Nevada Administrative Code Chapter 677 - Thrift Companies
📘 Overview of NAC Chapter 677
1. General Provisions
NAC 677.010: Establishes the short title of the chapter as the "Nevada Thrift Companies Act."
NAC 677.020: Defines key terms such as "acquiescence," "capital and surplus," and "thrift certificate," providing clarity for regulatory compliance.
NAC 677.040: Specifies that "capital and surplus" includes capital stock, capital surplus, and undivided profits, as used in various sections of NRS 677.
2. Licensing and Fees
NAC 677.121: Outlines prerequisites for engaging in business, including obtaining necessary licenses and complying with local zoning ordinances.
NAC 677.131: Details application fees for establishing a new thrift company or branch office.
NAC 677.135: Specifies annual renewal fees and reinstatement fees for expired licenses. Justia
3. Capital Structure and Dividends
NAC 677.250: Regulates the payment of dividends, stipulating that they may only be paid from undivided profits and under certain conditions to ensure financial stability.
4. General Regulations
NAC 677.580: Prohibits the use of holding companies or other devices to evade the provisions of the chapter.
NAC 677.590: Prohibits the issuance of thrift certificates, with exceptions for branch offices located outside Nevada.
NAC 677.600: Defines permissible depositories for a thrift company's funds, ensuring they are placed in federally insured financial institutions.
NAC 677.610: Outlines authorized investments, limiting them to certain legal investments for banks and credit unions.
NAC 677.612: Allows fiduciaries to make deposits in trust for beneficiaries, with specific provisions for withdrawal and payment.
NAC 677.616: Addresses deposits made by minors, validating receipts issued by minors as legal.
NAC 677.620: Imposes limits on deposits to ensure the financial health of the institution.
NAC 677.630: Regulates permissible transactions in real property, ensuring they align with the company's objectives.
NAC 677.640: Allows the conduct of business in locations where other businesses are also conducted, under certain conditions.
NAC 677.645: Regulates the use or change of business names to prevent misleading representations.
NAC 677.650: Prohibits loans to or purchases of contracts from officers, directors, or other specified persons to prevent conflicts of interest.
NAC 677.660: Sets standards for advertising, prohibiting deceptive or misleading advertisements.
NAC 677.665: Addresses the formation of banks, ensuring compliance with relevant laws and regulations.
5. Investigation and Examination
NAC 677.180: Empowers the Commissioner to investigate and examine applicants, considering factors such as character, financial standing, and the need for a new thrift company in the community
⚖️ Relevant Case Law
While specific case law directly interpreting NAC Chapter 677 is limited, the regulations are enforced under the authority of the Nevada Revised Statutes (NRS) Chapter 677. Notably, NRS 677.570 grants the Commissioner the authority to liquidate or conserve a company, providing the same powers vested in the Commissioner by Title 55 of NRS with reference to banks.
✅ Summary
NAC Chapter 677 provides a comprehensive regulatory framework for the establishment and operation of thrift companies in Nevada. By setting standards for licensing, capital structure, permissible activities, and regulatory oversight, the chapter aims to ensure the stability and integrity of thrift companies, thereby protecting consumers and maintaining public confidence in the financial system.
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