EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 658.096 is hereby amended to read as follows:

1-2 658.096 1. The commissioner shall charge and collect the following

1-11 month that the fees are not paid after June 30 of each year.

2-1 (b) For applications for new branch banks [,] or trust offices, a

2-2 nonrefundable fee of $200 for the application and survey , to be paid by the

2-3 applicant at the time of making the application. The applicant [shall] must

2-4 also pay such additional expenses incurred in the process of investigation

2-5 as the commissioner deems necessary. All money received by the

2-6 commissioner pursuant to this paragraph must be placed in the investigative

2-7 account created by NRS 232.545.

2-8 (c) For examinations and the examination of trust departments of state

2-9 banks [,] or trust offices, a fee for conducting the examination and [in] for

2-10 preparing and typing the report of the examination at the rate established

2-11 pursuant to NRS 658.101.

2-12 2. Except as otherwise provided in paragraph (b) of subsection 1, all

2-13 money collected pursuant this section must be paid into the state general

2-14 fund.

2-15 3. As used in this section, "trust office" has the meaning ascribed to

2-16 it in subsection 4 of section 4 of this act.

2-17 Sec. 2. Chapter 662 of NRS is hereby amended by adding thereto the

2-18 provisions set forth as sections 3 and 4 of this act.

2-19 Sec. 3. As used in NRS 662.235 and 662.245 and section 4 of this

2-20 act, "business of a trust company" or "trust company business" has the

2-21 meaning ascribed to it in section 7 of this act.

2-22 Sec. 4. 1. A bank organized under this Title may maintain trust

2-23 offices in this or other states with the written consent of the

2-24 commissioner.

2-25 2. Any action taken by the commissioner pursuant to subsection 1 is

2-26 subject to review in the manner provided in NRS 659.055.

2-27 3. The commissioner may adopt regulations establishing reasonable

2-28 conditions and requirements for the approval and maintenance of trust

2-29 offices.

2-30 4. As used in this section, "trust office" means an office, other than

2-31 the principal office, at which a bank organized under this Title is

2-32 authorized by the commissioner to conduct the business of a trust

2-33 company.

2-34 Sec. 5. NRS 662.245 is hereby amended to read as follows:

2-35 662.245 1. [Except as otherwise specifically provided by statute, no

2-41 other organization:

3-1 (a) Is organized under the laws of and has its principal place of business

3-2 in this state or is a depository institution authorized by the commissioner to

3-3 operate a branch or agency in this state;

3-4 (b) Is a national banking association which has its principal place of

3-5 business in this state;

3-6 (c)] organization:

3-7 (a) Associates as cofiduciary a bank [whose principal place of business

3-8 is] authorized to do business in this state [; or

3-9 (d) Is a national bank, banking corporation,] or a trust company

3-10 licensed pursuant to chapter 669 of NRS; or

3-11 (b) Is a trust corporation or trust company which:

3-12 (1) Is organized under the laws of and has its principal place of

3-13 business in another state which allows [banks,] trust corporations or trust

3-14 companies [organized under the laws of this state] licensed pursuant to

3-15 chapter 669 of NRS to act as fiduciary [;] in that state;

3-16 (2) Is authorized by its charter to act as fiduciary; and

3-17 (3) Before the appointment as fiduciary, files with the secretary of

3-18 state a document, acknowledged before a notarial officer, which:

3-19 (I) Appoints the secretary of state as its agent upon whom all

3-20 process in any action or proceeding against it may be served;

3-21 (II) Contains its agreement that the appointment continues in force

3-22 as long as any liability remains outstanding against it in this state, and that

3-23 any process against it which is served on the secretary of state is of the

3-24 same legal validity as if served on it personally;

3-25 (III) Contains an address to which the secretary of state may mail

3-26 the process when received; and

3-27 (IV) Is accompanied by a fee of $10.

3-28 A copy of the document required by this subparagraph, certified by the

3-29 secretary of state, is sufficient evidence of the appointment and agreement.

3-30 2. A court [with] which has jurisdiction over the accounts of a

3-31 fiduciary that is a [national bank, banking corporation,] trust corporation or

3-32 trust company described in paragraph [(d)] (b) of subsection 1 [,] may

3-33 require [such a] the fiduciary to provide a bond to ensure the performance

3-34 of its duties as fiduciary, in the same manner and to the same extent as the

3-35 court may require such a bond from a fiduciary that is a [banking or other

3-36 corporation] bank or trust company described in paragraph (a) [or (b)] of

3-37 subsection 1.

3-38 3. Service of process authorized by subparagraph (3) of paragraph [(d)]

3-39 (b) of subsection 1 must be made by filing with the secretary of state:

3-40 (a) Two copies of the legal process. The copies must include a specific

3-41 citation to the provisions of this section. The secretary of state may refuse

3-42 to accept such service if the proper citation is not included in each copy.

4-1 (b) A fee of $10.

4-2 The secretary of state shall forthwith forward one copy of the legal process

4-3 to the [bank or other] organization, by registered or certified mail prepaid

4-4 to the address provided in the document filed pursuant to subparagraph (3)

4-5 of paragraph [(d)] (b) of subsection 1.

4-6 4. As used in this section:

4-7 (a) "Fiduciary" means an executor, commissioner, guardian of minors or

4-8 estates, receiver, depositary or trustee.

4-9 (b) "Notarial officer" has the meaning ascribed to it in NRS 240.005.

4-10 (c) "State" means any state or territory of the United States, or the

4-11 District of Columbia.

4-12 Sec. 6. Chapter 669 of NRS is hereby amended by adding thereto the

4-13 provisions set forth as sections 7 to 10, inclusive, of this act.

4-14 Sec. 7. "Business of a trust company" or "trust company business"

4-15 means the holding out by a person, by advertising, solicitation or other

4-16 means, that it is available to act as a fiduciary in this state and

4-17 undertaking to act as a fiduciary in the regular course of its business.

4-18 Sec. 8. "Fiduciary" means a trustee, executor, administrator,

4-19 guardian of an estate, conservator, assignee for the benefit of creditors,

4-20 receiver, depositary or person that receives on deposit money or property

4-21 from a public administrator under any provision of this chapter or from

4-22 another fiduciary.

4-23 Sec. 9. 1. If the commissioner ascertains by examination or

4-24 otherwise that the capital or assets of a trust company are impaired or

4-25 that the affairs of a trust company are in an unsafe condition which may

4-26 result in danger to the public, he may immediately take possession of all

4-27 the property, business and assets of the company which are located in

4-28 this state and retain possession of them pending further proceedings as

4-29 provided in this chapter.

4-30 2. If the directors or officers of a corporation or the managers or

4-31 members acting in a managerial capacity of a limited-liability company

4-32 refuse to allow the commissioner to take possession of the property of the

4-33 company, the commissioner shall communicate that fact to the attorney

4-34 general. Upon notification from the commissioner, the attorney general

4-35 shall immediately institute such proceedings as may be necessary to place

4-36 the commissioner in immediate possession of the property of the

4-37 company. Upon possession of the property, the commissioner shall make

4-38 or have made an inventory of the assets and known liabilities of the

4-39 company.

4-40 3. The commissioner shall file one copy of the inventory in his office

4-41 and one copy in the office of the clerk of the district court of the county

4-42 in which the principal office of the trust company is located and shall

5-1 mail one copy to each director or officer of the corporation, or the

5-2 manager or member acting in a managerial capacity of the limited-

5-3 liability company, at his last known address.

5-4 4. The clerk of the court with which the copy of the inventory is filed

5-5 shall file it as any other case or proceeding pending in the court and

5-6 shall give it a docket number.

5-7 Sec. 10. 1. The directors or officers of a corporation or the

5-8 managers or members acting in a managerial capacity of a limited-

5-9 liability company licensed as a trust company may, within 60 days after

5-10 the date the commissioner takes possession of the property, business and

5-11 assets of the corporation or limited-liability company licensed as a trust

5-12 company, make good any deficit that exists or remedy the unsafe

5-13 condition of the affairs of the corporation or limited-liability company

5-14 licensed as a trust company.

5-15 2. At the expiration of the 60-day period set forth in subsection 1, if

5-16 the deficiency in assets or capital has not been made good or the unsafe

5-17 condition remedied, the commissioner may apply to the court to be

5-18 appointed receiver and proceed to liquidate the assets of the company

5-19 that are located in this state in the same manner as now provided by law

5-20 for liquidation of a private corporation in receivership.

5-21 3. Another person may not be appointed receiver by any court unless

5-22 he first gives the commissioner ample notice of his application.

5-23 4. The inventory made by the commissioner pursuant to section 9 of

5-24 this act and all claims filed by creditors are open at all reasonable times

5-25 for inspection, and any action taken by the receiver upon any of the

5-26 claims is subject to the approval of the court before which the cause is

5-27 pending.

5-28 5. The expenses of the receiver and compensation of counsel, as well

5-29 as all expenditures required in the liquidation proceedings, must be fixed

5-30 by the commissioner subject to the approval of the court and, upon

5-31 certification of the commissioner, must be paid out of the money in his

5-32 hands as the receiver.

5-33 Sec. 11. NRS 669.020 is hereby amended to read as follows:

5-34 669.020 As used in this chapter, unless the context otherwise requires,

5-37 them in [such] those sections.

5-38 Sec. 12. NRS 669.040 is hereby amended to read as follows:

5-39 669.040 "Court trust" means [the action of a trust company acting

5-42 receiver, depositary or trustee, or receiving on deposit money or property

6-1 from a public administrator under any provision of this chapter or from any

6-2 executor, administrator, guardian, conservator, assignee, receiver,

6-3 depositary or trustee under any order or decree] of any court.

6-4 Sec. 13. NRS 669.050 is hereby amended to read as follows:

6-5 669.050 "Private trust" means [every other trust, agency,] a fiduciary

6-6 relationship [or representative capacity] other than a court trust.

6-7 Sec. 14. NRS 669.070 is hereby amended to read as follows:

6-8 669.070 "Trust company" means a corporation [organized and] or

6-10 in a trust company business.

6-11 Sec. 15. NRS 669.080 is hereby amended to read as follows:

6-12 669.080 1. This chapter does not apply to [:

6-42 trustee for such trusts;

7-1 (j) Receives money or other property as a real estate broker licensed

7-2 under chapter 645 of NRS on behalf of a principal;

7-3 (k) Engages in transactions as a broker-dealer or sales representative

7-4 pursuant to chapter 90 of NRS;

7-5 (l) Acts as a fiduciary under a court trust;

7-6 (m) Does business as an insurer authorized to issue policies of life

7-7 insurance and annuities or endowment contracts in this state and is

7-8 subject to regulation and control of the commissioner of insurance; or

7-9 (n) Acts as a fiduciary if:

7-10 (1) The fiduciary relationship is not one of his principal occupations;

7-11 or

7-12 [(b)] (2) He serves as [trustee] a fiduciary for a relative by blood or

7-13 marriage.

7-14 2. A bank, savings bank, savings and loan association or thrift

7-15 company claiming an exemption from this chapter pursuant to

7-16 paragraph (a) of subsection 1 must notify the commissioner of financial

7-17 institutions of its intention to engage in the business of a trust company

7-18 in this state and present proof satisfactory to the commissioner of

7-19 financial institutions that its fiduciary activities in this state will be

7-20 subject to regulation by another jurisdiction.

7-21 Sec. 16. NRS 669.095 is hereby amended to read as follows:

7-22 669.095 1. Except as otherwise provided in subsection 2, no person

7-39 (d) Is supervised by the commissioner of insurance.

7-40 Sec. 17. NRS 669.110 is hereby amended to read as follows:

7-41 669.110 [Any three or more persons, a majority of whom shall be

7-43 incorporated as a trust company in the manner prescribed in this chapter.]

8-1 An applicant for a license to conduct the business of a trust company

8-2 under this chapter must be organized as a corporation or limited-liability

8-3 company under the laws of this state or authorized to do business in this

8-4 state as a foreign corporation or foreign limited-liability company.

8-5 Sec. 18. NRS 669.120 is hereby amended to read as follows:

8-6 669.120 1. [The] If a corporation or limited-liability company that

8-37 the business of a trust company in this state.

8-38 Sec. 19. NRS 669.130 is hereby amended to read as follows:

8-39 669.130 [1. The secretary of state shall issue a certificate in the form

8-41 company as a corporation begins upon the issuance of the certificate by the

9-1 secretary of state, from which time it has and may exercise the powers

9-2 conferred by law upon corporations generally, except as those powers are

9-3 limited or modified by this chapter.

9-4 2. The] A trust company shall not transact business, except [the

9-5 election of officers and the taking and approving of their official bonds, the

9-6 receipt of payments on account of the subscriptions of the stock and such

9-7 other business as is] business that is incidental to its organization, until it is

9-8 authorized by the commissioner to commence the [trust company] business

9-9 of a trust company as provided in this chapter.

9-10 Sec. 20. NRS 669.150 is hereby amended to read as follows:

9-11 669.150 1. [The corporate trust company shall] An applicant must

9-33 must be placed in the investigative account created by NRS 232.545.

9-34 Sec. 21. NRS 669.160 is hereby amended to read as follows:

9-35 669.160 1. Within 60 days after the application for a license is filed,

10-1 (1) Have a good reputation for honesty, trustworthiness and

10-2 integrity and display competence to transact the business of a trust

10-3 company in a manner which safeguards the interests of the general

10-4 public. The applicant must submit satisfactory proof of these

10-5 qualifications to the commissioner.

10-6 (2) Have not been convicted of, or entered a plea of nolo contendere

10-7 to, a felony or any crime involving fraud, misrepresentation or moral

10-8 turpitude.

10-9 (3) Have not made a false statement of material fact on the

10-10 application.

10-11 (4) Have not had a license that was issued pursuant to the

10-12 provisions of this chapter suspended or revoked within the 10 years

10-13 immediately preceding the date of the application.

10-14 (5) Have not had a license as a trust company which was issued in

10-15 any other state, district or territory of the United States or any foreign

10-16 country suspended or revoked within the 10 years immediately preceding

10-17 the date of the application.

10-18 (6) Have not violated any of the provisions of this chapter or any

10-19 regulation adopted pursuant to the provisions of this chapter.

10-20 (b) That the financial status of the [stockholders,] directors and officers

10-21 of the corporation or the managers or members acting in a managerial

10-22 capacity of the limited-liability company is consistent with their

10-23 responsibilities and duties.

10-24 (c) That the name of the proposed company is not deceptively similar to

10-25 the name of another trust company licensed in this state or is not otherwise

10-26 misleading.

10-27 (d) That the initial stockholders’ equity is not less than the required

10-28 minimum.

10-29 [(e) The need for trust facilities or additional trust facilities in the

10-30 community where the proposed trust company is to be located.

10-31 (f) Such other matters concerning the proposed trust company in relation

10-32 to its location as the commissioner may deem relevant.

10-33 2. Within 90 days after the application is filed, the commissioner shall

10-34 conduct a public hearing to consider the application. At least 30 days

10-35 before the hearing, the commissioner shall give written notice of the

10-36 hearing to all persons doing a trust business in the community in which the

10-37 proposed trust company is to be located and to such other persons,

10-38 institutions or organizations as he deems appropriate.]

10-39 2. Notice of the entry of an order refusing a license to a trust

10-40 company must be given in writing, served personally or sent by certified

10-41 mail or by telegraph to the company affected. The company, upon

10-42 application, is entitled to a hearing before a hearing officer appointed by

10-43 the director of the department of business and industry, but if no such

11-1 application is made within 30 days after the entry of an order refusing a

11-2 license to any company, the commissioner shall enter a final order.

11-3 3. If the hearing officer affirms the order of the commissioner

11-4 refusing the license, the applicant may file a petition for judicial review

11-5 pursuant to NRS 233B.130.

11-6 Sec. 22. NRS 669.220 is hereby amended to read as follows:

11-7 669.220 1. [Every] A trust company:

11-43 (a) Be governmental obligations or insured deposits [.

12-1 (b) Mature] that mature within 3 years after acquisition.

12-2 [The]

12-3 (b) Have an aggregate market value [of all investments must equal or

12-4 exceed] that equals or exceeds 60 percent of the company’s current

12-5 stockholders’ equity or 60 percent of the company’s initial stockholders’

12-6 equity, whichever is greater.

12-7 5. A trust company may purchase or rent land and equipment for use in

12-8 the daily activities of the trust company.

12-9 Sec. 23. NRS 669.225 is hereby amended to read as follows:

12-10 669.225 1. [A] In addition to the powers of investment granted to

12-34 disposition of the money.

12-35 Sec. 24. NRS 669.240 is hereby amended to read as follows:

12-36 669.240 1. The directors or managers of a trust company shall

12-42 omission by any [officer or employee] of the persons bonded acting alone

13-1 or in combination with any other person. The bonds may be in any form

13-2 and may be paid for by the trust company.

13-3 2. The [directors] trust company shall obtain suitable insurance [for

13-4 their company] against burglary, robbery, theft and other hazards to which

13-5 it may be exposed in the operation of its business.

13-6 3. The [directors] trust company shall at least annually prescribe the

13-7 amount or penal sum of the bonds or policies and designate the sureties and

13-8 underwriters thereof, after giving due and careful consideration to all

13-9 known elements and factors constituting a risk or hazard. The [directors’]

13-10 action must be recorded in the minutes of the [board of directors] trust

13-11 company and reported to the commissioner.

13-12 Sec. 25. NRS 669.280 is hereby amended to read as follows:

13-13 669.280 1. The violation of any of the provisions of this chapter by

13-24 the affairs of the trust company.

13-25 Sec. 26. NRS 669.290 is hereby amended to read as follows:

13-26 669.290 Each officer, [employer,] director , manager, member,

13-32 punished as provided in NRS 193.130.

13-33 Sec. 27. NRS 159.017 is hereby amended to read as follows:

13-34 159.017 "Guardian" means any person appointed under this chapter as

13-37 and joint appointees. The term includes a special guardian.

13-38 Sec. 28. The amendatory provisions of this act do not apply to

13-39 offenses that were committed before October 1, 1999.

13-40 Sec. 29. NRS 669.030, 669.140, 669.170 and 669.180 are hereby

13-41 repealed.

14-1 LEADLINES OF REPEALED SECTIONS

14-2 669.030 "Community" defined.

14-3 669.140 Subscription, acknowledgment and filing of articles of

14-5 669.170 Applicant’s burden of proof at hearing.

14-6 669.180 Issuance or denial of license.