Provides for the licensure and regulation of payments banks. (BDR 55-999)

EXEMPT
(Reprinted with amendments adopted on June 1, 2025)
SECOND REPRINT A.B. 500

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ASSEMBLY BILL NO. 500–ASSEMBLYMEMBER YEAGER

MARCH 24, 2025
____________

Referred to Committee on Commerce and Labor

SUMMARY—Provides for the licensure and regulation of
payments banks. (BDR 55-999)

FISCAL NOTE: Effect on Local Government: Increases or Newly
Provides for Term of Imprisonment in County or City
Jail or Detention Facility.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to financial institutions; providing for the
licensure and regulation by the Commissioner of
Financial Institutions of payments banks; setting forth
various procedures and requirements for the organization
and licensure of payments banks; setting forth the powers
and duties of the Commissioner with respect to payments
banks; imposing various requirements and restrictions
concerning the operation of payments bank s; establishing
certain prohibited acts relating to payments banks;
revising certain provisions relating to financial
institutions; making an appropriation; providing penalties;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the licensure and regulation of various financial 1
institutions by the Commissioner of Financial Institutions. (Title 55 of NRS) This 2
bill provides for the licensure and regulation by the Commissioner of payments 3
banks. Under section 70 of this bill, a payments bank, with certain exceptions, has 4
all the powers, privileges and authorities that a state bank or national bank has, 5
including, engaging in money transmission, engaging in activities concerning the 6
maintenance of dep osit accounts and the conducting of merchant acquiring 7
activities, which section 18 of this bill defines to mean activities associated with 8
effecting transactions within payment card networks. Section 70 prohibits a 9
payments bank from making loans and enga ging in various activities relating to 10
loans. 11
Sections 3-29 of this bill define words and terms for the purposes of this bill. 12

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Sections 30, 32-35, 37, 39 and 40 of this bill set forth various powers and 13
duties of the Commissioner with respect to the licensure and regulation of 14
payments banks. Section 31 of this bill prohibits an officer or employee of the 15
Division of Financial Institutions of the Department of Bu siness and Industry from 16
having certain involvement with a payments bank. Section 36 of this bill sets forth 17
certain requirements for the provision of notices required under the provisions of 18
this bill. Sections 38 and 43-45 of this bill set forth procedur es and requirements 19
for the organization and licensure of a payments bank. Section 44.5 authorizes the 20
Secretary of State to apply for and be issued a license to operate a payments bank , 21
which is authorized to provide services only to governmental entities. 22
Section 42 of this bill exempts a participant in the Regulatory Experimentation 23
Program for Product Innovation from the provisions of this bill. 24
Sections 46-49 of this bill require that: (1) the deposit accounts of a payments 25
bank be insured by the F ederal Deposit Insurance Corporation or a private insurer 26
approved by the Commissioner and the Commissioner of Insurance; or (2) the 27
payments bank obtain the approval of the Commissioner to operate without such 28
insurance, in which case the payments bank mu st furnish a surety bond or pledge 29
certain assets. Section 50 of this bill requires a payments bank to maintain bond 30
coverage in an amount and form acceptable to the Commissioner. Sections 71 and 31
77 of this bill require a payments bank to maintain certain capital. Section 51 of 32
this bill authorizes the Commissioner to require: (1) a payments bank to provide a 33
letter of credit made payable to the Commissioner for the benefit of merchants; and 34
(2) the holding company of a payments bank to provide a certain gu aranty to the 35
Commissioner to maintain certain minimum levels of capital. 36
Section 52 of this bill authorizes a payments bank to establish and maintain 37
offices in this State. Section 52 also requires a payments bank to provide certain 38
notice to the Commis sioner relating to a change in the location of any such office. 39
Section 53 of this bill sets forth certain restrictions on advertising by a payments 40
bank. Section 54 of this bill imposes restrictions on the use of a business name and 41
the use of printed for ms which may mislead or confuse the public. Sections 55-62 42
and 64-68 of this bill establish certain requirements and restrictions on the 43
operations of the board of directors of a payments bank. Section 63 of this bill 44
requires: (1) a payments bank to notif y the Commissioner of certain changes or 45
proposed changes in the ownership of the payments bank; and (2) the 46
Commissioner to investigate such changes unless an exception applies. 47
Sections 69, 70, 72, 73, 76, 79, 80, 82 and 83 of this bill set forth various 48
powers of a payments bank. Section 78 of this bill sets forth the investments in 49
which a payments bank is authorized to invest. Section 81 of this bill prohibits the 50
aggregate amount of all borrowing of a payments bank from exceeding an amount 51
which would impair the insurance of the deposit accounts of the payments bank, if 52
any. Section 74 of this bill sets forth certain restrictions on the sale or issuance of 53
certain stock of a payments bank, including by prohibiting a payme nts bank from 54
selling or issuing such stock without a license issued by the Commission which 55
authorizes the action. Section 75 of this bill sets forth provisions governing the 56
issuance and renewal of any such license. 57
Sections 84 and 85 of this bill requ ire a payments bank to provide certain 58
reports and information to the Commissioner. Sections 86-92 of this bill set forth 59
various powers and duties of the Commissioner with respect to examinations of 60
payments banks and other powers relating to the investig ation and enforcement of 61
the provisions of this bill. Sections 86 and 137 of this bill provide for the 62
confidentiality of certain information obtained by the Commissioner. Section 93 of 63
this bill requires a payments bank to obtain an annual audit at its ow n expense. 64
Section 94 of this bill requires a payments bank to cooperate with any audits and 65
examinations performed by the Commissioner . Sections 95 and 96 of this bill 66

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authorize the Commissioner to take certain disciplinary actions against a payments 67
bank. 68
Existing law requires the Commissioner to establish by regulation rates to be 69
paid by banks and other financial institutions for supervision and examinations by 70
the Commissioner or the Division of Financial Institutions. (NRS 658.101) Section 71
129.5 of this bill excludes payments banks from the applicable financial institutions 72
to which those rates apply. Section 128.5 similarly exempts payments banks from 73
provisions requiring the Commissioner to levy an assessment upon each licensed 74
financial institutio n for costs relating to the employment of a certified public 75
accountant and the performance of audits and examinations. (NRS 658.055) 76
Section 97 of this bill sets forth requirements for the reorganization, merger or 77
consolidation of a payments bank. Section 98 of this bill sets forth certain 78
requirements for the voluntary liquidation of a payments bank. Sections 99-116 of 79
this bill establish procedures and requirements for the liquidation of a payments 80
bank whose deposit accounts are insured by the Fe deral Deposit Insurance 81
Corporation. Section 117 of this bill establishes procedures and requirements for 82
the reorganization of a dissolved payments bank. 83
Sections 118-125 of this bill impose certain requirements upon a payments 84
bank relating to the exploitation of older persons and vulnerable persons. 85
Sections 128-136 and 138 of this bill add references to payments banks and the 86
provisions of this bill to various provisions of existing law pertaining to financial 87
institutions so that payments banks are treated similarly to other financial 88
institutions for certain purposes. 89
Section 138.3 of this bill makes an appropriation to the Division of Financial 90
Institutions for certain costs associated with carrying out the provisions of this bill. 91
Section 138.7 of this bill requires the Commissioner, on or before December 31, 92
2026, to submit to the Director of the Legislative Counsel Bureau for transmittal to 93
the Legislature a report concerning the implementation of the provisions of this bill. 94

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Title 55 of NRS is hereby amended by adding 1
thereto a new chapter to consist of the provisions set forth as 2
sections 2 to 127, inclusive, of this act. 3
Sec. 2. As used in this chapter, unless the context otherwise 4
requires, the words and terms defined in sections 3 to 29, 5
inclusive, of this act have the meanings ascribed to them in those 6
sections. 7
Sec. 3. “Accumulative investment certificate” means an 8
investment certificate, not full-paid and without an expressed date 9
of maturity, upon which the holder has the option of making 10
payments at such times and in such amounts as the holder el ects 11
and as the payments bank permits. 12
Sec. 4. “Chargeback” means a transaction that is returned to 13
a payments bank through a payment card network. 14
Sec. 5. “Commissioner” means the Commissioner of 15
Financial Institutions. 16

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Sec. 6. “Corporate office” means the office of a payments 1
bank identified as such in the application submitted pursuant to 2
subsection 4 of section 44 of this act or the location to which the 3
corporate office is changed pursuant to subsection 12 of section 44 4
of this act or other applicable law. 5
Sec. 7. “Deposit” means that part of the liability of a 6
payments bank which is cred ited to the account of the holder 7
thereof and which is eligible to be insured by the Federal Deposit 8
Insurance Corporation or insured by a private insurer in 9
accordance with the provisions of this chapter. 10
Sec. 8. “Deposit account” means an account that holds 11
deposits, whether in a commercial, demand, time, checking, 12
savings or similar type of account, or which is evidenced by a 13
certificate of deposit, investment certificate, certificate of 14
indebtedness or other similar nam e, for which a payments bank is 15
primarily liable. 16
Sec. 9. “Depository institution” means any state bank or 17
payments bank, association, limited-liability company, corporation 18
or other person organized for the purpose of conducting a banking 19
business, whether chartered by this State, another state or the 20
Federal Government, which: 21
1. Holds or receives deposits, savings or share accounts; 22
2. Issues certificates of deposit; or 23
3. Provides to its customers other deposit accounts which are 24
subject to withdrawal by checks, drafts or other instruments or by 25
electronic means to effect payment to a third party. 26
Sec. 10. “Director” means the Director of the Department of 27
Business and Industry. 28
Sec. 11. “Division of Financial Institutions” means the 29
Division of Financial Institutions of the Department of Business 30
and Industry. 31
Sec. 12. “Full-paid investment certificate” means an 32
investment certificate, with or without an expressed date of 33
maturity, for which the payments bank has received the principal 34
amount thereof at or prior to the time of the issuance of the 35
certificate. 36
Sec. 13. “Insolvency” or “insolvent” means one or more of 37
the following: 38
1. When a payments bank cannot meet its deposit liabilities as 39
they become due in the regular course of business. 40
2. When the actual cash market value of t he assets of a 41
payments bank is insufficient to pay its liabilities to depositors and 42
other creditors. 43
3. When the reserves of a payments bank fall under the 44
amount required by this chapter, and the payments bank fails to 45

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make good such reserve within 3 0 days after being required to do 1
so by the Commissioner. 2
4. When the undivided profits and surplus of a payments 3
bank are inadequate to cover losses of the payments bank and the 4
stockholders’ or members’ equity in the payments bank has been 5
reduced below the requirements of law. 6
Sec. 14. “Insured depository institution” means a depository 7
institution, the deposit accounts of which are insured wholly or in 8
part by the Federal Deposit Insurance Corporation or by a private 9
insurer in accordance with the provisions of this chapter. 10
Sec. 15. “Investment certificate” means any certificate or 11
contract, either paid up or purchasable on an installment basis, 12
which is issued for the purpose of providing a means of investment 13
or savings. 14
Sec. 16. “Leverage capital ratio” means the ratio of the tier 1 15
capital of a payments bank to the average of the total assets of the 16
payments bank, not including goodwill, intangible assets and 17
money ultimately payable to merchants, at the end of each day 18
during the immediately preceding month. 19
Sec. 17. “Merchant” means a person authorized by a 20
payment card network to accept payments in exchange for goods 21
or services. 22
Sec. 18. “Merchant acquiring activities” means act ivities 23
associated with effecting transactions within payment card 24
networks, including, without limitation: 25
1. Obtaining and maintaining membership in one or more 26
payment card networks; 27
2. Signing up and underwriting merchants to accept payment 28
cards branded by a payment card network; 29
3. Providing the means to authorize valid card transactions at 30
client merchant locations; 31
4. Facilitating the clearing and settlement of the transactions 32
through a payment card network; 33
5. Providing access to one or more payment card networks to 34
customers of the payments bank, affiliates of the payments bank 35
and customers of affiliates of the payments bank; 36
6. Sponsoring the participation of affiliates of the payments 37
bank, customers of the payments bank or customers of affiliates of 38
the payments bank in one or more payment card networks; and 39
7. Conducting such other activities as may be necessary, 40
convenient or incidental to effecting transactions within payment 41
card networks. 42
Sec. 19. “Merger” means the consolidation of corporate 43
structures which results in the uniting of substantially all the 44
assets and liabilities of one state -chartered payments bank with 45

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those of another such payments bank or state bank or with those 1
of a federal ban k, national bank or other insured depository 2
institution. 3
Sec. 20. “Minimum term investment certificate” means an 4
investment certificate: 5
1. For which the payments bank has received a single 6
payment equal to the principa l amount thereof and which has a 7
date expressed therein before which notice of intention to 8
withdraw cannot be given or which requires written notice from 9
the holder to the payments bank for a period specified therein 10
before the expiration of which period notice of intention to 11
withdraw cannot be given; and 12
2. Which, after the date expressed therein or upon and after 13
the expiration of the specified period following the written notice, 14
becomes a full -paid investment certificate, subject to the same 15
withdrawal rights and restrictions as a full -paid investment 16
certificate. 17
Sec. 21. “Payments bank” means a depository institution 18
subject to the provisions of this chapter to conduct the business of 19
a payments bank. 20
Sec. 22. “Payment card network” means any organization, 21
group, system or other collection of persons that is organized to 22
allow participants to accept or make payments. 23
Sec. 23. “Payment volume” means the greater of 1/12 of the 24
total dollar amount of payment transactions: 25
1. Executed by the payments bank in the immediately 26
preceding 12 months; or 27
2. Forecast by the payments bank for the immediately 28
following 12 months. 29
Sec. 24. “Payment volume capital” means the amount of tier 30
1 capital required to be maintained by a payments bank pursuant 31
to paragraph (b) of subsection 1 of section 77 of this act. 32
Sec. 25. “Risk capital” means the amount of tier 1 capital 33
required to be maintained by a payments bank pursuant to 34
paragraph (c) of subsection 1 of section 77 of this act. 35
Sec. 26. “State bank” or “commercial bank” means a 36
limited-liability company, corporation or other person organized 37
for the purpose of conducting a banking business that is chartered 38
by this State to conduct the business of banking and is organized 39
pursuant to the provisions of chapter 659 of NRS. 40
Sec. 27. “Statutory capital” means the amount of capital 41
stock and paid-in surplus required to be maintained by a payments 42
bank pursuant to section 71 of this act. 43
Sec. 28. “Tier 1 capital” means the sum of statutory capital, 44
retained earnings, noncumulative perpetual preferred stock, the 45

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secured portion of a guaranty required by section 51 of this act, 1
and any letter of credit required by section 51 of this act, less any 2
accounts payable by an affiliate or holding company to the 3
payments bank, goodwill and intangible assets. 4
Sec. 29. “Withdrawal value” means the amount credited to a 5
deposit account, less lawful deductions therefrom, as shown by the 6
records of the payments bank. 7
Sec. 30. The Commissioner shall administer the provisions 8
of this chapter, subject to administrative supervision by the 9
Director. The Commissioner shall make the deci sions, 10
determinations and enter the consents and orders necessary or 11
reasonably appropriate to accomplish the purposes of this chapter. 12
Sec. 31. An officer or employee of the Division of Financial 13
Institutions shall not: 14
1. Be directly or indirectly interested in or act on behalf of 15
any payments bank; 16
2. Receive, directly or indirectly, any payment from a 17
payments bank; 18
3. Be indebted to any payments bank; or 19
4. Obtain any services from a payments bank conditioned 20
upon a fraudulent practice or undue or unfair preference over 21
other customers. 22
Sec. 32. The Commissioner shall: 23
1. Keep in his or her office: 24
(a) For not less than 5 years, every report made by a payments 25
bank. 26
(b) The original application of every payments bank in a 27
permanent file. 28
(c) Other administrative documents in the manner provided by 29
law or by appropriate regulations. 30
2. Provide a complete stenographic record of every hearing 31
and proceeding conducted by his or her office and maintain, for 32
not less than 5 years, a transcript of the hearing or proceeding, 33
together with any regulation, order, decision, determination or 34
consent entered in connection with the hearing or proceeding. 35
Sec. 33. The Commissioner shall supervise and make all 36
policy with regard to all foreign and domestic payments banks, 37
companies and corporations governed by this chapter and doing 38
business in this State. 39
Sec. 34. The Commissioner shall adopt such regulations as 40
may be reasonable or necessary to carry out the purposes of this 41
chapter. 42
Sec. 35. The Commissioner may cause appropriate legal 43
action to be taken in the district court of any county to secure an 44

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injunction or order restraining a violation of any provision of this 1
chapter. 2
Sec. 36. All notices must be in writing. All not ices issued or 3
required to be issued by the Commissioner must be sent by 4
registered or certified mail and become effective upon their deposit 5
in the mail. 6
Sec. 37. The Commissioner may, for reasonable cause and 7
upon 15 days’ notice, amend or alter any license issued by him or 8
her, but the payments bank may appeal the order of the 9
Commissioner in the manner provided in this chapter. 10
Sec. 38. 1. In addition to any other requirements set forth 11
in this chapter, each applicant must submit: 12
(a) Proof satisfactory to the Commissioner that the applicant: 13
(1) Is competent to transact the business for which the 14
applicant seeks to be licensed in a manner which protects the 15
interests of the general public. 16
(2) Has not made a false statement of material fact on the 17
application for the license. 18
(3) Has not committed any of the acts specified in 19
subsection 2. 20
(4) Has not had a license issued pursuant to this chapter 21
suspended or revoked wit hin the 10 years immediately preceding 22
the date of the application. 23
(5) Has not been convicted of, or entered a plea of nolo 24
contendere to, a felony or any crime involving fraud, 25
misrepresentation or moral turpitude. 26
(b) A complete set of his or her f ingerprints and written 27
permission authorizing the Division of Financial Institutions to 28
forward the fingerprints to the Central Repository for Nevada 29
Records of Criminal History for submission to the Federal Bureau 30
of Investigation for its report. 31
2. In addition to any other lawful reasons, the Commissioner 32
may refuse to issue a license to an applicant if the applicant: 33
(a) Has committed or participated in any act which, if 34
committed or done by a holder of a license, would be grounds for 35
the suspension or revocation of the license. 36
(b) Has previously been refused a license pursuant to this 37
chapter or has had such a license suspended or revoked. 38
(c) Has participated in any act which was a basis for the 39
refusal or revocation of a license pursuant to this chapter. 40
(d) Has falsified any of the information submitted to the 41
Commissioner in support of the application for the license. 42
Sec. 39. In addition to any other lawful reasons, the 43
Commissioner may suspend or revoke a license if the licensee has 44

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engaged in any act that would be grounds for denying a license 1
pursuant to this chapter. 2
Sec. 40. The Commissioner may issue subpoenas and require 3
the attendance of parties for examination. 4
Sec. 41. (Deleted by amendment.) 5
Sec. 42. Except as otherwise required by the Director 6
pursuant to NRS 657A.430 or 657A.620, the provisions of this 7
chapter do not apply to a participant in th e Regulatory 8
Experimentation Program for Product Innovation established and 9
administered pursuant to chapter 657A of NRS. 10
Sec. 43. 1. Payments banks must be incorporated under the 11
provisions of this chapter. For that purpose all of the provisions of 12
chapter 78 of NRS which are not in conflict with this chapter are 13
hereby adopted as parts of this chapter, and all the rights, 14
privileges and powers and all the duties and obligations of such 15
domestic corporations and of the officers and stockholders thereof 16
shall be as provided in chapter 78 of NRS except as otherwise 17
provided in this chapter. 18
2. A person, firm, partnership, association or corporation 19
except a payments bank incorporated under this chapter, an 20
affiliate of a payments bank or an entity otherwise lawfully 21
conducting business in this State pursuant to this chapter, shall 22
not conduct or carry on the business of soliciting or advertising 23
the products or services of a payments bank. This subsection does 24
not apply to banks, trust companies, licensed brokers, thrift 25
companies and credit unions. 26
Sec. 44. 1. The Secretary of State shall not issue a 27
certificate to a payments bank or company authorizing it to do 28
business until the articles of association, agreement or 29
incorporation are approved by the Commissioner. 30
2. The Secretary of State may not file an am endment to the 31
articles of the organization without the written approval of the 32
Commissioner. 33
3. A payments bank shall not sell, offer for sale, negotiate for 34
the sale of, take subscriptions for or issue any of its common or 35
preferred stock until it has first applied for and secured from the 36
Commissioner approval of an application for permission to 37
organize as provided for in this section. 38
4. Persons who desire to organize a payments bank in 39
accordance with this chapter must first execute in triplicate an 40
application, in the form prescribed by the Commissioner, for 41
permission to organize a payments bank before taking any other 42
action in connection with the organization. Upon execution of an 43
application for permission to organize, the original applicatio n 44
and two copies of the application must be submitted to the 45

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Commissioner. The applicants shall submit with the application 1
the name and address of each person who is applying, the location 2
of the proposed corporate office, an itemized account of the 3
financial condition of the proposed payments bank and of the 4
applicants, the amount and character of the proposed stock, 5
statements, exhibits, maps and such additional information as the 6
Commissioner requires, together with an affidavit that the 7
representations made thereby are consistent with the facts to 8
the best of the applicants’ information and belief. This data must 9
be sufficiently detailed and comprehensive to enable the 10
Commissioner to pass upon the application as to: 11
(a) The character and responsibility of the applicants; and 12
(b) The reasonable probability of the usefulness and success of 13
the payments bank. 14
5. If the Commissioner approves the application, he or she 15
shall establish as conditions to be met before the issuance of a 16
charter requirements as to: 17
(a) The minimum number of shares of common or preferred 18
stock to be subscribed to the permanent capital of the payments 19
bank; 20
(b) The minimum amount of paid-in surplus; 21
(c) The minimum amount of investment certificates to be paid 22
into the deposit accounts of the payments bank upon issuance of a 23
charter to the payments bank; and 24
(d) Such other requirements as the Commissioner deems 25
necessary or desirable. 26
6. When all the requirements of this chapter and of the 27
Commissioner have been fulfilled, the Commissioner shall issue a 28
charter for the payments bank. Except as otherwise provided in 29
this subsection, the charter expires 12 months after issuance 30
unless, within that time, the payments bank is actively engaging in 31
the business of a payments bank. The Commissioner may extend 32
the time of the conditional expiration of the charter if the 33
payments bank submits to the Commissioner a request containing 34
any information required by the Commissioner by regulation. 35
7. A payments bank shall not sell or issue any of its 36
permanent stock until it has first applied for and secured from the 37
Commissioner a license authorizing it to operate as a payments 38
bank pursuant to the laws of this State and until it has satisfied the 39
requirements of this chapter. 40
8. The Commissioner may extend the time for any hearing 41
provided for in this section, to the time agreed upon by the parties. 42
9. The Commissioner may impose conditions requiring the 43
impoundment of proceeds from the sale of any stock, limiting the 44
expense in connection with the sale of stock and such other 45

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conditions as are reasonable and necessary or advisable to insure 1
the disposition of the proceeds from the sale of the stock in the 2
manner and for the purposes provided in the permission to 3
organize. 4
10. Every permission to organize issued by the Commissioner 5
must recite in bold type that its issuance is permissive only and 6
does not constitute a recommendation or endorsement of the 7
organization or of the stock permitted to be issued. 8
11. Any corpora tion applying pursuant to this section or 9
authorized to organize or establish a payments bank shall provide 10
for a minimum par value of its permanent capital stock of at least 11
$1 in its articles of incorporation. Par value of permanent capital 12
stock may not be reduced below $1 without written permission of 13
the Commissioner. 14
12. The removal of the corporate office of a payments bank to 15
any other location from its then existing location requires 16
submission of written notice at least 30 days before relocatio n to 17
the Commissioner and, if the Commissioner determines that his or 18
her approval is necessary, approval of the Commissioner. An 19
application seeking approval, if required by the Commissioner, 20
must be delivered to the Commissioner. 21
13. A payments bank s hall not pay any commissions or other 22
compensation for the subscription to or sale of the original issue 23
of its stock. 24
14. The Commissioner shall consider an application to be 25
withdrawn if the Commissioner has not received all information 26
required to co mplete the application within 12 months after the 27
date the application is first submitted to the Commissioner or 28
within such later period as the Commissioner determines in 29
accordance with any existing policies of joint regulatory partners. 30
If an applicatio n is deemed to be withdrawn pursuant to this 31
subsection or if the applicant otherwise withdraws the application, 32
the Commissioner may not issue a license to the applicant unless 33
the applicant submits a new application. 34
Sec. 44.5. 1. The Secretary of State may apply for and be 35
issued a license to operate a payments bank. 36
2. A payments bank operated by the Secretary of State may 37
provide services only to governmental entities, including, without 38
limitation, the State of Nevada, any political subdivision of the 39
State of Nevada and any other state, local or tribal governmenta l 40
entity. 41
3. Except as otherwise provided in subsection 4, a payments 42
bank operated by the Secretary of State shall operate in 43
compliance with the provisions of this chapter and the regulations 44
adopted pursuant thereto. 45

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4. The Commissioner may, by re gulation, waive or modify 1
any requirement set forth in this chapter that the Commissioner 2
determines is not appropriate for a payments bank operated by the 3
Secretary of State. 4
Sec. 45. The powers, privileges, duties and restrictions 5
conferred and imposed upon any payments bank, company or 6
corporation, whether foreign or domestic, existing or doing 7
business under the laws of this State are hereby abridged, 8
enlarged or modified, as each pa rticular case may require, to 9
conform with the provisions of this chapter, notwithstanding 10
anything to the contrary in their respective articles of 11
incorporation or charters. 12
Sec. 46. Before a payments bank begins business , the 13
payments bank must file with the Commissioner: 14
1. A statement, under oath by the president or a manager, 15
containing the names of all the directors, managers and officers, 16
with the date of their election or appointment, terms of office, 17
primary residence and post office address of each, the amount of 18
stock of which each is the owner in good faith and the amount of 19
money paid in on account of the stock, or the contribution made. 20
Nothing may be received in payment of stock or contribution 21
except money. 22
2. Proof that: 23
(a) The payments bank has the approval of the Federal 24
Deposit Insurance Corporation to insure its deposit accounts; 25
(b) The Commissioner has approved the application of the 26
payments bank submitted pursuant to section 47 of this act to 27
operate without insurance of its deposit accounts and complied 28
with the provisions of section 49 of this act; or 29
(c) The Commissioner and the Commissioner of Insurance 30
have approved the application of the payments bank submitted 31
pursuant to section 47 of this act to insure its deposit accounts 32
under a contract issued by a private insurer. 33
Sec. 47. If the deposit accounts of the payments bank will not 34
be insured by the Federal Deposit Insurance Corporation, the 35
payments ba nk must submit to the Commissioner an application 36
for approval to: 37
1. Operate without insurance of the deposit accounts of the 38
payments bank; or 39
2. Insure the deposit accounts of the payments bank under a 40
contract with a private insurer approved by the Commissioner and 41
the Commissioner of Insurance. 42
Sec. 48. 1. In determining whether a private insurer may 43
issue a contract to insure the deposit accounts of a payments bank, 44

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the Commissioner and the Commissioner of Insu rance must 1
consider: 2
(a) The value of the insurer’s capital. 3
(b) The ratio of the insurer’s assets, including, without 4
limitation, reinsurance, which are readily available to cover any 5
losses incurred by depositors to its insured deposits. This ratio 6
must be adequate to reimburse depositors for any losses which 7
they may incur. 8
(c) The qualifications of the directors, officers and managers 9
of the insurance company. 10
(d) The insurer’s articles of incorporation and its bylaws and 11
all amendments thereto. 12
(e) The insurer’s policies for investments. 13
(f) The form of all insurance contracts entered into by the 14
insurer, including, without limitation, contracts for reinsurance. 15
(g) The insurer’s requirements for premiums or deposits. 16
(h) The insurer’s policies for the management of risk. 17
(i) Such other considerations as the Commissioner prescribes 18
by regulations adopted pursuant to section 34 of this act. 19
2. The Commissioner and the Commissioner of Insurance 20
shall not approve a contract of insurance unless the protection 21
afforded thereby to the depositors is substantially equivalent to the 22
amount required by the Federal Deposit Insurance Corporation. 23
3. After a private insurer obtains the approval of the 24
Commissioner and the Commissioner of Insuran ce, the 25
Commissioner, after consultation with the Commissioner of 26
Insurance may, for cause, require the insurer to establish and 27
maintain for such a time as the Commissioner may require, a 28
reserve, in cash or United States treasury bills or notes, in an 29
amount fixed by the Commissioner. If required, the reserve must 30
be kept in an account approved by the Commissioner in a federally 31
insured financial institution. 32
4. A private insurer who issues a contract to insure the 33
deposit accounts of a payments bank d oes not engage in the 34
business of insurance of the purposes of title 57 of NRS. 35
Sec. 49. 1. Except as otherwise provided by subsection 2, if 36
the Commissioner approves the application of a payments bank to 37
operate without insurance of its deposit accounts submitted 38
pursuant to section 47 of this act, the payments bank must, before 39
transacting any business, furnish a surety bond to the 40
Commissioner to cover costs likely to be incurred by the 41
Commissioner in a liquidation or conservatorship of the payments 42
bank pursuant to NRS 658.151. The bond must: 43
(a) Be in a form satisfactory to the Commissioner; 44

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- *AB500_R2*
(b) Be issued by a bonding company authorized to do business 1
in this State; and 2
(c) Secure the faithful performance of the obligations of the 3
payments bank. 4
2. In lieu of a bond required by subsection 1, a payments 5
bank may irrevocably pledge specified assets equivalent to a bond 6
under subsection 1. All costs associated with pledging and holding 7
the assets are the responsibi lity of the payments bank. Any assets 8
pledged pursuant to this subsection must: 9
(a) Be unencumbered; 10
(b) Not serve as collateral for any other purpose; and 11
(c) Be of the same nature and quality as the assets described in 12
NRS 671.110. 13
3. The amount of the surety bond or pledge of assets required 14
pursuant to this section must be determined by the Commissioner 15
in an amount sufficient to defray the costs of a liquidation or 16
conservatorship. 17
4. In the event of a liquidation or conservat orship of a 18
payments bank, the Commissioner may, without regard to 19
priorities, preferences or adverse claims, reduce the surety bond or 20
assets pledged pursuant to this section to cash as soon as 21
practicable and use the cash to defray the costs associated with the 22
liquidation or conservatorship. 23
5. Whenever the Commissioner determines that the protection 24
of the public so requires, the Commissioner may order that an 25
increase be made in the principal sum of the bond of any 26
payments bank. 27
6. A payments ba nk or the surety of the payments bank may 28
not cancel or alter a bond required pursuant to this section except 29
after providing notice to the Commissioner by registered or 30
certified mail. The cancellation or alteration is not effective until 31
10 days after re ceipt of the notice by the Commissioner. A 32
cancellation or alteration does not affect any liability incurred or 33
accrued on the bond before the cancellation or alteration. 34
Sec. 50. 1. A payments bank shall maintain bond co verage 35
in such amounts and form as are acceptable to the Commissioner. 36
The bond coverage may allow for a deductible amount or 37
provision adopted under regulations adopted by the 38
Commissioner. 39
2. When requested by the Commissioner, the payments bank 40
shall provide a duplicate copy of the invoice showing that the bond 41
premium has been paid or satisfied. 42
3. The face amount of the surety bond must comply with the 43
requirements adopted by the Commissioner. 44

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- *AB500_R2*
Sec. 51. 1. The Commissioner may require a payments 1
bank to provide to the Commissioner an irrevocable letter of credit 2
made payable to the Commissioner for the benefit of merchants in 3
the event of the bankruptcy, receivership or insolvency of the 4
payments bank. Any lette r of credit required pursuant to this 5
section must be: 6
(a) In a form satisfactory to the Commissioner; 7
(b) For a term of not less than 1 year; and 8
(c) Issued by a financial institution that is approved by the 9
Commissioner. 10
2. The Commissioner may re quire a holding company of a 11
payments bank to provide to the Commissioner an unlimited, 12
unconditional and continuous guaranty by the holding company 13
to maintain in the payments bank at least the minimum levels of 14
capital required by the provisions of this chapter and the 15
regulations adopted pursuant thereto. The Commissioner may 16
require any portion of the guaranty to be secured by collateral of a 17
type approved by the Commissioner. 18
Sec. 52. 1. In addition to the corporate o ffice, a payments 19
bank organized under this chapter may establish and maintain 20
one or more other offices within this State. 21
2. A payments bank shall notify the Commissioner in writing 22
of any change to the location of any office established and 23
maintained pursuant to subsection 1 not later than 30 days after 24
the change of location. 25
Sec. 53. 1. A payments bank shall not issue or publish, or 26
cause or permit to be issued or published, any advertisement that it 27
is doing or is permitted to do any business which is prohibited by 28
law for a payments bank, or which misrepresents the nature of its 29
stock, investment certificates, payments deposits or the right of 30
investors or depositors in respect thereto. 31
2. A payments bank may set forth in any of its advertisements 32
any of the purposes for which it is organized. 33
3. A payments bank shall not issue, circulate or publish any 34
advertisement after notice in writing from the Commissioner that 35
in his or her opinion the advertisement is unauthorized, false, 36
misleading or likely to deceive the public. 37
4. A payments bank shall not: 38
(a) State in any advertisement that it is under state supervision 39
or control. 40
(b) Include in any advertisement or in any instrument used by 41
it a replica of the Great Seal of the State of Nevada. 42
(c) Use the word “deposit” or “deposits” in any form of 43
advertising that would be prohibited under federal law. 44

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- *AB500_R2*
Sec. 54. 1. A licensee must obtain the approval of the 1
Commissioner before using or changing a business name. 2
2. A licensee shall not: 3
(a) Use any business name which is identical or similar to a 4
business name used by another licensee under this chapter which 5
may mislead or confuse the public. 6
(b) Use any printed forms which may mislead or confuse the 7
public. 8
Sec. 55. 1. The business and affairs of every payments 9
bank must be managed and controlled by a board of not less than 10
5 and not more than 25 directors, a majority of which must not be 11
full-time officers of the payments bank. The persons designated in 12
the articles of incorporation are the first directors. 13
2. Vacancies in the board of directors must be filled by vote of 14
the stockholders at the annual meetings or at a special meeting 15
called for that purpose. The board of directors may fill vacancies 16
occurring on t he board and such appointees serve until the next 17
annual meeting of the stockholders. 18
3. The board of directors of a payments bank may amend the 19
bylaws of the payments bank. 20
Sec. 56. A person is not eligible to serve as a director of a 21
payments bank without the written permission of the 22
Commissioner if he or she: 23
1. Has been adjudicated bankrupt or has taken the benefit of 24
any assignment for the benefit of creditors or has suffered a 25
judgment recovered against him or h er for a sum of money to 26
remain unsatisfied of record or not safeguarded by a supersedeas 27
bond on appeal for a period of more than 3 months. 28
2. Is a director, officer or employee of any other unaffiliated 29
payments bank. 30
3. Is an officer or employee o f an unaffiliated commercial 31
bank in this State. 32
4. Is not an investor in the payments bank or its holding 33
company, if applicable, owning in his or her own right or in a 34
representative capacity as an executor, administrator, guardian or 35
trustee stock in the payments bank or its holding company, if 36
applicable, of the par value of at least $1,000, or full -paid 37
investment certificates in the payments bank or its holding 38
company, if applicable, of the value of at least $1,000. For the 39
purpose of this chapter , a person who owns stock or investment 40
certificates as a joint tenant with one other person shall be deemed 41
to own, in his or her own right, one-half of the stock or investment 42
certificates. 43
5. Sells or hypothecates all the stock or investment certificates 44
owned by him or her, or so much thereof that he or she ceases to 45

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- *AB500_R2*
be the owner, free from encumbrances, of the amount of stock or 1
investment certificates required by subsection 4. 2
Sec. 57. If the Commissioner notifies the board of directors 3
of any payments bank, in writing, that he or she has information 4
that any director, officer or employee of the payments bank is 5
failing in the performance of his or her duties, the board of 6
directors shall meet and consider the matte r forthwith. The 7
Commissioner must have notice of the time and place of the 8
meeting. If the board of directors finds the Commissioner’s 9
objection to be well founded, the director, officer or employee shall 10
be removed immediately. 11
Sec. 58. 1. Any director may be removed from office, if he 12
or she has become ineligible pursuant to section 56 of this act, by 13
an affirmative vote of two -thirds of the members of the board of 14
directors at any regular meeting of the board of directors or at any 15
special meeting called for that purpose. Such action shall be 16
ratified at the next meeting of the stockholders. 17
2. No such vote upon removal of the director may be taken 18
until he or she has been advised of the reasons thereto, either oral 19
or written. If the director affected is present at the meeting, he or 20
she shall retire after his or her statement has been submitted and 21
before the vote upon the matter of his or her removal. 22
Sec. 59. Directors and officer s of a payments bank shall 23
discharge the duties of their respective positions in good faith and 24
with the diligence, care and skill which ordinary, prudent persons 25
would exercise under similar circumstances in a similar position. 26
Sec. 60. The board of directors of a payments bank shall 27
elect the officers named in the bylaws of the payments bank, which 28
officers shall serve at the pleasure of the board of directors. 29
Sec. 61. 1. The board of directors of each payments bank 30
shall hold a regular meeting at least once each quarter, at a time 31
to be designated by it in accordance with its bylaws. 32
2. Special meetings of the board of directors may be held 33
upon notice to each direc tor sufficient to permit his or her 34
attendance. The president or any three members of the board of 35
directors may call a meeting of the board of directors by giving 36
notice to all of the directors. 37
3. At any meeting of the board of directors, a majority o f the 38
members constitutes a quorum for the transaction of business. 39
Sec. 62. Every official communication by the Commissioner 40
directed to the board of directors of a payments bank must be 41
presented at the next meeting of the board of directors and made a 42
part of the minutes of the meeting. 43
Sec. 63. 1. A payments bank shall immediately notify the 44
Commissioner of any change or proposed change in ownership of 45

– 18 –

- *AB500_R2*
the stock of the payments bank wh ich would result in any person, 1
including, without limitation, a business trust, obtaining 5 percent 2
or more of the outstanding capital stock of the payments bank. 3
2. An application must be submitted to the Commissioner, 4
pursuant to section 44 of this act, by a person who acquires: 5
(a) At least 25 percent of the outstanding stock of the payments 6
bank; or 7
(b) Any outstanding stock of a payments bank if the change 8
will result in a change in the control of the payments bank. 9
 Except as otherwise provided in subsection 3, the Commissioner 10
shall conduct an investigation to determine whether the character 11
and responsibility of the applicant is such as to command 12
the confidence of the community in which the corporate office of 13
the payments bank is located. If the Commissioner denies the 14
application, he or she may forbid the applicant from participating 15
in the business of the payments bank. 16
3. A payments bank may submit a written request to the 17
Commissioner to waive an investigation pursuant to subsection 2. 18
The Commissioner may grant a waiver if the applicant has 19
undergone a similar investigation by a state or federal agency in 20
connection with the licensing of or his or her employment with a 21
financial institution. 22
Sec. 64. A payments bank may provide for pensions, 23
retirement plans and other benefits for its officers and employees, 24
and may contribute to the cost thereof in accordance with the plan 25
adopted by its board of directors. 26
Sec. 65. The board of directors shall approve the depositary 27
or depositaries for funds of the payments bank. 28
Sec. 66. 1. It is unlawful for an officer, director, employee 29
or capital stockholder of a payments bank to: 30
(a) Solicit, accept or agree to accept, directly or indirectly, 31
from any person other than the payments bank or an affiliate of 32
the payments bank, any gratuity, compensation or other personal 33
benefit for any action taken by the payments bank or for 34
endeavoring to procure any such action. 35
(b) Have any interest, direct or indirect, in the purchase at less 36
than its face value of any evidence of a deposit account or other 37
indebtedness issued by the payments bank, excluding stock 38
certificates and junior capital notes. 39
2. A violation of the provisions of this section is a 40
misdemeanor. 41
Sec. 67. Any director or officer of a payments bank or any 42
other person who knowingly and willingly participates in any 43
violation of the laws of this State relative to payments banks is 44
liable for all damage which the payments bank, its stockholders, 45

– 19 –

- *AB500_R2*
payments depos itors or creditors sustain in consequence of such 1
violation. 2
Sec. 68. Nothing in this chapter limits the authority of a 3
payments bank to indemnify and defend, or to provide 4
reimbursement for expenses of defending an action to, officers, 5
directors, employees, agents or other parties as such authority may 6
be provided under the laws of this State, if such indemnification 7
does not violate the limitations on indemnification imposed by 8
section 18(k) of the Federal Deposit Insuran ce Act, 12 U.S.C. § 9
1828(k), and the regulations adopted by the Federal Deposit 10
Insurance Corporation pursuant thereto. 11
Sec. 69. 1. Except as otherwise provided in this chapter, 12
every payments bank licensed under the prov isions of this chapter 13
has the same rights, powers, privileges, immunities and exceptions 14
which are possessed by any federal banks, including, without 15
limitation, all such fiduciary powers that a federal bank is 16
authorized to exercise except as may be expressly denied or limited 17
by the Commissioner after notice and a hearing. 18
2. If federal law conflicts with any of the provisions of this 19
chapter, except as otherwise provided by the Commissioner, the 20
provisions of federal law shall prevail as to such conf lict, and 21
satisfaction of any obligations imposed under federal law by the 22
payments bank shall be deemed to also satisfy the obligations of 23
the payments bank under state law. 24
3. In addition to all other powers otherwise granted by this 25
chapter, every payments bank licensed under the provisions of this 26
chapter has the powers, privileges and authorities granted by 27
regulations promulgated under the Federal Deposit Insurance Act 28
for foreign banks, except as may be expressly denied or limited by 29
the Commissioner after notice and a hearing. 30
4. A payments bank shall have any power reasonably 31
incident, convenient or useful to the accomplishment of the 32
powers conferred upon the payments bank by this chapter. 33
Sec. 70. 1. Except as otherwise provided in this section, in 34
addition to all powers, express or implied, that a payments bank 35
has under this chapter, a payments bank has the powers, privileges 36
and authorities that a state bank has under chapters 657 to 671, 37
inclusive, of NR S and that a national bank has. Such powers, 38
privileges and authorities include, without limitation, the 39
conducting of merchant acquiring activities, money transmission, 40
as defined in NRS 671.013, and activities concerning the 41
maintenance of deposit accounts. 42
2. A payments bank shall not engage in any activity: 43
(a) Described in NRS 673.324 to 673.332, inclusive, relating to 44
loans; or 45

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- *AB500_R2*
(b) That the Commissioner has, after notice and a hearing, 1
expressly denied or limited. 2
3. A payments bank may apply to receive deposit insurance 3
from the Federal Deposit Insurance Corporation, or its successor 4
agency. 5
4. Any restriction, limitation or requirement applicable to a 6
specific power, privilege or authority of a state bank or national 7
bank applies to a pay ments bank exercising such a power, 8
privilege or authority pursuant to this section to the extent that a 9
payments bank exercises such a power, privilege or authority. 10
Sec. 71. A payments bank shall at all times maintain ca pital 11
stock and paid-in surplus as required by the Commissioner, but in 12
no event in an amount that is less than the lesser of $3,000,000 or 13
an amount determined by the Commissioner after his or her 14
review of the application for permission to organize as a payments 15
bank. 16
Sec. 72. 1. Any payments bank licensed pursuant to this 17
chapter may subscribe to the stock of a Federal Reserve Bank and 18
become a member of the Federal Reserve System. 19
2. Any payments bank licensed pursuant to this chapter 20
which is, or which becomes, a member bank is, by this section, 21
vested with all powers conferred upon member banks of the 22
Federal Reserve System by the terms of the Federal Reserve Act as 23
fully and completely as if such powers were specifically 24
enumerated and described in this section, and all such powers 25
must be exercised subject to all restrictions and limitations 26
imposed by the Federal Reserve Act, or by regulations of the 27
Board of Governors of the Federal Reserve System made pursuant 28
thereto. The right, however, is expressly reserved to revoke or to 29
amend the powers conferred in this section. 30
3. Compliance on the part of any such payments bank with 31
the reserve requirements of the Federal Reserve Act shall be 32
deemed to be full co mpliance with those provisions of the laws of 33
this State which require payments banks to maintain cash 34
balances in their vaults or with other banks, and no such 35
payments bank need carry or maintain a reserve other than such 36
as is required under the terms of the Federal Reserve Act. 37
4. The authorities of this State having supervision over such 38
payments bank may disclose to the Board of Governors of the 39
Federal Reserve System, or to examiners appointed by it, all 40
information in reference to the affairs of a ny payments bank 41
which has become, or desires to become, a member bank of the 42
Federal Reserve System. 43

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- *AB500_R2*
5. The provisions of this section shall not be construed to 1
limit the ability of a payments bank to engage in any activity 2
authorized by this chapter. 3
6. As used in this section: 4
(a) “Board of Governors of the Federal Reserve System” 5
means the Board of Governors of the Federal Reserve System 6
created and described in the Federal Reserve Act. 7
(b) “Federal Reserve Act” means the Act of Congress, 8
approved December 23, 1913, being c. 6, 38 Stat. 251, as amended. 9
(c) “Federal Reserve Bank” means the Federal Reserve Banks 10
created and organized under authority of the Federal Reserve Act. 11
(d) “Federal Reserve System” means, collectively, the Federal 12
Reserve Banks and the Board of Governors of the Federal Reserve 13
System. 14
(e) “Member bank” means any national bank, state bank, 15
payments bank or banking and trust company which has become 16
or which becomes a member of the Federal Reserve System. 17
Sec. 73. A payments bank may purchase or lease property for 18
its office buildings or construct its office buildings on property 19
purchased or leased by it, if the total cost of land and 20
improvements does not exceed 70 percent of the sum of the capital, 21
surplus and reserves of the payments bank. 22
Sec. 74. 1. A payments bank shall not sell or issue any of 23
its common or preferred stock until it has first applied for and 24
secured from the Commissioner a license authorizing it so to do as 25
provided in section 44 of this act. 26
2. Every license must recite in bold type that the issuance of 27
the license is permissive only and does not constitute a 28
recommendation or endorsement of the stock permitted to be 29
issued. 30
3. Before the sale of, or option to buy, any additional 31
authorized but unissued common or preferred stock, the payments 32
bank must have the written approval of the Commissioner. 33
4. The Commissioner may impose conditions requiring the 34
impoundment of the proceeds from the sale of an y stock, limiting 35
the expense in connection with the sale and such other conditions 36
as are reasonable and necessary or advisable to ensure the 37
disposition of the proceeds from the sale of the stock in the 38
manner and for the purposes provided in the license. 39
Sec. 75. The license specified in section 74 of this act 40
authorizes the company, payments bank or corporation to whom it 41
is issued to sell its approved securities and contracts within this 42
State for the remainder of the f iscal year ending on June 30 next 43
succeeding. Each license is renewable, under like restrictions, 44
annually thereafter. 45

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- *AB500_R2*
Sec. 76. 1. A payments bank may issue investment 1
certificates, with or without passbooks. The holders of investment 2
certificates are not liable for debts or assessments, and are entitled 3
upon liquidation of a payments bank to receive payment in full 4
before any payment or distribution is made to stockholders. The 5
holders of investment certificates have no r ight to participate in 6
the profits of the payments bank. 7
2. Investment certificates may be issued as fully paid 8
investment certificates, accumulative investment certificates, 9
minimum term investment certificates or other types of certificates 10
approved by the Commissioner. The Commissioner shall not 11
approve any certificates whose issuance would impair the 12
insurance of the accounts of the payments bank by the Federal 13
Deposit Insurance Corporation, if applicable. 14
Sec. 77. 1. A payments bank shall continuously maintain: 15
(a) A leverage capital ratio of not less than 10 percent; 16
(b) The following amount of payment volume capital: 17
(1) Five percent of payment volume for payment volume 18
that does not exceed $10,000,000; 19
(2) An additional 3 percent of payment volume for payment 20
volume that exceeds $10,000,000 but does not exceed $25,000,000; 21
(3) An additional 1.5 percent of payment volume for 22
payment volume that exceeds $25,000,000 but does not exceed 23
$100,000,000; 24
(4) An additional 0.75 percent of payment volume for 25
payment volume that exceeds $100,000,000 but does not exceed 26
$250,000,000; 27
(5) An additional 0.25 percent of payment volume for 28
payment volume that exceeds $250,000,000 but does not exceed $1 29
billion; 30
(6) An additional 0.15 percent of payment volume for 31
payment volume that exceeds $1 billion but does not exceed $5 32
billion; 33
(7) An additional 0.08 percent of payment volume for 34
payment volume that exceeds $5 billion but does not exceed $20 35
billion; and 36
(8) An additional 0.05 percent of payment volume for 37
payment volume that exceeds $20 billion; 38
(c) An amount of risk capital that is not less than the greater 39
of: 40
(1) An amount that is two times the average monthly 41
chargebacks in the immediately preceding 6 months; or 42
(2) An amount that is two times the average monthly 43
forecast dollar volume of chargebacks for a 6-month period; and 44

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- *AB500_R2*
(d) The amount of capital stock and paid -in surplus required 1
by section 71 of this act. 2
2. The Commissioner may de termine that a payments bank 3
that, at any time, has less than the minimum leverage capital ratio, 4
payment volume capital, risk capital or statutory capital required 5
by subsection 1 is operating in an unsafe or injurious manner. 6
Such a payments bank shall comply with any order or action taken 7
by the Commissioner to restore the payments bank to adequate 8
capitalization. 9
Sec. 78. Deposits received by a payments bank may only be 10
invested in: 11
1. High-quality liquid assets, as defined in 12 C.F.R. § 329.3. 12
2. Demand, time or payments deposits with any bank, credit 13
union or trust company whose deposits are insured by the Federal 14
Deposit Insurance Corporation, the National Credit Union Share 15
Insurance Fund or a private insurer approved pursuant to 16
NRS 672.755. 17
3. Stock or obligations of any corporation or agency of the 18
United States or any state, or in deposits therewith to the extent 19
that such a corporation or agency assists in furthering o r 20
facilitating the purposes or powers of the payments bank. 21
4. Deposit accounts of any insured depository institution 22
licensed by this State and of any federally chartered depository 23
institution, if the accounts of such institution are insured by the 24
Federal Deposit Insurance Corporation. 25
Sec. 79. 1. A payments bank may invest the equity of the 26
payments bank in capital stock, obligations or other securities of a 27
related service company, operating subsidiary or financial 28
subsidiary. 29
2. The investments in subsection 1 shall not include any 30
money deposited to the payments bank by a third party. 31
Sec. 80. The power of a payments bank to borrow money and 32
contract debts includes the power to issue capital notes evidencing 33
such borrowings and to subordinate the same to investment 34
certificates and other liabilities. 35
Sec. 81. The aggregate amount of all borrowings of any 36
payments bank must not exceed an amount which would impair 37
the insurance of the deposit accounts of the payments bank, if any. 38
Sec. 82. 1. Any payments bank may issue deposit ac counts 39
or investment certificates to minors with the written consent of 40
their parents, trustees or guardians, and to married persons, each 41
in their own right. 42
2. Any payment thereon, or delivery thereof, or of any rights 43
thereunder, to a minor of the age of 14 years or over, or to a 44
married person, or a receipt or acquittance signed by the minor 45

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- *AB500_R2*
and parent, trustee or guardian or by a married person who holds 1
such deposit accounts or investment certificates, is a valid and 2
sufficient release and discharge of the payments bank for any 3
such payment or delivery. 4
Sec. 83. 1. A deposit account or investment certificate of 5
any payments bank may be purchased and held by any person as 6
administrator, executor, guardian, or as trustee or other fiduciary, 7
in trust for a named beneficiary or beneficiaries. 8
2. Any person holding a deposit account as a fiduciary may 9
make payments upon, and withdraw, in whole or in part, the 10
deposit account or investment certificate. 11
3. The withd rawal value of any such deposit account or 12
investment certificate and interest thereon, or other rights relating 13
thereto, may be paid or delivered to the fiduciary, and the payment 14
or delivery to the fiduciary or a receipt or acquittance signed by 15
the fiduciary, to whom any payment or delivery of rights is made, 16
is a valid and sufficient release and discharge of the payments 17
bank for the payment or delivery so made. 18
Sec. 84. 1. Each payments bank doing business in this 19
State shall file with the Commissioner a report containing any 20
information or other facts the Commissioner deems necessary. 21
2. The Commissioner shall adopt regulations establishing the 22
information to be reported pursuant to subsection 1. 23
Sec. 84.5. (Deleted by amendment.) 24
Sec. 85. Each such payments bank shall cause to be supplied 25
to the Commissioner at any time, upon his or her demand, any 26
information which he or she may requir e as to the condition, 27
affairs or methods of the payments bank. 28
Sec. 86. 1. The Commissioner may conduct or cause to be 29
conducted such hearings, investigations or examinations of the 30
books and records, wherever they may be, relating to the affairs of 31
such organizations as he or she may deem expedient and in aid of 32
the proper administration of the provisions of this chapter. 33
2. Except as otherwise provided in section 92 of this act, all 34
examination reports and all information obtained by the 35
Commissioner in conducting hearings, investigations or 36
examinations under the provisions of this chapter, including all 37
related correspondence and memoranda, and information 38
obtained by the Commissioner from other state or federal bank 39
regulatory authorities with whom the Commissioner has entered 40
into agreements for the confidential sharing of such information, 41
and information obtained by the Commissioner relating to the 42
examination a nd supervision of any corporation which is an 43
affiliate of a payments bank is confidential and privileged 44
information and must not be made public or otherwise disclosed to 45

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- *AB500_R2*
any person, firm, corporation, agency, association, governmental 1
body, court or other entity. 2
3. Any information submitted by a person to the 3
Commissioner for any purpose under this chapter shall not be 4
construed as waiving, destroying or otherwise affecting any 5
privilege such person may claim with respect to such information 6
under federal or state law as to any person or entity other than the 7
Commissioner. 8
4. In connection with the conduct of any hearing, 9
investigation or examination, the Commissioner or other person 10
designated by him or her to conduct it may: 11
(a) Compel the attendance of any person by subpoena. 12
(b) Administer oaths. 13
(c) Examine any person under oath concerning the business 14
and conduct of affairs of any payments bank subject to the 15
provisions of this chapter, and require the production of any 16
books, papers, records, money and securities relevant to the 17
inquiry. Any willful false swearing is perjury and is punishable as 18
such. 19
5. The Commissioner shall conduct at least once every 2 20
years an examination of the books and records of each payments 21
bank licensed under this chapter. 22
Sec. 87. 1. For the purpose of discovering violations of this 23
chapter or securing information lawfully required under this 24
chapter, the Commissioner or his or her duly authorized 25
representatives may, at any time , investigate the business and 26
examine the books, accounts, papers and records used therein of 27
any: 28
(a) Payments bank; 29
(b) Other person engaged in an activity regulated pursuant to 30
the provisions of this chapter; and 31
(c) Person whom the Commissioner has reasonable cause to 32
believe is violating or is about to violate any provision of this 33
chapter, whether or not the person claims to be within the 34
authority or beyond the scope of this chapter. 35
2. For the purpose of examination, the Commissioner or his 36
or her authorized representatives must have and be given free 37
access to the offices and places of business, files, safes and vaults 38
of such persons. 39
3. The Commissioner may require the attendance of any 40
person and examine him or her under oath regarding: 41
(a) Any transaction or business regulated pursuant to the 42
provisions of this chapter; or 43
(b) The subject matter of any audit, examination, investigation 44
or hearing. 45

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- *AB500_R2*
Sec. 88. 1. In case of the refusal of any person to atte nd or 1
testify or produce any papers required by the subpoena directed to 2
be served under the provision of section 86 of this act, the 3
Commissioner may report to the district court in and for the 4
county in which the examination, hearing or investigation is 5
pending by petition, setting forth that: 6
(a) Due notice has been given of the time and place of 7
attendance of the person or the production of the books and 8
papers; 9
(b) The person has been subpoenaed in the manner prescribed 10
in this chapter; and 11
(c) The person has failed and refused to attend or produce the 12
papers required by subpoena before the Commissioner in the 13
examination, hearing or investigation named in the subpoena, or 14
has refused to answer questions propounded to him or her in the 15
course of such examination, hearing or investigation, 16
 and asking an order of the court compelling the person to 17
attend and testify or produce the books or papers before the 18
Commissioner. 19
2. The court, upon petition of the Commissioner, shall enter 20
an order directing the person to appear before the court at a time 21
and place to be fixed by the court in such order, the time to be not 22
more than 10 days from the date of the order, and then and there 23
show cause why he or she has not attended or testified or produced 24
the books or papers before the Commissioner. A certified copy of 25
the order must be served upon the person. If it appears to the court 26
that the subpoena was regularly issued by the Commissioner, the 27
court shall thereupon enter an order that the person appear before 28
the Commissioner at the time and place fixed in the order and 29
testify or produce the required books or papers. Upon failure to 30
obey the order, the person shall be dealt with as for contempt of 31
court. 32
Sec. 89. 1. The Com missioner may, at the time of 33
examining a payments bank, inspect the books, ledgers and 34
minutes of any corporation which is registered or required to be 35
registered under section 5 of the Bank Holding Company Act of 36
1956, 12 U.S.C. § 1844, or section 10 of the Home Owners’ Loan 37
Act of 1933, 12 U.S.C. § 1467a, as a holding company whenever, 38
in his or her discretion, the Commissioner considers it advisable to 39
ascertain facts which may relate to transactions between the 40
holding company and the affiliated payments bank. The provisions 41
of section 86 of this act apply to the examination of such 42
corporation. 43
2. Upon making findings to that end, the Commissioner may 44
order the discontinuance of borrowing or lending, selling or 45

– 27 –

- *AB500_R2*
buying of assets, extending credit or g uaranteeing obligations of 1
the holding company which has been undertaken without the 2
written approval of the Commissioner. 3
3. A holding company which controls a payments bank shall 4
not impose any unreasonable supervisory fees upon the payments 5
bank. 6
Sec. 90. (Deleted by amendment.) 7
Sec. 91. In lieu of making any examination, the 8
Commissioner may accept any examination of any payments bank 9
made by the Board of Governors of the Federal Reserve System, 10
any Federal Home Loan Bank or Federal Reserve Bank, or the 11
Federal Deposit Insurance Corporation, or may examine any such 12
institution in conjunction with the Board of Governors of the 13
Federal Reserve System, a Federal Home Loan Bank or Fede ral 14
Reserve Bank, or the Federal Deposit Insurance Corporation. 15
Sec. 92. 1. Before disclosing or furnishing any document, 16
report or information under this section, the Commissioner must 17
determine that such document, report or information will receive 18
protection from further disclosure comparable to the protections 19
provided by this chapter. 20
2. The Commissioner, his or her agents and employees may 21
furnish all or any part of an examination report, work paper, 22
supervisory agr eement or directive, order or other information 23
obtained in the conduct of a hearing, investigation or examination 24
under the provisions of this chapter to: 25
(a) An agency of the Federal Government or of another state 26
empowered to examine or supervise a pay ments bank, a bank 27
holding company owning a payments bank or a subsidiary of such 28
holding company; 29
(b) An official empowered to investigate criminal charges 30
subject to legal process, valid search warrant or subpoena, 31
provided that the Commissioner may onl y furnish that part of any 32
document or report which is necessary and pertinent to the 33
investigation, and the Commissioner may do this only after 34
notifying the affected payments bank and any customer of the 35
payments bank who is named in such part of the doc ument or 36
report ordered to be furnished unless the official requesting the 37
document or report first obtains a waiver of the notice requirement 38
from a court of competent jurisdiction for good cause; 39
(c) The examined payments bank or holding company thereof; 40
(d) A receiver or liquidator appointed pursuant to this chapter; 41
or 42
(e) The court in a proceeding initiated by the Commissioner 43
concerning the payments bank if the Commissioner first provides 44

– 28 –

- *AB500_R2*
such notice to the payments bank as will afford the payments bank 1
an opportunity to object or to seek a protective order. 2
3. Except as otherwise provided in subsections 4 and 5, all 3
documents, reports and information furnished by the 4
Commissioner pursuant to this section remain the property of the 5
Division of Fin ancial Institutions, and no person, agency or 6
authority to whom such documents, reports or information are 7
made available, or any officer, director or employee thereof, may 8
disclose any of the documents, reports or information contained 9
therein, except in published statistical material that does not 10
disclose the affairs of any natural person or corporation. 11
4. An examination report made by the Division of Financial 12
Institutions is designed for use in the supervision of a payments 13
bank. The report shall re main the property of the Commissioner 14
and will be furnished to the payments bank solely for its 15
confidential use. The payments bank may disclose the report or 16
relevant portions thereof to any of its directors, officers, 17
employees, agents or affiliates as n ecessary and appropriate in the 18
conduct of its affairs. Under no circumstances may the payments 19
bank or any of its directors, officers, employees, agents or 20
affiliates disclose or make public in any manner the report or any 21
portion thereof to any person or organization not connected with 22
the payments bank as officer, director, employee, attorney, auditor 23
or candidate for executive office with the payments bank or its 24
holding company. The payments bank may also, after execution of 25
an agreement not to disclos e information in the report, disclose 26
the report or relevant portions thereof to a party proposing to 27
acquire or merge with the payments bank. 28
5. Except for an examination report as provided in subsection 29
4, a payments bank may disclose any document, rep ort or 30
information provided by the payments bank to the Commissioner 31
and any document, report or information received by the payments 32
bank from the Commissioner to any of its directors, officers, 33
employees, agents or affiliates as necessary and appropriate in the 34
conduct of its affairs. 35
6. A payments bank, a bank holding company or owning a 36
payments bank or a subsidiary of such a holding company, does 37
not violate this section by complying with a duty to report to the 38
Securities and Exchange Commission, including, without 39
limitation, by disclosing any order of the Commissioner pursuant 40
to such a duty. 41
Sec. 93. 1. Each payments bank shall, at least once each 42
year, cause its books and accounts to be audited at its own expense 43
by a certified public accountant or firm of such accountants 44
selected by the payments bank and approved by the Commissioner. 45

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- *AB500_R2*
2. The Commissioner may prescribe the scope of the audit. 1
3. A certified copy of the audit, including the management 2
and internal control letters relating to the audit, must be furnished 3
to the Commissioner. 4
Sec. 94. Each payments bank shall cooperate fully with all 5
audits and examinations performed by the Commissioner on the 6
payments bank. 7
Sec. 95. The Commissioner may after notice and hearing 8
suspend or revoke the charter of any payments bank for: 9
1. Repeated failure to abide by the provisions of this chapter 10
or the regulations adopted thereunder. 11
2. Failure to pay a tax as required pursuant to the provisions 12
of chapter 363A or 363C of NRS. 13
Sec. 96. 1. If the Commissioner finds as the result of any 14
examination or from any report made to him or her or to any 15
payments bank doing business in this State or from any report 16
made to any of its investors that the payments bank is violating the 17
provisions of its articles of incorporation, charter, bylaws, or any 18
law of this State, or is conducting its business in an unsafe or 19
injurious manner, he or she may by an order addressed to such 20
payments bank direct a discontinuance of such violations or 21
unsafe or injurious practices and a conformity with all the 22
requirements of law. 23
2. If a payments bank does not comply with such order, the 24
Commissioner may order the corporate secretary to call a special 25
directors’ meeting to consider the matter of noncompliance. 26
3. The meeting must be held no later than 60 days after 27
issuance of the order to hold the meeting, unless otherwise 28
restrained by court order or by the board. The business of the 29
meeting must be limited to the matter of noncompliance and 30
remedies therefor and the notice of such meeting must set forth in 31
detail the Commissioner’s discontinuance order and order to call 32
a directors’ meeting. 33
4. Action taken at the meeting is binding upon the officers of 34
the payments bank. 35
Sec. 97. 1. A payments bank may reorganize, merge or 36
consolidate with another state or federal bank, national bank, 37
state bank or other insured depository institution, if the 38
reorganization, merger or consolidation is based upon a plan 39
which has been adopted by the board of directors and approved at 40
a regular or special stockholders’ meeting which has been called 41
to consider the a ction. The approval must rest on a favorable vote 42
of a majority of the voting power of the payments bank as 43
established by its articles. 44

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- *AB500_R2*
2. Any such plan for reorganization, merger or consolidation 1
must be approved by the Commissioner. In submitting an 2
application for approval of any such plan, each payments bank 3
proposing to reorganize, merge or consolidate must provide any 4
and all information and other facts which the Commissioner 5
requires for his or her review of the proposed transaction. 6
3. Unless its action is specifically authorized by or taken in 7
conformity with this chapter, a payments bank may not, directly or 8
indirectly: 9
(a) Reorganize, merge or consolidate. 10
(b) Assume liability to pay deposit accounts or other liabilities 11
of any financial i nstitution or any other organization, person or 12
entity. 13
(c) Transfer assets to any financial institution or any other 14
organization, person or entity in consideration of the transferee’s 15
assumption of liability for any portion of the transferor’s deposit 16
accounts, deposits or other liability. 17
(d) Acquire the assets of any financial institution or any other 18
organization, person or entity. 19
Sec. 98. 1. Except as otherwise provided in this section, a 20
payments bank may go into voluntary liquidation pursuant to the 21
provisions of NRS 78.580 or 86.491. 22
2. If the voluntary liquidation of the payments bank results 23
from a vote or agreement of the stockholders or members of the 24
payments bank, a certified copy of all proceedings of th e meeting 25
at which that action is taken, verified by the oath of the president 26
or a manager, must be transmitted to the Commissioner for the 27
Commissioner’s approval. If the Commissioner approves the 28
liquidation, the Commissioner shall issue to the payments bank, 29
under the Commissioner’s seal, a permit for that purpose. No 30
permit may be issued by the Commissioner until the Commissioner 31
is satisfied that provision has been made by the payments bank to 32
satisfy and pay off all depositors and all creditors of th e payments 33
bank. If the Commissioner is not satisfied, the Commissioner shall 34
not issue a permit, but the Commissioner may take possession of 35
the payments bank, its assets and business, and liquidate the 36
payments bank in the manner provided by this chapter. 37
3. When the Commissioner approves the voluntary 38
liquidation of a payments bank pursuant to subsection 2, the 39
directors or managers of the payments bank shall cause to be 40
published, in a newspaper in the city, town or county in which the 41
corporate office of the payments bank is located, a notice that the 42
payments bank is closing its affairs and going into liquidation, 43
and that its depositors and creditors are to present their claims for 44
payment. 45

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- *AB500_R2*
4. When any payments bank is in the process of voluntary 1
liquidation, it is subject to examination by the Commissioner, and 2
the payments bank shall furnish such reports, from time to time, 3
as may be called for by the Commissioner. 4
5. All unclaimed deposits and dividends remaining in the 5
hands of the payments bank are subject to the provisions of this 6
chapter. 7
6. Any payments bank that is in the process of voluntary 8
liquidation may sell and transfer to any other state bank, national 9
bank or federal bank all or any portion of its assets of every kind 10
upon such terms as may be agreed upon and approved by the 11
Commissioner and by a majority vote of the payments bank’s 12
board of directors or of its managers. A certified copy of the 13
minutes of any meeting at which that action is taken, under the 14
oath of the president or a manager, and a copy of the contract of 15
sale and transfer must be filed with the Commissioner. 16
7. If a voluntary liquidation or the sale and transfer of the 17
assets of any payments bank is approved by the Commissioner, a 18
certified copy of that approv al under seal of the Commissioner, 19
filed in the Office of the Secretary of State, authorizes the 20
cancellation of the articles of incorporation or organization of the 21
payments bank, subject to its continued existence, as provided by 22
law. 23
Sec. 99. The provisions of sections 100 to 116, inclusive, of 24
this act apply to a payments bank whose deposit accounts are 25
insured by the Federal Deposit Insurance Corporation. 26
Sec. 100. 1. The Federal Depos it Insurance Corporation 27
created by the Federal Deposit Insurance Act, 12 U.S.C. § 1811, 28
may act without bond as receiver or liquidator of any payments 29
bank which: 30
(a) Has been closed because of inability to meet the demands 31
of its depositors; and 32
(b) Is insured by the Federal Deposit Insurance Corporation 33
and has been taken possession of by the Commissioner pursuant 34
to NRS 658.151. 35
2. The appropriate state authority having the right to appoint 36
a receiver or liquidator of a payments bank may, upon such 37
closing, tender to the Federal Deposit Insurance Corporation the 38
appointment as receiver or liquidator of such payments bank. If 39
the Federal Deposit Insurance Corporation accepts the 40
appointment, it shall have and possess all the powers and 41
privileges pro vided by the laws of this State with respect to a 42
receiver or liquidator, respectively, of a payments bank, its 43
depositors and other creditors, and is subject to all the duties of 44
such receiver or liquidator, except insofar as such powers, 45

– 32 –

- *AB500_R2*
privileges or du ties are in conflict with the provisions of the 1
Federal Deposit Insurance Act. 2
Sec. 101. Upon the acceptance of the appointment as 3
receiver or liquidator by the Federal Deposit Insurance 4
Corporation, the possession of and title to all the assets, business 5
and property of such payments bank of every kind and nature 6
shall pass to and vest in the Federal Deposit Insurance 7
Corporation without the execution of any instruments of 8
conveyance, assignment, transfer or endorsement. 9
Sec. 102. Among its other powers, the Federal Deposit 10
Insurance Corporation, in the performance of its powers and 11
duties as receiver or liquidator, may, upon the order of a court of 12
record of competent jurisdiction, enforce the individual liability of 13
the stockholde rs or members and directors or managers of any 14
such payments bank. 15
Sec. 103. 1. When any state payments bank has been closed 16
as provided in section 100 of this act, and the Federal Deposit 17
Insurance Corporation pays, or m akes available for payment, the 18
insured deposit liabilities of such closed payments bank, must be 19
subrogated to all rights against such closed bank of the owners of 20
such deposits in the same manner and to the same extent as the 21
subrogation of the Federal D eposit Insurance Corporation is 22
provided for in the Federal Deposit Insurance Act in the case of 23
the closing of a national bank. 24
2. The rights of depositors and other creditors of such closed 25
payments bank will be determined in accordance with the 26
applicable provisions of the laws of this State. 27
Sec. 104. 1. Any payments bank which is, or may hereafter 28
be, closed on account of inability to meet the demands of its 29
depositors, by action of the Commissioner, by action of a court, by 30
action of its directors or due to its insolvency or suspension, the 31
Commissioner, or the receiver or liquidator of the payments bank 32
with the permission of the Commissioner, may borrow from the 33
Federal Deposit Insurance Corporation and furnish a ny part or 34
all of the assets of the payments bank to the Federal Deposit 35
Insurance Corporation as security for a loan from it, but where 36
the Federal Deposit Insurance Corporation is acting as the 37
receiver or liquidator, the order of a court of record of co mpetent 38
jurisdiction must be first obtained approving the loan. 39
2. The Commissioner, or the receiver or liquidator of any 40
payments bank with the permission of the Commissioner, upon the 41
order of a court of record of competent jurisdiction, may sell to 42
the Federal Deposit Insurance Corporation any part or all of the 43
assets of the payments bank. 44

– 33 –

- *AB500_R2*
3. The provisions of this section do not limit the power of any 1
payments bank, the Commissioner, receivers or liquidators to 2
pledge or sell assets in accordance with any other existing law. 3
Sec. 105. 1. The Commissioner shall furnish to the Federal 4
Deposit Insurance Corporation, or to any official or examiner 5
thereof, a copy of all examinations made of any payments bank 6
and of all reports made by the payments bank. The Commissioner 7
shall give access to and disclose to the Federal Deposit Insurance 8
Corporation, or to any official or examiner thereof, all 9
information possessed by the office of the Division of Financial 10
Institutions with reference to the conditions or affairs of any 11
payments bank. 12
2. Nothing in this section limits: 13
(a) The duty of any payments bank in this State from 14
complying with the provisions of the Federal Deposit Insurance 15
Act, its amendments or substituti ons, or the requirements of the 16
Federal Deposit Insurance Corporation relative to examinations 17
and reports; or 18
(b) The powers of the Commissioner with reference to 19
examinations and reports pursuant to the provisions of chapters 20
657 to 671, inclusive, of NRS. 21
Sec. 106. All books, papers and records of a payments bank 22
which has been finally liquidated must be deposited by the receiver 23
in the Office of the Commissioner. 24
Sec. 107. 1. Except as otherwise provided in subsections 2 25
and 3, after the expiration of 10 years from the filing by the 26
Commissioner of a final report of liquidation of any insolvent 27
payments bank, the Commissioner, with the consent of the State 28
Board of Finance, may destro y the records of any insolvent 29
payments bank held in the Office of the Commissioner in 30
connection with the liquidation of the payments bank. 31
2. If there are any unpaid dividends of the insolvent payments 32
bank, the Commissioner shall preserve the deposit ledger or other 33
evidence of indebtedness of the payments bank which refers to the 34
unpaid dividends until the dividends have been paid. 35
3. The Commissioner may not destroy any of the formal 36
records of liquidation or any of the records made in the 37
Commissioner’s office with reference to the liquidation of any 38
insolvent payments bank. 39
Sec. 108. 1. Except as otherwise provided in subsection 2, if 40
any payments bank that has been or is appointed trustee in any 41
indenture, dee d of trust or other instrument of like character, 42
executed to secure the payment of any bonds, notes or other 43
evidences of indebtedness, is taken over for liquidation by the 44
Commissioner, by the Federal Deposit Insurance Corporation or 45

– 34 –

- *AB500_R2*
by any other legally constituted authority, the powers and duties of 1
the payments bank as trustee cease upon the entry of an order of 2
the district court appointing a successor trustee pursuant to a 3
petition as provided for in sections 109 to 114, inclusive, of this 4
act. 5
2. If an indenture, deed of trust or other instrument of like 6
character that appoints a payments bank as trustee pursuant to 7
subsection 1 includes a provision which provides for the 8
appointment of a successor trustee if the payments bank is taken 9
over for li quidation, the powers and duties of the payments bank 10
as trustee cease upon being taken over by the Commissioner, the 11
Federal Deposit Insurance Corporation or any other legally 12
constituted authority and the successor trustee named, or whose 13
selection is pr ovided for, in the instrument immediately assumes 14
the duties as trustee without appointment by the district court 15
pursuant to sections 109 to 114, inclusive, of this act. 16
Sec. 109. 1. In all cases to which subsection 1 of section 17
108 of this act is applicable, the district court for the county in 18
which such indenture, deed of trust or other instrument of like 19
character is recorded shall, upon the verified petition of any 20
person interested in any such trust, either as trustee, beneficiary or 21
otherwise, which interest must be set out in the petition, issue its 22
order directing service on all interested parties, personally or by 23
the publication in a newspaper published in the county, or in some 24
adjoining county if no newspaper is published in the county where 25
the application is made, of a notice directed to all persons 26
concerned, commanding and requiring all persons having any 27
interest in the trust, to appear in court on a day designated in the 28
order and notice, not less than 30 days after the date of the order 29
and notice, to show cause why a new trustee should not be 30
appointed. 31
2. Such notice must be published in the manner required by 32
the Nevada Rules of Civil Procedure for service of summons by 33
publication, and shall set forth the names of the parties to the 34
indenture, deed of trust or other such instrument, the date thereof, 35
and the place or places where such instrument is recorded. 36
Sec. 110. If, upon the day fixed in the order and notice, no 37
person appears and objects to the appointment of a substitute 38
trustee, the district court shall, upon such terms as it deems 39
advisable to serve the best interest of all interested parties, appoint 40
some competent person, or corporation authorized to act as a 41
trustee, as a substitute trustee. Such appointed trustee is vested 42
with and shall exercise all the powers conferred upon the trustee 43
named in the instrument. 44

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- *AB500_R2*
Sec. 111. If, upon the day fixed in the order and notice, 1
objection is made to the appointment of a new trustee, the court 2
shall hear and determine the matter. An appeal may be taken from 3
the decision of the court by any party who made an appearance in 4
the proceeding. 5
Sec. 112. The final order of appointment of any such new 6
trustee upon its entry must be recorded in the office of the county 7
recorder in the county or counties in which the instrument under 8
which such appointment has been made is recorded, and a minute 9
of the same must be entered by the county recorder on the margin 10
of the record where the original instrument is recorded. 11
Sec. 113. The petition and the order appointing such new 12
trustee may inclu de, relate to and apply to any number of 13
indentures, deeds of trust or other instruments, wherein the same 14
trustee is named. 15
Sec. 114. Sections 100 to 113, inclusive, of this act, are in 16
addition to and not in substitution for any other remedy provided 17
by law. 18
Sec. 115. If the Commissioner, the Federal Deposit 19
Insurance Corporation or any liquidating agent appointed 20
pursuant to the provisions of sections 100 to 105, inclusive, of this 21
act, exercises the power of sale set up in any mortgage, deed of 22
trust or other written instrument for the security of the payment of 23
money in which any payments bank then in liquidation was named 24
trustee, the exercise of the power of sale and the acts of resigning 25
the trust, of the Commissioner, the Federal Deposit Insurance 26
Corporation or the appointed liquidating agent have the same 27
effect as if done by the payments bank named as trustee in t he 28
mortgage, deed of trust or other instrument. 29
Sec. 116. When the Commissioner or the Federal Deposit 30
Insurance Corporation has taken possession of any payments 31
bank, the payments bank may, with the consent of the 32
Commissioner, resume business upon such terms and conditions 33
as may be approved by the Commissioner and the Federal Deposit 34
Insurance Corporation. 35
Sec. 117. 1. When any payments bank is authorized to 36
dissolve and has taken the n ecessary steps to effect dissolution in 37
accordance with the laws of this State or the laws of the United 38
States, but before actual dissolution, a majority of the directors or 39
managers of the payments bank, upon authority in writing of the 40
owners of two -thirds of its stock or two -thirds of the members’ 41
interests and with the approval of the Commissioner, may execute 42
articles of incorporation or organization as provided in this 43
chapter for the organization of a new payments bank. The articles 44

– 36 –

- *AB500_R2*
must further set forth the authority derived from the stockholders 1
or members of the payments bank. 2
2. Upon the filing of articles of incorporation or organization 3
in the same manner as provided for the organization of new 4
payments banks, the reorganized payments bank is a payments 5
bank under the laws of this State. Upon reorganization, all assets, 6
real and personal, of the dissolved payments bank, by operation of 7
law, vest in and become the property of the reorganized payments 8
bank, subject to all liabilities of the pa yments bank existing before 9
the reorganization. 10
Sec. 118. As used in sections 118 to 125, inclusive, of this 11
act, unless the context otherwise requires, the words and terms 12
defined in sections 119 to 123, inclusive, of thi s act have the 13
meanings ascribed to them in those sections. 14
Sec. 119. “Designated reporter” means a person designated 15
by a payments bank to receive reports of known or suspected 16
exploitation of an older person or vulnerabl e person pursuant to 17
section 125 of this act. 18
Sec. 120. “Exploitation” has the meaning ascribed to it in 19
NRS 200.5092. 20
Sec. 121. “Older person” has the meaning ascribed to it in 21
NRS 200.5092. 22
Sec. 122. “Reasonable cause to believe” has the meaning 23
ascribed to it in NRS 200.50925. 24
Sec. 123. “Vulnerable person” has the meaning ascribed to it 25
in NRS 200.5092. 26
Sec. 124. 1. Each payments bank shall provide training 27
concerning the identification and reporting of the suspected 28
exploitation of an older person or vulnerable person to each 29
director, officer and employee of the payments bank who: 30
(a) May, as part of his or her regular duties for the payments 31
bank, come into direct contact with an older person or vulnerable 32
person; or 33
(b) May review or approve the financial documents, records or 34
transactions of an older person or vulnerable person in 35
connection with providing financial services to the older person or 36
vulnerable person. 37
2. The training required pursuant to subsection 1 must be 38
provided as soon as reasonably practicable, but not later than 6 39
months after the director, officer or employee is employed by the 40
payments bank or assumes the position. 41
3. The training required pursuant to subsection 1 must 42
include, without limitation: 43
(a) An explanation of the conduct which constitutes 44
exploitation of an older person or vulnerable person; 45

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- *AB500_R2*
(b) The manner in which exploitation of an older person or 1
vulnerable person may be recognized; 2
(c) Information concerning the manner in which reports of 3
exploitation are investigated; and 4
(d) Instruction concerning when and how to report known or 5
suspected exploitation of an older person or vulnerable person. 6
4. A director, officer or employee who has observed or has 7
knowledge of an incident that is directly related to a transaction or 8
matter which is within his or her scope of practice and wh ich 9
reasonably appears to be exploitation of an older person or 10
vulnerable person shall report the known or suspected exploitation 11
to the designated reporter. 12
Sec. 125. 1. Each payments bank shall designate a person 13
or persons to whom a director, officer or employee of the payments 14
bank must report known or suspected exploitation of an older 15
person or vulnerable person. 16
2. If a director, officer or employee reports known or 17
suspected exploitation of an older person or vulnerable person to a 18
designated reporter and, based on such a report or based on his or 19
her own observations or knowledge, the designated reporter knows 20
or has reasonable cause to believe that an older person or 21
vulnerable person has been exploited, the des ignated reporter 22
shall: 23
(a) Except as otherwise provided in subsection 3, report the 24
known or suspected exploitation of the older person or vulnerable 25
person to: 26
(1) The local office of the Aging and Disability Services 27
Division of the Department of Health and Human Services; 28
(2) A police department or sheriff’s office; 29
(3) The county’s office for protective services, if one exists 30
in the county where the suspected action occurred; or 31
(4) A toll -free telephone service designated by the Aging 32
and Disability Services Division of the Department of Health and 33
Human Services; and 34
(b) Make such a report as soon as reasonably practicable. 35
3. If the designated reporter knows or has reasonable cause 36
to believe that the exploitation of the older person or vulnerable 37
person involves an act or omission of the Aging and Disability 38
Services Division, another division of the Department of Health 39
and Human Services or a law enforcement agency, the designated 40
reporter shall make the report to an agency other th an the one 41
alleged to have committed the act or omission. 42
4. In accordance with the provisions of subsection 3 of NRS 43
239A.070, in making a report pursuant to this section, a 44
designated reporter may: 45

– 38 –

- *AB500_R2*
(a) Disclose any facts or information that form the b asis of the 1
determination that the designated reporter knows or has 2
reasonable cause to believe that an older person or vulnerable 3
person has been exploited, including, without limitation, the 4
identity of any person believed to be involved in the exploitat ion of 5
the older person or vulnerable person; and 6
(b) Provide any financial records or other documentation 7
relating to the exploitation of the older person or vulnerable 8
person. 9
5. A director, officer, employee and the designated reporter 10
are entitled t o the immunity from liability set forth in NRS 11
200.5096 for making a report in good faith. 12
Sec. 126. (Deleted by amendment.) 13
Sec. 127. (Deleted by amendment.) 14
Sec. 128. NRS 657.037 is hereby amended to read as follows: 15
657.037 “Depository institution” means any bank, savings and 16
loan association, savings bank, thrift company, credit union , 17
payments bank or other institution, whether chartered by this State, 18
another state or the Federal Government, which: 19
1. Holds or receives deposits, savings or share accounts; 20
2. Issues certificates of deposit; or 21
3. Provides to its customers other depository accounts which 22
are subject to withdrawal by checks, drafts or other instruments or 23
by electronic means to effect payment to a third party. 24
Sec. 128.5. NRS 658.055 is hereby amended to read as 25
follows: 26
658.055 1. The Commissioner may appoint deputy 27
commissioners of financial institutions, examiners, assistants, 28
clerks, stenographers and other employees necessary to assist the 29
Commissioner in the performance of the Commissioner’s duties 30
pursuant to this title or any other law. These employees shall 31
perform such duties as are assigned to them by the Commissioner. 32
2. The Commissioner shall employ a certified public 33
accountant to review and conduct independent audits and 34
examinations of financial institutions. The Commissioner shall levy 35
an assessment upon each licensed financial institution , other than a 36
payments bank licensed pursuant to the chapter consisting of 37
sections 2 to 127, inclusive, of this act, to cover all of the costs 38
related to the employment of the certified public accountant and the 39
performance of the audits and examinations. 40
3. Assessments collected by the Commissioner pursuant to 41
subsection 2 must be deposited in the State Treasury for credit to the 42
Account for Auditing Financial Institutions, which is hereby created 43
in the State Ge neral Fund. Money in the Account may be used by 44
the Commissioner or for any purpose authorized by the Legislature. 45

– 39 –

- *AB500_R2*
The Commissioner may advance money from the Account, for the 1
purposes specified in subsection 2. 2
Sec. 129. (Deleted by amendment.) 3
Sec. 129.5. NRS 658.101 is hereby amended to read as 4
follows: 5
658.101 1. The Commissioner shall establish by regulation 6
rates to be paid by banks and other financial institutions for 7
supervision and examinations by the Commissioner or the Division 8
of Financial Institutions. 9
2. In establishing a rate pursuant to subsection 1, the 10
Commissioner shall consider: 11
(a) The complexity of the various examinations to which the rate 12
applies; 13
(b) The skill required to conduct the examinations; 14
(c) The expenses associated with conducting the examination 15
and preparing a report; and 16
(d) Any other factors the Commissioner deems relevant. 17
3. At least once each year, the Commissioner shall review and 18
analyze the proportional utilization of the resources of the Division 19
of Financial Institutions by banks and other financial institutions as 20
compared to the annual budget approved by the Legislature for the 21
Division of Financial Institutions. If after such review and analysis 22
the Commissioner deems it necessary, the Commissioner shall 23
adjust by regulation the rates established pursuant to subsection 1. 24
4. The Commissioner shall publish on the Internet website of 25
the Division of Financial Institutions by December 31 of each year 26
the amount of each fee for the following year that results from the 27
rates established and, if applicable, adjusted pursuant to this section. 28
5. As used in this section, “financial institution” means a 29
depository institution or any other institution or business regulated 30
by the Division of Financial Institutions pursuant to titles 52, 54 and 31
55 of NRS [.] , other than a payments bank regulated by the 32
Division of Financial Institutions pursuant to the chapter 33
consisting of sections 2 to 127 , inclusive, of this act. The term 34
includes, without limitation, a holding company, affiliate or 35
subsidiary of such an institution. 36
Sec. 130. NRS 659.125 is hereby amended to read as follows: 37
659.125 1. A business entity may not be organized under the 38
laws of this State with the words “bank” or “banking” as part of its 39
name except corporations or limited -liability companies subject to 40
regulation pursuant to chapters 657 to 668, inclusive, 673 or 677 of 41
NRS, and the chapter consisting of sections 2 to 127, inclusive, of 42
this act or corporations under the regulation of the Commissioner of 43
Insurance. A corporate or company name must not be amended to 44

– 40 –

- *AB500_R2*
include the words “bank” or “banking” unless the corporatio n or 1
company is under such regulation. 2
2. Except as otherwise provided in subsection 3, a natural 3
person, association, firm or corporation domiciled within this State, 4
except a national bank or a banking corporation subject to regulation 5
pursuant to chapters 657 to 668, inclusive, 673 or 677 of NRS, and 6
the chapter consisting of sections 2 to 127, inclusive, of this act or 7
under the regulation of the Commissioner of Insurance, may not 8
advertise or put forth any sign as bank, banking or banker or use the 9
word “bank,” “banking” or “banker” as part of its name and title. 10
3. A thrift company subject to the provisions of chapter 677 of 11
NRS may use the words “savings bank” as part of its name if its 12
deposits are federally insured. 13
4. Any person who violates any of the provisions of this 14
section shall be fined not more than $500 for each offense. 15
Sec. 131. NRS 671.020 is hereby amended to read as follows: 16
671.020 Except as otherwise provided in NRS 671.155, this 17
chapter does not apply to any: 18
1. Federally insured depository financial institution, privately 19
insured depository financial institution, bank holding company or 20
any subsidiary thereof, office of an international banking 21
corporation, foreign bank that establishes a federal branch pursuant 22
to 12 U.S.C. § 3102, as amended, corporation organization pursuant 23
to 12 U.S.C. §§ 1861 to 1867, inclusive, as amended, or corporation 24
organized pursuan t to 12 U.S.C. §§ 611 to 633, inclusive, as 25
amended, under the laws of a state or of the United States. 26
2. Operator of a payment system to the extent that it provides 27
processing, clearing or settlement services between or among 28
persons exempted pursuant to this section or licensees in connection 29
with wire transfers, credit card transactions, debit card transactions, 30
stored value transactions, automated clearinghouse transfers or 31
similar transfers of money. 32
3. Person appointed as an agent of a payee to collect and 33
process a payment from a payor to the payee for goods or services, 34
other than money transmission, provided to the payor by the payee, 35
so long as: 36
(a) A written agreement exists between the payee and the agent 37
directing the agent to collect and process payments from payors on 38
behalf of the payee; 39
(b) The payee holds the agent out to the public as accepting 40
payments for goods or services on behalf of the payee; and 41
(c) Payment for the goods and services is treated as received by 42
the payee upon receipt by the agent so that the obligation of the 43
payor is extinguished and there is no risk of loss to the payor if the 44
agent fails to remit the money to the payee. 45

– 41 –

- *AB500_R2*
4. Person that acts as an intermediary by processing payments 1
between an entity that h as directly incurred an outstanding money 2
transmission obligation to a sender and the designated recipient of 3
the sender, so long as the entity: 4
(a) Is a licensee or exempt from licensure pursuant to this 5
chapter; 6
(b) Provides a receipt, electronic reco rd or other written 7
confirmation to the sender identifying the entity as the provider of 8
money transmission in the transaction; and 9
(c) Bears sole responsibility to satisfy the outstanding money 10
transmission obligation to the sender, including, without li mitation, 11
the obligation to make the sender whole in connection with any 12
failure to transmit the money to the designated recipient of the 13
sender. 14
5. Department, agency, instrumentality or agent of the United 15
States. 16
6. State, county, city or any other governmental agency, 17
subdivision, instrumentality or agent of a state. 18
7. Money transmission by the United States Postal Service or 19
by an agent of the United States Postal Service. 20
8. Trust company that is licensed or otherwise authorized to 21
engage in the business of a trust company in this State pursuant to 22
chapter 669 of NRS. 23
9. Electronic money transfer of governmental benefits for a 24
federal, state, county or governmental agency by a contractor on 25
behalf of the United States or a department, agenc y or 26
instrumentality thereof or on behalf of a state or governmental 27
subdivision, agency or instrumentality thereof. 28
10. Board of trade designated as a contract market under the 29
Commodity Exchange Act, 7 U.S.C. §§ 1 et seq., as amended, or a 30
person that , in the ordinary course of business, provides clearance 31
and settlement services for a board of trade to the extent of its 32
operation as or for the board of trade. 33
11. Registered futures commission merchant under the federal 34
commodities laws to the extent of its operation as such a merchant. 35
12. Person registered as a securities broker-dealer under federal 36
or state securities laws to the extent of the operations of the person 37
as such a securities broker-dealer. 38
13. Natural person employed by a licensee, authorized delegate 39
or any person exempt from licensure pursuant to this section when 40
acting within the scope of employment and under the supervision of 41
the licensee, authorized delegate or exempt person as an employee 42
and not as an independent contractor. 43

– 42 –

- *AB500_R2*
14. Person expressly appointed as a third -party service 1
provider to or agent of an entity exempt pursuant to subsection 1 to 2
the extent that: 3
(a) The third -party service provider or agent is engaging in 4
money transmission on behalf of and pursuant t o a written 5
agreement with the exempt entity that sets forth the specific 6
functions that the third-party service provider or agent is to perform; 7
and 8
(b) The exempt entity assumes all risk of loss and legal 9
responsibility for satisfying the outstanding money transmission 10
obligations owed to purchasers and holders of the outstanding 11
money transmission obligations upon receipt by the third -party 12
service provider of the money or monetary value of the purchaser or 13
holder. 14
15. Employer who performs payroll services on his or her own 15
behalf or on behalf of an affiliate of an employer. 16
16. Professional employer organization, as defined in NRS 17
611.400, who performs payroll services. 18
17. Provider who is licensed pursuant to chapter 604D of NRS. 19
18. Payments bank licensed pursuant to the chapter 20
consisting of sections 2 to 127, inclusive, of this act. 21
19. Person exempt by regulation or order of the Commissioner 22
pursuant to NRS 671.0205. 23
Sec. 132. NRS 52.450 is hereby amended to read as follows: 24
52.450 As used in NRS 52.450 to 52.480, inclusive, unless the 25
context otherwise requires: 26
1. “Banking or financial institution” means any bank, savings 27
and loan association, savings bank, thrift company , [or] credit union 28
or payments bank licensed to do business as such in this State or 29
any other state. 30
2. “Custodian of the records of a banking or financial 31
institution” means an employee or agent of a banking or financial 32
institution who has the care, custody and control of the records of 33
the banking or financial institution. 34
3. “Records of a banking or financial institution” means 35
memoranda, reports, records or compilations of data in any form 36
which are kept in the course of an activity which is regularly 37
conducted by a banking or financial institution. 38
Sec. 133. NRS 78.020 is hereby amended to read as follows: 39
78.020 1. Trust companies, insurance companies, mutual fire 40
insurance companies, surety companies, express companies and 41
railroad companies may be formed under this chapter, but such a 42
corporation may not: 43

– 43 –

- *AB500_R2*
(a) Transact any such business within this State until it has first 1
complied with all laws concerning or affecting the right to engage in 2
such business. 3
(b) Infringe the laws of any other state or country in which it 4
may intend to engage in business, by so incorporating under this 5
chapter. 6
2. No savings and loan association, savings bank, thrift 7
company , payments bank or corporation organized for the purpose 8
of conducting a banking business may be organized under this 9
chapter. 10
Sec. 134. NRS 78.045 is hereby amended to read as follows: 11
78.045 1. The Secretary of State shall not accept for filing 12
any articles of incorporation or any certificate of amendment of 13
articles of incorporation of any corporation formed pursuant to the 14
laws of this State which provides that the name of the corporation 15
contains the word “bank” or “trust,” unless: 16
(a) It appears from the articles or the certifi cate of amendment 17
that the corporation proposes to carry on business as a banking or 18
trust company, exclusively or in connection with its business as a 19
bank, savings and loan association, savings bank , [or] thrift 20
company [;] or payments bank; and 21
(b) The articles or certificate of amendment is first approved by 22
the Commissioner of Financial Institutions. 23
2. The Secretary of State shall not accept for filing any articles 24
of incorporation or any certificate of amendment of articles of 25
incorporation of an y corporation formed pursuant to the provisions 26
of this chapter if it appears from the articles or the certificate of 27
amendment that the business to be carried on by the corporation is 28
subject to supervision by the Commissioner of Insurance or by the 29
Commissioner of Financial Institutions, unless the articles or 30
certificate of amendment is approved by the Commissioner who will 31
supervise the business of the corporation. 32
3. Except as otherwise provided in subsection 7, the Secretary 33
of State shall not accep t for filing any articles of incorporation or 34
any certificate of amendment of articles of incorporation of any 35
corporation formed pursuant to the laws of this State if the name of 36
the corporation contains the words “engineer,” “engineered,” 37
“engineering,” “professional engineer,” “registered engineer” or 38
“licensed engineer” unless: 39
(a) The State Board of Professional Engineers and Land 40
Surveyors certifies that the principals of the corporation are licensed 41
to practice engineering pursuant to the laws of this State; or 42
(b) The State Board of Professional Engineers and Land 43
Surveyors certifies that the corporation is exempt from the 44
prohibitions of NRS 625.520. 45

– 44 –

- *AB500_R2*
4. Except as otherwise provided in subsection 7, the Secretary 1
of State shall not accept for fil ing any articles of incorporation or 2
any certificate of amendment of articles of incorporation of any 3
corporation formed pursuant to the laws of this State if the name of 4
the corporation contains the words “architect,” “architecture,” 5
“registered architect ,” “licensed architect,” “registered interior 6
designer,” “registered interior design,” “residential designer,” 7
“registered residential designer,” “licensed residential designer” or 8
“residential design” unless the State Board of Architecture, Interior 9
Design and Residential Design certifies that: 10
(a) The principals of the corporation are holders of a certificate 11
of registration to practice architecture or residential design or to 12
practice as a registered interior designer, as applicable, pursuant to 13
the laws of this State; or 14
(b) The corporation is qualified to do business in this State 15
pursuant to NRS 623.349. 16
5. The Secretary of State shall not accept for filing any articles 17
of incorporation or any certificate of amendment of articles of 18
incorporation of any corporation formed pursuant to the laws of this 19
State which provides that the name of the corporation contains the 20
word “accountant,” “accounting,” “accountancy,” “auditor” or 21
“auditing” unless the Nevada State Board of Accountancy certifies 22
that the corporation: 23
(a) Is registered pursuant to the provisions of chapter 628 of 24
NRS; or 25
(b) Has filed with the Nevada State Board of Accountancy under 26
penalty of perjury a written statement that the corporation is not 27
engaged in the practice of accounting and is not offering to practice 28
accounting in this State. 29
6. The Secretary of State shall not accept for filing any articles 30
of incorporation or any certificate of amendment of articles of 31
incorporation of any corporation formed or existing pursuant to t he 32
laws of this State which provides that the name of the corporation 33
contains the words “common -interest community,” “community 34
association,” “master association,” “unit -owners’ association” or 35
“homeowners’ association” or if it appears in the articles of 36
incorporation or certificate of amendment that the purpose of the 37
corporation is to operate as a unit -owners’ association pursuant to 38
chapter 116 or 116B of NRS unless the Administrator of the Real 39
Estate Division of the Department of Business and Industr y certifies 40
that the corporation has: 41
(a) Registered with the Ombudsman for Owners in Common -42
Interest Communities and Condominium Hotels pursuant to NRS 43
116.31158 or 116B.625; and 44

– 45 –

- *AB500_R2*
(b) Paid to the Administrator of the Real Estate Division the fees 1
required pursuant to NRS 116.31155 or 116B.620. 2
7. The provisions of subsections 3 and 4 do not apply to any 3
corporation, whose securities are publicly traded and regulated by 4
the Securities Exchange Act, which does not engage in the practice 5
of professional en gineering, architecture or residential design or 6
interior design, as applicable. 7
8. The Commissioner of Financial Institutions and the 8
Commissioner of Insurance may approve or disapprove the articles 9
or amendments referred to them pursuant to the provisi ons of this 10
section. 11
Sec. 135. NRS 111.711 is hereby amended to read as follows: 12
111.711 “Financial institution” means an organization 13
authorized to do business under state or federal laws relating to 14
financial institutio ns and includes a bank, thrift company, trust 15
company, savings bank, building and loan association, savings and 16
loan company or association , [and] credit union [.] and payments 17
bank. 18
Sec. 136. NRS 162A.520 is hereby amended to read as 19
follows: 20
162A.520 1. Unless the power of attorney otherwise 21
provides, language in a power of attorney granting general authority 22
with respect to banks and other financial institutions authorizes the 23
agent to: 24
(a) Continue, modify and terminate an account or other banking 25
arrangement made by or on behalf of the principal; 26
(b) Establish, modify and terminate an account or other banking 27
arrangement with a bank, trust company, savings and loan 28
association, savings bank, credit union, thr ift company, payments 29
bank, brokerage firm or other financial institution selected by the 30
agent; 31
(c) Contract for services available from a financial institution, 32
including renting a safe deposit box or space in a vault; 33
(d) Withdraw, by check, order, el ectronic funds transfer or 34
otherwise, money or property of the principal deposited with or left 35
in the custody of a financial institution; 36
(e) Receive statements of account, vouchers, notices and similar 37
documents from a financial institution and act with respect to them; 38
(f) Enter a safe deposit box or vault and withdraw or add to the 39
contents; 40
(g) Borrow money and pledge as security personal property of 41
the principal necessary to borrow money or pay, renew or extend the 42
time of payment of a debt of the principal or a debt guaranteed by 43
the principal; 44

– 46 –

- *AB500_R2*
(h) Make, assign, draw, endorse, discount, guarantee and 1
negotiate promissory notes, checks, drafts and other negotiable or 2
nonnegotiable paper of the principal or payable to the principal or 3
the principal ’s order, transfer money, receive the cash or other 4
proceeds of those transactions, and accept a draft drawn by a person 5
upon the principal and pay it when due; 6
(i) Receive for the principal and act upon a sight draft, 7
warehouse receipt or other document of title whether tangible or 8
electronic, or other negotiable or nonnegotiable instrument; 9
(j) Apply for, receive and use letters of credit, credit and debit 10
cards, electronic transaction authorizations and traveler’s checks 11
from a financial institution an d give an indemnity or other 12
agreement in connection with letters of credit; and 13
(k) Consent to an extension of the time of payment with respect 14
to commercial paper or a financial transaction with a financial 15
institution. 16
2. An agent who is not the spou se of the principal must not be 17
listed on any account as a cosigner with right of survivorship, but 18
must be listed on the account solely as power of attorney. 19
Sec. 137. NRS 239.010 is hereby amended to read as follows: 20
239.010 1. Except as otherwise provided in this section and 21
NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.0397, 41.071, 49.095, 22
49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 23
62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 24
80.113, 81.85 0, 82.183, 86.246, 86.54615, 87.515, 87.5413, 25
87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 26
88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 27
116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 28
119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.640, 29
120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 30
127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 31
130.712, 136.050, 159.044, 159A.044, 164.041, 172.075, 172.245, 32
176.01334, 176.01385, 176.015, 17 6.0625, 176.09129, 176.156, 33
176A.630, 178.39801, 178.4715, 178.5691, 178.5717, 179.495, 34
179A.070, 179A.165, 179D.160, 180.600, 200.3771, 200.3772, 35
200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 36
209.3925, 209.419, 209.429, 209.521, 211A.140, 213. 010, 213.040, 37
213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 38
218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 218G.615, 39
224.240, 226.462, 226.796, 228.270, 228.450, 228.495, 228.570, 40
231.069, 231.1285, 231.1473, 232.1369, 233.190, 237.300 , 41
239.0105, 239.0113, 239.014, 239B.026, 239B.030, 239B.040, 42
239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 43
239C.420, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 44
244.335, 247.540, 247.545, 247.550, 247.560, 250.087, 250.130, 45

– 47 –

- *AB500_R2*
250.140, 250.145, 250.150, 268.095, 268.0978, 268.490, 268.910, 1
269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 2
281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 284.4086, 3
286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 289.830, 4
293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 5
293.906, 293.908, 293.909, 293.910, 293B.135, 293D.510, 331.110, 6
332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 7
338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 8
353A.049, 353A.085, 353 A.100, 353C.240, 353D.250, 360.240, 9
360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 10
366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 11
379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 12
387.631, 388.1455, 388.259, 388.5 01, 388.503, 388.513, 388.750, 13
388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 14
391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 15
392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 16
394.1698, 394.447, 394.460, 394.465, 396.1415, 396.1425, 396.143, 17
396.159, 396.3295, 396.405, 396.525, 396.535, 396.9685, 18
398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 19
414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 20
425.400, 427A.1236, 427A.872, 427A.940, 432.028, 432.205, 21
432B.175, 432B.280, 432B.290, 432B.4018, 432B.407, 432B.430, 22
432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 23
439.4941, 439.4988, 439.5282, 439.840, 439.914, 439A.116, 24
439A.124, 439B.420, 439B.754, 439B.760, 439B.845, 440.170, 25
441A.195, 441A.220 , 441A.230, 442.330, 442.395, 442.735, 26
442.774, 445A.665, 445B.570, 445B.7773, 449.209, 449.245, 27
449.4315, 449A.112, 450.140, 450B.188, 450B.805, 453.164, 28
453.720, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 29
459.846, 463.120, 463.15993, 463.240 , 463.3403, 463.3407, 30
463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 31
481.091, 481.093, 482.170, 482.368, 482.5536, 483.340, 483.363, 32
483.575, 483.659, 483.800, 484A.469, 484B.830, 484B.833, 33
484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 34
571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 35
598A.420, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 36
604D.500, 604D.600, 612.265, 616B.012, 616B.015, 616B.315, 37
616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 38
624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 39
628B.760, 629.043, 629.047, 629.069, 630.133, 630.2671, 40
630.2672, 630.2673, 630.2687, 630.30665, 630.336, 630A.327, 41
630A.555, 631.332, 631.368, 632.121, 632.125, 632.3415, 42
632.3423, 632.405, 633.283, 633.301, 633.427, 633.4715, 633.4716, 43
633.4717, 633.524, 634.055, 634.1303, 634.214, 634A.169, 44
634A.185, 634B.730, 635.111, 635.158, 636.262, 636.342, 637.085, 45

– 48 –

- *AB500_R2*
637.145, 637B.192, 637B.288, 638.087, 638.089, 639.183, 1
639.2485, 639.570, 640.075, 640. 152, 640A.185, 640A.220, 2
640B.405, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 3
640C.760, 640D.135, 640D.190, 640E.225, 640E.340, 641.090, 4
641.221, 641.2215, 641A.191, 641A.217, 641A.262, 641B.170, 5
641B.281, 641B.282, 641C.455, 641C.760, 641D.260, 641 D.320, 6
642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 7
645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 8
645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 9
648.033, 648.197, 649.065, 649.067, 652.126, 652.228, 653.900, 10
654.110, 6 56.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 11
669.285, 669A.310, 670B.680, 671.365, 671.415, 673.450, 673.480, 12
675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 13
678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 14
679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 15
681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 16
687A.060, 687A.115, 687B.404, 687C.010, 688C.230, 688C.480, 17
688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 18
692C.3538, 692C.354, 692C.420, 6 93A.480, 693A.615, 696B.550, 19
696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 20
711.600, and section 86 of this act, sections 35, 38 and 41 of 21
chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, 22
Statutes of Nevada 2013 and unless othe rwise declared by law to be 23
confidential, all public books and public records of a governmental 24
entity must be open at all times during office hours to inspection by 25
any person, and may be fully copied or an abstract or memorandum 26
may be prepared from thos e public books and public records. Any 27
such copies, abstracts or memoranda may be used to supply the 28
general public with copies, abstracts or memoranda of the records or 29
may be used in any other way to the advantage of the governmental 30
entity or of the general public. This section does not supersede or in 31
any manner affect the federal laws governing copyrights or enlarge, 32
diminish or affect in any other manner the rights of a person in any 33
written book or record which is copyrighted pursuant to federal law. 34
2. A governmental entity may not reject a book or record 35
which is copyrighted solely because it is copyrighted. 36
3. A governmental entity that has legal custody or control of a 37
public book or record shall not deny a request made pursuant to 38
subsection 1 to inspect or copy or receive a copy of a public book or 39
record on the basis that the requested public book or record contains 40
information that is confidential if the governmental entity can 41
redact, delete, conceal or separate, including, without limitat ion, 42
electronically, the confidential information from the information 43
included in the public book or record that is not otherwise 44
confidential. 45

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- *AB500_R2*
4. If requested, a governmental entity shall provide a copy of a 1
public record in an electronic format by mea ns of an electronic 2
medium. Nothing in this subsection requires a governmental entity 3
to provide a copy of a public record in an electronic format or by 4
means of an electronic medium if: 5
(a) The public record: 6
(1) Was not created or prepared in an electronic format; and 7
(2) Is not available in an electronic format; or 8
(b) Providing the public record in an electronic format or by 9
means of an electronic medium would: 10
(1) Give access to proprietary software; or 11
(2) Require the production of information that is confidential 12
and that cannot be redacted, deleted, concealed or separated from 13
information that is not otherwise confidential. 14
5. An officer, employee or agent of a governmental entity who 15
has legal custody or control of a public record: 16
(a) Shall not refuse to provide a copy of that public record in the 17
medium that is requested because the officer, employee or agent has 18
already prepared or would prefer to provide the copy in a different 19
medium. 20
(b) Except as otherwise provided in NRS 23 9.030, shall, upon 21
request, prepare the copy of the public record and shall not require 22
the person who has requested the copy to prepare the copy himself 23
or herself. 24
Sec. 138. NRS 239A.030 is hereby amended to read as 25
follows: 26
239A.030 “Financial institution” means any banking 27
corporation, trust company, savings and loan association, savings 28
bank, thrift company , [or] credit union or payments bank subject to 29
regulation under the laws of this state. 30
Sec. 138.3. 1. There is hereby appropriated from the State 31
General Fund to the Division of Financial Institutions of the 32
Department of Business and Industry for personnel, operating, 33
equipment and information services costs as sociated with carrying 34
out the provisions of this act the following sums: 35
For the Fiscal Year 2025-2026 ............................... $3,035,862 36
For the Fiscal Year 2026-2027 ............................... $2,778,095 37
2. Any balance of the sums appropriated by subsection 1 38
remaining at the end of the respective fis cal years must not be 39
committed for expenditure after June 30 of the respective fiscal 40
years by the entity to which the appropriation is made or any entity 41
to which money from the appropriation is granted or otherwise 42
transferred in any manner, and any por tion of the appropriated 43
money remaining must not be spent for any purpose after 44
September 18, 2026, and September 17, 2027, respectively, by 45

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- *AB500_R2*
either the entity to which the money was appropriated or the entity 1
to which the money was subsequently granted o r transferred, and 2
must be reverted to the State General Fund on or before 3
September 18, 2026, and September 17, 2027, respectively. 4
Sec. 138.7. The Commissioner of Financial Institutions shall, 5
on or before December 31, 2026, prepare and submit a written 6
report describing the activities of the Division of Financial 7
Institutions of the Department of Business and Industry relating to 8
the licensure of payments banks and the implementation of the 9
provisions of this act to th e Director of the Legislative Counsel 10
Bureau for transmittal to the 84th Session of the Legislature. 11
Sec. 139. 1. This section becomes effective upon passage 12
and approval. 13
2. Sections 1 to 138, inclusive, and 138.7 of this act become 14
effective: 15
(a) Upon passage and approval for the purpose of adopting any 16
regulations and performing any other preparatory administrative 17
tasks that are necessary to carry out the provisions of this act; and 18
(b) On October 1, 2025, for all other purposes. 19
3. Section 138.3 of this act becomes effective on July 1, 2025. 20

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