Nevada Revised Statutes Section 677.545 - Financial Institutions

Taking possession of business by Commissioner: Acquisition by or merger with another institution.

1. Except as limited by subsection 2, if the Commissioner has taken possession of the property and business of a corporation licensed under this chapter pursuant to NRS 677.540, or a receiver, other than the State, has been appointed for and taken possession of the property and business of a corporation, the Commissioner may solicit offers from and authorize or require the acquisition of the corporation by or its merger with another institution or company in the following order of priority:

(a) A corporation which is licensed pursuant to this chapter.

(b) Any other depository institution licensed under the laws of this state or of the United States if its principal office is located in this state, including institutions whose parent corporation has offices or operations in other states.

(c) A bank, savings and loan association or thrift company, or its parent corporation, licensed pursuant to the laws of the United States or of another state, whose operations are principally conducted within the state of Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New Mexico, Oregon, Utah, Washington or Wyoming.

(d) A bank, savings and loan association or thrift company, or its parent corporation, licensed pursuant to the laws of the United States or of another state, whether or not its principal place of business is in another state.

Ê The Commissioner shall solicit written offers from all eligible institutions, regardless of the order of priority established by this subsection, and wait at least 30 days after solicitation before selecting the institution to be approved.

2. The selection of an institution must be made in accordance with the order of priority established in subsection 1 only if a selection affords the greatest financial recovery by the corporation’s depositors of all offers received. The Commissioner may not accept any offer which affords the corporation’s depositors a smaller financial recovery than they would receive if the corporation were liquidated. If the commissioner receives one or more acceptable offers he may negotiate with the institutions submitting acceptable offers, following that order of priority, and accept that offer which would afford the greatest financial recovery by the corporation’s depositors.

Last modified: February 26, 2006