NRS: CHAPTER 356 - DEPOSITORIES OF PUBLIC MONEY AND SECURITIES

[Rev. 6/29/2024 3:44:43 PM--2023]

CHAPTER 356 - DEPOSITORIES OF PUBLIC MONEY AND SECURITIES

GENERAL PROVISIONS

NRS 356.005 Deposit of public money in bank, credit union, savings and loan association or savings bank.

NRS 356.007 Preference for bank, credit union, savings and loan association or savings bank within specially benefited zone.

DEPOSIT OF STATE MONEY IN BANK, CREDIT UNION, SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK

NRS 356.010 Conditions; redeposit of amounts in excess of insurance limits; compensation.

NRS 356.011 Requirements for account of state agency in bank, credit union, savings and loan association or savings bank.

NRS 356.015 Time certificates of deposit: Establishment of rate of interest; warrants; inactive deposits.

NRS 356.020 Collateral for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.

NRS 356.025 Requirements for use of first mortgage or first deed of trust as collateral.

NRS 356.030 Procedure for sale of securities if depository fails to pay deposit on demand.

NRS 356.040 Depository to furnish statements of account and evidence of checks.

NRS 356.050 Liability of State Treasurer if depository fails or becomes insolvent; deposit of collateral or security for safekeeping.

NRS 356.070 Withdrawal of deposits; contents of register of checks and orders required to be kept by State Treasurer.

NRS 356.080 State Controller’s warrant.

NRS 356.083 Calls from inactive deposits; waiver of interest.

NRS 356.085 Interest on deposits: Contract; amount.

NRS 356.087 Interest to be deposited in State General Fund; exceptions.

NRS 356.090 Depository at state capital may be relieved of payment of interest on deposits.

NRS 356.105 Depository not required to accept state deposits.

NRS 356.110 Penalties.

DEPOSIT OF COUNTY MONEY IN BANK, CREDIT UNION, SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK

NRS 356.120 Conditions for deposit in demand accounts.

NRS 356.125 Written consent of board of county commissioners required for deposits in time accounts; contracts for time accounts; depository not required to accept county deposits.

NRS 356.127 Conditions for deposit in insured deposit accounts; redeposit of uninsured amounts.

NRS 356.130 Release of county treasurer’s bondsmen.

NRS 356.133 Collateral required for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.

NRS 356.135 Procedure for sale of securities if depository fails to pay deposit on demand.

NRS 356.140 Demand, time and insured deposit accounts to be kept in name of county; balances accounted for as cash.

NRS 356.150 Withdrawal of deposits.

NRS 356.160 Requirements for payment of warrant of county auditor.

NRS 356.170 Contents of register of checks and orders required to be kept by county treasurer.

NRS 356.180 Endorsement of county auditor’s warrant by county treasurer.

NRS 356.190 Liability of county treasurer if depository fails or becomes insolvent; deposit of collateral or security for safekeeping.

NRS 356.200 Deposit of county money in bank, credit union, savings and loan association or savings bank by other county officers.

DEPOSITORY BONDS OF SURETY COMPANIES

NRS 356.210 Stockholder, member or director of bank, credit union, savings and loan association or savings bank may not be stockholder or director of surety company.

NRS 356.220 Certificate to be attached to depository bond.

NRS 356.230 Penalty.

PROGRAM TO MONITOR COLLATERAL MAINTAINED BY CERTAIN DEPOSITORIES

NRS 356.300 Definitions.

NRS 356.305 “Acceptable securities” defined.

NRS 356.310 “Depository” defined.

NRS 356.330 “Public money” defined.

NRS 356.340 “Third-party depository” defined.

NRS 356.350 Establishment.

NRS 356.360 Amount of required collateral; limitation on amount of public money held; reports; administrative fine.

NRS 356.370 Levy of assessment; notice regarding assessment.

NRS 356.380 Payment of assessment; administrative fine for failure to pay.

NRS 356.390 Regulations.

_________

GENERAL PROVISIONS

NRS 356.005 Deposit of public money in bank, credit union, savings and loan association or savings bank.

1. The State, a local government or an agency of either, if specifically authorized by statute or a state agency if approved by the State Board of Finance, may deposit public money in any insured state or national bank, in any insured credit union, in any insured savings and loan association or in any insured savings bank.

2. Deposits made by the State in an insured credit union, savings and loan association or savings bank which is a mutual association must be evidenced by an instrument which acknowledges that the State is not a member of the association by virtue of the deposit.

3. In addition to any public money deposited pursuant to subsection 1 and unless otherwise limited by law, a local government, a political subdivision or an agency of either is authorized to deposit public money in any state or national bank, credit union, savings and loan association or savings bank if:

(a) The public money is initially deposited in an insured depository institution in this State as selected by the depositing governmental entity;

(b) The selected depository institution arranges for the redeposit of the public money into insured deposit accounts in one or more state or national banks, credit unions, savings and loan associations or savings banks; and

4. As used in this section, “depository institution” has the meaning ascribed to it in NRS 657.037.

(Added to NRS by 1975, 1795; A 1979, 11, 1889; 1981, 1364; 2015, 344)

NRS 356.007 Preference for bank, credit union, savings and loan association or savings bank within specially benefited zone. The State, and the city or county within whose jurisdiction is located a specially benefited zone designated and approved under chapter 274 of NRS, shall give preference in its deposits of public money to banks, credit unions, savings and loan associations and savings banks qualified to receive public money which are located within the specially benefited zone and are making loans to businesses located within the zone.

(Added to NRS by 1983, 1996)

DEPOSIT OF STATE MONEY IN BANK, CREDIT UNION, SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK

NRS 356.010 Conditions; redeposit of amounts in excess of insurance limits; compensation.

1. All money under the control of the State Treasurer belonging to the State must be deposited in any insured state or national banks, any insured credit unions, any insured savings and loan associations or any insured savings banks in this State or, if approved by the State Board of Finance, in any insured banks, insured credit unions, insured savings and loan associations or insured savings banks outside of this State.

2. The State Treasurer may, with the approval of the State Board of Finance, enter into an agreement with an insured bank, insured credit union, insured savings and loan association or insured savings bank to:

(a) Arrange for the redeposit of any money under the control of the State Treasurer that exceeds the limits of insurance provided by an instrumentality of the United States or pursuant to NRS 672.750 into one or more insured deposit accounts in one or more insured state or national banks, credit unions, insured savings and loan associations or insured savings banks; and

(b) Ensure that the total amount of money redeposited and any interest accrued on the money is within the limits of insurance provided by an instrumentality of the United States or pursuant to NRS 672.750.

3. The depository banks, credit unions, savings and loan associations or savings banks may, if authorized by a contract negotiated with the State Treasurer, receive compensation for handling, collecting and paying all checks, drafts and other exchange. The compensation may be provided through the use of a compensating balance or a fixed-rate fee, or any combination thereof.

[1:161:1935; A 1937, 365; 1931 NCL § 7029.01]—(NRS A 1959, 568; 1969, 647; 1975, 1802; 1979, 725, 1889; 1981, 344, 1364; 1995, 929; 2009, 2656; 2015, 344; 2019, 668)

NRS 356.011 Requirements for account of state agency in bank, credit union, savings and loan association or savings bank.

1. A state agency which opens an account in a bank, credit union, savings and loan association or savings bank must first obtain the approval of the State Board of Finance, except in cases where the account is specifically authorized by statute.

2. The titles of the accounts must indicate that the account is in the name of the State of Nevada.

3. The State Treasurer shall keep a list of all state accounts in banks, credit unions, savings and loan associations or savings banks, whether they are maintained within or outside the State. The list must contain:

(a) The names of those financial institutions with which state agencies have accounts, and the names of those agencies.

(b) The names of those state agencies which have accounts with banks, credit unions, savings and loan associations and savings banks, and the names of those financial institutions.

4. Each state agency shall send to the State Controller at the end of each fiscal year a copy of the statement of account for each account it maintains with a bank, credit union, savings and loan association or savings bank, and other related documents which reconcile the account to the agency’s books.

(Added to NRS by 1979, 11; A 1981, 1365)

NRS 356.015 Time certificates of deposit: Establishment of rate of interest; warrants; inactive deposits.

1. The State Treasurer shall establish the rate of interest to be paid on the maturity of each time certificate of deposit.

2. The State Treasurer shall make all such deposits through warrants of the State Controller.

3. The State Controller shall maintain accurate records of inactive deposits. Time certificates of deposit which are placed with insured banks, credit unions, savings and loan associations and savings banks shall be deemed to constitute inactive deposits.

(Added to NRS by 1959, 571; A 1965, 35; 1969, 889; 1979, 725; 1981, 343; 1983, 750; 1999, 1485)

NRS 356.020 Collateral for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.

1. All money deposited by the State Treasurer which is not within the limits of insurance provided by an instrumentality of the United States must be secured by collateral composed of the following types of securities:

(a) United States treasury notes, bills, bonds or obligations as to which the full faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of Small Business Administration loans if the full faith and credit of the United States is pledged for the payment of the principal and interest;

(b) Bonds of this state;

(d) Promissory notes secured by first mortgages or first deeds of trust which meet the requirements of NRS 356.025;

(e) Mortgage-backed pass-through securities guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association;

(f) Collateralized mortgage obligations or real estate mortgage investment conduits that are rated “AAA,” “Aaa” or its equivalent by a nationally recognized rating service;

(g) Instruments in which the State is permitted by NRS 355.140 to invest; or

(h) Irrevocable letters of credit from any Federal Home Loan Bank with the State Treasurer named as the beneficiary.

2. Collateral deposited by the depository bank, credit union, savings and loan association or savings bank must be pledged with the State Treasurer or with a trust company, a broker-dealer registered under 15 U.S.C. § 78o(b)(1), any Federal Home Loan Bank or any insured bank, credit union, savings and loan association or savings bank, other than the depository bank, credit union, savings and loan association or savings bank, which will accept the securities in trust for the purposes of this section.

3. The fair market value of the deposit of securities as collateral by each depository bank, credit union, savings and loan association or savings bank must be at least the amount required pursuant to NRS 356.300 to 356.390, inclusive. The fair market value of any collateral consisting of promissory notes with first mortgages or first deeds of trust shall be deemed to be 75 percent of the unpaid principal of the notes.

4. All securities to be used as such collateral are subject to review by the State Treasurer. The depository bank, credit union, savings and loan association or savings bank shall submit reports to the State Treasurer as required pursuant to NRS 356.300 to 356.390, inclusive.

5. The State Treasurer may, from time to time, require the deposit of additional securities as collateral if, in his or her judgment, the additional securities are necessary to secure the State Treasurer’s deposit.

[2:161:1935; A 1937, 365; 1931 NCL § 7029.02]—(NRS A 1959, 568; 1969, 889; 1975, 1803; 1979, 726, 1889; 1981, 848, 1365; 1983, 962; 1985, 2112; 1989, 1270, 2181, 2182; 1997, 1285; 2003, 20th Special Session, 286; 2019, 668)

NRS 356.025 Requirements for use of first mortgage or first deed of trust as collateral.

1. To be accepted as collateral for a deposit of money by the State Treasurer, first mortgages or first deeds of trust must be on real property which is located in this state and is used for residences of single families.

2. Each such first mortgage or first deed of trust must be accompanied by the promissory note which it secures.

3. No first mortgage or first deed of trust may be accepted for such collateral if:

(a) Any payment on the related promissory note is more than 30 days past due;

(b) A prior lien is on the mortgage or deed;

(c) In the case of a mortgage, an action to foreclose has been commenced or, in the case of a deed of trust, a notice of default and election to sell has been recorded;

(d) In the case of a loan which is not insured or guaranteed by the Federal Government, the initial amount lent was greater than 80 percent of the appraised value of the real property at the time the loan was made;

(e) The loan has been outstanding for less than 1 year;

(f) The grantor of the property resides on the property; or

(g) The loan does not meet the requirements for eligibility of the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association, although it is not necessary that any of those agencies have participated in the loan.

4. If any collateral consisting of a promissory note with a mortgage or deed of trust is found not to meet the requirements of this section, the depository bank, credit union, savings and loan association or savings bank shall substitute a note of equal or greater value which does meet the requirements.

5. The financial institution shall assign the pledged mortgages and deeds of trust to the depositor and deliver them with their promissory notes to the trust company. The assignment must be recorded when the financial institution fails to pay any part of the deposit for which the security is pledged.

(Added to NRS by 1981, 849; A 1999, 1485)

NRS 356.030 Procedure for sale of securities if depository fails to pay deposit on demand.

1. If any insured banks, insured credit unions, insured savings and loan associations or insured savings banks fail to pay any deposit or deposits, or any part thereof, on demand of the State Treasurer, then the State Treasurer, with the written approval of the State Board of Finance, forthwith shall:

(a) Advertise the securities for sale for not less than 10 days in a newspaper of general circulation published within this state.

(b) Sell the securities, or a sufficient amount thereof, to repay the deposit, at public or private sale to the highest and best bidder.

2. If there is an excess of the proceeds or of security, or both, after the satisfaction of the deposit, the excess must be returned to the depository bank, credit union, savings and loan association or savings bank or its successor in interest.

3. Nothing in this section prevents the depository bank, credit union, savings and loan association or savings bank, or the Commissioner of Financial Institutions in charge thereof, or the legally constituted receiver or liquidator thereof from redeeming the securities within a reasonable time, as determined by the State Board of Finance, at such a price as will repay to the State Treasurer the full amount of the deposit in the depository.

[3:161:1935; A 1937, 365; 1931 NCL § 7029.03]—(NRS A 1959, 569; 1975, 1803; 1979, 1890; 1981, 1366; 1983, 1699; 1987, 1876)

NRS 356.040 Depository to furnish statements of account and evidence of checks. At the close of business at the end of each month and at any other time, upon demand of the State Treasurer, every depository bank, credit union, savings and loan association or savings bank shall:

1. Furnish the State Treasurer with a statement of the account, verified or certified by an officer of the depository, upon a form to be fixed by the State Treasurer.

2. Return to the State Treasurer:

(a) All paid checks;

(b) Microfilmed copies of such checks; or

[4:161:1935; A 1937, 365; 1931 NCL § 7029.04]—(NRS A 1959, 569; 1975, 1804; 1981, 1366; 1983, 750; 1991, 252)

NRS 356.050 Liability of State Treasurer if depository fails or becomes insolvent; deposit of collateral or security for safekeeping.

1. Where the State Treasurer, in accordance with the terms and provisions of NRS 356.010 to 356.110, inclusive, has deposited and kept on deposit any public money in depositories so designated, the State Treasurer is not liable personally or upon his or her official bond for any public money that may be lost by reason of the failure or insolvency of any such depository; but the State Treasurer is chargeable with the safekeeping, management and disbursement of the bonds deposited with the State Treasurer as security for deposits of state money and with interest thereon, and with the proceeds of any sale under the provisions of NRS 356.010 to 356.110, inclusive.

2. The State Treasurer may deposit for safekeeping with any insured bank, credit union, savings and loan association or savings bank or a trust company within or without this state any securities or bonds pledged with him or her, as State Treasurer, as collateral or as security for any purpose, but the securities or bonds may only be so deposited by the State Treasurer with the joint consent and approval, in writing, of the pledgor thereof and the State Board of Finance. Any bonds or securities so deposited by the State Treasurer must be deposited under a written deposit agreement between the pledgor and the State Treasurer, to be held and released only upon a written order of the State Treasurer or his or her deputy, and signed by the Governor or acting governor and by one additional member of the State Board of Finance.

[5:161:1935; A 1937, 365; 1931 NCL § 7029.05]—(NRS A 1959, 570; 1975, 1804; 1979, 1890; 1999, 1486)

NRS 356.070 Withdrawal of deposits; contents of register of checks and orders required to be kept by State Treasurer.

1. Deposits are subject to withdrawal upon demand of the State Treasurer at any time without previous notice, but no withdrawal of such deposit or deposits, except by a State Controller’s warrant in the manner set forth in NRS 356.080, may be made by the State Treasurer without the written consent of the State Board of Finance.

2. A warrant of the State Controller is a check or order of the State Treasurer, and must be paid by the depository bank, credit union, savings and loan association or savings bank designated thereon when registered, countersigned, and the bank, credit union, savings and loan association or savings bank has been designated for payment thereof as provided in NRS 356.080.

3. The State Treasurer shall keep a register which shows separately the amount of state money on deposit with every insured depository bank, insured credit union, insured savings and loan association or insured savings bank and lists separately each check or order drawn upon the respective depositories, numbering the checks or orders against each depository consecutively.

[7:161:1935; A 1937, 365; 1953, 55]—(NRS A 1959, 570; 1975, 1804; 1979, 1891; 1981, 1366)

NRS 356.080 State Controller’s warrant.

1. Whenever any warrant of the State Controller is presented to the State Treasurer for payment, the warrant becomes a check or order of the State Treasurer if the State Treasurer endorses thereon the name of the insured depository bank, insured credit union, insured savings and loan association or insured savings bank, where payable, and a number, as provided by NRS 356.070, and countersigns his or her name thereto as State Treasurer.

2. The warrant must be drawn, as near as may be, upon the insured depository bank, insured credit union, insured savings and loan association or insured savings bank nearest the residence, if known, of the payee named in the warrant.

[8:161:1935; A 1937, 365; 1931 NCL § 7029.08]—(NRS A 1975, 1805; 1979, 1891; 1981, 1367)

NRS 356.083 Calls from inactive deposits; waiver of interest. Subject to the applicable contract with the depositary, the State Treasurer may call in money from inactive deposits, waiving interest thereon if required, and place it in active deposits when necessary to meet current requirements.

(Added to NRS by 1959, 571)

NRS 356.085 Interest on deposits: Contract; amount. The interest to be paid by a depository bank, credit union, savings and loan association or savings bank must be paid in accordance with the contract made with the State Treasurer and in an amount determined by the rates established pursuant to NRS 356.015 or by any Act of Congress.

(Added to NRS by 1959, 571; A 1960, 74; 1969, 890; 1975, 1805; 1981, 1367)

NRS 356.087 Interest to be deposited in State General Fund; exceptions.

1. Except as provided in subsections 2, 3 and 4 or in a specific statute, all interest paid on money belonging to this State must be deposited in the State General Fund.

2. Interest earned and received on any gift or bequest to an agency of the State must be credited to the agency unless the gift or bequest provides otherwise. An agency, when depositing a gift or bequest, shall notify the State Treasurer whether it is a gift or bequest which entitles the agency to the interest earned.

3. For each fund or account which by specific statute is credited with the interest earned on money deposited in it, the State Treasurer shall determine the proportionate share of interest and income earned by it and credit that amount to it.

4. The State Treasurer shall pay the interest due to any contractor pursuant to NRS 338.515.

(Added to NRS by 1959, 571; A 1973, 588, 1378; 1975, 212, 822; 1977, 752; 1979, 908, 1105, 1306; 1981, 228, 236, 399, 551, 1014, 1015, 1447, 1526, 1559, 1827, 1834; 1983, 1581, 1592)

NRS 356.090 Depository at state capital may be relieved of payment of interest on deposits. In consideration of no exchange or collection charges being made on checks or coupons of, or remittance to, the State, any insured banks, insured credit unions, insured savings and loan associations or insured savings banks at the state capital may be relieved by the State Treasurer, with the approval of the State Board of Finance, from the payment of any interest on amounts deposited with them.

[9:161:1935; A 1937, 365; 1931 NCL § 7029.09]—(NRS A 1959, 571; 1975, 1805; 1979, 1891; 1981, 1367; 2019, 669)

NRS 356.105 Depository not required to accept state deposits. The provisions of NRS 356.010 to 356.090, inclusive, do not require any depository to accept state deposits.

(Added to NRS by 1959, 571; A 1979, 11; 2009, 2656)

NRS 356.110 Penalties. A state officer or employee who willfully violates:

1. NRS 356.011 is guilty of a misdemeanor.

2. Any of the other provisions of NRS 356.010 to 356.090, inclusive, is guilty of malfeasance in office which is a category D felony and shall be punished as provided in NRS 193.130.

[11:161:1935; A 1937, 365; 1931 NCL § 7029.11]—(NRS A 1967, 556; 1979, 12, 1465; 1995, 1270; 2009, 2656)

DEPOSIT OF COUNTY MONEY IN BANK, CREDIT UNION, SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK

NRS 356.120 Conditions for deposit in demand accounts. A county treasurer may:

1. When one or more insured banks, insured credit unions, insured savings and loan associations or insured savings banks are located in the county, deposit county money in such insured banks, credit unions, savings and loan associations or savings banks in demand accounts.

2. When no such banks, credit unions, savings and loan associations or savings banks exist in the county, deposit county money in any insured bank, insured credit union, insured savings and loan association or insured savings bank in the State of Nevada in demand accounts.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1973, 183; 1975, 1806; 1979, 1892; 1999, 193; 2001, 601)

NRS 356.125 Written consent of board of county commissioners required for deposits in time accounts; contracts for time accounts; depository not required to accept county deposits.

1. A county treasurer may deposit county money in insured depository banks, insured credit unions, insured savings and loan associations or insured savings banks in time accounts only with the written consent of the board of county commissioners.

2. The time accounts so established are subject to the applicable contract between the depository and the county.

3. The provisions of this section do not require any depository to accept county deposits.

(Added to NRS by 1959, 397; A 1975, 1806; 1977, 561; 1979, 1892; 1981, 848; 1983, 964; 1999, 193; 2001, 601)

NRS 356.127 Conditions for deposit in insured deposit accounts; redeposit of uninsured amounts.

1. In addition to deposits authorized by NRS 356.120 and 356.125, a county treasurer may enter into an agreement to:

(a) If one or more insured banks, insured credit unions, insured savings and loan associations or insured savings banks are located in the county, deposit county money in such insured banks, credit unions, savings and loan associations or savings banks in insured deposit accounts.

(b) If no such bank, credit union, savings and loan association or savings bank exists in the county, deposit county money in any insured bank, insured credit union, insured savings and loan association or insured savings bank in this State in insured deposit accounts.

2. If at any time the amount of county money deposited in an account pursuant to subsection 1 and any interest accrued on the money exceeds the limits of insurance provided by an instrumentality of the United States or pursuant to NRS 672.750, the bank, credit union, savings and loan association or savings bank shall:

(a) Arrange for the redeposit of the amount of the county money that exceeds the limits of insurance provided by an instrumentality of the United States or pursuant to NRS 672.750 into one or more insured deposit accounts in one or more insured state or national banks, insured credit unions, insured savings and loan associations or insured savings banks; and

(b) Ensure that the total amount of money redeposited in an account and any interest accrued on the money is within the limits of insurance provided by an instrumentality of the United States or pursuant to NRS 672.750.

3. The provisions of this section apply only to an account authorized pursuant to subsection 3 of NRS 356.005.

(Added to NRS by 2015, 343)

NRS 356.130 Release of county treasurer’s bondsmen. Whenever the written consent of any bondsman or bondsmen to deposit the county money in any insured banks, credit unions, savings and loan associations or savings banks has not been obtained, the bondsman or bondsmen must, upon giving notice as required by law, be released from all responsibility on the bond of the county treasurer.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1975, 1806; 1999, 1486)

NRS 356.133 Collateral required for uninsured deposits: Types; pledge; fair market value; review; reports by depository; deposit of additional securities.

1. All money deposited by a county treasurer that is not within the limits of insurance provided by an instrumentality of the United States must be secured by collateral composed of the following types of securities:

(b) Bonds of this state;

(d) Mortgage-backed pass-through securities guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association;

(e) Instruments in which the county is authorized by NRS 355.170 to invest; or

(f) Irrevocable letters of credit from any Federal Home Loan Bank with the State Treasurer named as the beneficiary.

2. Collateral deposited by the depository bank, credit union, savings and loan association or savings bank must be pledged with the county treasurer or with a trust company, a broker-dealer registered under 15 U.S.C. § 78o(b)(1), a Federal Home Loan Bank or any insured bank, insured credit union, insured savings and loan association or insured savings bank, other than the depository bank, credit union, savings and loan association or savings bank, which will accept the securities in trust for the purposes of this section.

4. All securities to be used as such collateral are subject to review by the county treasurer and the board of county commissioners. The depository bank, credit union, savings and loan association or savings bank shall submit reports to the State Treasurer as required pursuant to NRS 356.300 to 356.390, inclusive. The State Treasurer will provide periodic reports to the county treasurer showing the securities which constitute the collateral and their fair market value.

5. The county treasurer or the board of county commissioners may, from time to time, require the deposit of additional securities as collateral if, in their judgment, the additional securities are necessary to secure the county treasurer’s deposit.

(Added to NRS by 1999, 192; A 2003, 20th Special Session, 287; 2019, 669)

NRS 356.135 Procedure for sale of securities if depository fails to pay deposit on demand.

1. If an insured bank, insured credit union, insured savings and loan association or insured savings bank fails to pay a deposit, or any part thereof, on demand of the county treasurer, the county treasurer, with the written approval of the board of county commissioners, forthwith shall:

(a) Advertise the securities for sale for not less than 10 days in a newspaper of general circulation published within this state.

(b) Sell the securities, or a sufficient amount thereof, to repay the deposit, at public or private sale to the highest and best bidder.

3. This section does not prevent the depository bank, credit union, savings and loan association or savings bank, or the commissioner of financial institutions in charge thereof, or the legally constituted receiver or liquidator thereof from redeeming the securities within a reasonable time, as determined by the board of county commissioners, at such a price as will repay to the county treasurer the full amount of the deposit in the depository.

(Added to NRS by 1999, 193)

NRS 356.140 Demand, time and insured deposit accounts to be kept in name of county; balances accounted for as cash.

1. Demand accounts authorized by NRS 356.120, time accounts authorized by NRS 356.125 and insured deposit accounts authorized by NRS 356.127 must be kept in the name of the county in such manner as the board of county commissioners may prescribe.

2. The balance in each such account, as certified to by the proper officer of the bank, credit union, savings and loan association or savings bank in which the money is deposited, and by oath of the county treasurer, may be accounted for by the county as cash.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1975, 1806; 1999, 194; 2001, 602; 2015, 345)

NRS 356.150 Withdrawal of deposits. All money deposited in an insured bank, insured credit union, insured savings and loan association or insured savings bank by the county treasurer may be drawn out by a check or order of the county treasurer at any time without previous notice, but no withdrawal of such a deposit may be made by the county treasurer except by:

1. A check or order that has been countersigned by the county auditor; or

2. The warrant of the county auditor in the manner set forth in NRS 356.180.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1975, 1806; 1979, 1892; 1999, 194)

NRS 356.160 Requirements for payment of warrant of county auditor. A warrant of the county auditor is a check or order of the county treasurer, and must be paid by the depository bank, credit union, savings and loan association or savings bank designated thereon, if the warrant is registered and countersigned, and the bank, credit union, savings and loan association or savings bank has been designated for payment thereof as provided in NRS 356.180.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1975, 1806; 1999, 194)

NRS 356.170 Contents of register of checks and orders required to be kept by county treasurer. The county treasurer shall keep a register that shows separately the amount of county money on deposit with every insured depository bank, credit union, savings and loan association or savings bank, and shall list separately each check or order drawn upon the respective depositories, numbering the checks or orders against each depository consecutively.

[Part 1:80:1885; A 1941, 42; 1931 NCL § 2187]—(NRS A 1975, 1807; 1999, 194)

NRS 356.180 Endorsement of county auditor’s warrant by county treasurer. If a warrant of the county auditor is presented to the county treasurer for payment, the warrant becomes a check or order of the county treasurer if the county treasurer endorses thereon the name of the insured depository bank, credit union, savings and loan association or savings bank, where payable, and a number, as provided in NRS 356.170, and countersigns his or her name thereto as county treasurer.

[2:80:1885; A 1941, 42; 1931 NCL § 2188]—(NRS A 1975, 1807; 1979, 1892; 1999, 194, 1486; 2001, 91)

NRS 356.190 Liability of county treasurer if depository fails or becomes insolvent; deposit of collateral or security for safekeeping.

1. Where the county treasurer, in accordance with the terms and provisions of NRS 356.120 to 356.180, inclusive, has deposited and kept on deposit any public money in depositories so designated, he or she:

(a) Is not liable personally on or upon his or her official bond for any public money that may be lost by reason of the failure or insolvency of any such depository.

(b) Is chargeable with the safekeeping, management and disbursement of any bonds that may be deposited with the county treasurer as security for deposits of county money, and with interest thereon, and with the proceeds of any sale of such bonds.

2. The county treasurer may deposit for safekeeping with an insured bank, insured credit union, insured savings and loan association, insured savings bank or trust company within or without this state any securities or bonds pledged with him or her, as county treasurer, as collateral or as security for any purpose, but the securities or bonds may only be so deposited by the county treasurer with the joint consent and approval, in writing, of the pledgor thereof and the board of county commissioners. Any bonds or securities so deposited must be deposited under a written deposit agreement between the pledgor and the county treasurer, to be held and released only upon a written order of the county treasurer that has been approved by the board of county commissioners.

[3:80:1885; added 1941, 42; 1931 NCL § 2188.01]—(NRS A 1999, 194; 2015, 345)

NRS 356.200 Deposit of county money in bank, credit union, savings and loan association or savings bank by other county officers.

1. With unanimous consent of his or her bondsmen, a county officer, other than a county treasurer, may deposit county money received by the office of the county officer in an insured bank, insured credit union, insured savings and loan association or insured savings bank located in the State of Nevada.

2. If the written consent of any bondsman to such a deposit has not been obtained, the bondsman must, upon giving notice as required by law, be released from all responsibility on the bond of the officer.

3. The accounts must be kept in the name of the county in such manner as the board of county commissioners may prescribe.

4. The balance in each such account, as certified by the proper officer of the bank, credit union, savings and loan association or savings bank in which the money is deposited, and by oath of the county treasurer, may be accounted for by the county as cash.

5. All money deposited in any depository bank, credit union, savings and loan association or savings bank by such a county officer may be drawn out by him or her on check or order payable only to the county treasurer or his or her order, but every county assessor may also withdraw money received in payment for license fees for motor vehicles by check or order payable to the Department of Motor Vehicles, and may also withdraw money received in payment for use taxes for motor vehicles by check or order payable to the Department of Taxation.

6. The county officer shall keep a register which shows the amount of county money on deposit and lists every check or order drawn upon the depository bank, credit union, savings and loan association or savings bank, numbering the items consecutively.

7. The county officer maintaining a deposit in any depository bank, credit union, savings and loan association or savings bank shall draw upon the deposit not later than the first Monday of each month and whenever the deposit exceeds $100 for the full amount of county money deposited therein, a withdrawal to be by check or order payable to the county treasurer, and shall thereupon deliver the withdrawal to the county treasurer.

8. This section does not apply to any deposit made by the clerk of any court pursuant to NRS 355.210.

[6:80:1885; added 1953, 73]—(NRS A 1959, 189, 693; 1971, 657; 1973, 183; 1975, 1690, 1787, 1807; 1979, 1892; 1985, 1985; 1999, 195, 1487; 2001, 2599)

DEPOSITORY BONDS OF SURETY COMPANIES

NRS 356.210 Stockholder, member or director of bank, credit union, savings and loan association or savings bank may not be stockholder or director of surety company. It is unlawful for any person, firm, company or corporation knowingly to deliver to any public officer of this State or of any political subdivision thereof, or for any such public officer knowingly to accept, any depository bond of any surety company for the security of any public money deposited or to be deposited by the officer in any banking or trust company, insured credit union, insured savings and loan association or insured savings bank any stockholder, member or director of which, at the time of the execution of the depository bond, is a stockholder or director in the surety company.

[1:98:1933; 1931 NCL § 5232]—(NRS A 1975, 1808; 1979, 1893; 1981, 1368)

NRS 356.220 Certificate to be attached to depository bond. A public officer shall not accept any such depository bond unless there is attached thereto a certificate, under oath, of some authorized officer or agent of the surety company to the effect that, at the time of executing the bond, no stockholder or director of the surety company furnishing the bond is a stockholder, member or director in any banking or trust company, insured credit union, insured savings and loan association or insured savings bank in which the public money is or is to be deposited knowingly.

[2:98:1933; 1931 NCL § 5232.01]—(NRS A 1975, 1808; 1979, 1893; 1981, 1368)

NRS 356.230 Penalty. Any person, firm, company or corporation violating any of the provisions of NRS 356.210 and 356.220 shall be guilty of a misdemeanor.

[3:98:1933; 1931 NCL § 5232.02]

PROGRAM TO MONITOR COLLATERAL MAINTAINED BY CERTAIN DEPOSITORIES

NRS 356.300 Definitions. As used in NRS 356.300 to 356.390, inclusive, unless the context otherwise requires, the words and terms defined in NRS 356.305 to 356.340, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2003, 20th Special Session, 285; A 2007, 918)

NRS 356.305 “Acceptable securities” defined. “Acceptable securities” means the securities described in:

1. Subsection 1 of NRS 356.020; and

2. Subsection 1 of NRS 356.133.

(Added to NRS by 2007, 918)

NRS 356.310 “Depository” defined. “Depository” means an insured state or national bank, insured savings and loan association, insured savings bank or insured credit union in this State in which public money is held on deposit. The term does not include a third-party depository.

(Added to NRS by 2003, 20th Special Session, 285)

NRS 356.330 “Public money” defined.

1. “Public money” means all money deposited with a depository by any of the following:

(a) The State Treasurer.

(b) An official custodian with plenary authority, including control over money belonging to, or held for the benefit of, the State or any of its political subdivisions, public corporations, municipal corporations, courts, or public agencies, boards, commissions or committees. If the exercise of plenary authority over public money requires action by or the consent of two or more recognized official custodians, the official custodians shall be treated as one official custodian having plenary authority over the public money. For the purposes of this paragraph:

(1) “Control” means the possession of public money and the authority to establish accounts of public money in public depository institutions and to make deposits, withdrawals and disbursements of public money.

(2) “Official custodian” means the State or any of its political subdivisions, public corporations, municipal corporations, courts, or public agencies, boards, commissions or committees.

(c) A public administrator or a person employed or contracted with pursuant to NRS 253.125, as applicable, acting as a trustee, agent or bailee.

2. The term does not include money deposited with a depository by:

(a) A Native American tribe or an agent or representative thereof;

(b) The Federal Government or an agent or representative thereof; or

(Added to NRS by 2003, 20th Special Session, 285; A 2007, 918; 2019, 1549)

NRS 356.340 “Third-party depository” defined. “Third-party depository” means a trust company, a broker-dealer registered under 15 U.S.C. § 78o(b)(1) or trust department of a state, national or federal reserve district bank which is authorized to hold acceptable securities on behalf of a depository for the benefit of a collateral pool pursuant to regulations adopted by the State Treasurer under NRS 356.390.

(Added to NRS by 2003, 20th Special Session, 285; A 2007, 919; 2019, 670)

NRS 356.350 Establishment. The State Treasurer shall establish a program for the monitoring of collateral maintained by a depository for the uninsured balances of public money upon the request of the public entity that deposited the public money with the depository.

(Added to NRS by 2003, 20th Special Session, 285; A 2019, 670)

NRS 356.360 Amount of required collateral; limitation on amount of public money held; reports; administrative fine. The program established pursuant to NRS 356.350 must provide that:

1. Each depository that participates in the program is required to maintain as collateral acceptable securities having a fair market value that is at least 102 percent of the amount of the uninsured balances of the public money held by the depository;

2. A depository shall satisfy the requirement set forth in subsection 1 by arranging for a third-party depository to hold acceptable securities on behalf of the depository for the benefit of a collateral pool pursuant to regulations adopted by the State Treasurer under NRS 356.390;

3. No depository that participates in the program may, at any one time, hold public money in an amount exceeding the total equity of the depository, as reflected on the financial statement of the depository;

4. Each depository that participates in the program is required to:

(a) Submit to the State Treasurer, in the form and manner prescribed by the State Treasurer, the following reports:

(1) A daily report of the total amount of public money held by the depository;

(2) If requested by the State Treasurer, a weekly summary report of the total fair market value of acceptable securities held by a third-party depository on behalf of the depository;

(3) A monthly report setting forth a list of accounts at the depository that hold public money; and

(4) A current annual report containing the financial statement of the depository; and

(b) Direct any third-party depository that holds acceptable securities on behalf of the depository to submit a monthly report to the State Treasurer setting forth a list of those securities, including, without limitation, the fair market value of those securities; and

5. The State Treasurer may impose an administrative fine not to exceed:

(a) One hundred dollars per day against a depository that fails to submit or fails to direct the submission of in a timely manner a report required by subsection 4; and

(b) Two hundred fifty dollars per day against a depository that fails to maintain the collateral required by subsection 1.

(Added to NRS by 2003, 20th Special Session, 285; A 2007, 919; 2019, 670)

NRS 356.370 Levy of assessment; notice regarding assessment.

1. Once each fiscal year, the State Treasurer shall levy a pro rata assessment against each depository that participated in the program established pursuant to NRS 356.350 at any time during the immediately preceding fiscal year.

2. The amount of the assessment levied pursuant to subsection 1 must be based on the average weekly deposits of public money held by a depository.

3. The State Treasurer shall provide to each depository a notice setting forth:

(a) The amount of the assessment levied against the depository pursuant to subsection 1; and

(b) The provisions of NRS 356.380.

(Added to NRS by 2003, 20th Special Session, 286; A 2019, 671)

NRS 356.380 Payment of assessment; administrative fine for failure to pay.

1. A depository shall, within 45 days after the date on which the depository received the notice provided pursuant to subsection 3 of NRS 356.370, remit to the State Treasurer the amount of the assessment levied against the depository.

2. The State Treasurer may impose an administrative fine not exceeding $500 per day against a depository that fails to comply with the provisions of subsection 1.

(Added to NRS by 2003, 20th Special Session, 286)

NRS 356.390 Regulations. The State Treasurer shall adopt such regulations as he or she determines are necessary to carry out the provisions of NRS 356.300 to 356.390, inclusive.

(Added to NRS by 2003, 20th Special Session, 286)