NRS: CHAPTER 668 - PROHIBITED PRACTICES AND PENALTIES

[Rev. 6/29/2024 4:54:37 PM--2023]

CHAPTER 668 - PROHIBITED PRACTICES AND PENALTIES

NRS 668.015 False or deceptive financial statements: Criminal penalty; liability for damages; removal from office.

NRS 668.045 Receiving deposits in insolvent banks with knowledge of insolvency; unfair preference to creditor; penalty.

NRS 668.051 Unreasonable delay in responding to offer for sale in lieu of foreclosure.

NRS 668.055 Embezzlement; willful misapplication of money; penalties.

NRS 668.065 False oath or affirmation of officer, director, manager or employee; penalty.

NRS 668.075 Limitation on advertising or publishing statement of stock.

NRS 668.085 Unauthorized disclosure of confidential information; penalty.

NRS 668.095 Penalties for making, aiding in making, or suppressing evidence of false or fraudulent report.

NRS 668.112 Administrative fines.

NRS 668.115 Violation constitutes misdemeanor unless otherwise specified.

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NRS 668.015 False or deceptive financial statements: Criminal penalty; liability for damages; removal from office. Every president, director, manager, cashier or other officer or employee of any bank who knowingly prepares, signs, approves or concurs in any account, statement, return, report or document respecting the affairs of the bank, containing any false or deceptive statement, or any return or report required by chapters 657 to 671, inclusive, of NRS which does not set forth the true financial condition of the bank, including in the report or return all the information required by the provisions of chapters 657 to 671, inclusive, of NRS, is:

1. Guilty of a category D felony and shall be punished as provided in NRS 193.130.

2. Liable for all damages which the bank, its stockholders, creditors or depositors suffer in consequence thereof, and is subject to removal upon order of the Commissioner.

(Added to NRS by 1971, 1006; A 1983, 1757; 1987, 1942; 1995, 1315)

NRS 668.045 Receiving deposits in insolvent banks with knowledge of insolvency; unfair preference to creditor; penalty.

1. It is unlawful for a president, director, manager, cashier or other officer or employee of any bank to permit the bank to remain open for business, or to assent to the reception of deposits or the creation of debts by the banking institution, after he or she has knowledge of the fact that it is insolvent or in failing circumstances. An officer, director, manager or agent of a bank shall examine the affairs of the bank and shall know its condition. Upon the failure of any such person to discharge his or her duty of examination, that person must be held, for the purpose of chapters 657 to 671, inclusive, of NRS, to have had knowledge of the insolvency of the bank, or that it was in failing circumstances, and shall be deemed to have assented to the receipt of deposits while the bank was insolvent or in failing circumstances. A person who violates the provisions of this subsection is individually responsible for deposits so received, and all such debts so contracted, but any director who has paid more than his or her share of such liabilities has a remedy at law against other persons who have not paid their full share of such liabilities for contribution.

2. It is unlawful for a president, director, manager, cashier or other officer or employee of any bank willfully to give or concur in giving to a creditor of the bank any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, or by changing the nature of his or her claim, or otherwise, but this subsection does not prohibit the bank from giving security for public money of the State of Nevada or any political subdivision thereof, or of the United States, or an officer, agent, agency or department thereof, in the manner provided by law.

3. A person who violates the provisions of this section, or who is an accessory to, or permits or connives at, the receiving or accepting of any such deposits, or the giving of such preferences, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1971, 1006; A 1981, 1537; 1995, 1316; 1999, 1828)

NRS 668.051 Unreasonable delay in responding to offer for sale in lieu of foreclosure.

1. A banking or other financial institution, or an officer, manager or employee of a banking or other financial institution, shall not unreasonably delay responding to an offer for a sale in lieu of a foreclosure sale on real property secured by a residential mortgage loan.

2. For the purposes of this section, a person is presumed to have unreasonably delayed responding to an offer for a sale in lieu of a foreclosure sale on real property secured by a residential mortgage loan when the person fails to respond to an offer for a sale in lieu of a foreclosure sale with an acceptance or rejection of the offer within 90 days after receipt of the offer, unless the parties have agreed in writing to a delay of more than 90 days after receipt of the offer.

3. As used in this section:

(a) “Banking or other financial institution” means any bank, savings and loan association, savings bank, thrift company, credit union or other financial institution that is licensed, registered or otherwise authorized to do business in this State.

(b) “Indebtedness” has the meaning ascribed to it in NRS 40.451.

(d) “Sale in lieu of a foreclosure sale” means a sale of real property pursuant to an agreement between a person to whom an obligation secured by a mortgage or other lien on real property is owed and the debtor of that obligation in which the sales price of the real property is insufficient to pay the full outstanding balance of the obligation and the costs of the sale. The term includes, without limitation, a deed in lieu of foreclosure.

(Added to NRS by 2011, 2051)

NRS 668.055 Embezzlement; willful misapplication of money; penalties. A president, director, manager, cashier, teller, clerk, officer or agent of any bank who embezzles, abstracts or willfully misapplies any money, funds, securities or credits of any bank, or who issues or puts forth any certificate of deposit, draws any draft, bill of exchange or mortgage, or who makes use of any bank in any manner, with the intent to injure or defraud any bank or person, or to deceive any bank, or officer of any bank, and any natural person who, with like intent, aids or abets any officer, clerk or agent in any violation of this section, shall be punished:

1. Where the amount involved is $650 or more, for a category C felony as provided in NRS 193.130. In addition to any other penalty, the court shall order the person to pay restitution.

2. Where the amount involved is less than $650, for a misdemeanor.

(Added to NRS by 1971, 1007; A 1979, 1491; 1987, 1314; 1989, 1443; 1995, 496, 1316; 2011, 179)

NRS 668.065 False oath or affirmation of officer, director, manager or employee; penalty. Every officer, director, manager or employee of a bank required by chapters 657 to 671, inclusive, of NRS to take an oath or affirmation who willfully swears or affirms falsely is guilty of perjury, and upon conviction thereof shall be punished as provided by the laws of this state for cases of perjury.

(Added to NRS by 1971, 1007; A 1995, 496)

NRS 668.075 Limitation on advertising or publishing statement of stock. A bank or an officer or manager of a bank shall not advertise in any manner or publish any statement of the stock authorized or subscribed, unless the amount of stock actually paid up is advertised or published with the advertisement or statement.

(Added to NRS by 1971, 1007; A 1995, 496; 1997, 1006)

NRS 668.085 Unauthorized disclosure of confidential information; penalty. If any person fails to keep secret the facts and information obtained in the course of, or as a result of, an examination of a bank, except when the duty of such examiner or employee requires him or her to report upon or take official action regarding the affairs of such bank, the person is guilty of a misdemeanor.

(Added to NRS by 1971, 1007)

NRS 668.095 Penalties for making, aiding in making, or suppressing evidence of false or fraudulent report.

1. An examiner of financial institutions who knowingly and willfully makes any false or fraudulent report of the condition of any bank which has been examined by him or her, with the intent to aid or abet the officers or agents of the bank in continuing to operate an insolvent bank, or if the examiner keeps or accepts any bribe or gratuity given for the purpose of inducing him or her not to file any report of examination of any bank examined by him or her, or neglects to make an examination of any bank because of having received or accepted any bribe or gratuity, is guilty of a category C felony and shall be punished as provided in NRS 193.130.

2. A person who knowingly aids or abets an examiner of financial institutions or any other person in doing or performing any of the acts prohibited in subsection 1 is guilty of a category C felony and shall be punished as provided in NRS 193.130.

3. A person, having knowledge of a report made by an examiner of financial institutions of the condition of any bank, who falsifies, changes, alters or suppresses any such report with the intent to aid or abet the officers or agents of a bank in continuing to operate an insolvent bank, or any such person who keeps or accepts any bribe or gratuity given for the purpose of inducing him or her not to file any such report of examination or to falsify, change, alter or suppress any such report of examination, is guilty of a category C felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1971, 1008; A 1979, 1491; 1983, 1758; 1995, 1317)

NRS 668.112 Administrative fines.

1. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:

(a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of chapters 657 to 668, inclusive, of NRS; or

(b) Violates any provision of chapters 657 to 668, inclusive, of NRS or any regulation adopted pursuant thereto.

2. As used in this section, “license” means any license, certificate, registration, permit or similar type of authorization.

(Added to NRS by 2005, 1849)

NRS 668.115 Violation constitutes misdemeanor unless otherwise specified. Where no other punishment is provided in chapters 657 to 671, inclusive, of NRS, any person violating any of the provisions of chapters 657 to 671, inclusive, of NRS is guilty of a misdemeanor.

(Added to NRS by 1971, 1008)