356.030 - Procedure for sale of securities when depository fails to pay deposit. - Nevada Statutes

356.030  Procedure for sale of securities when depository fails to pay deposit.

      1.  If any insured banks, insured credit unions or insured savings and loan associations fail to pay any deposit or deposits, or any part thereof, on demand of the State Treasurer, then the State Treasurer, with the written approval of the State Board of Finance, forthwith shall:

      (a) Advertise the securities for sale for not less than 10 days in a newspaper of general circulation published within this state.

      (b) Sell the securities, or a sufficient amount thereof, to repay the deposit, at public or private sale to the highest and best bidder.

      (c) Apply the proceeds of the sale, including accrued interest, if any, toward the cancellation of the deposit.

      2.  If there is an excess of the proceeds or of security, or both, after the satisfaction of the deposit, the excess must be returned to the depository bank, credit union or savings and loan association or its successor in interest.

      3.  Nothing in this section prevents the depository bank, credit union or savings and loan association, or the Commissioner of Financial Institutions in charge thereof, or the legally constituted receiver or liquidator thereof from redeeming the securities within a reasonable time, as determined by the State Board of Finance, at such a price as will repay to the State Treasurer the full amount of the deposit in the depository.

      [3:161:1935; A 1937, 365; 1931 NCL § 7029.03]—(NRS A 1959, 569; 1975, 1803; 1979, 1890; 1981, 1366; 1983, 1699; 1987, 1876)