NAC677.220. Capital sources and requirements.

     1. Appropriate proof that the minimum capital requirements of NRS 677.210 have been paid to the corporation in cash must be presented to the Commissioner before a thrift company license is issued.

     2. No money obtained from the sale of debt securities may be used for meeting the initial minimum capital requirements of NRS 677.210.

     3. For purposes of subsection 1 of NRS 677.540 and NRS 677.620, any money obtained from the sale of debt securities may not be considered part of the company’s capital structure without the express written permission of the Commissioner, and no repayment of debt securities that are considered part of the company’s capital structure may be made without the express written permission of the Commissioner.

     4. The Commissioner will not give his permission to consider money obtained from the sale of debt securities as part of the company’s capital structure unless the rights of the holders of the debt securities are subordinated to the rights of the holders of the thrift certificates.

     5. The Commissioner may refuse to give his permission to consider money obtained from the sale of debt securities as part of the company’s capital structure if he reasonably believes that a refusal is in the best interests of the company or the holders of the thrift certificates or that a refusal is needed to accomplish the purposes of chapter 677 of NRS.

     [Dep’t of Commerce, Thrift Companies Reg. § 4 subsecs. 4.6-4.8, eff. 1-4-76; A and renumbered as subsecs. 4.4-4.6, 1-4-78; A and renumbered as subsecs. 4.4-4.8, 12-14-78]—(NAC A by Admstr. of Financial Institutions, eff. 6-29-84)