[Rev. 2/27/2019 1:34:06 PM]
LAWS OF THE STATE OF NEVADA
κ1984 Statutes of Nevada, 15th Special Session, Page 1κ
LAWS OF THE STATE OF NEVADA
Passed at the
FIFTEENTH SPECIAL SESSION OF THE LEGISLATURE
1984
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Senate Bill No. 1Senator Gibson
CHAPTER 1
AN ACT making an appropriation from the state general fund to the legislative fund.
[Approved March 30, 1984]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the legislative fund existing pursuant to the provisions of NRS 218.085 the sum of $150,000.
Sec. 2. This act shall become effective upon passage and approval.
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Senate Bill No. 2Committee on Commerce and Labor
CHAPTER 2
AN ACT relating to banks; authorizing a bank holding company which is located in another state to acquire a bank in Nevada; limiting the activities of the acquired bank; changing the limitation on the permissible charge for a delinquent payment under a retail installment contract; clarifying what charges may be established by contract; and providing other matters properly relating thereto.
[Approved March 30, 1984]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 666 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. The provisions of NRS 666.065 to 666.215, inclusive, and sections 3 and 4 of this act do not apply to a bank holding company which:
1. Owns only national banks within this state until such a holding company acquires or applies for approval to acquire a bank licensed by the administrator.
κ1984 Statutes of Nevada, 15th Special Session, Page 2 (CHAPTER 2, SB 2)κ
2. Does not control a bank which is located in Nevada but does control a bank in another state until such a holding company acquires or applies for approval to acquire any bank located in Nevada.
Sec. 3. 1. If a bank holding company which controls a bank in another state applies for approval of the acquisition of a bank located in Nevada, the administrator may approve the acquisition only if he determines that:
(a) The bank being acquired will be operated in a manner which is not likely to attract customers from the general public in Nevada to the substantial detriment of financial institutions located in Nevada;
(b) The acquisition is fair;
(c) The acquisition is not contrary to the public interest;
(d) The acquisition will not create in Nevada an undue concentration of financial resources or a substantial reduction of financial competition; and
(e) The economic advantages of the acquisition to Nevada, in terms of employment and capital investment, are adequate to permit approval.
2. Before giving his approval pursuant to this section, the administrator shall:
(a) Enter into a written agreement with the bank holding company setting forth the conditions of the approval. The conditions must ensure that the bank holding company will not in Nevada operate the bank in a manner which is inconsistent with the determinations made pursuant to subsection 1.
(b) Within 10 days after receipt of the proposal, give notice of it to all depository institutions regulated by the division of financial institutions or by a counterpart agency of the Federal Government which are located in this state. An institution may, within 20 days after receiving the notice, submit a written protest against the proposed acquisition. Within 30 days after receiving a written protest the administrator shall set a date for a hearing on the protest and give notice of the date of the hearing to the bank holding company and each institution which submitted a protest, by registered or certified mail. The hearing must be held not less than 30 days nor more than 60 days after this notice is mailed.
3. If the administrator disapproves an application made pursuant to this section, he shall provide the applicant a written statement of the reasons for disapproval and the findings and conclusions upon which the disapproval is based. The applicant may modify to application to obviate any objections to the application. Unless a hearing has been conducted pursuant to subsection 2, the applicant is entitled to a hearing to contest the disapproval.
4. A person who conducts a hearing pursuant to this section must make a final decision within 30 days after the hearing.
Sec. 4. 1. A bank holding company which controls a bank in another state may acquire only one bank which is located in Nevada.
κ1984 Statutes of Nevada, 15th Special Session, Page 3 (CHAPTER 2, SB 2)κ
If approved by the administrator, the acquisition is subject to the following conditions:
(a) The total capital stock of the bank to be acquired must be at least $5,000,000.
(b) The acquired bank may not hold a license pursuant to chapter 677 of NRS.
(c) Except as further limited in paragraph (d), the acquired bank must not solicit loans, deposits or other financial business from residents of Nevada unless the solicitation is part of a general solicitation which is also directed to residents of other states.
(d) The acquired bank may not solicit commercial loans in Nevada. The acquired bank may make a loan:
(1) At the request of another financial institution which will also lend money to the person who will receive the loan; or
(2) To another financial institution.
2. For the purposes of this section:
(a) If the acquired bank is prohibited from soliciting a type of business, then the bank holding company and its subsidiaries are also prohibited from soliciting such business for the acquired bank.
(b) Solicit means to request a person to engage in an activity or transaction or to advertise a desire to engage in such conduct.
Sec. 5. NRS 666.065 is hereby amended to read as follows:
666.065 As used in NRS 666.065 to 666.215, inclusive, and sections 2, 3 and 4 of this act, unless the context otherwise requires:
1. To acquire a bank means to obtain control of an existing bank or to establish a new bank.
2. Bank holding company means a company:
(a) Which directly or indirectly owns or controls 25 percent or more of the voting stock of a bank ; [licensed by the administrator;]
(b) Which controls the election of a majority of the directors of a bank; or
(c) For the benefit of whose stockholders 25 percent or more of the voting stock of a bank is held by one or more trustees.
[2.] 3. Business trust means an organization in which a business or property is conveyed to trustees who manage the business or property for the benefit of the holders of the beneficial interest in the trust. The term does not include a voting trust.
[3.] 4. Company means any corporation, business trust, association or similar entity, but does not include:
(a) A natural person; or
(b) A corporation of which a majority of the stock is owned by the United States or any state.
Sec. 6. NRS 666.075 is hereby amended to read as follows:
666.075 1. There is a rebuttable presumption that a company which directly or indirectly owns, controls or has the power to vote less than 5 percent of the voting stock of a bank does not control the bank.
2. An estate, trust, guardianship or conservatorship is not by virtue of its ownership or control of stock of a bank a bank holding company unless it is:
κ1984 Statutes of Nevada, 15th Special Session, Page 4 (CHAPTER 2, SB 2)κ
of its ownership or control of stock of a bank a bank holding company unless it is:
(a) A business trust; or
(b) A voting trust which by its terms or by law does not expire within 10 years after the date of its establishment.
3. A company is not a bank holding company by virtue of its ownership or control of stock which:
(a) Was acquired in the ordinary course of securing or collecting a debt which the company previously contracted in good faith; and
(b) Is held only as long as is necessary to sell the stock on a reasonable basis.
[4. A bank holding company which is domiciled outside of Nevada and which does not control a bank licensed by the administrator is not under the jurisdiction of this state until it applies for approval to acquire control of such a bank. A bank holding company which is domiciled outside of Nevada must receive the approval of the administrator before acquiring control of a bank licensed by the administrator.]
Sec. 7. NRS 666.205 is hereby amended to read as follows:
666.205 1. The administrator may apply to the district court for an order compelling compliance with any provision of NRS 666.065 to 666.195, inclusive [.] , or section 3 or 4 of this act. The court may award the administrator the costs of bringing the action and attorneys fees.
2. The administrator may bring an action against a person who violates a court order or injunction issued pursuant to this section or NRS 666.065 to 666.195, inclusive, or section 3 or 4 of this act to recover a civil penalty of not more than $10,000 for each violation.
3. The administrator may bring an action to require a bank holding company which acquired a bank in Nevada pursuant to section 4 of this act to divest itself of all interest in the acquired bank if the bank holding company violates:
(a) An order to cease and desist issued pursuant to NRS 666.175; or
(b) A court order or injunction issued pursuant to this section, NRS 666.065 to 666.195, inclusive, or section 3 or 4 of this act.
Sec. 8. NRS 666.215 is hereby amended to read as follows:
666.215 Any person who willfully violates any provision of NRS 666.145 shall be punished by imprisonment for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment. Any person who willfully violates any provision of NRS 666.065 to 666.135, inclusive, or 666.155 to 666.205, inclusive, or section 3 or 4 of this act is guilty of a gross misdemeanor.
Sec. 9. NRS 97.155 is hereby amended to read as follows:
97.155 Time price differential, however denominated or expressed , means the amount which is paid or payable for the privilege of purchasing goods or services to be paid for by the buyer in installments over a period of time [.] , and includes all charges incident to investigating and making the retail installment contract or charge agreement.
κ1984 Statutes of Nevada, 15th Special Session, Page 5 (CHAPTER 2, SB 2)κ
investigating and making the retail installment contract or charge agreement. It does not include the amount, if any, charged for insurance premiums, annual membership fees for credit cards, delinquency charges, attorneys fees, court costs , [or] official fees [.] or any other fees or charges to which the parties may agree.
Sec. 10. NRS 97.195 is hereby amended to read as follows:
97.195 The amount of the time price differential in any retail installment contract may be any amount agreed upon by the parties. Such a contract may provide for:
1. A delinquency charge on any installment delinquent 10 days or more in the amount of [5] 8 percent of the installment or $2, whichever is greater, but not more than [$5] $15.
2. Reasonable collection costs and attorneys fee in the event of delinquency.
3. The imposition of any other fee, expense or charge to which the parties may agree.
Sec. 10.5. NRS 97.245 is hereby amended to read as follows:
97.245 1. The [rate of a time price differential on any deferred balance is a matter for negotiation between a seller and buyer.] amount of the time price differential in any retail charge agreement may be any amount, and the agreement may provide for the imposition of any fee, expense or charge, agreed upon by the parties.
2. At or before the time a retail charge agreement is made the seller shall advise the buyer in writing, on the application form or otherwise, or orally, that a time price differential will be computed on the outstanding balance for each month (which need not be a calendar month) or other regular period agreed upon, the schedule or rate by which the time price differential will be computed, and that the buyer may at any time pay his total unpaid balance. If such information is given orally, the seller shall, upon approval of the buyers credit, deliver to the buyer or mail to him at his address a memorandum setting forth such information.
[2.] 3. The seller or holder of a retail charge agreement shall promptly supply the buyer with a statement as of the end of each monthly period (which need not be a calendar month) or other regular period agreed upon, in which there is any unpaid balance thereunder. The statement must set forth the following:
(a) The unpaid balance under the retail charge agreement at the beginning and end of the period;
(b) Unless otherwise furnished by the seller to the buyer by sales slip, memorandum or otherwise, a description or identification of the goods or services purchased during the period, the cash sale price and the date of each purchase;
(c) The payments made by the buyer to the seller and any other credits to the buyer during the period;
(d) The amount, if any, of any time price differential , fee, expense or charge for the period; and
κ1984 Statutes of Nevada, 15th Special Session, Page 6 (CHAPTER 2, SB 2)κ
(e) A legend to the effect that the buyer may at any time pay his total unpaid balance.
Sec. 11. NRS 99.050 is hereby amended to read as follows:
99.050 Parties may agree for the payment of any rate of interest on money due or to become due on any contract, [and] for the compounding of interest if they choose [.] , and for any other charges or fees. The parties shall specify in writing the rate upon which they agree, [and] that interest is to be compounded if so agreed [.] , and any other charges or fees to which they have agreed.
Sec. 12. 1. NRS 97.255 is hereby repealed.
2. Section 2 of chapter 400, Statutes of Nevada 1983, is hereby repealed.
Sec. 13. 1. The legislature intends to allow a bank holding company which controls a bank in another state to acquire a bank in Nevada only under the conditions and limitations imposed in sections 1 to 8, inclusive, of this act, and to this end those provisions of this act are not severable. Except as provided in subsection 2, if any provision of sections 1 to 8, inclusive, of this act, or any application thereof to any person, thing or circumstance is held invalid, the other provisions of sections 1 to 8, inclusive, of this act become ineffective.
2. If a bank holding company has received the administrators approval pursuant to section 3 of this act to acquire a bank and a provision of sections 1 to 8, inclusive, of this act is subsequently held invalid, the bank holding company may acquire the bank or maintain ownership of it subject to the provisions of sections 1 to 8, inclusive, of this act which can be given effect without the provision declared invalid by the court. The approval given by the administrator remains effective if the bank holding company and the bank continue to exercise only those powers granted by this act.
Sec. 14. This act shall become effective upon passage and approval.
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