Procedure for sale of securities if depository fails to pay deposit on demand.

Checkout our iOS App for a better way to browser and research.

1. If any insured banks, insured credit unions, insured savings and loan associations or insured savings banks fail to pay any deposit or deposits, or any part thereof, on demand of the State Treasurer, then the State Treasurer, with the written approval of the State Board of Finance, forthwith shall:

(a) Advertise the securities for sale for not less than 10 days in a newspaper of general circulation published within this state.

(b) Sell the securities, or a sufficient amount thereof, to repay the deposit, at public or private sale to the highest and best bidder.

(c) Apply the proceeds of the sale, including accrued interest, if any, toward the cancellation of the deposit.

2. If there is an excess of the proceeds or of security, or both, after the satisfaction of the deposit, the excess must be returned to the depository bank, credit union, savings and loan association or savings bank or its successor in interest.

3. Nothing in this section prevents the depository bank, credit union, savings and loan association or savings bank, or the Commissioner of Financial Institutions in charge thereof, or the legally constituted receiver or liquidator thereof from redeeming the securities within a reasonable time, as determined by the State Board of Finance, at such a price as will repay to the State Treasurer the full amount of the deposit in the depository.

[3:161:1935; A 1937, 365; 1931 NCL § 7029.03] — (NRS A 1959, 569; 1975, 1803; 1979, 1890; 1981, 1366; 1983, 1699; 1987, 1876)


Download our app to see the most-to-date content.