677.760 - Restriction on percentage of loans secured by stocks or bonds of any one obligor; exception. - Nevada Statutes

677.760  Restriction on percentage of loans secured by stocks or bonds of any one obligor; exception.

      1.  A licensee shall not lend in the aggregate more than 10 percent of its stockholders’ equity upon:

      (a) The security of the stock of any one corporation, which stock, except as otherwise provided in subsection 2, may not exceed 10 percent of the outstanding stock of that corporation.

      (b) The security of the bonds of any one obligor except:

             (1) Bonds of the United States or for the payment of which the credit of the United States is pledged;

             (2) Bonds of the State of Nevada, or for the payment of which the credit of the State of Nevada is pledged; and

             (3) Bonds which are general obligations of any county, city, metropolitan water district, school district or irrigation district of the State of Nevada.

      2.  The stock of a corporation upon the security of which a licensee loans money pursuant to paragraph (a) of subsection 1 may exceed 10 percent of the outstanding stock of that corporation if:

      (a) The licensee has secured collateral, other than deposits with the licensee, which has a market value of not less than 115 percent of the amount loaned; or

      (b) The loans are secured by deposits with the licensee and the amount of the money loaned does not exceed 90 percent of the deposits used as collateral.

      (Added to NRS by 1975, 1843; A 1989, 1101; 1997, 1022)