NRS 226.781 Board of Directors: Powers; duties; limitations on conduct of Bank.

1,141 words·~5 min read·/nv/chapter-226-state-treasurer/226-781

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. The Board of Directors may:

(a)Make, and from time to time amend and repeal, bylaws not inconsistent with NRS 226.700 to 226.832 , inclusive, to carry into effect the powers and purposes of NRS 226.700 to 226.832 , inclusive.

(b)Sue and be sued in the name of the Bank.

(c)Have a seal and alter the same at the pleasure of the Board of Directors, but the failure to affix the seal does not affect the validity of an instrument executed on behalf of the Bank.

(d)Make loans to qualified borrowers to finance all or part of the eligible costs of a qualified project.

(e)Provide qualified borrowers with other financial assistance necessary to defray all or part of the eligible costs of a qualified project.

(f)Acquire, hold and sell loan obligations at such prices and in such a manner as the Board of Directors deems advisable.

(g)Enter into contracts, arrangements and agreements with qualified borrowers and other persons and execute and deliver all financing agreements and other instruments necessary or convenient to carry out the powers and duties of the Board of Directors.

(h)Enter into agreements with a department, agency or instrumentality of the United States or governmental unit of this State or another state for the purpose of providing for the financing of qualified projects.

(i)Establish:

(1)Policies and procedures to govern the selection of qualified projects and the issuance and administration of loans and other financial assistance provided by the Bank; and

(2)Fiscal controls and accounting procedures to ensure proper accounting and reporting by the Bank and qualified borrowers.

(j)Acquire, by purchase, lease, donation or other lawful means, real or personal property and any interest therein.

(k)Sell, convey, pledge, lease, exchange, transfer and dispose of all or any part of the property and assets of the Bank.

(l)Procure insurance, guarantees, letters of credit and other forms of collateral or security or credit support for the payment of bonds or other securities issued by the Bank and the payment of premiums or fees on such insurance, guarantees, letters of credit and other forms of collateral or security or credit support.

(m)Collect or authorize the trustee under any trust indenture that secures any bonds or other securities issued by the Bank to collect amounts due from a qualified borrower under any loan obligation owned by the Bank, including, without limitation, taking any lawful action required to obtain payment of any sums in default.

(n)Unless restricted by the terms of an agreement with the holders of bonds or other securities issued by the Bank, consent to any modification of the terms of any loan obligations owned by the Bank, including, without limitation, the rate of interest, period of repayment and payment of any installment of principal or interest.

(o)Borrow money through the issuance of bonds and other securities as provided in NRS 226.700 to 226.832 , inclusive.

(p)Incur expenses to obtain accounting, management, legal or financial consulting and other professional services necessary to the operations of the Bank.

(q)To the extent that money is available from public or private sources of administrative costs, pay any costs incurred for the administration of the operations of the Bank.

(r)Establish advisory committees, which may include persons from the private sector with civil engineering, banking and financial expertise.

(s)Procure insurance against losses in connection with the Bank’s property, assets or activities, including, without limitation, insurance against liability for any act of the Bank or its employees or agents, or establish cash reserves to enable the Bank to act as a self-insurer against such losses.

(t)Impose and collect fees and charges in connection with the activities of the Bank.

(u)Apply for, receive and accept from any source aid grants or contributions of money, property, labor or other things of value to be used to carry out the statutory purposes and powers of the Bank.

(v)Enter into contracts, arrangements or agreements for the servicing and processing of financial agreements.

(w)Accept and hold, with payment of interest, money deposited with the Bank.

(x)Request technical advice, support and assistance pursuant to NRS 226.832 .

(y)Do all other things necessary or convenient to exercise any power granted or reasonably implied by NRS 226.700 to 226.832 , inclusive.

2. Except as otherwise provided in NRS 226.700 to 226.832 , inclusive, the Bank may exercise any fiscal power granted to the Bank in NRS 226.700 to 226.832 , inclusive, without the review or approval of any other department, division or agency of the State or any political subdivision thereof, except for the Board of Directors.

3. In exercising the powers and performing the functions set forth in NRS 226.700 to 226.832 , inclusive, the members of the Board of Directors:

(a)Must act in a commercially reasonable manner and in the interests of this State. For the purposes of this paragraph, the interests of this State include, without limitation, the public welfare and economy of this State and the long-term and short-term interests of this State.

(b)May, unless a member of the Board of Directors has knowledge concerning a matter in question that would cause reliance thereon to be unwarranted, rely on information, opinions, reports, books of account or statements, including, without limitation, financial statements and other financial data, that are prepared or presented by:

(1)One or more members of the Board of Directors or officers or employees of the Bank reasonably believed to be reliable and competent in the matters prepared or presented;

(2)Counsel, public accountants, financial advisers, valuation advisers, investment bankers, engineers, architects or other persons as to matters reasonably believed to be within the professional or expert competence of the preparer or presenter; or

(3)A committee on which the director or officer relying thereon does not serve, as to matters within the designated authority of the committee and matters on which the committee is reasonably believed to merit confidence.

4. This section does not authorize the Bank to be or conduct business as a:

(a)Bank or trust company within the jurisdiction of chapters 657 to 671 , inclusive, of NRS or under the control of an agency of the United States or this State; or

(b)Bank, banker or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange or securities dealers’ laws of the United States or of this State.

5. The Bank must, before accepting a deposit from any person or governmental unit, provide a notice to the depositor stating that the deposit is not insured by the Federal Deposit Insurance Corporation.

6. The provisions of titles 55 and 57 of NRS do not apply to the Bank.