State branch or agency: Seizure and liquidation of property and business.
1. If the Commissioner finds that any of the factors set forth in NRS 666A.350 are true with respect to any foreign bank which is licensed to establish and maintain a state branch or agency and that it is necessary for the protection of the interests of the creditors of the foreign bank’s business in this state or for the protection of the public interest that he take immediate possession of the property and business of the foreign bank, he may by order take possession of the property and business of the foreign bank in this state and retain possession until the foreign bank resumes business in this state or is finally liquidated. The foreign bank may, with the consent of the Commissioner, resume business in this state upon such conditions as the Commissioner may prescribe.
2. If the Commissioner takes possession of the property and business of a foreign bank pursuant to subsection 1, the foreign bank may, within 10 days, apply to the district court in the county in which the primary office of the foreign bank in this state is located to enjoin further proceedings. The court may, after citing the Commissioner to show cause why further proceedings should not be enjoined and after a hearing, dismiss the application or enjoin the Commissioner from further proceedings and order him to surrender the property and business of the foreign bank to the foreign bank or make further order as may be just.
3. The Commissioner or the foreign bank may appeal from the judgment of the court having jurisdiction over any proceedings under subsection 2 in the manner provided by law for appeals from the judgment of a district court. If the Commissioner appeals from the judgment of the district court, the appeal operates as a stay of the judgment and the Commissioner need not post any bond.
4. If the Commissioner takes possession of the property and business of a foreign bank pursuant to subsection 1, he shall conserve or liquidate the property and business of the foreign bank pursuant to the laws of this state as if the foreign bank were a Nevada bank, with absolute priority given to the creditors of the business in this state conducted by the foreign bank at and recorded on the books of its state branch or agency.
5. When the Commissioner has completed the liquidation of the property and business of a foreign bank, he shall transfer any remaining assets to the foreign bank in accordance with such orders as the court may issue. However, if the foreign bank has an office in another state of the United States which is in liquidation and the assets of that office appear to be insufficient to pay in full the creditors of that office, the court shall order the Commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover the insufficiency. If there are two or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the Commissioner to distribute the remaining assets among the liquidators of those offices in such manner as the court finds equitable.
Last modified: February 26, 2006