Investment in real property for development: Limitations; filing of disclosure with Commissioner; failure to make disclosure unlawful.
1. A bank may invest in real property for development, directly or through partnerships, joint ventures or other indirect methods. Any such investment must not exceed the market value or appraisal of the property as evidenced by a report prepared within 120 days before the investment by a member of a society approved collectively by the Commissioner or by another appraiser approved individually by the Commissioner. Approval must be based on the independence, experience and training required of or possessed by the appraiser.
2. Within 30 days after such an investment is made, the bank must file with the Commissioner:
(a) A certified copy of at least one report of the appraisal of the real property in which the investment is made; and
(b) The report of a title insurance company which contains the transfers of title which occurred during a period of at least 3 years immediately preceding the investment and the amount of consideration, if available, given for each transfer.
3. A bank may not invest in real property for development, exclusive of investments allowed under paragraphs (a) and (b) of subsection 2 of NRS 662.015 and of real property acquired through the collection of debts due to the bank, an amount which exceeds its stockholders’ or members’ equity or 10 percent of its assets, whichever is less. The Commissioner may require a statement from the bank disclosing whether any director, officer or employee of the bank has a direct or indirect interest in the real property involved or has had any such interest at any time during the preceding 3 years. Ownership of stock in a corporation which has an interest is an interest in the property of the stockholder. Failure to make a required disclosure is unlawful.
Last modified: February 26, 2006