662.035 - Power to maintain separate departments; deposit of money held in fiduciary capacity; regulations. - Nevada Statutes

662.035  Power to maintain separate departments; deposit of money held in fiduciary capacity; regulations.

      1.  A bank may maintain separate departments and deposit in its commercial department to the credit of its trust department all uninvested fiduciary moneys of cash and secure, under rules and regulations of the Commissioner, all such deposits in the name of the trust department, whether in consolidated deposits or for separate fiduciary accounts, by segregating and delivering to the trust department securities which are eligible for the security of money of the State of Nevada under subsection 1 of NRS 356.020. Such securities must be held by the trust department as security for the full payment or repayment of all such deposits and must be kept separate and apart from other assets of the trust department. Until all such deposits have been accounted for to the trust department or to the individual fiduciary account, no creditor of the bank has any claim or right to such securities.

      2.  When fiduciary money is deposited by the trust department in the commercial department of the bank, the deposit thereof does not constitute a use of such money in the general business of the bank and the bank in this instance is not liable for interest on such money.

      3.  To the extent and in the amount such deposits may be insured by the Federal Deposit Insurance Corporation, the amount of security required for such deposits may be reduced.

      4.  The Commissioner may make such regulations as the Commissioner deems necessary for the enforcement of the provisions of this section.

      (Added to NRS by 1971, 981; A 1983, 964, 1737; 1987, 1913)