NAC662.008. Limits on amount of loans: “Total outstanding loans” interpreted.

For the purpose of determining “total outstanding loans,” as used in NRS 662.145:

     1. If a loan is secured by a cash deposit, which is under the direct control of the bank making the loan, the amount of the loan does not include the amount of the cash deposit.

     2. Any loans subject to the requirements of subsection 1 of NRS 662.145 and subsection 1 of NRS 662.155 must be combined if:

     (a) The proceeds of the loan directly benefit another borrower with loans that are outstanding at the same bank; or

     (b) A common enterprise exists between the borrowers.

     3. For the purposes of this section:

     (a) A “common enterprise” exists if the source of repayment for a loan is the same for each borrower or a loan is made to borrowers related through common control.

     (b) “Common control” exists if:

          (1) One or more persons directly or indirectly own, control or have power to vote 25 percent or more of a class of voting securities of another person;

          (2) One or more persons act in concert to control, in any manner, the election of a majority of the directors, trustees or other persons exercising similar functions of another person; or

          (3) Any other circumstances exist which indicate that one or more persons acting in concert directly or indirectly exercises a controlling influence over the management of policies of another person.

     (Added to NAC by Comm’r of Financial Institutions, eff. 5-15-92)