Nevada Revised Statutes Section 670A.230 - Banks and Related Organizations

Stock of corporation: Minimum required to transact business; acquisition.

1. The stock of the corporation must be 20,000 shares of no par value, which must be issued for $100 per share in cash. At least 5 percent of the initial stockholders’ equity of the corporation must be paid into its treasury in cash before it may transact any business other than business relating to its organization.

2. At least a majority of the stock of the corporation must at all times be held by residents of the State or by persons engaged in doing business in Nevada.

3. A financial institution which does not become a member of a corporation established under this chapter may not acquire any shares of the stock of the corporation.

4. Except as otherwise provided in this subsection, any financial institution which becomes a member of a corporation established under this chapter may acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any shares of the stock of the corporation and, while the owner of those shares, may exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this state. The amount of the stock of the corporation which may be acquired by any member under this section may not exceed 10 percent of the loan limit of the member. The amount of stock of the corporation which any member may acquire under this section is in addition to the amount of stock in corporations which the member is otherwise authorized to acquire.

5. The holders of stock of the corporation do not, as such, have any preemptive or preferential right to purchase or subscribe for any part of the unissued or new issue of stock of the corporation, whether now or hereafter authorized or issued, or to purchase or subscribe for any bonds or other obligations, whether or not convertible into stock of the corporation, now or hereafter authorized or issued.

Last modified: February 26, 2006