2023 Nevada Revised Statutes › Chapter 671 - Money Transmission › NRS 671.135 - Permissible investments: Types; limitations.

1. The following are permissible investments for the purposes of NRS 671.125:
(a) Cash, including demand deposits, savings deposits and money in accounts held for the benefit of the customers of the licensee in a federally insured depository financial institution or privately insured depository financial institution;
(b) Cash equivalents, including, without limitation, automated clearinghouse items in transit to the licensee and automated clearinghouse items or international wires in transit to a payee, cash in transit by means of an armored car, cash in smart safes, cash in locations owned by the licensee, transmission receivables which are funded by a debit card or credit card and owed by any bank or money market mutual funds rated "AAA" by Standard and Poor’s Rating Services or the equivalent from any eligible rating service;
(c) Certificates of deposit or senior debt obligation of an insured depository institution, as defined in 12 U.S.C. § 1813, as amended, insured credit union, as defined in 12 U.S.C. § 1752, as amended, or privately insured financial depository institution;
(d) An obligation of the United States or a commission, agency or instrumentality thereof;
(e) An obligation that is guaranteed fully as to principal and interest by the United States;
(f) An obligation of a state or a governmental subdivision, agency or instrumentality thereof;
(g) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the Division of Financial Institutions and which:
(1) Stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain money up to the letter of credit amount within 7 days of presentation of the items required by NRS 671.145; and
(2) Satisfies the requirements set forth in NRS 671.145; and
(h) One hundred percent of the surety bond or deposit provided pursuant to NRS 671.100 or 671.110 that exceeds the average daily money transmission liability in this State.
2. Except as otherwise provided in subsection 3, the following investments are permissible investments subject to the limitations set forth in this subsection:
(a) Receivables that are payable to a licensee from the authorized delegates of the licensee in the ordinary course of business that are less than 7 days old, except that:
(1) The total value of all such receivables may not exceed 50 percent of the aggregate value of the total permissible investments of the licensee; and
(2) The value of such receivables that are payable to a licensee from a single authorized delegate may not exceed 10 percent of the aggregate value of the total permissible investments of a licensee;
(b) Any of the following investments:
(1) A short-term investment of 6 months or less bearing an eligible rating;
(2) Commercial paper bearing an eligible rating;
(3) A bill, note, bond or debenture bearing an eligible rating;
(4) United States tri-party repurchase agreements collateralized at 100 percent or more with securities of the United States or an agency of the United States, municipal bonds or other securities bearing an eligible rating;
(5) Money market mutual funds rated "A-" or higher but less than "AAA" by Standard and Poor’s Rating Services or the equivalent from any other eligible rating service; and
(6) A mutual fund or other investment fund composed solely and exclusively of one or more investments specified in paragraphs (a) to (f), inclusive, of subsection 1,
except that the value of any single investment specified in subparagraphs (1) to (6), inclusive, may not exceed 20 percent of the aggregate value of the total permissible investments of the licensee and the total value of all such investments may not exceed 50 percent of the total permissible investments of the licensee; and
(c) Cash, including, without limitation, demand deposits, savings deposits and funds in such accounts held for the benefit of the customers of the licensee, at a foreign depository institution if the licensee has received a satisfactory rating on the most recent examination conducted on the licensee and the foreign depository institution:
(1) Has an eligible rating;
(2) Has registered with the Internal Revenue Service and obtained a global intermediary identification number in accordance with 26 C.F.R. §§ 1.1471-0 et seq.;
(3) Is not located in any country subject to sanctions from the Office of Foreign Assets Control of the United States Department of the Treasury; and
(4) Is not located in a jurisdiction that is listed on the list of high-risk jurisdictions subject to a call for action or jurisdictions under increased monitoring maintained by the Financial Action Task Force,
except that the total amount of such cash may not exceed 10 percent of the aggregate value of the total permissible investments of the licensee.
3. The Commissioner may allow any investment specified in subsection 2 to exceed the limits prescribed in that subsection.
(Added to NRS by 2023, 106)