(Reprinted with amendments adopted on April 18, 2003)

 

Assembly Bill No. 389–Assemblymen Claborn, Ohrenschall, Pierce, Koivisto, Parks, Anderson, Atkinson, Buckley, Carpenter, Chowning, Christensen, Conklin, Goldwater, Leslie, Manendo, McClain, McCleary, Mortenson and Sherer

 

March 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Prohibits control of thrift companies by certain persons. (BDR 56‑1099)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to thrift companies; prohibiting a person from acquiring control of a thrift company unless the person is engaged only in the activities permitted for a financial holding company pursuant to federal law or under certain circumstances is a credit union; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 677 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  Except as otherwise provided in subsection 2, a person

1-4  shall not acquire control of a thrift company unless the person is:

1-5  (a) Engaged only in the activities permitted for a financial

1-6  holding company set forth in 12 U.S.C. § 1843(k)(1); or

1-7  (b) A credit union, if the thrift company is an entity in which

1-8  the credit union may invest money pursuant to subsection 5 of

1-9  NRS 678.760.

1-10      2.  The provisions of subsection 1 do not apply to:

2-1  (a) A person who, on or before December 31, 2002, filed with

2-2  the Commissioner a request for authority to engage in business

2-3  pursuant to this chapter;

2-4  (b) A person who, on or before December 31, 2002, controlled

2-5  a thrift company licensed pursuant to this chapter; or

2-6  (c) A natural person.

2-7  3.  This section does not exempt a person who seeks to acquire

2-8  control of a thrift company, and is qualified to do so pursuant to

2-9  this section, from any provision of this chapter.

2-10      4.  For the purposes of this section:

2-11      (a) “Acquire” includes:

2-12          (1) The purchase of an existing thrift company;

2-13          (2) The merger, consolidation or other form of business

2-14  combination with an existing thrift company;

2-15          (3) The application for authority to engage in business

2-16  pursuant to this chapter; and

2-17          (4) The establishment of a new thrift company.

2-18      (b) “Control” means the power, directly or indirectly to:

2-19          (1) Direct or exercise a controlling influence over the

2-20  management or policies of a thrift company or the election of a

2-21  majority of the directors or trustees of a thrift company; or

2-22          (2) Vote:

2-23              (I) Twenty percent or more of any class of voting

2-24  securities of a thrift company if exercised by a natural person; or

2-25              (II) More than 10 percent of any class of voting

2-26  securities of a thrift company if exercised by a person other than a

2-27  natural person.

2-28      (c) “Credit union” has the meaning ascribed to it in

2-29  NRS 678.070.

2-30      (d) “Person” includes a subsidiary, parent or holding company

2-31  of the person.

2-32      Sec. 2.  This act becomes effective upon passage and approval.

 

2-33  H