NRS 668.045 Receiving deposits in insolvent banks with knowledge of insolvency; unfair preference to creditor; penalty.

378 words·~2 min read·/nv/chapter-668-prohibited-practices-and-penalties/668-045·

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

1. It is unlawful for a president, director, manager, cashier or other officer or employee of any bank to permit the bank to remain open for business, or to assent to the reception of deposits or the creation of debts by the banking institution, after he or she has knowledge of the fact that it is insolvent or in failing circumstances. An officer, director, manager or agent of a bank shall examine the affairs of the bank and shall know its condition. Upon the failure of any such person to discharge his or her duty of examination, that person must be held, for the purpose of chapters 657 to 671 , inclusive, of NRS, to have had knowledge of the insolvency of the bank, or that it was in failing circumstances, and shall be deemed to have assented to the receipt of deposits while the bank was insolvent or in failing circumstances.

A person who violates the provisions of this subsection is individually responsible for deposits so received, and all such debts so contracted, but any director who has paid more than his or her share of such liabilities has a remedy at law against other persons who have not paid their full share of such liabilities for contribution.

2. It is unlawful for a president, director, manager, cashier or other officer or employee of any bank willfully to give or concur in giving to a creditor of the bank any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, or by changing the nature of his or her claim, or otherwise, but this subsection does not prohibit the bank from giving security for public money of the State of Nevada or any political subdivision thereof, or of the United States, or an officer, agent, agency or department thereof, in the manner provided by law.

3. A person who violates the provisions of this section, or who is an accessory to, or permits or connives at, the receiving or accepting of any such deposits, or the giving of such preferences, is guilty of a category D felony and shall be punished as provided in NRS 193.130 .