union to receive reports of known or suspected exploitation of an older person or vulnerable person pursuant to NRS 678.779.

      (Added to NRS by 2007, 1494)

      NRS 678.771  “Exploitation” defined.  “Exploitation” has the meaning ascribed to it in subsection 2 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.773  “Older person” defined.  “Older person” has the meaning ascribed to it in subsection 5 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.775  “Reasonable cause to believe” defined.  “Reasonable cause to believe” has the meaning ascribed to it in NRS 200.50925.

      (Added to NRS by 2007, 1494)

      NRS 678.777  “Vulnerable person” defined.  “Vulnerable person” has the meaning ascribed to it in subsection 7 of NRS 200.5092.

      (Added to NRS by 2007, 1494)

      NRS 678.778  Training; reporting to designated reporter.

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

      (a) May, as part of his or her regular duties for the credit union, 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 employee is employed by the credit union.

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

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

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

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

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

      4.  An 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, 1494)

      NRS 678.779  Designated reporter: Designation; duty to report; immunity.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      7.  An 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, 1495)

RECORDS AND REPORTS; EXAMINATIONS

      NRS 678.780  Annual financial report.  Every credit union organized under this chapter shall submit an annual financial report for the calendar year to the Commissioner on or before the first day of February on forms supplied by him or her for that purpose.

      (Added to NRS by 1975, 390; A 1983, 1328, 1837; 1987, 2021)

      NRS 678.790  Examinations and audits; exceptions; fees.

      1.  The Commissioner shall make a thorough examination of and into the affairs of each credit union organized under the provisions of this chapter, as often as the Commissioner may deem necessary, but at least once within each 18-month period. In lieu thereof, the Commissioner may accept any or all of a report of an examination of a credit union made by a federal regulatory agency. If the Commissioner accepts any part of such a report in one 18-month period, he or she shall examine the credit union to which the report pertains in the succeeding 18-month period. For the purpose of performing the examination, the Commissioner may:

      (a) Subpoena witnesses and documents;

      (b) Administer oaths; and

      (c) Compel the giving of testimony.

      2.  The report of the examination must contain comments to the members relative to the management of the affairs of the credit union and the general condition of the assets. Within 30 days following the receipt of the report, the directors shall call a general meeting of key personnel to consider matters contained in the report.

      3.  The Commissioner shall forward a copy of the report to the chair of each credit union within 30 days after it is completed. The board of directors shall inform the members of the credit union of its general condition at the next annual meeting.

      4.  For each examination the credit union shall pay a fee based on the rate established pursuant to NRS 658.101.

      5.  The board of directors may engage a certified public accountant to perform such an examination in lieu of the Commissioner. In such cases, the examination must be equivalent to the type of examination made by the Commissioner and the expense must be borne by the credit union being inspected.

      6.  The Commissioner shall determine whether an examination performed by an accountant pursuant to subsection 5 is equivalent to an examination conducted by the Commissioner. The Commissioner may examine any area of the operation of a credit union if the Commissioner determines that the examination of that area is not equivalent to an examination conducted by the Commissioner.

      (Added to NRS by 1975, 391; A 1983, 2018; 1987, 2227; 1989, 1676; 2005, 1891)

      NRS 678.795  Independent audit and examination: Payment of assessment; cooperation.  Each credit union 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)

MERGER; CONVERSIONS

      NRS 678.800  Merger; fees set by regulation; regulations.

      1.  Any credit union may, with the approval of the Commissioner, merge with another credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of each credit union joining in the merger and approved by the affirmative vote of:

      (a) A majority of the members of the merging credit union present at a meeting called for that purpose; or

      (b) A majority of the members of the merging credit union voting by mail on the question.

      2.  After agreement by the directors of each credit union and approval by the members of the merging credit union, the chair and secretary of each credit union shall execute a certificate of merger, which must set forth:

      (a) The time and place of the meeting of the board of directors at which the plan was agreed upon;

      (b) The vote in favor of adoption of the plan;

      (c) A copy of the resolution or other action by which the plan was agreed upon;

      (d) The circumstances of the vote in which the members approved the plan agreed upon, if a vote was required; and

      (e) The vote by which the plan was approved by the members, if a vote was required.

      3.  A copy of each of the certificates executed pursuant to subsection 2 and a copy of the plan of merger agreed upon by the credit unions joining in the merger must be forwarded to the Division of Financial Institutions for certification and returned to the credit unions within 30 days.

      4.  After a merger is effected, all property, property rights and interest of the merged credit union vest in the surviving credit union without deed, endorsement or other instrument of transfer, and all debts, obligations and liabilities of the merged credit union are deemed to be assumed by the surviving credit union under whose charter the merger was effected.

      5.  If the surviving credit union is to be a credit union chartered in accordance with the laws of this state, the application for approval of the merger must be accompanied by an application fee in an amount prescribed by regulation of the Commissioner. 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.

      6.  The Commissioner shall adopt regulations pursuant to which he or she may order any credit union chartered in accordance with the provisions of this chapter to merge with:

      (a) Another credit union chartered in accordance with the provisions of this chapter; or

      (b) A credit union chartered in accordance with the laws of another state or of the United States, if a majority of the board of that credit union approves the merger,

Ê when he or she determines that the merger is in the best interest of the members of the merging credit union.

      7.  This section is to be liberally construed to permit a credit union chartered in accordance with this chapter to merge with a credit union chartered in accordance with this chapter or any other provisions of law.

      (Added to NRS by 1975, 392; A 1983, 1329, 1642, 1837, 2019; 1987, 2021; 1991, 1816)

      NRS 678.810  Conversions; fee set by regulation.

      1.  A credit union chartered in accordance with the laws of this state may be converted to a credit union chartered in accordance with the laws of any other state or the laws of the United States, subject to regulations adopted by the Commissioner.

      2.  A credit union chartered in accordance with the laws of the United States or of any other state may convert to a credit union chartered in accordance with the laws of this state. To effect such a conversion, a credit union must comply with all the requirements of the authority under which it was originally chartered and the requirements of the Commissioner and file proof of such compliance with the Commissioner.

      3.  Every application for permission to convert to a credit union chartered in accordance with the laws of this state must be accompanied by an application fee in an amount prescribed by regulation of the Commissioner. 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.

      (Added to NRS by 1975, 393; A 1983, 1329, 1838; 1987, 2022; 1991, 1818)

DISSOLUTION AND LIQUIDATION

      NRS 678.820  Voluntary dissolution.

      1.  At a meeting called to consider dissolution, the membership may vote to dissolve a credit union if notice of the meeting is mailed to the members at least 10 days prior thereto. Any member who is not present at the meeting may, within 20 days after the meeting, vote by signing a form furnished by the Division and filing the form with the secretary of the credit union. An affirmative vote of a majority of the members who vote at the meeting or by filing the form is required to dissolve the credit union.

      2.  If the members vote to dissolve, the credit union shall, except for the purpose of liquidation, cease its business operations immediately.

      3.  The chair shall, within 5 days after an affirmative vote to dissolve the credit union, notify the Division by mail of the credit union’s intention to liquidate and include with the notice a list of the names and addresses of the directors and officers.

      (Added to NRS by 1975, 391; A 1983, 2020)

      NRS 678.830  Involuntary dissolution: Suspension of operations; corrective actions; declaration of insolvency; liquidation.

      1.  If the Division determines that any credit union organized pursuant to the provisions of this chapter is bankrupt or insolvent, has willfully violated the provisions of this chapter or is operating in an unsafe or unsound manner, the Division may, if emergency action is required to protect the assets of the members, issue an order temporarily suspending the credit union’s operations. Reasonable notice of the suspension of operations and of the impending hearing shall be given to the board. Operations of the credit union shall cease upon receipt of notice from the Division.

      2.  At the scheduled hearing, the board shall, if it desires to continue operations, submit a plan of corrective actions. If the board desires, it may, prior to the hearing, request the Commissioner to declare the credit union insolvent and appoint a liquidating agent.

      3.  If the credit union is not represented at the scheduled hearing or the Division rejects the credit union’s plan to continue operations, the Commissioner may appoint a liquidating agent and dissolve the credit union.

      (Added to NRS by 1975, 391; A 1977, 96)

      NRS 678.835  Involuntary dissolution: Appointment of liquidating agent for credit union closed by bankruptcy or insolvency.  If a credit union is closed because of bankruptcy or insolvency, the Commissioner may appoint a liquidating agent.

      (Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836; 1985, 785; 1987, 2019)

      NRS 678.840  Procedure for liquidation.

      1.  A liquidating credit union shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets, and doing any other acts required to wind up its business.

      2.  The board or, in the case of involuntary dissolution, the liquidating agent, shall pay from the assets, the obligations of the credit union in the following order:

      (a) Expenses incidental to liquidation including any surety bond that may be required.

      (b) Any liability due to nonmembers.

      (c) Deposits and savings club accounts.

Ê If any assets remain, they shall be distributed to the members proportionately to the number of shares held by each member as of the date dissolution was approved by the members or ordered by the Commissioner.

      3.  As soon as the board or the liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, he or she shall execute a certificate of dissolution on a form provided by the Division and shall file such form with the proper recording authority within the county in which the credit union has its principal place of business. After filing or recording, and indexing the original form shall be forwarded to the Division and upon its receipt and filing such credit union shall be officially dissolved.

      (Added to NRS by 1975, 392)

CENTRAL CREDIT UNIONS

      NRS 678.850  Organization and operation; rights and powers.

      1.  A central credit union may be organized and operated under the provisions of this chapter by any three credit unions incorporated within this state. A central credit union is subject to all provisions not inconsistent with this section and shall use the term “central” in its official name.

      2.  A central credit union has all the rights and powers of any other credit union organized under this chapter and, in addition, a central credit union may:

      (a) Make loans to other credit unions;

      (b) Purchase shares and make deposits in other credit unions;

      (c) Obtain the assets and liabilities of any credit union operating in this state which enters into liquidation;

      (d) Invest in and grant loans to associations of credit unions or organizations chartered to provide exclusive service to credit unions; and

      (e) Borrow money from any source and issue notes or debentures.

      (Added to NRS by 1975, 393; A 1977, 891)

      NRS 678.860  Membership.  The membership for a central credit union may consist of:

      1.  Credit unions;

      2.  The Nevada Credit Union League, Inc.; and

      3.  Organizations affiliated with the Nevada Credit Union League, Inc.

      (Added to NRS by 1975, 393; A 1977, 892)

      NRS 678.870  Voting representatives.

      1.  The board of each credit union that becomes a member of a central credit union shall designate one person to be its voting representative in the central credit union.

      2.  The voting representative of a member credit union is eligible to hold office in the central credit union.

      (Added to NRS by 1975, 393; A 1977, 892)

      NRS 678.875  Regular reserves.

      1.  Before the payment of any dividend by a central credit union, a regular reserve against loan losses shall be set aside according to the following schedule:

      (a) Until the regular reserve equals 5 percent of the outstanding loans and risk assets, 2 percent of the gross earnings shall be withheld.

      (b) Whenever the regular reserve falls below 5 percent of the outstanding loans and risk assets it shall be replenished in accordance with the formula set forth in paragraph (a).

      2.  No other reserves need be maintained by the central credit union.

      (Added to NRS by 1977, 889)

PENALTIES

      NRS 678.880  Use of words “credit union” or conducting business as credit union by person not organized as credit union; spreading false report concerning management or finances of credit union.

      1.  Any person, except a credit union organized under the provisions of this chapter or the Nevada Credit Union League, which uses a name or title containing the words “credit union” or any derivation thereof or representing themselves in their advertising or otherwise as conducting business as a credit union is guilty of a gross misdemeanor.

      2.  Any person who maliciously and knowingly spreads false reports about the management or finances of any credit union is guilty of a gross misdemeanor.

      (Added to NRS by 1975, 394)

      NRS 678.890  Administrative fines.  In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:

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

      2.  Violates any provision of this chapter or any regulation adopted pursuant thereto.

      (Added to NRS by 2005, 1890)