NRS: CHAPTER 662 - POWERS AND MISCELLANEOUS PROVISIONS

[Rev. 6/29/2024 4:54:03 PM--2023]

CHAPTER 662 - POWERS AND MISCELLANEOUS PROVISIONS

GENERAL PROVISIONS

NRS 662.015 General powers of banks; power of Commissioner to waive or modify requirements of law.

NRS 662.025 Power to participate in Federal Deposit Insurance Corporation.

NRS 662.035 Power to maintain separate departments; deposit of money held in fiduciary capacity; regulations.

INVESTMENTS; RESERVES; LOAN LIMITS

NRS 662.046 Dealing in investment securities prohibited.

NRS 662.055 Investments in public securities.

NRS 662.065 Investments in private securities; limitation.

NRS 662.075 Investments authorized as security for deposits of public money.

NRS 662.085 Reserve not required against deposits secured by obligations of or guaranteed by United States; obligations as valid security.

NRS 662.095 Investment in obligations approved by Federal Housing Administrator, Department of Veterans Affairs, national mortgage association or Federal Home Loan Bank; conditions for making loans; obligations as collateral, deposits or investment of equity; exemption from certain laws.

NRS 662.097 Investments in securities of management investment trust or management investment company.

NRS 662.101 Investments in loans to finance interests in cooperative housing corporations.

NRS 662.103 Investment in real property for development: Limitations; filing of disclosure with Commissioner; failure to make disclosure unlawful.

NRS 662.105 Stock options and purchases for directors, officers and employees.

NRS 662.115 Issuance of capital notes, debentures and collateralized debt securities and certificates.

NRS 662.125 Limitations on lending on security of or acquisition of own stock or members’ interests; sale and ownership of collateral security.

NRS 662.135 Limitations on investment in stock of or membership in other banks and business organizations.

NRS 662.145 Limits on amount of loans; exceptions.

NRS 662.155 Limit on combination of investments and loans involving single obligor, person or entity.

NRS 662.175 Limitations on borrowing money and pledging assets; exceptions; purchase of federal reserve money deemed transfer.

NRS 662.186 Operating cash: Minimum cash and demand balances; reserves.

NRS 662.205 Membership in Federal Reserve Bank: Authorization; powers, duties and examination of member.

SAVINGS BANK BUSINESS

NRS 662.215 Authorization; deposits; requirements of receipt or passbook; quarterly or annual statements required; issuance of time certificates.

PAYMENTS IN EXCHANGE

NRS 662.225 Checks payable in exchange.

TRUST COMPANY BUSINESS

NRS 662.231 “Business of a trust company” and “trust company business” defined.

NRS 662.235 Powers and duties when carrying on trust company business; segregation of assets and recordkeeping.

NRS 662.239 Conditions and limitations on maintaining trust offices in Nevada and other states; regulations.

NRS 662.245 Conditions and limitations on certain foreign organizations acting as fiduciary; fees; bond; requirements for service of process; regulations.

CLOSING OF BANKS

NRS 662.255 Voluntary closure on Saturdays, Sundays and holidays; transaction of business.

NRS 662.265 Emergency closure: Definitions.

NRS 662.275 Emergency closure: Powers of Commissioner.

NRS 662.285 Emergency closure: Powers of bank’s officers.

NRS 662.295 Emergency closure: Notification of Commissioner or Comptroller of the Currency.

NRS 662.305 Emergency closure: Effect of closing.

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GENERAL PROVISIONS

NRS 662.015 General powers of banks; power of Commissioner to waive or modify requirements of law.

1. In addition to the powers conferred by law upon private corporations and limited-liability companies, a bank may:

(a) Exercise by its board of directors, managers or authorized officers and agents, subject to law, all powers necessary to carry on the business of banking by:

(1) Discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of indebtedness;

(2) Receiving deposits;

(3) Buying and selling exchange, coin and bullion; and

(4) Loaning money on personal security or real and personal property.

Ê At the time of making loans, banks may take and receive interest or discounts in advance.

(b) Adopt regulations for its own government not inconsistent with the Constitution and laws of this State.

(c) Issue, advise and confirm letters of credit authorizing the beneficiaries to draw upon the bank or its correspondents.

(d) Receive money for transmission.

(e) Establish and become a member of a clearinghouse association and pledge assets required for its qualification.

(f) Exercise any authority and perform all acts that a national bank may exercise or perform, including, without limitation, engaging in a derivative transaction, 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 national banks is eliminated or modified.

(g) Provide for the performance of the services of a bank service corporation, such as data processing and bookkeeping, subject to any regulations adopted by the Commissioner.

(h) Unless otherwise specifically prohibited by federal law, sell annuities if licensed by the Commissioner of Insurance.

2. A bank may purchase, hold and convey real property:

(a) As is necessary for the convenient transaction of its business, including furniture and fixtures, with its banking offices and for future site expansion. This investment must not exceed, except as otherwise provided in this section, 60 percent of its stockholders’ or members’ equity, plus subordinated capital notes and debentures. The Commissioner may authorize any bank located in a city whose population is 15,000 or more to invest more than 60 percent of its stockholders’ or members’ equity, plus subordinated capital notes and debentures, in its banking offices, furniture and fixtures.

(b) As is mortgaged to it in good faith by way of security for loans made or money due to the bank.

3. This section does not prohibit any bank from holding, developing or disposing of any real property it may acquire through the collection of debts due it. Except as otherwise provided in subsection 4, real property acquired through the collection of debts due it may not be held for longer than 5 years. It must be sold at private or public sale within 30 days thereafter.

4. A bank may request and the Commissioner may grant an extension of the period described in subsection 3 of not more than 5 years. The Commissioner shall not grant a bank more than one extension of the period prescribed in subsection 3 for any real property held by the bank.

(Added to NRS by 1971, 979; A 1979, 556, 1387, 1388; 1983, 1736; 1985, 1051; 1987, 1911; 1989, 1933; 1993, 2279; 1995, 484, 1550; 1997, 986, 3514; 2011, 1301, 2589; 2013, 637)

NRS 662.025 Power to participate in Federal Deposit Insurance Corporation. Subject to the approval of the Commissioner, and on the authority of a majority of its managers or board of directors, a bank may:

1. Enter into such contracts, incur such obligations and generally do and perform any or all such acts and things whatsoever as may be necessary or appropriate in order to take advantage of any or all memberships, loans, subscriptions, contracts, grants, rights or privileges which may at any time be available to inure to banking institutions, or to their depositors, creditors, stockholders, members, conservators, receivers or liquidators, by virtue of those provisions of the Federal Deposit Insurance Act, 12 U.S.C. §§ 1811-1831, which creates the Federal Deposit Insurance Corporation and provides for the insurance of deposits, or of any other provisions of that or any other act or resolution of the Congress to aid, regulate or safeguard banking institutions and their depositors, including any amendments to such acts, laws or resolutions or substitutions therefor.

2. Subscribe for and acquire any stock, debentures, bonds or other types of securities of the Federal Deposit Insurance Corporation and shall comply with the lawful regulations and requirements from time to time issued or made by the Federal Deposit Insurance Corporation.

(Added to NRS by 1971, 980; A 1983, 1737; 1987, 1912; 1995, 485)

NRS 662.035 Power to maintain separate departments; deposit of money held in fiduciary capacity; regulations.

1. A bank may maintain separate departments and deposit in its commercial department to the credit of its trust department all uninvested fiduciary moneys of cash and secure, under rules and regulations of the Commissioner, all such deposits in the name of the trust department, whether in consolidated deposits or for separate fiduciary accounts, by segregating and delivering to the trust department securities which are eligible for the security of money of the State of Nevada under subsection 1 of NRS 356.020. Such securities must be held by the trust department as security for the full payment or repayment of all such deposits and must be kept separate and apart from other assets of the trust department. Until all such deposits have been accounted for to the trust department or to the individual fiduciary account, no creditor of the bank has any claim or right to such securities.

2. When fiduciary money is deposited by the trust department in the commercial department of the bank, the deposit thereof does not constitute a use of such money in the general business of the bank and the bank in this instance is not liable for interest on such money.

3. To the extent and in the amount such deposits may be insured by the Federal Deposit Insurance Corporation, the amount of security required for such deposits may be reduced.

4. The Commissioner may make such regulations as the Commissioner deems necessary for the enforcement of the provisions of this section.

(Added to NRS by 1971, 981; A 1983, 964, 1737; 1987, 1913)

INVESTMENTS; RESERVES; LOAN LIMITS

NRS 662.046 Dealing in investment securities prohibited.

1. As used in this section “dealing in investment securities” does not include the purchasing and selling of securities without recourse solely upon order and for the account of customers.

2. Banks shall not engage in the business of dealing in any investment securities, either directly or through subsidiary corporations, except as otherwise provided in chapters 657 to 671, inclusive, of NRS for investment in public securities or private securities.

3. Any provision contained in the articles of incorporation issued to any banking corporation before July 1, 1971, which is in conflict with this section is revoked.

(Added to NRS by 1971, 981; A 1995, 485)

NRS 662.055 Investments in public securities.

1. Notwithstanding any restrictions or limitations on investment contained in any law of this state, a bank may, without limitation, invest its funds in public securities which include:

(a) Obligations of the United States, its agencies or other obligations guaranteed by the United States Government.

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

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

(d) Any bonds, general or revenue obligations or other debt obligations of any state of the United States or of any city, town, county, school district, improvement district, municipal corporation or quasi-municipal corporation of any state in the United States or other political subdivision of any such state.

(e) The bonds, debentures, securities or other similar obligations issued pursuant to:

(1) The Federal Farm Loan Act, as amended;

(2) The Farm Credit Act of 1933, as amended;

(3) The Federal Home Loan Bank Act of 1932, as amended;

(4) The Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended; and

(5) Any other federal act or authority, the bonds, debentures, securities or other similar obligations of which have been approved by the Commissioner for investment.

2. This section is cumulative to all other laws relating to the investment of bank funds.

(Added to NRS by 1971, 981; A 1971, 1184; 1973, 1092)

NRS 662.065 Investments in private securities; limitation.

1. As used in this section, “private security” means a marketable obligation in the form of a bond, note or debenture which is commonly regarded as an investment security. It does not include investments which are predominantly speculative in nature.

2. A bank may purchase a private security for its own account when in its prudent banking judgment, which may be based in part upon estimates which it believes to be reliable, it determines that:

(a) There is adequate evidence that the obligor will be able to perform all that it undertakes to perform in connection with the security, including all debt service requirements; and

(b) The security may be sold with reasonable promptness at a price which corresponds reasonably to its fair value.

3. A bank may purchase a private security for its own account, although its judgment with respect to the obligor’s ability to perform is based predominantly upon estimates which it believes to be reliable. Although the appraisal of the prospects of any obligor will generally be based in part upon estimates, it is the purpose of this subsection to permit a bank to exercise a broader range of judgment with respect to a more restricted portion of its investment portfolio. This authority may be exercised not only in the absence of a record of performance, but also when there are prospects for improved performance.

4. A bank may, as a factor in reaching its prudent banking judgment with respect to a private security, consider a ruling published by the Commissioner on the eligibility of the private security for purchase. Consideration must be given to the possibility that circumstances on which the ruling was based may have changed since the time of the ruling.

5. Subject to the limitations set forth in NRS 662.155, the investment in any private securities of any one obligor may at no time be more than 25 percent of the stockholders’ or members’ equity of the bank.

(Added to NRS by 1971, 982; A 1983, 1738; 1987, 1913; 1997, 987)

NRS 662.075 Investments authorized as security for deposits of public money.

1. Notwithstanding any restrictions or limitations on securities for deposits of public money contained in any law of this state, the bonds, debentures, securities or other similar obligations issued pursuant to:

(a) The Federal Farm Loan Act, as amended;

(b) The Farm Credit Act of 1933, as amended;

(d) The Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as now or hereafter amended; and

(e) Any other federal act or authority, the bonds, debentures, securities or other similar obligations of which have been approved by the Commissioner for investment,

Ê are, without limitation, authorized securities for all deposits of public money for the State of Nevada, of agencies of the State of Nevada, of counties of the State of Nevada, and of municipalities and other political subdivisions of the State of Nevada.

2. This section is cumulative to all other laws relating to securities for deposits of public money.

(Added to NRS by 1971, 982; A 1973, 1093; 1983, 1738; 1987, 1914)

NRS 662.085 Reserve not required against deposits secured by obligations of or guaranteed by United States; obligations as valid security.

1. A bank shall not be required to maintain a reserve against deposits secured by any obligations of the United States, its agencies or any other obligations guaranteed by the United States Government or any of its agencies equal in par value to the amount of such deposits.

2. Such obligations shall be valid security for all loans and deposits.

(Added to NRS by 1971, 983)

1. To the same extent that a bank may invest its money in obligations of the United States, a bank may invest its money and may invest the money in its custody or possession which is eligible for investment:

(a) In bonds or notes secured by a mortgage or deed of trust insured or guaranteed by the Federal Housing Administrator or the Department of Veterans Affairs;

(b) In mortgages on real property which have been accepted for insurance by the Federal Housing Administrator or Department of Veterans Affairs; and

(c) In obligations of national mortgage associations or bonds, debentures, consolidated bonds or other obligations of any Federal Home Loan Bank or Banks.

2. A bank may make such loans:

(a) Secured by real property, as the Federal Housing Administrator or Department of Veterans Affairs has insured or has made a commitment to insure, and may obtain such insurance.

(b) As are insured or guaranteed by the Federal Housing Administrator, and on being approved as eligible for credit insurance by the Department of Veterans Affairs, may make such loans as are insured or guaranteed by the Department of Veterans Affairs.

3. Wherever by statute of this state:

(a) Collateral is required as security for the deposit of public money;

(b) Deposits are required to be made with any public officer or department; or

(c) An investment of stockholders’ or members’ equity, or a reserve or other fund is required to be maintained, consisting of designated securities,

Ê bonds and notes secured by a mortgage or deed of trust insured by the Federal Housing Administrator or Department of Veterans Affairs, debentures issued by the Federal Housing Administrator and obligations of national mortgage associations are eligible for those purposes.

4. No law of this state prescribing the nature, amount or form of security or requiring security upon which loans or investments may be made, prescribing or limiting the rates of time of payment of the interest any obligation may bear, or prescribing or limiting the period for which loans or investments may be made, applies to loans or investments made pursuant to this section.

(Added to NRS by 1971, 983; A 1987, 1914; 1995, 1099; 1997, 987)

NRS 662.097 Investments in securities of management investment trust or management investment company.

1. A bank which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the bank as a fiduciary or agent, invest in the securities of a management investment trust or management investment company if:

(a) The investment trust or investment company is registered pursuant to the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.; and

(b) The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship.

2. A bank or an affiliate of the bank may provide services to the investment trust or investment company, including, without limitation, acting as an investment adviser, custodian, transfer agent, registrar, sponsor, distributor or manager and may receive reasonable compensation for the services. The manner in which the compensation is calculated must be disclosed to the person who is currently receiving the benefits of the fiduciary or agency relationship with the bank. The disclosure may be made by a prospectus, a statement of account or otherwise.

3. A bank may deposit money held by the bank as a fiduciary or agent with an affiliate before investing or making other disposition of the money.

(Added to NRS by 1991, 822)

NRS 662.101 Investments in loans to finance interests in cooperative housing corporations.

1. A bank may make or invest in a loan to finance a borrower’s interest in or to refinance the borrower’s 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. 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 any loan made pursuant to subsection 1 shall be deemed to be a loan secured by a mortgage on real property.

3. As used in subsection 1, “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, 709)

NRS 662.103 Investment in real property for development: Limitations; filing of disclosure with Commissioner; failure to make disclosure unlawful.

1. A bank may invest in real property for development, directly or through partnerships, joint ventures or other indirect methods. Any such investment must not exceed the market value or appraisal of the property as evidenced by a report prepared within 120 days before the investment by a member of a society approved collectively by the Commissioner or by another appraiser approved individually by the Commissioner. Approval must be based on the independence, experience and training required of or possessed by the appraiser.

2. Within 30 days after such an investment is made, the bank must file with the Commissioner:

(a) A certified copy of at least one report of the appraisal of the real property in which the investment is made; and

(b) The report of a title insurance company which contains the transfers of title which occurred during a period of at least 3 years immediately preceding the investment and the amount of consideration, if available, given for each transfer.

3. A bank may not invest in real property for development, exclusive of investments allowed under paragraphs (a) and (b) of subsection 2 of NRS 662.015 and of real property acquired through the collection of debts due to the bank, an amount which exceeds its stockholders’ or members’ equity or 10 percent of its assets, whichever is less. The Commissioner may require a statement from the bank disclosing whether any director, officer or employee of the bank has a direct or indirect interest in the real property involved or has had any such interest at any time during the preceding 3 years. Ownership of stock in a corporation which has an interest is an interest in the property of the stockholder. Failure to make a required disclosure is unlawful.

(Added to NRS by 1985, 1050; A 1987, 1915; 1997, 988)

NRS 662.105 Stock options and purchases for directors, officers and employees. Subject to any applicable regulations of the Commissioner, a banking corporation may grant options to purchase, sell or enter into agreements to sell shares of its capital stock to its directors, officers or employees, or any of them, for a consideration of not less than 100 percent of the fair market value of the shares on the date the option is granted, or, if pursuant to a stock purchase plan, 85 percent of the fair market value of the shares on the date the purchase price is fixed, pursuant to the terms of a plan for the purchase of stock by officers and employees which has been adopted by the board of directors of the bank and approved by a majority of the holders of the particular class or classes of stock that are included in the plan and by the Commissioner. In no event may the option to purchase such shares be for a consideration less than the par value thereof.

(Added to NRS by 1971, 983; A 1983, 1739; 1985, 739; 1987, 1916; 1995, 485; 1997, 989)

NRS 662.115 Issuance of capital notes, debentures and collateralized debt securities and certificates. A bank may issue capital notes, collateralized debt securities, collateralized debt certificates, or debentures, convertible or otherwise, subject to such regulations as the Commissioner may adopt with respect thereto.

(Added to NRS by 1971, 984; A 1983, 1739; 1987, 1916; 1997, 989)

NRS 662.125 Limitations on lending on security of or acquisition of own stock or members’ interests; sale and ownership of collateral security.

1. Except as otherwise provided in subsection 2, no bank may make any loan or discount on the security of its own stock or members’ interests, nor be the purchaser or holder of any such shares or interests, unless the loan, discount, purchase or holding has been approved by the Commissioner or is necessary to prevent loss upon a debt previously contracted in good faith.

2. A bank may make a loan or discount on the security of its own stock or members’ interests as it deems appropriate if the bank is subject to the reporting requirements set forth in section 12, 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended, 15 U.S.C §§ 78l, 78m, 78n and 78o(d), respectively, or 12 C.F.R. § 335.

3. Stock or interests purchased or acquired to prevent loss upon a debt previously contracted in good faith must, within 2 years after they are purchased, be sold or disposed of at a public or private sale, unless the Commissioner authorizes the bank to hold the stock or interests for a longer period. After the expiration of 2 years or the period authorized by the Commissioner, any such stock or interests not sold or disposed of pursuant to this subsection must, except upon the approval of the Commissioner, be charged to profit and loss and must not be considered as part of the assets of the bank.

4. Any bank may sell or become the owner of any property which may come into its possession as collateral security for any debt or obligation due it, according to the terms of any contract depositing the collateral security. If there is no contract, the collateral security may be sold in the manner provided by law. Any property the bank has in its possession pursuant to this subsection, other than real property, must be sold within 2 years after it is acquired, unless the Commissioner authorizes the bank to hold the property for a longer period.

(Added to NRS by 1971, 984; A 1995, 485; 1997, 989)

NRS 662.135 Limitations on investment in stock of or membership in other banks and business organizations.

1. Except as otherwise provided in this section and subject to the provisions of NRS 662.065 and 662.125, no bank may make any investment in the stock or become a member of any other state or national bank.

2. A bank doing business under chapters 657 to 671, inclusive, of NRS may subscribe to or purchase, upon such terms as may be agreed upon, the stock of banks organized under the Act of Congress known as the Edge Act or the stock of central reserve banks whose stock exceeds $1,000,000.

3. To constitute a central reserve bank as contemplated by chapters 657 to 671, inclusive, of NRS, at least 50 percent of the capital stock of the bank must be owned by other banks. The investment by any bank in the capital stock of a central reserve bank or a bank organized under the Edge Act, must at no time exceed 10 percent of the stockholders’ or members’ equity of the bank making the investment.

4. A bank shall not invest in the stocks or ownership of other corporations, firms, partnerships or companies except as otherwise provided in chapters 657 to 671, inclusive, of NRS, unless the investment is made to protect the bank from loss.

5. A bank may invest in the stocks or ownership of other corporations, firms, partnerships or companies as part of a merger, consolidation, combination or acquisition that is authorized pursuant to the provisions of chapter 78, 86 or 92A of NRS, regardless of whether the investment is made to protect the bank from loss.

6. Any stocks or ownership owned or acquired after July 1, 1971, in excess of the limitations imposed by this section must be disposed of at public or private sale within 12 months after the date of acquiring them, and if not so disposed of, they must be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which such stocks or ownership is disposed of or charged off the books of the bank may be extended by the Commissioner if in his or her judgment it is for the best interest of the bank that an extension be granted.

7. A bank may subscribe to, purchase or become the owner of stock in:

(a) Federal reserve banks as established by Act of Congress approved December 23, 1913, being c. 6, 38 Stat. 251, or any amendment thereof; or

(b) Any governmental agency, Federal Home Loan Bank or liquidating or financial corporation created by the Congress of the United States.

8. A bank may invest up to 50 percent of its surplus in the stock or membership of corporations or limited-liability companies engaged in related banking fields.

(Added to NRS by 1971, 984; A 1983, 1739; 1987, 1916; 1995, 486; 1997, 990)

NRS 662.145 Limits on amount of loans; exceptions.

1. Subject to the limitations set forth in NRS 662.155, the total outstanding loans of any bank to any person, company, corporation or firm may not at any time exceed 25 percent of the stockholders’ or members’ equity of the bank, actually paid in. For the purposes of this section, the total outstanding loans of any bank include any credit exposure to a person, company, corporation or firm arising from a derivative transaction, repurchase agreement, reverse-repurchase agreement, securities lending transaction or securities borrowing transaction between the bank and the person, company, corporation or firm. The discount of bills of exchange drawn in good faith against actual existing values, as collateral security, and a discount or purchase of commercial or business paper, actually owned by the persons, must not be considered as money loaned.

2. Neither the limitation on loans by banks contained in this section nor any other similar limitations contained in any law of this state relating to banks or banking apply to any loan or loans made by any bank to the extent that they are secured or covered by guarantees or by commitments or agreements to take over or to purchase made by any Federal Reserve Bank or by the United States or any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned, directly or indirectly, by the United States.

3. The Commissioner may establish limitations on loans made by a bank to its directors, officers or employees and may establish requirements for the reporting of these loans.

4. The Commissioner may adopt regulations necessary to carry out the provisions of this section.

(Added to NRS by 1971, 985; A 1981, 766; 1983, 1740; 1987, 1917; 1991, 373; 1997, 991; 2013, 638)

NRS 662.155 Limit on combination of investments and loans involving single obligor, person or entity.

1. The combination of investments in private securities provided for in subsection 5 of NRS 662.065 and outstanding loans provided for in subsection 1 of NRS 662.145, of any bank to any one obligor, person, company, corporation or firm, including any unincorporated company or firm and the members thereof, must not at any time exceed 25 percent of the stockholders’ or members’ equity of the bank.

2. The Commissioner may adopt regulations necessary to carry out the provisions of this section.

(Added to NRS by 1971, 985; A 1991, 373; 1997, 991)

NRS 662.175 Limitations on borrowing money and pledging assets; exceptions; purchase of federal reserve money deemed transfer.

1. Any bank may secure money deposited with a bank by the United States, the State of Nevada or a political subdivision of this state by pledging acceptable assets of the bank as collateral security.

2. Any bank may borrow money for temporary purposes, not to exceed the amount of its stockholders’ or members’ equity, and may pledge any of its assets as collateral security therefor.

3. With the written consent of the Commissioner, a bank may borrow an amount that is not more than 200 percent in excess of its stockholders’ or members’ equity, and pledge assets of the bank as collateral security for the amount borrowed. Any indebtedness contracted in excess of the amount limited in this subsection is void in its entirety.

4. A bank may borrow money from the Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be deemed borrowed money for the purposes of the limitations prescribed in subsections 2 and 3. A bank may pledge any of its assets as collateral security for money borrowed pursuant to this subsection.

5. The purchase of federal reserve money by a bank from another bank shall be deemed a transfer from a seller’s account in a Federal Reserve Bank to the buyer’s account in that bank, and the transfer shall be considered a purchase and sale of federal reserve money. Such a transfer does not create an obligation on the part of the buyer subject to NRS 662.145, or a borrowing subject to the limitations of this section, but shall be considered a purchase and sale of federal reserve money.

(Added to NRS by 1971, 985; A 1983, 1741; 1987, 1917; 1997, 992)

NRS 662.186 Operating cash: Minimum cash and demand balances; reserves.

1. Each bank doing business under the laws of this state shall have on hand, in cash, at least the sum of money determined by the Commissioner as necessary to meet the operating requirements of the bank and at least a required sum consisting of demand balances due from good and solvent banks.

2. Any bank organized under the laws of this state shall carry or maintain as a reserve at least that amount of money which is required under the terms of the Federal Reserve Act.

(Added to NRS by 1971, 986; A 1983, 295, 1741; 1985, 739; 1987, 1918)

NRS 662.205 Membership in Federal Reserve Bank: Authorization; powers, duties and examination of member.

1. As used in this section:

(a) “Board of Governors of the Federal Reserve System” means the Board of Governors of the Federal Reserve System created and described in the Federal Reserve Act.

(b) “Federal Reserve Act” means the Act of Congress, approved December 23, 1913, being c. 6, 38 Stat. 251, as amended.

(c) “Federal Reserve Bank” means the Federal Reserve Banks created and organized under authority of the Federal Reserve Act.

(d) “Member bank” means any national bank, state bank or banking and trust company which has become or which becomes a member of one of the Federal Reserve Banks created by the Federal Reserve Act.

2. Any bank organized under the laws of this state may subscribe to the stock and become a member of a Federal Reserve Bank.

3. Any bank organized under the laws of this state which is, or which becomes, a member of a Federal Reserve Bank is, by this section, vested with all powers conferred upon member banks of the Federal Reserve Banks by the terms of the Federal Reserve Act as fully and completely as if such powers were specifically enumerated and described in this section, and all such powers must be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Board of Governors of the Federal Reserve System made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers conferred in this section.

4. A compliance on the part of any such bank with the reserve requirements of the Federal Reserve Act shall be deemed to be a full compliance with those provisions of the laws of this state which require banks to maintain cash balances in their vaults or with other banks, and no such bank need carry or maintain a reserve other than such as is required under the terms of the Federal Reserve Act.

5. Any such bank continues to be subject to the supervision and examinations required by the laws of this state, except that the Board of Governors of the Federal Reserve System may, if it deems necessary, make examinations. The authorities of this state having supervision over such bank may disclose to the Board of Governors of the Federal Reserve System, or to examiners appointed by it, all information in reference to the affairs of any bank which has become, or desires to become, a member of a Federal Reserve Bank.

(Added to NRS by 1971, 987; A 1995, 486; 1997, 992)

SAVINGS BANK BUSINESS

NRS 662.215 Authorization; deposits; requirements of receipt or passbook; quarterly or annual statements required; issuance of time certificates.

1. Any bank organized under the provisions of chapters 657 to 671, inclusive, of NRS may carry on a savings business as prescribed in chapters 657 to 671, inclusive, of NRS.

2. Any bank conducting a savings business may receive deposits on such terms as are authorized by its board of directors.

3. A receipt or a passbook must be issued to each depositor in a bank for all money deposited on open account.

4. The rules and regulations adopted by the bank governing deposits must be:

(a) Included in the receipt or passbook issued pursuant to subsection 3;

(b) Printed and conspicuously posted in a place accessible and visible to all persons in the business office of the bank; or

5. Payments from the account to the depositor must be made only if the depositor authorizes the payments. Banks issuing savings deposit receipts for accounts other than certificates of deposit or passbook accounts shall, not less often than:

(a) Quarterly, for accounts having a balance of $100 or more; or

(b) Annually, for accounts having a balance of less than $100,

Ê deliver or mail to the depositor a statement, showing the balance on deposit in the account and each deposit made by and each payment made to the depositor during the calendar quarter.

6. Chapters 657 to 671, inclusive, of NRS do not prohibit a bank from issuing time certificates of deposit.

(Added to NRS by 1971, 988; A 1981, 846; 1997, 993)

PAYMENTS IN EXCHANGE

NRS 662.225 Checks payable in exchange. In order to prevent accumulation of unnecessary amounts of currency in the vaults of the banks chartered by this state, all checks drawn on such banks shall be payable, unless specified on the face thereof to the contrary by the maker or makers of the checks at the option of the drawee bank, in exchange drawn on the reserve deposits of such drawee bank when any such check is presented by or through any federal reserve bank, post office or express company, or any respective agents thereof.

(Added to NRS by 1971, 988)

TRUST COMPANY BUSINESS

NRS 662.231 “Business of a trust company” and “trust company business” defined. As used in NRS 662.231 to 662.245, inclusive, “business of a trust company” or “trust company business” has the meaning ascribed to it in NRS 669.029.

(Added to NRS by 1999, 840)

NRS 662.235 Powers and duties when carrying on trust company business; segregation of assets and recordkeeping.

1. Any bank organized under chapters 657 to 671, inclusive, of NRS may state in its articles of incorporation that it will carry on a trust company business in connection with the banking business, and in addition to the powers conferred upon banks may:

(a) Act as trustee under any mortgage or bond of any person, firm or corporation, or of any municipality or body politic.

(b) Accept and execute any municipal, corporate or individual trust not inconsistent with the laws of this State.

(d) Act as executor or trustee under any will.

(e) Act as fiscal or transfer agent of any state, municipality, body politic or corporation, and in a capacity to receive and disburse money and register, transfer and countersign certificates of stock, bonds and other evidences of indebtedness.

(f) Act as local or registered agent of foreign corporations.

2. Any such bank holding any asset as a fiduciary shall:

(a) Segregate all such assets from any other assets of the bank and from the assets of any other trust, except as may be expressly provided otherwise by law or by the writing creating the trust.

(b) Record such assets in a separate set of books maintained for fiduciary activities.

(Added to NRS by 1971, 988; A 1987, 1918; 1993, 2280; 2007, 2724)

NRS 662.239 Conditions and limitations on maintaining trust offices in Nevada and other states; regulations.

1. A bank organized under chapters 657 to 671, inclusive, of NRS may maintain trust offices in this or other states with the written consent of the Commissioner.

2. Any action taken by the Commissioner pursuant to subsection 1 is subject to review in the manner provided in NRS 659.055.

3. The Commissioner may adopt regulations establishing reasonable conditions and requirements for the approval and maintenance of trust offices.

4. As used in this section, “trust office” means an office, other than the principal office, at which a bank organized under chapters 657 to 671, inclusive, of NRS is authorized by the Commissioner to conduct the business of a trust company.

(Added to NRS by 1999, 840)

NRS 662.245 Conditions and limitations on certain foreign organizations acting as fiduciary; fees; bond; requirements for service of process; regulations.

1. Except as otherwise provided in NRS 669.207, an organization that does not maintain an office in this State to conduct the business of a trust company may be appointed to act as fiduciary by any court or by authority of any law of this State if, in addition to any other requirements of law, the organization:

(a) Associates as cofiduciary a bank authorized to do business in this State or a trust company licensed pursuant to chapter 669 of NRS; or

(b) Is a trust corporation or trust company which:

(1) Is organized under the laws of and has its principal place of business in another state which allows trust corporations or trust companies licensed pursuant to chapter 669 of NRS to act as fiduciary in that state;

(2) Is authorized by its charter to act as fiduciary; and

(3) Before the appointment as fiduciary, files with the Secretary of State a document, acknowledged before a notarial officer, which:

(I) Appoints the Secretary of State as its agent upon whom all process in any action or proceeding against it may be served;

(II) Contains its agreement that the appointment continues in force as long as any liability remains outstanding against it in this State, and that any process against it which is served on the Secretary of State is of the same legal validity as if served on it personally;

(III) Contains an address to which the Secretary of State may mail the process when received; and

(IV) Is accompanied by a fee of not more than $20.

Ê A copy of the document required by this subparagraph, certified by the Secretary of State, is sufficient evidence of the appointment and agreement.

2. A court which has jurisdiction over the accounts of a fiduciary that is a trust corporation or trust company described in paragraph (b) of subsection 1 may require the fiduciary to provide a bond to ensure the performance of its duties as fiduciary, in the same manner and to the same extent as the court may require such a bond from a fiduciary that is a bank or trust company described in paragraph (a) of subsection 1.

3. Service of process authorized by subparagraph (3) of paragraph (b) of subsection 1 must be made by filing with the Secretary of State:

(a) Two copies of the legal process. The copies must include a specific citation to the provisions of this section. The Secretary of State may refuse to accept such service if the proper citation is not included in each copy.

(b) A fee of not more than $20.

Ê The Secretary of State shall forthwith forward one copy of the legal process to the organization, by registered or certified mail prepaid to the address provided in the document filed pursuant to subparagraph (3) of paragraph (b) of subsection 1.

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

5. As used in this section:

(a) “Fiduciary” means an executor, commissioner, guardian of minors or estates, receiver, depositary or trustee.

(b) “Notarial officer” has the meaning ascribed to it in NRS 240.005.

(Added to NRS by 1971, 989; A 1979, 692; 1987, 1918; 1993, 1465; 1995, 487, 1551; 1997, 476; 1999, 840; 2005, 1844; 2017, 552)

CLOSING OF BANKS

NRS 662.255 Voluntary closure on Saturdays, Sundays and holidays; transaction of business.

1. A bank may elect to close on Saturdays, Sundays or legal holidays. Except as otherwise provided in subsection 2 and NRS 104.4303, if a bank elects not to close on a Saturday, Sunday or legal holiday, all business transacted on a Saturday, Sunday or legal holiday shall be deemed to have been transacted on the next banking day that is not a Saturday, Sunday or legal holiday.

2. If a bank elects not to close on a Saturday, Sunday or legal holiday which falls on the last day of a calendar year, that day shall be deemed a regular banking day for the purposes of transacting business.

3. As used in this section, the term “legal holiday” includes all days which are declared by NRS 236.015 to be legal holidays.

(Added to NRS by 1971, 989; A 1985, 984; 1987, 1919; 1997, 3515; 1999, 2412)

NRS 662.265 Emergency closure: Definitions. As used in NRS 662.275 to 662.305, inclusive, unless the context otherwise requires:

1. “Bank” includes national banks to the extent that NRS 662.275 to 662.305, inclusive, do not conflict with or infringe upon federal law.

2. “Emergency” means any condition or occurrence which may interfere physically with the conduct of normal business operations at one or more or all of the offices of a bank, or which poses an imminent or existing threat to the safety or security of persons or property, or both. Without limiting the generality of the foregoing, an emergency may arise as a result of any one or more of the following: Fire, flood, earthquake, hurricanes, wind, rain or snowstorms, labor disputes and strikes, power failures, transportation failures, interruption of communication facilities, shortages of fuel, housing, food, transportation or labor, robbery or attempted robbery, actual or threatened enemy attack, epidemics or other catastrophes, riots, civil commotions and other acts of lawlessness or violence, actual or threatened.

3. “Office” means any place at which a bank transacts its business or conducts operations related to its business.

4. “Officers” means the person or persons designated by the board of directors, the managers or other governing body of a bank, to act for the bank in carrying out the provisions of NRS 662.275 to 662.305, inclusive, or in the absence of any such designation or the absence of the officer or officers so designated, the president, a manager or any other officer currently in charge of the bank or of the office or offices in question.

(Added to NRS by 1971, 989; A 1995, 488)

NRS 662.275 Emergency closure: Powers of Commissioner.

1. Whenever the Commissioner is of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, in this state or any part of this state, the Commissioner may, by proclamation, authorize banks located in the affected area or areas to close any or all of their offices.

2. In addition, if the Commissioner is of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, which affects or may affect a particular bank or banks, or a particular office or offices thereof, but not banks located in the area generally, the Commissioner may authorize the particular bank or banks, or office or offices so affected, to close.

3. The office or offices so closed must remain closed until the Commissioner proclaims that the emergency has ended, or until such earlier time as the officers of the bank determine that one or more of such offices should reopen. In either event, the bank or office which was closed may remain closed for such further time thereafter as may reasonably be required to reopen.

(Added to NRS by 1971, 989; A 1983, 1741; 1987, 1919)

NRS 662.285 Emergency closure: Powers of bank’s officers.

1. Whenever the officers of a bank are of the opinion that an emergency exists, or that there is a reasonable probability that an emergency may develop, which affects or may affect one or more or all of a bank’s offices, they shall have the authority in the reasonable and proper exercise of their discretion not to open any one or more or all of such offices during the continuation of such emergency, even if the Commissioner has not issued and does not issue a proclamation of emergency.

2. The office or offices so closed must remain closed until such time as the officers determine that the emergency has ended, and for such further time thereafter as may reasonably be required to reopen; but such office or offices must not remain closed for more than 48 consecutive hours, excluding other legal holidays, without requesting the approval of the Commissioner.

3. The officers of a bank may close any one or more or all of the bank’s offices on any day or days designated, by proclamation of the President of the United States or the Governor of this state, as a day or days of mourning, rejoicing or other special observance.

(Added to NRS by 1971, 990; A 1983, 1742; 1987, 1919)

NRS 662.295 Emergency closure: Notification of Commissioner or Comptroller of the Currency. A bank closing an office or offices pursuant to subsection 1 of NRS 662.285 shall give as prompt notice of its action as conditions will permit, by any means available, to the Commissioner, or in the case of a national bank, to the Comptroller of the Currency.

(Added to NRS by 1971, 990; A 1983, 1742; 1987, 1920)

NRS 662.305 Emergency closure: Effect of closing.

1. Any day on which a bank, or any one or more of its offices, is closed during all or any part of its normal banking hours pursuant to the authorization granted under NRS 662.265 to 662.305, inclusive, shall be, with respect to such bank or, if not all of its offices are closed, then with respect to any office or offices which are closed, a legal holiday for all purposes with respect to any banking business of any character. No liability or loss of rights of any kind on the part of any bank, or director, officer or employee thereof, shall accrue or result by virtue of any such closing.

2. NRS 662.265 to 662.305, inclusive, are in addition to, and not in substitution for or limitation of, any other law of this state or of the United States, authorizing the closing of a bank or excusing the delay of a bank in the performance of its duties and obligations because of emergencies or conditions beyond the bank’s control, or otherwise.

(Added to NRS by 1971, 990)