SUMMARY--Allows director or manager of bank to hold required shares in revocable trust. (BDR 55-113)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to financial institutions; allowing a director or manager of a bank to hold his required shares of the bank in a revocable trust; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 661.145 is hereby amended to read as follows:
661.145 1. No person is eligible to serve as a director or manager of any bank, organized or existing under the laws of this state, unless he [is] :
(a) Is a bona fide owner of stock of the bank or its holding company [, or has] ;
(b) Holds stock of the bank or its holding company in a revocable trust; or
(c) Has a member's interest in the bank.
2. The stock or interest owned or held pursuant to subsection 1 must have a total fair market value of at least $1,000. A determination of the value of the stock or interest must be based on its value on the date it was purchased or on its value on the date the owner or holder of the stock or interest became a director, whichever is greater. The stock or the member's contribution must be fully paid and not pledged.
[2.] 3. Except in the case of a merger between an out-of-state bank and a Nevada bank or an out-of-state bank that acquires a branch in the State of Nevada pursuant to the provisions of chapter 666 of NRS, a majority of the board of directors or managers of every bank must be residents of the State of Nevada, and at least one of the directors or managers must reside in the county where its principal place of business is to be conducted.
[3.] 4. For the purposes of this section, "holding company" has the meaning ascribed to it in NRS 666.005.