669.100 - Minimum stockholders’ equity required for organization and operation.
669.100 Minimum stockholders’ equity required for organization and operation.
1. No retail trust company may be organized or operated with a stockholders’ equity of less than $1,000,000, or in such greater amount as may be required by the Commissioner. The full amount of the initial stockholders’ equity must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business.
2. A retail trust company shall maintain at least 50 percent of its required stockholders’ equity in cash unless the Commissioner approves a smaller amount. The remaining 50 percent of its required stockholders’ equity may be a different form of readily marketable securities or with prior approval by the Commissioner other liquid, secure asset, bond, surety or insurance, or some combination of the foregoing.
3. Any grandfathered trust company other than a noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall:
(a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of:
(1) By October 1, 2010, $500,000;
(2) By October 1, 2011, $750,000; and
(3) By October 1, 2012, $1,000,000; and
(b) Maintain $500,000 of such minimum capital in cash on and after October 1, 2010.
4. Any noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall:
(a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of:
(1) By October 1, 2010, $350,000;
(2) By October 1, 2011, $400,000; and
(3) By October 1, 2012, $500,000; and
(b) Maintain 50 percent of such minimum capital in cash on and after October 1, 2010.
5. As used in this section, “in cash” means in depository accounts with one or more banks in this State.
(Added to NRS by 1969, 1185; A 1983, 1758; 1987, 1943; 1997, 1007; 2009, 1957)