662.175 - Limitations on borrowing money and pledging assets; exceptions; purchase of federal reserve money deemed transfer.
662.175 Limitations on borrowing money and pledging assets; exceptions; purchase of federal reserve money deemed transfer.
1. Any bank may secure money deposited with a bank by the United States, the State of Nevada or a political subdivision of this state by pledging acceptable assets of the bank as collateral security.
2. Any bank may borrow money for temporary purposes, not to exceed the amount of its stockholders’ or members’ equity, and may pledge any of its assets as collateral security therefor.
3. With the written consent of the Commissioner, a bank may borrow an amount that is not more than 200 percent in excess of its stockholders’ or members’ equity, and pledge assets of the bank as collateral security for the amount borrowed. Any indebtedness contracted in excess of the amount limited in this subsection is void in its entirety.
4. A bank may borrow money from the Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be deemed borrowed money for the purposes of the limitations prescribed in subsections 2 and 3. A bank may pledge any of its assets as collateral security for money borrowed pursuant to this subsection.
5. The purchase of federal reserve money by a bank from another bank shall be deemed a transfer from a seller’s account in a Federal Reserve Bank to the buyer’s account in that bank, and the transfer shall be considered a purchase and sale of federal reserve money. Such a transfer does not create an obligation on the part of the buyer subject to NRS 662.145, or a borrowing subject to the limitations of this section, but shall be considered a purchase and sale of federal reserve money.
(Added to NRS by 1971, 985; A 1983, 1741; 1987, 1917; 1997, 992)