NAC677.500. Requirements of licensee for approval of contract; withdrawal of approval; hearing.

     1. Before the Commissioner will approve a contract for the insurance of deposits that is issued by a private insurer pursuant to subsection 2 of NRS 677.247, the licensee must, in addition to satisfying the requirements of subsection 2 of NRS 677.247:

     (a) Create and maintain reserves of not less than 5 percent of deposits in a form set forth in subsection 1 of NRS 677.230;

     (b) File with the Commissioner a fidelity bond pursuant to NRS 677.170 that provides fidelity coverage on each officer, director and employee of at least $300,000;

     (c) Maintain stockholders’ equity of not less than $500,000 plus an additional $50,000 for each branch office of the thrift company of the licensee;

     (d) Agree to forego entering into a contract for the insurance of deposits with a private insurer that is an affiliated business organization unless the contract has been approved by the Commissioner and the Commissioner of Insurance; and

     (e) Comply with any applicable provisions of federal law.

     2. If the Commissioner withdraws his approval from a contract for the insurance of deposits pursuant to subsection 2 of NRS 677.247 because a licensee or private insurer who is a party to the contract violates a provision of this chapter or chapter 677 of NRS, the licensee or private insurer may request a hearing before the Commissioner. The Commissioner will schedule and hold such a hearing pursuant to chapter 233B of NRS.

     3. If the Commissioner of Insurance withdraws his approval from a contract for the insurance of deposits pursuant to subsection 2 of NRS 677.247 because a licensee or private insurer who is a party to the contract violates a provision of title 57 of NRS or the regulations adopted pursuant thereto, the licensee or private insurer may request a hearing before the Commissioner of Insurance pursuant to NRS 679B.310.

     4. As used in this section:

     (a) “Affiliated business organization” means a business organization, including, without limitation, a corporation or partnership that controls, is controlled by or is under common control with the business organization of a licensee.

     (b) “Stockholders’ equity” has the meaning ascribed to it in NRS 677.125.

     (Added to NAC by Comm’r of Financial Institutions by R101-01, eff. 11-15-2001)