Articles to be approved by Commissioner; application; permission to organize; fees; conditions.
1. The Secretary of State shall not issue any certificate to an association or company authorizing it to do business until the articles of association, agreement or incorporation are approved by the Commissioner.
2. No amendment to the articles of the organization may be filed by the Secretary of State without the written approval of the articles by the Commissioner.
3. No association may sell, offer for sale, negotiate for the sale of, take subscriptions for, or issue any of its common or preferred stock until it has first applied for and secured from the Commissioner approval of an application for permission to organize as provided for in this section.
4. Persons who desire to organize an association in accordance with this chapter shall first execute in triplicate an application, in the form prescribed by the Commissioner, for permission to organize an association before taking any other action in connection with the organization. Upon execution of an application for permission to organize by seven responsible citizens, referred to in this section as “applicants,” the original and two copies of the application must be submitted to the Commissioner. The applicants shall submit with their application the names and addresses of the applicants, the location of the proposed office, an itemized account of the financial condition of the proposed association and of the applicants, the amount and character of the proposed stock, statements, exhibits, maps and such additional information as the Commissioner requires, together with an affidavit that the representations made thereby are consistent with the facts to the best of the applicants’ information and belief. This data must be sufficiently detailed and comprehensive to enable the Commissioner to pass upon the application as to:
(a) The character and responsibility of the applicants;
(b) The need for the association in the community to be served;
(c) The reasonable probability of its usefulness and success; and
(d) Whether such an association can be established without undue injury to any properly conducted existing savings and loan institutions.
5. If the Commissioner approves the application he shall, within 30 days, notify all associations within 100 miles of the community where the applicant intends to establish an association. Any association so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the Commissioner of a written protest, the Commissioner shall fix a date for a hearing upon the protest, and the hearing must be held not earlier than 30 days nor more than 60 days after the date of receipt of written notice by registered or certified mail by the parties. The Commissioner shall approve or deny the application within 90 days after the date of the conclusion of the hearing and give all parties written notice of his decision on or before that date.
6. If the Commissioner approves the application, he shall establish as conditions to be met before the issuance of a charter requirements as to:
(a) The minimum number of shares of common or preferred stock to be subscribed to the association’s permanent capital;
(b) The minimum amount of paid-in surplus;
(c) The minimum amount of investment certificates to be paid into the association’s savings accounts upon issuance of a charter to it; and
(d) Such other requirements as he deems necessary or desirable.
Ê At least 75 percent of the capital must be subscribed by bona fide residents of this state or a depository institution or holding company qualified pursuant to the provisions of chapter 666 of NRS or NRS 666A.010 to 666A.400, inclusive. Approval of an application for permission to organize an association does not in any manner obligate the Commissioner to issue a charter, except that when all requirements of this chapter and of the Commissioner have been fulfilled, he shall issue a charter.
7. The charter expires 180 days after issuance, unless, within that time, the association has obtained insurance of accounts from the Federal Deposit Insurance Corporation. The Commissioner may, for good cause, extend the time of the conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.
8. An association shall not sell or issue any of its permanent stock until it has first applied for and secured from the Commissioner a license authorizing it to operate as a savings and loan association pursuant to the laws of this state and until it has applied for and secured insurance of accounts in accordance with the regulations of the Federal Deposit Insurance Corporation. This insurance of accounts must be maintained at all times.
9. The Commissioner may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.
10. The filing fees are:
(a) For filing an original application, $2,000 for the principal office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) If the license is approved for issuance, $1,000 for the principal office before issuance.
11. The Commissioner may impose conditions requiring the impoundment of proceeds from the sale of any stock, limiting the expense in connection with the sale of stock, and such other conditions as are reasonable and necessary or advisable to insure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the permission to organize.
12. Every permission to organize issued by the Commissioner must recite in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the organization or of the stock permitted to be issued.
13. Any corporation applying pursuant to this section or authorized to organize or authorized to establish a savings and loan association shall provide for a minimum par value of its permanent capital stock of at least $1 in its articles of incorporation. Par value of permanent capital stock may not be reduced below $1 without written permission of the Commissioner.
14. The removal of the home office or of any branch office of an association to any other location from its then existing location requires prior approval of the Commissioner. An application seeking approval must be delivered to the Commissioner, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be in an amount, not less than $100, to be determined by the Commissioner. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
15. An association shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.
Last modified: February 26, 2006