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

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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.  A person shall not acquire control of a thrift company

1-4  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.  As used in this section:

1-11      (a) “Acquire” includes:

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

2-1       (2) The merger, consolidation or other form of business

2-2  combination with an existing thrift company; and

2-3       (3) The establishment of a new thrift company.

2-4  (b) “Control” means the power, directly or indirectly to:

2-5       (1) Direct or exercise a controlling influence over the

2-6  management or policies of a thrift company or the election of a

2-7  majority of the directors or trustees of a thrift company; or

2-8       (2) Vote:

2-9           (I) Twenty percent or more of any class of voting

2-10  securities of a thrift company if exercised by a natural person; or

2-11              (II) More than 10 percent of any class of voting

2-12  securities of a thrift company if exercised by a person other than a

2-13  natural person.

2-14      (c) “Credit union” has the meaning ascribed to it in

2-15  NRS 678.070.

2-16      (d) “Person” includes a subsidiary, parent or holding company

2-17  of the person.

2-18      Sec. 2.  This act becomes effective upon passage and approval.

 

2-19  H