IN AN ORDER concluding that "emergency circumstances exists which pose a risk to public welfare," state Financial Institutions Division Acting Commissioner Steve Kondrup issued an order May 17th suspending the license of Trust Company of the Pacific, a Nevada limited liability company at 3525 E. Harmon Avenue, Las Vegas.

Division examiners discovered evidence that the company is undercapitalized, including a negative balance sheet with a shortfall of over $1,700 in equity. Nevada law provides that trust companies cannot be organized or operated with stockholder equity of less than $300,000.

Examiners also discovered that Trust Company of the Pacific had been making loans, specifically a $1 million loan to Oceanside Developments S.S. De C.V. Trust companies are prohibited from engaging in any banking business by accepting deposits or making loans in Nevada.

Trust Company of the Pacific has 20 days to respond to the state's complaint and request a hearing. After that, Kondrup can take the company into receivership to liquidate assets, revoke the license and impose a fine up to $10,000 for each violation without further notice.