669.220 - Investments: General requirements.
669.220 Investments: General requirements.
1. A retail trust company:
(a) Shall keep all trust funds and investments separate from the assets of the retail trust company, and all investments made by the retail trust company as a fiduciary must be designated so that the trust or estate to which the investments belong may be clearly identified.
(b) When it holds trust funds awaiting investment or distribution, may deposit or leave those funds on deposit with a state or national bank or credit union. The funds must not be deposited or left with the same corporation depositing them or leaving them on deposit, or with a corporation or association holding or owning a majority of the stock of the retail trust company making or leaving the deposit, unless that corporation or association first pledges, as security for the deposit, securities eligible for investment by state banks or credit unions which have a market value equal to that of the deposited funds. No security is required with respect to any portion of the deposits that is insured under the provisions of NRS 678.755 or a law of the United States.
(c) When it acts in any capacity under a court trust or private trust, unless the instrument creating the trust provides otherwise, may cause any securities or other assets held by it in its representative capacity to be registered or titled in the name of a nominee or nominees of the retail trust company.
(d) When acting as depositary or custodian for the personal representative of a court trust or private trust, unless the instrument creating the trust provides otherwise, may with the consent of the personal representative of the trust, cause any securities or other assets held by it to be registered or titled in the name of a nominee or nominees of the retail trust company.
2. A trust company is liable for any loss occasioned by the acts of its nominees with respect to securities registered under this section.
3. No corporation or the registrar or transfer agent of the corporation is liable for registering or causing to be registered on the books of the corporation any securities in the name of any nominee of a trust company or for transferring or causing to be transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a trust company when the transfer is made on the authorization of the nominee.
4. The assets forming the capital of a retail trust company must:
(a) Be cash, governmental obligations or insured deposits that mature within 3 years after acquisition, readily marketable securities or other liquid, secure assets, bonds, sureties or insurance, or some combination of the foregoing in accordance with NRS 669.100.
(b) Have an aggregate market value that equals or exceeds 100 percent of the company’s required stockholders’ equity.
5. A retail trust company may purchase or rent real or personal property useful for the conduct of the business and other activities of the retail trust company.
6. A retail trust company may invest its money for its own account, other than those required or permitted to be maintained by subsection 4 or 5 or NRS 669.100, in any type or character of equity securities, debt securities or other asset, provided the investment complies with the prudent investor standards of NRS 164.700 to 164.775, inclusive.
(Added to NRS by 1969, 1187; A 1983, 299; 1997, 1009; 1999, 847, 1544; 2009, 1961)