Existing law provides for the regulation and oversight of certain credit unions by the Commissioner of Financial Institutions. (Chapter 672 of NRS) Section 2 of this bill authorizes the Commissioner to issue an order which temporarily suspends a regulation of the Commissioner relating to credit unions for not more than 90 days: (1) during a state of emergency or declaration of disaster; or (2) if the Commissioner determines the order is in the public interest. Section 2 requires: (1) such an order to contain certain information and meet certain requirements; and (2) the Commissioner to provide written notice and a copy of any such order to any credit union subject to the authority of the Commissioner. Section 15 of this bill exempts any order issued by the Commissioner pursuant to section 2 from the requirements of the Nevada Administrative Procedure Act. Existing law requires an application which is submitted to the Secretary of State to organize a credit union to establish the par value of the shares, which must be $5 or some multiple thereof. (NRS 672.310) Section 3 of this bill reduces the required par value to $1 or some multiple thereof. Section 9 of this bill authorizes the bylaws of the credit union to: (1) specify a dollar amount for the par value of a share; or (2) require the par value of a share to be determined from time to time by resolution of the board of directors. Section 1 of this bill authorizes a credit union that qualifies for designation as a low-income credit union to issue shares to nonmembers under certain circumstances. Existing law authorizes a credit union to maintain an office at a location other than the main office, with the approval of the Commissioner, if the office is reasonably necessary to furnish service to its members. (NRS 672.330) Section 4 of this bill: (1) removes the requirement to determine whether an office is reasonably necessary to furnish such service; and (2) requires the Commissioner to approve or deny any application to open an additional office within 60 days after receiving the application. Existing law requires vacancies in the board of directors of a credit union to be filled by vote of the members of the credit union at the annual meeting or at a special meeting called for that purpose. Existing law also authorizes the board to temporarily fill such a vacancy until the next annual meeting or special meeting. (NRS 672.350) Section 5 of this bill authorizes the board to fill such a vacancy for the remainder of the unexpired term, after which the seat is required to be filled by vote of the members of the credit union according to the established procedures of the credit union for nomination and election. Existing law requires the board of directors of a credit union to meet not less than once a month. (NRS 672.360) Section 6 of this bill requires the board to meet not less than six times during each calendar year, including not less than one time during each calendar quarter. Section 6 also authorizes the Commissioner to require the board to meet more frequently if the Commissioner determines it is necessary to address matters relating to an examination. Finally, section 6 authorizes the board to conduct a meeting through certain electronic means under certain circumstances. Section 10 of this bill similarly authorizes members of a credit union to participate in a meeting through certain electronic means under certain circumstances. Existing law authorizes the board of directors to appoint membership officers from the members of the credit union to act upon membership applications. (NRS 672.380) Section 7 of this bill authorizes the board to appoint officers, directors or employees of the credit union to act as membership officers. Existing law requires the membership of a particular credit union to be limited to certain persons, including those who have: (1) paid the entrance fee provided in the bylaws; and (2) subscribed for one or more shares and have paid the initial installment thereon. (NRS 672.510) Section 8 of this bill authorizes a credit union to pay such an entrance fee, cost of shares or initial installment for a prospective member under certain circumstances if such a promotion is equally available to any prospective member. Existing law sets forth requirements relating to the regular reserves of a credit union. (NRS 672.670) Section 11 of this bill removes those specific requirements and instead requires a credit union to comply with certain provisions of federal regulations. Existing law authorizes a credit union to make loans to members under certain circumstances. (NRS 672.710) Section 12 of this bill revises certain requirements for the making of loans and authorizes a nonmember to participate in an obligation or extension of credit to a member, under certain circumstances, as a joint applicant, joint obligor, co-borrower, surety or guarantor. Existing law authorizes a credit union to make certain investments with money not used in loans to members. (NRS 672.760) Section 13 of this bill adds, under certain circumstances, municipal bonds which are issued by a public entity outside of this State to the list of permissible investments a credit union may make. Section 13 also authorizes the Commissioner to adopt regulations or give written authorization upon request of a particular credit union which authorize a credit union to make other investments. Section 14 of this bill: (1) removes certain limitations on a credit union regarding investing in fixed assets; and (2) authorizes a credit union to purchase, hold and dispose of property necessary or incidental to the operations of the credit union in compliance with certain federal regulations.

Statutes affected:
As Introduced: 672.250, 672.310, 672.330, 672.350, 672.360, 672.380, 672.510, 672.530, 672.550, 672.670, 672.710, 672.760, 672.765, 233B.039
BDR: 672.250, 672.310, 672.330, 672.350, 672.360, 672.380, 672.510, 672.530, 672.550, 672.670, 672.710, 672.760, 672.765, 233B.039