Nrs: Chapter 604A - Deferred Deposit Loans, High-Interest Loans, Title Loans And Check-Cashing Services

Link to law: https://www.leg.state.nv.us/NRS/NRS-604A.html
Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
[Rev. 11/21/2013 12:32:41

PM--2013]



CHAPTER 604A - DEFERRED DEPOSIT LOANS,

HIGH-INTEREST LOANS, TITLE LOANS AND CHECK-CASHING SERVICES

GENERAL PROVISIONS

NRS 604A.010        Definitions.

NRS 604A.015        “Automated

loan machine” defined.

NRS 604A.020        “Cashing”

defined.

NRS 604A.025        “Check”

defined.

NRS 604A.030        “Check-cashing

service” defined.

NRS 604A.035        “Commissioner”

defined.

NRS 604A.040        “Customer”

defined.

NRS 604A.045        “Default”

defined.

NRS 604A.050        “Deferred

deposit loan” defined.

NRS 604A.055        “Deferred

deposit loan service” defined.

NRS 604A.060        “Electronic

transfer of money” defined.

NRS 604A.065        “Extension”

defined.

NRS 604A.070        “Grace

period” defined.

NRS 604A.0703      “High-interest

loan” defined.

NRS 604A.0705      “High-interest

loan service” defined.

NRS 604A.075        “Licensee”

defined.

NRS 604A.080        “Loan”

defined.

NRS 604A.085        “Refund

anticipation loan” defined.

NRS 604A.090        “Regulation

Z” defined.

NRS 604A.105        “Title

loan” defined.

NRS 604A.110        “Title

loan service” defined.

NRS 604A.115        “Title

to a vehicle” or “title” defined.

NRS 604A.120        “Truth

in Lending Act” defined.

NRS 604A.125        “Vehicle”

defined.

NRS 604A.150        Additional

terms defined under federal law; calculation of amount financed, annual

percentage rate and finance charge.

SCOPE AND APPLICABILITY

NRS 604A.200        Application

of chapter to persons who seek to evade its provisions.

NRS 604A.210        Chapter

does not prohibit licensee from offering customer grace period.

NRS 604A.220        Uniformity

of application and construction; resolution of conflicts.

NRS 604A.230        Effect

of amendment or repeal of chapter on preexisting lawful contracts.

NRS 604A.240        Collection

of loans made outside State.

NRS 604A.250        Exemptions

from chapter.

NRS 604A.260        Applicability

of enforcement provisions of chapter.

ADMINISTRATION

NRS 604A.300        Regulations.

NRS 604A.310        Certain

relationships between employees of Division of Financial Institutions and

licensees prohibited; duty to terminate prohibited relationships.

REGULATION OF BUSINESS PRACTICES

NRS 604A.400        Unlawful

acts; criminal penalties.

NRS 604A.402        Commissioner

required to investigate alleged violations of chapter.

NRS 604A.405        Required

notices and disclosures.

NRS 604A.407        Determination

of whether loan is high-interest loan.

NRS 604A.408        Limitations

on original term of deferred deposit and high-interest loans.

NRS 604A.410        Written

loan agreement required; contents.

NRS 604A.415        Collection

of defaulted loan; civil action to collect debt; venue.

NRS 604A.420        Practices

regarding customers who are members of military.

NRS 604A.425        Prohibited

acts by licensee regarding amount of loan.

NRS 604A.430        Prohibited

acts by licensee regarding multiple loans to same customer.

NRS 604A.435        Prohibited

acts by licensee: Accepting certain collateral or other types of security;

failing to make certain disclosures; taking incomplete instruments; requiring

the purchase of insurance or other goods or services; failing to comply with

payment plan; charging fee to cash certain checks.

NRS 604A.440        Prohibited

acts by licensee: Improper lending and collection practices; deceptive trade

practices; false, misleading and deceptive advertising; using agent, affiliate

or subsidiary to avoid requirements or prohibitions of chapter.

NRS 604A.442        Violation

of federal law constitutes violation of chapter.

NRS 604A.445        Title

loans: Restrictions on duration of loan and periods of extension.

NRS 604A.450        Title

loans: Prohibited acts by licensee regarding amount of loan and customer’s

ability to repay loan.

NRS 604A.455        Title

loans: Applicability of Uniform Commercial Code; repossession of vehicle; civil

action.

NRS 604A.460        Rescission

of loan by customer.

NRS 604A.465        Payment

of loan in full.

NRS 604A.470        Partial

payment on loan.

NRS 604A.475        Repayment

plan.

NRS 604A.480        Limitations

on using proceeds of new loan to pay balance of outstanding loan; exceptions.

NRS 604A.485        Limitations

on amounts licensee may collect after default.

NRS 604A.487        Limitations

on fees licensees may charge after default on installment payments.

NRS 604A.490        Limitations

on fees licensee may collect for check not paid upon presentment or failure of

electronic transfer of money; standards for civil liability and criminal

prosecution.

NRS 604A.495        Receipt

required for each payment by customer; contents.

NRS 604A.500        Requirements

regarding person acting as agent or assisting in making loan.

LICENSING

NRS 604A.600        Application

for license.

NRS 604A.605        Additional

materials to be submitted with application; grounds for denial of license.

NRS 604A.610        Surety

bond.

NRS 604A.615        Deposit

of securities in lieu of surety bond.

NRS 604A.620        Application

for license for office or other place of business located outside State.

NRS 604A.625        Investigation

of applicant; notice; hearing; order.

NRS 604A.630        Procedure

upon denial of license.

NRS 604A.635        Issuance

of license; display of license; issuance of additional licenses for branch

locations; contents of license; license not transferable or assignable.

NRS 604A.640        Expiration,

renewal and reinstatement of license; fees.

NRS 604A.645        Change

of control of licensee: Notice; application to Commissioner.

NRS 604A.650        Licensee

must conduct business in accordance with license; approval of business name;

prohibition against using misleading or confusing business name or printed

forms.

NRS 604A.655        Restrictions

on location where licensee may conduct business; requirements to conduct

business at same location as mortgage broker, mortgage banker or pawnbroker.

NRS 604A.660        Change

of address by licensee: Notice; approval by Commissioner; penalty for failure

to provide required notice.

RECORDS, REPORTS AND EXAMINATIONS

NRS 604A.700        Required

books and records.

NRS 604A.710        Investigation

of businesses; examination of books and records by Commissioner.

NRS 604A.720        Authority

of Commissioner to require attendance of witnesses and production of books and

records.

NRS 604A.730        Annual

examinations by Commissioner; exceptions.

NRS 604A.740        Fees

for regulatory activities; penalties for failure to pay fees.

NRS 604A.750        Annual

report by licensee; composite reports.

NRS 604A.760        Fees

for failure to submit reports.

DISCIPLINARY ACTION

NRS 604A.800        Temporary

suspension of license: Conditions; notice; hearing; terms of suspension.

NRS 604A.810        Order

to desist and refrain; action to enjoin violation; appointment of receiver.

NRS 604A.820        Procedure

for taking disciplinary action; authorized disciplinary action; grounds.

NRS 604A.830        Additional

grounds for disciplinary action.

NRS 604A.840        Surrender

of license by licensee; effect of surrender.

NRS 604A.850        Preexisting

contracts unaffected by revocation, suspension, expiration or surrender of

license.

REMEDIES AND PENALTIES

NRS 604A.900        Remedies

for certain willful violations.

NRS 604A.910        Administrative

fines for unlicensed activity.

NRS 604A.920        Other

remedies for unlicensed activity.

NRS 604A.930        Civil

action.

NRS 604A.940        Exercise

of jurisdiction over party to civil action; service of summons to confer

jurisdiction.

_________

_________

 

GENERAL PROVISIONS

      NRS 604A.010  Definitions.  As

used in this chapter, unless the context otherwise requires, the words and

terms defined in NRS 604A.015 to 604A.125, inclusive, have the meanings ascribed to

them in those sections.

      (Added to NRS by 2005, 1683; A 2007, 931)

      NRS 604A.015  “Automated loan machine” defined.

      1.  “Automated loan machine” means any

machine or other device, regardless of the name given to it or the technology

used, that:

      (a) Is automated;

      (b) Is designed or intended to allow a customer,

without any additional assistance from another person, to receive or attempt to

receive a deferred deposit loan or high-interest loan through the machine or

other device; and

      (c) Is set up, installed, operated or maintained

by or on behalf of the person making the loan or any agent, affiliate or

subsidiary of the person.

      2.  The term does not include any machine

or other device used directly by a customer to access the Internet unless the

machine or other device is made available to the customer by the person making

the loan or any agent, affiliate or subsidiary of the person.

      (Added to NRS by 2005, 1683; A 2007, 931)

      NRS 604A.020  “Cashing” defined.  “Cashing”

means providing currency or a negotiable instrument in exchange for a check.

      (Added to NRS by 2005, 1684)

      NRS 604A.025  “Check” defined.

      1.  “Check” means:

      (a) A draft, other than a documentary draft,

payable on demand and drawn on a bank; or

      (b) A cashier’s check or teller’s check.

      2.  An instrument may be a check even though

it is described on its face by another term, such as “money order.”

      (Added to NRS by 2005, 1684)

      NRS 604A.030  “Check-cashing service” defined.  “Check-cashing

service” means any person engaged in the business of cashing checks for a fee,

service charge or other consideration.

      (Added to NRS by 2005, 1684)

      NRS 604A.035  “Commissioner” defined.  “Commissioner”

means the Commissioner of Financial Institutions.

      (Added to NRS by 2005, 1684)

      NRS 604A.040  “Customer” defined.  “Customer”

means any person who receives or attempts to receive check-cashing services,

deferred deposit loan services, high-interest loan services or title loan

services from another person.

      (Added to NRS by 2005, 1684; A 2007, 932)

      NRS 604A.045  “Default” defined.

      1.  “Default” means the failure of a

customer to:

      (a) Make a scheduled payment on a loan on or

before the due date for the payment under the terms of a lawful loan agreement

and any grace period that complies with the provisions of NRS 604A.210 or under the terms of any lawful

extension or repayment plan relating to the loan and any grace period that

complies with the provisions of NRS 604A.210; or

      (b) Pay a loan in full on or before:

             (1) The expiration of the initial loan

period as set forth in a lawful loan agreement and any grace period that

complies with the provisions of NRS 604A.210; or

             (2) The due date of any lawful extension

or repayment plan relating to the loan and any grace period that complies with

the provisions of NRS 604A.210, provided that the

due date of the extension or repayment plan does not violate the provisions of

this chapter.

      2.  A default occurs on the day immediately

following the date of the customer’s failure to perform as described in

subsection 1.

      (Added to NRS by 2005, 1684)

      NRS 604A.050  “Deferred deposit loan” defined.  “Deferred

deposit loan” means a transaction in which, pursuant to a loan agreement:

      1.  A customer tenders to another person:

      (a) A personal check drawn upon the account of

the customer; or

      (b) Written authorization for an electronic

transfer of money for a specified amount from the account of the customer; and

      2.  The other person:

      (a) Provides to the customer an amount of money

that is equal to the face value of the check or the amount specified in the

written authorization for an electronic transfer of money, less any fee charged

for the transaction; and

      (b) Agrees, for a specified period, not to cash

the check or execute an electronic transfer of money for the amount specified

in the written authorization.

      (Added to NRS by 2005, 1684)

      NRS 604A.055  “Deferred deposit loan service” defined.  “Deferred deposit loan service” means any

person engaged in the business of making deferred deposit loans for a fee,

service charge or other consideration.

      (Added to NRS by 2005, 1684)

      NRS 604A.060  “Electronic transfer of money” defined.  “Electronic

transfer of money” means any transfer of money, other than a transaction

initiated by a check or other similar instrument, that is initiated through an

electronic terminal, telephone, computer or magnetic tape for the purpose of

ordering, instructing or authorizing a financial institution to debit or credit

an account.

      (Added to NRS by 2005, 1684)

      NRS 604A.065  “Extension” defined.

      1.  “Extension” means any extension or

rollover of a loan beyond the date on which the loan is required to be paid in

full under the original terms of the loan agreement, regardless of the name

given to the extension or rollover.

      2.  The term does not include a grace

period.

      (Added to NRS by 2005, 1685)

      NRS 604A.070  “Grace period” defined.  “Grace

period” means any period of deferment offered gratuitously by a licensee to a

customer if the licensee complies with the provisions of NRS 604A.210.

      (Added to NRS by 2005, 1685)

      NRS 604A.0703  “High-interest loan” defined.

      1.  “High-interest loan” means a loan made

to a customer pursuant to a loan agreement which, under its original terms,

charges an annual percentage rate of more than 40 percent.

      2.  The term includes, without limitation,

any single-payment loan, installment loan or open-ended loan which, under its

original terms, charges an annual percentage rate of more than 40 percent.

      3.  The term does not include:

      (a) A deferred deposit loan;

      (b) A refund anticipation loan; or

      (c) A title loan.

      (Added to NRS by 2007, 930)

      NRS 604A.0705  “High-interest loan service” defined.  “High-interest

loan service” means any person engaged in the business of providing

high-interest loans for a fee, service charge or other consideration.

      (Added to NRS by 2007, 930)

      NRS 604A.075  “Licensee” defined.  “Licensee”

means any person who has been issued one or more licenses to operate a

check-cashing service, deferred deposit loan service, high-interest loan

service or title loan service pursuant to the provisions of this chapter.

      (Added to NRS by 2005, 1685; A 2007, 932)

      NRS 604A.080  “Loan” defined.  “Loan”

means any deferred deposit loan, high-interest loan or title loan, or any

extension or repayment plan relating to such a loan, made at any location or

through any method, including, without limitation, at a kiosk, through the

Internet, through any telephone, facsimile machine or other telecommunication

device or through any other machine, network, system, device or means.

      (Added to NRS by 2005, 1685; A 2007, 932)

      NRS 604A.085  “Refund anticipation loan” defined.  “Refund

anticipation loan” means a loan offered or made to a taxpayer by a lender or

through a facilitator based on the taxpayer’s anticipated federal income tax

refund.

      (Added to NRS by 2005, 1685)

      NRS 604A.090  “Regulation Z” defined.  “Regulation

Z” means the federal regulations, as amended, 12 C.F.R. Part 226, adopted

pursuant to the Truth in Lending Act and commonly known as Regulation Z.

      (Added to NRS by 2005, 1685)

      NRS 604A.105  “Title loan” defined.

      1.  “Title loan” means a loan made to a

customer pursuant to a loan agreement which, under its original terms:

      (a) Charges an annual percentage rate of more

than 35 percent; and

      (b) Requires the customer to secure the loan by either:

             (1) Giving possession of the title to a

vehicle legally owned by the customer to the licensee or any agent, affiliate

or subsidiary of the licensee; or

             (2) Perfecting a security interest in the

vehicle by having the name of the licensee or any agent, affiliate or

subsidiary of the licensee noted on the title as a lienholder.

      2.  The term does not include a loan which

creates a purchase-money security interest in a vehicle or the refinancing of

any such loan.

      (Added to NRS by 2005, 1685; A 2007, 932)

      NRS 604A.110  “Title loan service” defined.  “Title

loan service” means any person engaged in the business of providing title loans

for a fee, service charge or other consideration.

      (Added to NRS by 2005, 1686)

      NRS 604A.115  “Title to a vehicle” or “title” defined.  “Title to a vehicle” or “title” means a

certificate of title or ownership issued pursuant to the laws of this State

that identifies the legal owner of a vehicle or any similar document issued

pursuant to the laws of another jurisdiction.

      (Added to NRS by 2005, 1686)

      NRS 604A.120  “Truth in Lending Act” defined.  “Truth

in Lending Act” means the federal Truth in Lending Act, as amended, 15 U.S.C.

§§ 1601 et seq.

      (Added to NRS by 2005, 1686)

      NRS 604A.125  “Vehicle” defined.

      1.  “Vehicle” means any vehicle, whether or

not self-propelled, that is designed or intended for land transportation if the

legal owner of the vehicle is required to have a title.

      2.  The term includes, without limitation:

      (a) Passenger vehicles;

      (b) Recreational vehicles; and

      (c) House trailers and travel trailers.

      3.  The term does not include:

      (a) Farm vehicles;

      (b) Vehicles of a common or contract carrier;

      (c) Commercial vehicles;

      (d) Construction vehicles;

      (e) Military vehicles;

      (f) Vehicles used exclusively upon stationary

rails or tracks; or

      (g) Any other vehicles which are similar in

nature to the vehicles listed in paragraphs (a) to (f), inclusive, and which

the Commissioner, by regulation, excludes from the definition of “vehicle.”

      (Added to NRS by 2005, 1686)

      NRS 604A.150  Additional terms defined under federal law; calculation of

amount financed, annual percentage rate and finance charge.

      1.  As used in this chapter, unless the

context otherwise requires, the following terms have the meanings ascribed to

them in the Truth in Lending Act and Regulation Z:

      (a) “Amount financed.”

      (b) “Annual percentage rate.”

      (c) “Finance charge.”

      (d) “Payment schedule.”

      (e) “Total of payments.”

      2.  For the purposes of this chapter,

proper calculation of the amount financed, annual percentage rate and finance

charge for a loan must be made in accordance with the Truth in Lending Act and

Regulation Z.

      (Added to NRS by 2005, 1686)

SCOPE AND APPLICABILITY

      NRS 604A.200  Application of chapter to persons who seek to evade its

provisions.  The provisions of this

chapter apply to any person who seeks to evade its application by any device,

subterfuge or pretense, including, without limitation:

      1.  Calling a loan by any other name;

      2.  Using any agents, affiliates or

subsidiaries in an attempt to avoid the application of the provisions of this

chapter; or

      3.  Having any affiliation or other

business arrangement with an entity that is exempt from the provisions of this

chapter pursuant to subsection 1 of NRS 604A.250,

the effect of which is to evade the provisions of this chapter, including,

without limitation, making a loan while purporting to be the agent of such an

exempt entity where the purported agent holds, acquires or maintains a

preponderant economic interest in the revenues generated by the loan.

      (Added to NRS by 2005, 1686; A 2007, 932)

      NRS 604A.210  Chapter does not prohibit licensee from offering customer grace

period.  The provisions of this

chapter do not prohibit a licensee from offering a customer a grace period on

the repayment of a loan or an extension of a loan, except that the licensee

shall not charge the customer:

      1.  Any fees for granting such a grace

period; or

      2.  Any additional fees or additional

interest on the outstanding loan during such a grace period.

      (Added to NRS by 2005, 1686)

      NRS 604A.220  Uniformity of application and construction; resolution of

conflicts.

      1.  The provisions of this chapter must be

interpreted so as to effectuate their general purpose to provide for, to the

extent practicable, uniform regulation of the loans and transactions that are

subject to the provisions of this chapter.

      2.  If there is a conflict between the

provisions of this chapter and the provisions of any other general law regulating

loans and similar transactions, the provisions of this chapter control.

      (Added to NRS by 2005, 1686)

      NRS 604A.230  Effect of amendment or repeal of chapter on preexisting lawful

contracts.  This chapter or any

part thereof may be modified, amended or repealed by the Legislature so as to

effect a cancellation or alteration of any license or right of a licensee under

this chapter, provided that such cancellation or alteration shall not impair or

affect the obligation of any preexisting lawful loan agreement between any

licensee and any customer.

      (Added to NRS by 2005, 1687)

      NRS 604A.240  Collection of loans made outside State.  Any

loan lawfully made outside this State as permitted by the laws of the state in

which the loan was made may be collected or otherwise enforced in this State in

accordance with its terms.

      (Added to NRS by 2005, 1687)

      NRS 604A.250  Exemptions from chapter.  The

provisions of this chapter do not apply to:

      1.  Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the

authority of any law of this State or of the United States relating to banks,

national banking associations, savings banks, trust companies, savings and loan

associations, credit unions, mortgage brokers, mortgage bankers, thrift

companies or insurance companies, including, without limitation, any affiliate

or subsidiary of such a person regardless of whether the affiliate or

subsidiary is a bank.

      2.  A person who is primarily engaged in

the retail sale of goods or services who:

      (a) As an incident to or independently of a

retail sale or service, from time to time cashes checks for a fee or other

consideration of not more than $2; and

      (b) Does not hold himself or herself out as a

check-cashing service.

      3.  A person while performing any act

authorized by a license issued pursuant to chapter

671 of NRS.

      4.  A person who holds a nonrestricted

gaming license issued pursuant to chapter 463

of NRS while performing any act in the course of that licensed operation.

      5.  A person who is exclusively engaged in

a check-cashing service relating to out-of-state checks.

      6.  A corporation organized pursuant to the

laws of this State that has been continuously and exclusively engaged in a

check-cashing service in this State since July 1, 1973.

      7.  A pawnbroker, unless the pawnbroker

operates a check-cashing service, deferred deposit loan service, high-interest

loan service or title loan service.

      8.  A real estate investment trust, as

defined in 26 U.S.C. § 856.

      9.  An employee benefit plan, as defined in

29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the

plan’s trustee.

      10.  An attorney at law rendering services

in the performance of his or her duties as an attorney at law if the loan is

secured by real property.

      11.  A real estate broker rendering

services in the performance of his or her duties as a real estate broker if the

loan is secured by real property.

      12.  Any firm or corporation:

      (a) Whose principal purpose or activity is

lending money on real property which is secured by a mortgage;

      (b) Approved by the Federal National Mortgage

Association as a seller or servicer; and

      (c) Approved by the Department of Housing and

Urban Development and the Department of Veterans Affairs.

      13.  A person who provides money for investment

in loans secured by a lien on real property, on his or her own account.

      14.  A seller of real property who offers

credit secured by a mortgage of the property sold.

      15.  A person who makes a refund

anticipation loan, unless the person operates a check-cashing service, deferred

deposit loan service, high-interest loan service or title loan service.

      (Added to NRS by 2005, 1687; A 2007, 933; 2013, 1249)

      NRS 604A.260  Applicability of enforcement provisions of chapter.  All provisions of this chapter governing

enforcement or collection of an obligation originated under this chapter apply

to:

      1.  Any purchaser or assignee of the

obligation; and

      2.  Any person seeking to enforce or

collect the obligation on behalf of a licensee.

      (Added to NRS by 2007, 931)

ADMINISTRATION

      NRS 604A.300  Regulations.

      1.  The Commissioner may establish by

regulation the fees that a licensee who provides check-cashing services may

impose for cashing checks.

      2.  The Commissioner shall adopt any other

regulations as are necessary to carry out the provisions of this chapter.

      (Added to NRS by 2005, 1688)

      NRS 604A.310  Certain relationships between employees of Division of Financial

Institutions and licensees prohibited; duty to terminate prohibited

relationships.

      1.  Except as otherwise provided in

subsection 3, an officer or employee of the Division of Financial Institutions

of the Department of Business and Industry shall not:

      (a) Be directly or indirectly interested in or

act on behalf of any licensee;

      (b) Receive, directly or indirectly, any payment

from any licensee;

      (c) Be indebted to any licensee;

      (d) Engage in the negotiation of loans for others

with any licensee; or

      (e) Obtain credit or services from a licensee

conditioned upon a fraudulent practice or undue or unfair preference over other

customers.

      2.  An employee of the Division of

Financial Institutions in the unclassified service of the State shall not

obtain new extensions of credit from a licensee while in office.

      3.  Any officer or employee of the Division

of Financial Institutions may be indebted to a licensee on the same terms as

are available to the public generally.

      4.  If an officer or employee of the

Division of Financial Institutions has a service, a preferred consideration, an

interest or a relationship prohibited by this section at the time of his or her

appointment or employment, or obtains it during his or her employment, he or

she shall terminate it within 120 days after the date of his or her appointment

or employment or the discovery of the prohibited act.

      (Added to NRS by 2005, 1705)

REGULATION OF BUSINESS PRACTICES

      NRS 604A.400  Unlawful acts; criminal penalties.

      1.  A person, including, without

limitation, a person licensed pursuant to chapter

675 of NRS, shall not operate a check-cashing service, deferred deposit

loan service, high-interest loan service or title loan service unless the

person is licensed with the Commissioner pursuant to the provisions of this

chapter.

      2.  A person must have a license regardless

of the location or method that the person uses to operate such a service,

including, without limitation, at a kiosk, through the Internet, through any

telephone, facsimile machine or other telecommunication device or through any

other machine, network, system, device or means, except that the person shall

not operate such a service through any automated loan machine in violation of

the provisions of subsection 3.

      3.  A person shall not operate a deferred

deposit loan service or high-interest loan service through any automated loan

machine, and the Commissioner shall not issue a license that authorizes the

licensee to conduct business through any automated loan machine.

      4.  Any person, and any member, officer,

director, agent or employee thereof, who violates or participates in the

violation of any provision of this section is guilty of a misdemeanor.

      (Added to NRS by 2005, 1688; A 2005, 22nd

Special Session, 97; 2007, 934)

      NRS 604A.402  Commissioner required to investigate alleged violations of

chapter.  If the Commissioner

receives information from a registered agent pursuant to NRS 77.410 which indicates that a person

may be violating the provisions of this chapter, the Commissioner shall

investigate the person and take any appropriate action pursuant thereto.

      (Added to NRS by 2007, 2721)

      NRS 604A.405  Required notices and disclosures.

      1.  A licensee shall post in a conspicuous

place in every location at which the licensee conducts business under his or

her license:

      (a) A notice that states the fees the licensee

charges for providing check-cashing services, deferred deposit loan services,

high-interest loan services or title loan services.

      (b) A notice that states a toll-free telephone

number to the Office of the Commissioner to handle concerns or complaints of

customers.

Ê The

Commissioner shall adopt regulations prescribing the form and size of the

notices required by this subsection.

      2.  If a licensee offers loans to customers

at a kiosk, through the Internet, through any telephone, facsimile machine or

other telecommunication device or through any other machine, network, system,

device or means, except for an automated loan machine prohibited by NRS 604A.400, the licensee shall, as appropriate to

the location or method for making the loan, post in a conspicuous place where

customers will see it before they enter into a loan, or disclose in an open and

obvious manner to customers before they enter into a loan, a notice that

states:

      (a) The types of loans the licensee offers and

the fees he or she charges for making each type of loan; and

      (b) A list of the states where the licensee is

licensed or authorized to conduct business from outside this State with

customers located in this State.

      3.  A licensee who provides check-cashing

services shall give written notice to each customer of the fees he or she

charges for cashing checks. The customer must sign the notice before the

licensee provides the check-cashing service.

      (Added to NRS by 2005, 1688; A 2007, 934)

      NRS 604A.407  Determination of whether loan is high-interest loan.

      1.  Except as otherwise provided in this

section, for the purposes of determining whether a loan is a high-interest

loan, when determining whether a lender is charging an annual percentage rate

of more than 40 percent, calculations must be made in accordance with the Truth

in Lending Act and Regulation Z, except that every charge or fee, regardless of

the name given to the charge or fee, payable directly or indirectly by the

customer and imposed directly or indirectly by the lender must be included in

calculating the annual percentage rate, including, without limitation:

      (a) Interest;

      (b) Application fees, regardless of whether such

fees are charged to all applicants or credit is actually extended;

      (c) Fees charged for participation in a credit

plan, whether assessed on an annual, periodic or nonperiodic basis; and

      (d) Prepaid finance charges.

      2.  The following charges and fees must be

excluded from the calculation of the annual percentage rate pursuant to

subsection 1:

      (a) Any fees allowed pursuant to NRS 604A.490 or 675.365

for a check not paid upon presentment or an electronic transfer of money that

fails;

      (b) Interest accrued after default pursuant to

paragraph (c) of subsection 1 of NRS 604A.485;

      (c) Charges for an unanticipated late payment,

exceeding a credit limit, or a delinquency, default or similar occurrence;

      (d) Any premiums or identifiable charges for

insurance permitted pursuant to NRS 675.300;

and

      (e) The fee allowed pursuant to NRS 604A.487.

      3.  Calculation of the annual percentage

rate in the manner specified in this section is limited only to the

determination of whether a loan is a high-interest loan and must not be used in

compliance with the disclosure requirements of paragraph (g) of subsection 2 of

NRS 604A.410 or any other provisions of this

chapter requiring disclosure of an annual percentage rate in the making of a

loan.

      (Added to NRS by 2007, 930; A 2013, 1516)

      NRS 604A.408  Limitations on original term of deferred deposit and

high-interest loans.

      1.  Except as otherwise provided in this

chapter, the original term of a deferred deposit loan or high-interest loan

must not exceed 35 days.

      2.  The original term of a high-interest loan

may be up to 90 days if:

      (a) The loan provides for payments in

installments;

      (b) The payments are calculated to ratably and

fully amortize the entire amount of principal and interest payable on the loan;

      (c) The loan is not subject to any extension; and

      (d) The loan does not require a balloon payment

of any kind.

      3.  Notwithstanding the provisions of NRS 604A.480, a licensee shall not agree to establish

or extend the period for the repayment, renewal, refinancing or consolidation

of an outstanding deferred deposit loan or high-interest loan for a period that

exceeds 90 days after the date of origination of the loan.

      (Added to NRS by 2007, 931)

      NRS 604A.410  Written loan agreement required; contents.

      1.  Before making any loan to a customer, a

licensee shall provide to the customer a written loan agreement which may be

kept by the customer and which must be written in:

      (a) English, if the transaction is conducted in

English; or

      (b) Spanish, if the transaction is conducted in

Spanish.

      2.  The loan agreement must include,

without limitation, the following information:

      (a) The name and address of the licensee and the

customer;

      (b) The nature of the security for the loan, if

any;

      (c) The date and amount of the loan, amount

financed, annual percentage rate, finance charge, total of payments, payment

schedule and a description and the amount of every fee charged, regardless of

the name given to the fee and regardless of whether the fee is required to be

included in the finance charge under the Truth in Lending Act and Regulation Z;

      (d) A disclosure of the right of the customer to

rescind a loan pursuant to the provisions of this chapter;

      (e) A disclosure of the right of the customer to

pay his or her loan in full or in part with no additional charge pursuant to

the provisions of this chapter;

      (f) A disclosure stating that, if the customer

defaults on the loan, the licensee must offer a repayment plan to the customer

before the licensee commences any civil action or process of alternative

dispute resolution or, if appropriate for the loan, before the licensee

repossesses a vehicle; and

      (g) Any other disclosures required under the

Truth in Lending Act and Regulation Z or under any other applicable federal or

state statute or regulation.

      (Added to NRS by 2005, 1689; A 2007, 935)

      NRS 604A.415  Collection of defaulted loan; civil action to collect debt;

venue.

      1.  If a customer defaults on a loan, the

licensee may collect the debt owed to the licensee only in a professional, fair

and lawful manner. When collecting such a debt, the licensee must act in

accordance with and must not violate sections 803 to 812, inclusive, of the

federal Fair Debt Collection Practices Act, as amended, 15 U.S.C. §§ 1692a to

1692j, inclusive, even if the licensee is not otherwise subject to the provisions

of that Act.

      2.  If a licensee commences a civil action

against a customer to collect a debt, the court may award:

      (a) Court costs;

      (b) Costs of service of process, except that the

costs must not exceed the amount of the fees charged by the sheriff or

constable for service of process in the county where the action was brought or,

if the customer was not served in that county, in the county where the customer

was served; and

      (c) Reasonable attorney’s fees. In determining

the amount of the attorney’s fees and whether they are reasonable, the court

shall consider the complexity of the case, the amount of the debt and whether

the licensee could have used less costly means to collect the debt.

      3.  Notwithstanding any provision of NRS 66.010 to the contrary, if:

      (a) A licensee intends to commence a civil action

in a Justice Court against a customer to collect a debt; and

      (b) The customer resides in the county where the

loan was made,

Ê the licensee

is required to commence the civil action in the Justice Court for the township

where the loan was made unless, after the date of default and before the

licensee commences the civil action, the customer signs an affidavit agreeing

to try the action in another Justice Court having jurisdiction over the subject

matter and the parties. A licensee shall not, directly or indirectly, require,

intimidate, threaten or coerce a customer to sign such an affidavit.

      (Added to NRS by 2005, 1689)

      NRS 604A.420  Practices regarding customers who are members of military.  Notwithstanding any other provision of law:

      1.  If a customer is a member of the

military, a licensee shall:

      (a) Honor the terms of any repayment plan between

the licensee and customer, including, without limitation, any repayment plan

negotiated through military counselors or third-party credit counselors.

      (b) Honor

any proclamation by a base commander that a certain branch location of the

licensee is off-limits to members of the military and their spouses.

      2.  If a customer is a member of the

military, a licensee shall not:

      (a) Garnish or threaten to garnish any wages or

salary of the customer or the customer’s spouse; or

      (b) Contact or threaten to contact the military

chain of command of a customer in an effort to collect the loan.

      3.  If a customer is a member of the

military and is deployed to a combat or combat supporting position, a licensee

shall not engage in any collection activity against the customer or the

customer’s spouse.

      4.  As used in this section, “military”

means the Armed Forces of the United States, a reserve component thereof or the

National Guard.

      (Added to NRS by 2005, 1690; A 2007, 935, 2847)

      NRS 604A.425  Prohibited acts by licensee regarding amount of loan.

      1.  A licensee shall not:

      (a) Make a deferred deposit loan that exceeds 25

percent of the expected gross monthly income of the customer when the loan is

made; or

      (b) Make a high-interest loan which, under the

terms of the loan agreement, requires any monthly payment that exceeds 25

percent of the expected gross monthly income of the customer.

      2.  A licensee is not in violation of the

provisions of this section if the customer presents evidence of his or her

gross monthly income to the licensee and represents to the licensee in writing

that:

      (a) For a deferred deposit loan, the loan does

not exceed 25 percent of the customer’s expected gross monthly income when the

loan is made; or

      (b) For a high-interest loan, the monthly payment

required under the terms of the loan agreement does not exceed 25 percent of

the customer’s expected gross monthly income.

      (Added to NRS by 2005, 1690; A 2007, 936)

      NRS 604A.430  Prohibited acts by licensee regarding multiple loans to same

customer.

      1.  A licensee shall not make more than one

deferred deposit loan, single-advance, single-payment loan or high-interest loan

to the same customer at one time or before any outstanding balance is paid in

full on an existing loan made by that licensee to the customer unless:

      (a) The customer is seeking multiple loans that

do not exceed the limits set forth in NRS 604A.425;

      (b) The licensee charges the same or a lower fee

or service charge per $100 if it is a deferred deposit loan or single-advance,

single-payment loan, or the same or a lower annual percentage rate of interest

if it is a high-interest loan that is not a single-advance, single-payment

loan, for any additional loans as the licensee charged for the initial loan;

      (c) Except for that part of the finance charge

which consists of interest only, the licensee does not impose any other charge

or fee to initiate any additional loans, except that a licensee who makes

deferred deposit loans or high-interest loans in accordance with the provisions

of subsection 2 of NRS 604A.480 may charge a

reasonable fee for preparing documents in an amount that does not exceed $50;

and

      (d) If the additional loans are deferred deposit

loans and the customer provides one or more additional checks that are not paid

upon presentment or one or more electronic transfers of money fail, the

licensee does not charge any fees to the customer pursuant to NRS 604A.490, except for the fees allowed pursuant to

that section for the first check that is not paid upon presentment or

electronic transfer of money that failed.

      2.  As used in this section,

“single-advance, single-payment loan” means a transaction in which, pursuant to

a loan agreement, a customer is given a single advance equal to the amount

financed with payment in full due within 35 days after the date of the transaction.

      (Added to NRS by 2005, 1690; A 2007, 936)

      NRS 604A.435  Prohibited acts by licensee: Accepting certain collateral or

other types of security; failing to make certain disclosures; taking incomplete

instruments; requiring the purchase of insurance or other goods or services;

failing to comply with payment plan; charging fee to cash certain checks.  A licensee shall not:

      1.  Accept:

      (a) Collateral as security for a loan, except

that a title to a vehicle may be accepted as security for a title loan.

      (b) An assignment of wages, salary, commissions or

other compensation for services, whether earned or to be earned, as security

for a loan.

      (c) A check as security for a high-interest loan

or title loan.

      (d) More than one check or written authorization

for an electronic transfer of money for each deferred deposit loan.

      (e) A check or written authorization for an

electronic transfer of money for any deferred deposit loan in an amount which

exceeds the total of payments set forth in the disclosure statement required by

the Truth in Lending Act and Regulation Z that is provided to the customer.

      2.  Take any note or promise to pay which

does not disclose the date and amount of the loan, amount financed, annual

percentage rate, finance charge, total of payments, payment schedule and a

description and the amount of every fee charged, regardless of the name given

to the fee and regardless of whether the fee is required to be included in the

finance charge under the Truth in Lending Act and Regulation Z.

      3.  Take any instrument, including a check

or written authorization for an electronic transfer of money, in which blanks

are left to be filled in after the loan is made.

      4.  Make any transaction contingent on the

purchase of insurance or any other goods or services or sell any insurance to

the customer with the loan.

      5.  Fail to comply with a payment plan

which is negotiated and agreed to by the licensee and customer.

      6.  Charge any fee to cash a check

representing the proceeds of a loan made by the licensee or any agent,

affiliate or subsidiary of the licensee.

      (Added to NRS by 2005, 1691; A 2007, 936)

      NRS 604A.440  Prohibited acts by licensee: Improper lending and collection

practices; deceptive trade practices; false, misleading and deceptive

advertising; using agent, affiliate or subsidiary to avoid requirements or

prohibitions of chapter.  A licensee

shall not:

      1.  Use or threaten to use the criminal

process in this State or any other state, or any civil process not available to

creditors generally, to collect on a loan made to a customer.

      2.  Commence a civil action or any process

of alternative dispute resolution or repossess a vehicle before the customer

defaults under the original term of a loan agreement or before the customer

defaults under any repayment plan, extension or grace period negotiated and

agreed to by the licensee and customer, unless otherwise authorized pursuant to

this chapter.

      3.  Take any confession of judgment or any

power of attorney running to the licensee or to any third person to confess

judgment or to appear for the customer in a judicial proceeding.

      4.  Include in any written agreement:

      (a) A promise by the customer to hold the

licensee harmless;

      (b) A confession of judgment by the customer;

      (c) An assignment or order for the payment of

wages or other compensation due the customer; or

      (d) A waiver of any claim or defense arising out

of the loan agreement or a waiver of any provision of this chapter. The

provisions of this paragraph do not apply to the extent preempted by federal

law.

      5.  Engage in any deceptive trade practice,

as defined in chapter 598 of NRS, including,

without limitation, making a false representation.

      6.  Advertise or permit to be advertised in

any manner any false, misleading or deceptive statement or representation with

regard to the rates, terms or conditions for loans.

      7.  Use or attempt to use any agent,

affiliate or subsidiary to avoid the requirements or prohibitions of this

chapter.

      (Added to NRS by 2005, 1691)

      NRS 604A.442  Violation of federal law constitutes violation of chapter.  Notwithstanding any other provision of law, a

violation of any provision of section 670 of the John Warner National Defense

Authorization Act for Fiscal Year 2007, Public Law 109-364, or any regulation

adopted pursuant thereto shall be deemed to be a violation of this chapter.

      (Added to NRS by 2007, 931, 2847)

      NRS 604A.445  Title loans: Restrictions on duration of loan and periods of

extension.  Notwithstanding any

other provision of this chapter to the contrary:

      1.  The original term of a title loan must

not exceed 30 days.

      2.  The title loan may be extended for not

more than six additional periods of extension, with each such period not to

exceed 30 days, if:

      (a) Any interest or charges accrued during the

original term of the title loan or any period of extension of the title loan

are not capitalized or added to the principal amount of the title loan during

any subsequent period of extension;

      (b) The annual percentage rate charged on the

title loan during any period of extension is not more than the annual

percentage rate charged on the title loan during the original term; and

      (c) No additional origination fees, set-up fees,

collection fees, transaction fees, negotiation fees, handling fees, processing

fees, late fees, default fees or any other fees, regardless of the name given

to the fees, are charged in connection with any extension of the title loan.

      3.  The original term of a title loan may

be up to 210 days if:

      (a) The loan provides for payments in

installments;

      (b) The payments are calculated to ratably and

fully amortize the entire amount of principal and interest payable on the loan;

      (c) The loan is not subject to any extension; and

      (d) The loan does not require a balloon payment

of any kind.

      (Added to NRS by 2005, 1692; A 2007, 937)

      NRS 604A.450  Title loans: Prohibited acts by licensee regarding amount of

loan and customer’s ability to repay loan.  A

licensee who makes title loans shall not:

      1.  Make a title loan that exceeds the fair

market value of the vehicle securing the title loan.

      2.  Make a title loan without regard to the

ability of the customer seeking the title loan to repay the title loan,

including the customer’s current and expected income, obligations and

employment.

      3.  Make a title loan without requiring the

customer to sign an affidavit which states that:

      (a) The customer has provided the licensee with

true and correct information concerning the customer’s income, obligations,

employment and ownership of the vehicle; and

      (b) The customer has the ability to repay the

title loan.

      (Added to NRS by 2005, 1692)

      NRS 604A.455  Title loans: Applicability of Uniform Commercial Code;

repossession of vehicle; civil action.

      1.  Except where in conflict with the

provisions of this section, the provisions of chapter

104 of NRS apply to any title loan between a licensee and a customer.

      2.  Except as otherwise provided in this

section, if a customer defaults on a title loan, or on any extension or

repayment plan relating to the title loan, the sole remedy of the licensee who

made the title loan is to seek repossession and sale of the vehicle which the

customer used to secure the title loan. The licensee may not pursue the

customer personally for:

      (a) Payment of the loan, unless the licensee

proves the customer prevented the repossession and sale of the vehicle by any

means, including, without limitation, hiding the vehicle; or

      (b) Any deficiency after repossession and sale of

the vehicle which the customer used to secure the title loan, unless the

licensee proves the customer damaged or otherwise committed or permitted waste

on the vehicle. For the purposes of this paragraph, it shall not be deemed

waste for the customer to continue to use the vehicle in the same manner it was

used before the customer entered into the title loan.

      3.  If a vehicle is repossessed pursuant to

this section:

      (a) By the licensee or his or her employees, the

licensee shall make reasonably available to the customer any personal property

in or upon the vehicle; or

      (b) By a third party acting on behalf of the

licensee, the licensee shall instruct the third party to make reasonably

available to the customer any personal property in or upon the vehicle.

      4.  If a customer uses fraud to secure a

title loan or if the customer wrongfully transfers any interest in the vehicle

to a third party before the title loan is repaid, the licensee may bring a

civil action against the customer for any or all of the following relief:

      (a) The amount of the loan obligation, including,

without limitation, the aggregate amount of the interest, charges and fees

negotiated and agreed to by the licensee and customer as permitted under this

chapter, less any prior payments made by the customer;

      (b) Reasonable attorney’s fees and costs; and

      (c) Any other legal or equitable relief that the

court deems appropriate.

      5.  As used in this section, “fraud” means

an intentional misrepresentation, deception or concealment of a material fact

known to the customer with the intent to deprive the licensee of his or her

rights or property or to otherwise injure the licensee. The term includes,

without limitation, giving to a licensee as security for a title loan the title

to a vehicle which does not belong to the customer.

      (Added to NRS by 2005, 1692)

      NRS 604A.460  Rescission of loan by customer.

      1.  A customer may rescind a loan on or

before the close of business on the next day of business at the location where

the loan was initiated. To rescind the loan, the customer must deliver to the

licensee:

      (a) A sum of money equal to the face value of the

loan, less any fee charged to the customer to initiate the loan; or

      (b) The original check, if any, which the

licensee gave to the customer pursuant to the loan. Upon receipt of the

original check, the licensee shall refund any fee charged to the customer to

initiate the loan.

      2.  If a customer rescinds a loan pursuant

to this section, the licensee:

      (a) Shall not charge the customer any fee for

rescinding the loan; and

      (b) Upon receipt of the sum of money or check

pursuant to subsection 1, shall give to the customer a receipt showing the

account paid in full and:

             (1) If the customer gave to the licensee a

check or a written authorization for an electronic transfer of money to

initiate a deferred deposit loan, the check or written authorization stamped

“void”;

             (2) If the customer gave to the licensee a

promissory note to initiate a high-interest loan, a copy of the promissory note

stamped “void” or the receipt stamped “paid in full”; or

             (3) If the customer gave to the licensee a

title to a vehicle to initiate the title loan, the title.

      (Added to NRS by 2005, 1693; A 2007, 937)

      NRS 604A.465  Payment of loan in full.

      1.  A customer may pay a loan, or any

extension thereof, in full at any time, without an additional charge or fee,

before the date the customer’s final payment on the loan, or any extension

thereof, is due.

      2.  If a customer pays the loan in full,

including all interest, charges and fees negotiated and agreed to by the

licensee and customer as permitted under this chapter, the licensee shall:

      (a) Give to the customer:

             (1) If the customer gave to the licensee a

check or a written authorization for an electronic transfer of money to

initiate a deferred deposit loan, the check or the written authorization

stamped “void”;

             (2) If the customer gave to the licensee a

promissory note to initiate a high-interest loan, the promissory note stamped

“void” or a receipt stamped “paid in full”; or

             (3) If the customer gave to the licensee a

title to a vehicle to initiate a title loan, the title; and

      (b) Give to the customer a receipt with the

following information:

             (1) The name and address of the licensee;

             (2) The identification number assigned to

the loan agreement or other information that identifies the loan;

             (3) The date of the payment;

             (4) The amount paid;

             (5) An itemization of interest, charges

and fees;

             (6) A statement that the loan is paid in

full; and

             (7) If more than one loan made by the

licensee to the customer was outstanding at the time the payment was made, a

statement indicating to which loan the payment was applied.

      (Added to NRS by 2005, 1693; A 2007, 938)

      NRS 604A.470  Partial payment on loan.

      1.  A customer may make a partial payment

on a loan, or any extension thereof, at any time without an additional charge

or fee.

      2.  If a customer makes such a partial

payment, the licensee shall give to the customer a receipt with the following

information:

      (a) The name and address of the licensee;

      (b) The identification number assigned to the

loan agreement or other information that identifies the loan;

      (c) The date of the payment;

      (d) The amount paid;

      (e) An itemization of interest, charges and fees;

      (f) The balance due on the loan; and

      (g) If more than one loan made by the licensee to

the customer was outstanding at the time the payment was made, a statement

indicating to which loan the payment was applied.

      (Added to NRS by 2005, 1694)

      NRS 604A.475  Repayment plan.

      1.  Before a licensee attempts to collect

the outstanding balance on a loan in default by commencing any civil action or

process of alternative dispute resolution or repossessing a vehicle, the

licensee shall offer the customer an opportunity to enter into a repayment

plan. The licensee:

      (a) Is required to make the offer available to

the customer for a period of at least 30 days after the date of default; and

      (b) Is not required to make such an offer more

than once for each loan.

      2.  If the licensee intends to commence any

civil action or process of alternative dispute resolution or repossess a

vehicle in an effort to collect a defaulted loan, the licensee shall deliver to

the customer, not later than 15 days after the date of default, or not later

than 5 days after a check is not paid upon presentment or an electronic

transfer of money fails, whichever is later, written notice of the opportunity

to enter into a repayment plan. The written notice must:

      (a) Be in English, if the initial transaction was

conducted in English, or in Spanish, if the initial transaction was conducted

in Spanish;

      (b) State the date by which the customer must act

to enter into a repayment plan;

      (c) Explain the procedures the customer must

follow to enter into a repayment plan;

      (d) If the licensee requires the customer to make

an initial payment to enter into a repayment plan, explain the requirement and

state the amount of the initial payment and the date the initial payment must

be made;

      (e) State that the customer has the opportunity

to enter into a repayment plan with a term of at least 90 days after the date

of default; and

      (f) Include the following amounts:

             (1) The total of payments or the remaining

balance on the original loan;

             (2) Any payments made on the loan;

             (3) Any charges added to the loan amount

allowed pursuant to the provisions of this chapter; and

             (4) The total amount due if the customer

enters into a repayment plan.

      3.  Under the terms of any repayment plan

pursuant to this section:

      (a) The customer must enter into the repayment

plan not later than 30 days after the date of default, unless the licensee

allows a longer period;

      (b) The licensee must allow the period for

repayment to extend at least 90 days after the date of default, unless the

customer agrees to a shorter term;

      (c) The licensee may require the customer to make

an initial payment of not more than 20 percent of the total amount due under

the terms of the repayment plan;

      (d) For a deferred deposit loan:

             (1) The licensee may require a customer to

provide, as security, one or more checks or written authorizations for an

electronic transfer of money which equal the total amount due under the terms

of the repayment plan;

             (2) The licensee shall, if the customer

makes a payment in the amount of a check or written authorization taken as

security for that payment, return to the customer the check or written

authorization stamped “void” or destroy the check or written authorization; and

             (3) The licensee shall not charge any fee

to the customer pursuant to NRS 604A.490 for a

check which is provided as security during the repayment plan and which is not

paid upon presentment if, in connection with that loan, the licensee has

previously charged at least one such fee.

      4.  If the licensee and customer enter into

a repayment plan pursuant to this section, the licensee shall honor the terms

of the repayment plan, and the licensee shall not:

      (a) Except as otherwise provided by this chapter,

charge any other amount to a customer, including, without limitation, any

amount or charge payable directly or indirectly by the customer and imposed

directly or indirectly by the licensee as an incident to or as a condition of

entering into a repayment plan. Such an amount includes, without limitation:

             (1) Any interest, regardless of the name

given to the interest, other than the interest charged pursuant to the original

loan agreement at a rate which does not exceed the annual percentage rate

charged during the term of the original loan agreement; or

             (2) Any origination fees, set-up fees,

collection fees, transaction fees, negotiation fees, handling fees, processing

fees, late fees, default fees or any other fees, regardless of the name given

to the fee;

      (b) Except as otherwise provided in this section,

accept any additional security or collateral from the customer to enter into

the repayment plan;

      (c) Sell to the customer any insurance or require

the customer to purchase insurance or any other goods or services to enter into

the repayment plan;

      (d) Make any other loan to the customer, unless

the customer is seeking multiple loans that do not exceed the limit set forth

in NRS 604A.425;

      (e) During the term of the repayment plan,

attempt to collect the outstanding balance by commencing any civil action or

process of alternative dispute resolution or by repossessing a vehicle, unless

the customer defaults on the repayment plan; or

      (f) Attempt to collect an amount that is greater

than the amount owed under the terms of the repayment plan.

      5.  If the licensee and customer enter into

a repayment plan pursuant to this section, the licensee shall:

      (a) Prepare a written agreement establishing the

repayment plan; and

      (b) Give the customer a copy of the written

agreement. The written agreement must:

             (1) Be signed by the licensee and

customer; and

             (2) Contain all of the terms of the

repayment plan, including, without limitation, the total amount due under the

terms of the repayment plan.

      6.  Each time a customer makes a payment

pursuant to a repayment plan, the licensee shall give to the customer a receipt

with the following information:

      (a) The name and address of the licensee;

      (b) The identification number assigned to the

loan agreement or other information that identifies the loan;

      (c) The date of the payment;

      (d) The amount paid;

      (e) The balance due on the loan or, when the

customer makes the final payment, a statement that the loan is paid in full;

and

      (f) If more than one loan made by the licensee to

the customer was outstanding at the time the payment was made, a statement

indicating to which loan the payment was applied.

      7.  If the customer defaults on the

repayment plan, the licensee may, to collect the outstanding balance, commence

any civil action or process of alternative dispute resolution or repossess a

vehicle as otherwise authorized pursuant to this chapter.

      (Added to NRS by 2005, 1694; A 2007, 938)

      NRS 604A.480  Limitations on using proceeds of new loan to pay balance of

outstanding loan; exceptions.

      1.  Except as otherwise provided in

subsection 2, if a customer agrees in writing to establish or extend the period

for the repayment, renewal, refinancing or consolidation of an outstanding loan

by using the proceeds of a new deferred deposit loan or high-interest loan to

pay the balance of the outstanding loan, the licensee shall not establish or

extend the period beyond 60 days after the expiration of the initial loan

period. The licensee shall not add any unpaid interest or other charges accrued

during the original term of the outstanding loan or any extension of the

outstanding loan to the principal amount of the new deferred deposit loan or

high-interest loan.

      2.  This section does not apply to a new deferred

deposit loan or high-interest loan if the licensee:

      (a) Makes the new deferred deposit loan or

high-interest loan to a customer pursuant to a loan agreement which, under its

original terms:

             (1) Charges an annual percentage rate of

less than 200 percent;

             (2) Requires the customer to make a

payment on the loan at least once every 30 days;

             (3) Requires the loan to be paid in full

in not less than 150 days; and

             (4) Provides that interest does not accrue

on the loan at the annual percentage rate set forth in the loan agreement after

the date of maturity of the loan;

      (b) Performs a credit check of the customer with

a major consumer reporting agency before making the loan;

      (c) Reports information relating to the loan

experience of the customer to a major consumer reporting agency;

      (d) Gives the customer the right to rescind the

new deferred deposit loan or high-interest loan within 5 days after the loan is

made without charging the customer any fee for rescinding the loan;

      (e) Participates in good faith with a counseling

agency that is:

             (1) Accredited by the Council on

Accreditation of Services for Families and Children, Inc., or its successor

organization; and

             (2) A member of the National Foundation

for Credit Counseling, or its successor organization; and

      (f) Does not commence any civil action or process

of alternative dispute resolution on a defaulted loan or any extension or

repayment plan thereof.

      (Added to NRS by 2005, 1696; A 2007, 940)

      NRS 604A.485  Limitations on amounts licensee may collect after default.

      1.  If a customer defaults on a loan or on

any extension or repayment plan relating to the loan, whichever is later, the

licensee may collect only the following amounts from the customer, less all

payments made before and after default:

      (a) The unpaid principal amount of the loan.

      (b) The unpaid interest, if any, accrued before

the default at the annual percentage rate set forth in the disclosure statement

required by the Truth in Lending Act and Regulation Z that is provided to the

customer. If there is an extension, in writing and signed by the customer,

relating to the loan, the licensee may charge and collect interest pursuant to

this paragraph for a period not to exceed 60 days after the expiration of the initial

loan period, unless otherwise allowed by NRS 604A.480.

      (c) The interest accrued after the expiration of

the initial loan period or after any extension or repayment plan that is allowed

pursuant to this chapter, whichever is later, at an annual percentage rate not

to exceed the prime rate at the largest bank in Nevada, as ascertained by the

Commissioner, on January 1 or July 1, as the case may be, immediately preceding

the expiration of the initial loan period, plus 10 percent. The licensee may

charge and collect interest pursuant to this paragraph for a period not to

exceed 90 days. After that period, the licensee shall not charge or collect any

interest on the loan.

      (d) Any fees allowed pursuant to NRS 604A.490 for a check that is not paid upon

presentment or an electronic transfer of money that fails because the account

of the customer contains insufficient funds or has been closed.

Ê The sum of

all amounts collected pursuant to paragraphs (b), (c) and (d) must not exceed

the principal amount of the loan.

      2.  Except for the interest and fees

permitted pursuant to subsection 1 and any other charges expressly permitted

pursuant to NRS 604A.430, 604A.445,

604A.475 and 604A.487,

the licensee shall not charge any other amount to a customer, including,

without limitation, any amount or charge payable directly or indirectly by the

customer and imposed directly or indirectly by the licensee as an incident to

or as a condition of the extension of the period for the payment of the loan or

the extension of credit. Such prohibited amounts include, without limitation:

      (a) Any interest, other than the interest charged

pursuant to subsection 1, regardless of the name given to the interest; or

      (b) Any origination fees, set-up fees, collection

fees, transaction fees, negotiation fees, handling fees, processing fees, late

fees, default fees or any other fees, regardless of the name given to the fee.

      (Added to NRS by 2005, 1697; A 2007, 941; 2013, 1517)

      NRS 604A.487  Limitations on fees licensees may charge after default on

installment payments.  In addition

to the amounts authorized to be collected pursuant to NRS

604A.485, a licensee who makes a high-interest loan in accordance with the

provisions of subsection 2 of NRS 604A.480 may

charge a fee of not more than $15, payable on a one-time basis, for any

installment payment that remains unpaid 10 days or more after the date of

default.

      (Added to NRS by 2013, 1516)

      NRS 604A.490  Limitations on fees licensee may collect for check not paid upon

presentment or failure of electronic transfer of money; standards for civil

liability and criminal prosecution.

      1.  A licensee may collect a fee of not

more than $25 if a check is not paid upon presentment or an electronic transfer

of money fails because the account of the customer contains insufficient funds

or has been closed.

      2.  If the account of the customer contains

insufficient funds, the licensee may collect only two fees of $25 each,

regardless of the number of times the check is presented for payment or the

electronic transfer of money is attempted.

      3.  If the account of the customer has been

closed, the licensee may collect only one fee of $25, regardless of the number

of times the check is presented or the electronic transfer of money is

attempted for payment.

      4.  A customer is not liable for damages

pursuant to NRS 41.620 or to criminal

prosecution for a violation of chapter 205 of

NRS unless the customer acted with criminal intent.

      (Added to NRS by 2005, 1698; A 2007, 942)

      NRS 604A.495  Receipt required for each payment by customer; contents.  In addition to any other provision in this

chapter, each time a customer makes a payment to a licensee, the licensee shall

give to the customer a receipt with the following information:

      1.  The name and address of the licensee;

      2.  The identification number assigned to

the loan agreement or other information that identifies the loan;

      3.  The date of the payment;

      4.  The amount paid;

      5.  The balance due on the loan or, when

the customer makes a final payment, a statement that the loan is paid in full;

and

      6.  If more than one loan made by the

licensee to the customer was outstanding at the time the payment was made, a

statement indicating to which loan the payment was applied.

      (Added to NRS by 2005, 1698)

      NRS 604A.500  Requirements regarding person acting as agent or assisting in

making loan.

      1.  A person shall not act as an agent for

or assist a licensee in the making of a loan unless the licensee complies with

all applicable federal and state laws, regulations and guidelines.

      2.  The provisions of this section do not

apply to the agent or assistant to a state or federally chartered bank, thrift

company, savings and loan association or industrial loan company if the state

or federally chartered bank, thrift company, savings and loan association or

industrial loan company:

      (a) Initially advances the loan proceeds to the

customer; and

      (b) Does not sell, assign or transfer a preponderant

economic interest in the loan to the agent or assistant or an affiliate or

subsidiary of the state or federally chartered bank, thrift company, savings

and loan association or industrial loan company, unless selling, assigning or

transferring a preponderant economic interest is expressly permitted by the

primary regulator of the state or federally chartered bank, thrift company,

savings and loan association or industrial loan company.

      3.  If a licensee acts as an agent for or

assists a state or federally chartered bank, thrift company, savings and loan

association or industrial loan company in the making of a loan and the licensee

can show that the standards set forth in subsection 2 are satisfied, the

licensee must comply with all other provisions in this chapter to the extent

they are not preempted by other state or federal law.

      (Added to NRS by 2005, 1698)

LICENSING

      NRS 604A.600  Application for license.

      1.  An application for a license pursuant

to the provisions of this chapter must be made in writing, under oath and on a

form prescribed by the Commissioner. The application must include:

      (a) If the applicant is a natural person, the

name and address of the applicant.

      (b) If the applicant is a business entity, the

name and address of each:

             (1) Partner;

             (2) Officer;

             (3) Director;

             (4) Manager or member who acts in a

managerial capacity; and

             (5) Registered agent,

Ê of the

business entity.

      (c) Such other information, as the Commissioner

determines necessary, concerning the financial responsibility, background,

experience and activities of the applicant and its:

             (1) Partners;

             (2) Officers;

             (3) Directors; and

             (4) Managers or members who act in a

managerial capacity.

      (d) The address of each location at which the

applicant proposes to do business under the license, including, without

limitation, each location where the applicant will operate at a kiosk, through

the Internet, through any telephone, facsimile machine or other

telecommunication device or through any other machine, network, system, device

or means, except that the applicant shall not propose to do business through

any automated loan machine prohibited by NRS 604A.400.

      (e) If the applicant is or intends to be licensed

to provide more than one type of service pursuant to the provisions of this

chapter, a statement of that intent and which services the applicant provides

or intends to provide.

      2.  Each application for a license must be

accompanied by:

      (a) A nonrefundable application fee;

      (b) Such additional expenses incurred in the

process of investigation as the Commissioner deems necessary; and

      (c) A fee of not less than $100 or more than

$500, prorated on the basis of the licensing year.

Ê All money

received by the Commissioner pursuant to this subsection must be placed in the

Investigative Account for Financial Institutions created by NRS 232.545.

      3.  The Commissioner shall adopt

regulations establishing the amount of the fees required pursuant to this

section.

      4.  The Commissioner shall consider an

application to be withdrawn if the Commissioner has not received all

information and fees required to complete the application within 6 months after

the date the application is first submitted to the Commissioner or within such

later period as the Commissioner determines in accordance with any existing

policies of joint regulatory partners. If an application is deemed to be

withdrawn pursuant to this subsection or if an applicant otherwise withdraws an

application, the Commissioner may not issue a license to the applicant unless

the applicant submits a new application and pays any required fees.

      (Added to NRS by 2005, 1699)

      NRS 604A.605  Additional materials to be submitted with application; grounds

for denial of license.

      1.  In addition to any other requirements

set forth in this chapter, each applicant must submit:

      (a) Proof satisfactory to the Commissioner that

the applicant:

             (1) Has a good reputation for honesty,

trustworthiness and integrity and is competent to transact the business for

which the applicant seeks to be licensed in a manner which protects the

interests of the general public.

             (2) Has not made a false statement of

material fact on the application for the license.

             (3) Has not committed any of the acts

specified in subsection 2.

             (4) Has not had a license issued pursuant

to this chapter suspended or revoked within the 10 years immediately preceding

the date of the application.

             (5) Has not been convicted of, or entered

a plea of nolo contendere to, a felony or any crime involving fraud,

misrepresentation or moral turpitude.

             (6) If the applicant is a natural person:

                   (I) Is at least 21 years of age; and

                   (II) Is a citizen of the United

States or lawfully entitled to remain and work in the United States.

      (b) A complete set of his or her fingerprints and

written permission authorizing the Division of Financial Institutions of the

Department of Business and Industry to forward the fingerprints to the Central

Repository for Nevada Records of Criminal History for submission to the Federal

Bureau of Investigation for its report.

      2.  In addition to any other lawful

reasons, the Commissioner may refuse to issue a license to an applicant if the

applicant:

      (a) Has committed or participated in any act

which, if committed or done by a holder of a license, would be grounds for the

suspension or revocation of the license.

      (b) Has previously been refused a license

pursuant to this chapter or has had such a license suspended or revoked.

      (c) Has participated in any act which was a basis

for the refusal or revocation of a license pursuant to this chapter.

      (d) Has falsified any of the information

submitted to the Commissioner in support of the application for the license.

      (Added to NRS by 2005, 1702; A 2005, 22nd

Special Session, 99)

      NRS 604A.610  Surety bond.

      1.  Except as otherwise provided in NRS 604A.615, each application for a license pursuant

to the provisions of this chapter must be accompanied by a surety bond payable

to the State of Nevada in the amount of $50,000 plus an additional $5,000 for

each branch location at which the applicant proposes to do business under the

license. Thereafter, each licensee shall maintain the surety bond so that the

amount of the surety bond is $50,000 plus an additional $5,000 for each branch

location at which the licensee does business under the license. The surety bond

required by this section is for the use and benefit of any customer receiving

the services of the licensee at any location at which the licensee does

business under the license.

      2.  Each bond must be in a form satisfactory

to the Commissioner, issued by a bonding company authorized to do business in

this State and must secure the faithful performance of the obligations of the

licensee respecting the provision of the services.

      3.  A licensee shall, within 10 days after

the commencement of any action or notice of entry of any judgment against the

licensee by any creditor or claimant arising out of business regulated by this

chapter give notice thereof to the Commissioner by certified mail with details

sufficient to identify the action or judgment. The surety shall, within 10 days

after it pays any claim or judgment to a creditor or claimant, give notice

thereof to the Commissioner by certified mail with details sufficient to

identify the creditor or claimant and the claim or judgment so paid.

      4.  Whenever the principal sum of any bond

is reduced by recoveries or payments thereon, the licensee shall furnish:

      (a) A new or additional bond so that the total or

aggregate principal sum of the bonds equals the sum required pursuant to

subsection 1; or

      (b) An endorsement, duly executed by the surety,

reinstating the bond to the required principal sum.

      5.  The liability of the surety on a bond

to a creditor or claimant is not affected by any misrepresentation, breach of

warranty, failure to pay a premium or other act or omission of the licensee, or

by any insolvency or bankruptcy of the licensee.

      6.  The liability of the surety continues

as to all transactions entered into in good faith by the creditors and

claimants with the agents of the licensee within 30 days after:

      (a) The death of the licensee or the dissolution

or liquidation of his or her business; or

      (b) The termination of the bond,

Ê whichever

event occurs first.

      7.  A licensee or his or her surety shall

not cancel or alter a bond except after notice to the Commissioner by certified

mail. The cancellation or alteration is not effective until 10 days after

receipt of the notice by the Commissioner. A cancellation or alteration does

not affect any liability incurred or accrued on the bond before the expiration

of the 30-day period designated in subsection 6.

      (Added to NRS by 2005, 1700; A 2005, 22nd

Special Session, 97)

      NRS 604A.615  Deposit of securities in lieu of surety bond.

      1.  In lieu of any surety bond, or any

portion of the principal sum thereof as required pursuant to the provisions of

this chapter, a licensee may deposit with the State Treasurer or with any bank,

credit union or trust company authorized to do business in this State as the

licensee may select, with the approval of the Commissioner:

      (a) Interest-bearing stocks;

      (b) Bills, bonds, notes, debentures or other

obligations of the United States or any agency or instrumentality thereof, or

guaranteed by the United States; or

      (c) Any obligation of this State or any city,

county, town, township, school district or other instrumentality of this State

or guaranteed by this State,

Ê in an

aggregate amount, based upon principal amount or market value, whichever is

lower, of not less than the amount of any required surety bond or portion

thereof.

      2.  The securities must be held to secure

the same obligation as would any surety bond, but the depositor may receive any

interest or dividends and, with the approval of the Commissioner, substitute

other suitable securities for those deposited.

      (Added to NRS by 2005, 1700; A 2005, 22nd

Special Session, 98)

      NRS 604A.620  Application for license for office or other place of business

located outside State.

      1.  A person may apply for a license for an

office or other place of business located outside this State from which the

applicant will conduct business in this State if the applicant or a subsidiary

or affiliate of the applicant has a license issued pursuant to this chapter for

an office or other place of business located in this State and if the applicant

submits with the application for a license a statement signed by the applicant

which states that the applicant agrees to:

      (a) Make available at a location within this

State the books, accounts, papers, records and files of the office or place of

business located outside this State to the Commissioner or a representative of

the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals

and lodging of the Commissioner or a representative of the Commissioner

incurred during any investigation or examination made at the office or place of

business located outside this State.

Ê The person

must be allowed to choose between the provisions of paragraph (a) or (b) in

complying with the provisions of this subsection.

      2.  This section applies, without

limitation, to any office or other place of business located outside this State

from which the applicant will conduct business in this State at a kiosk,

through the Internet, through any telephone, facsimile machine or other

telecommunication device or through any other machine, network, system, device

or means, except that the applicant shall not conduct business in this State

through any automated loan machine prohibited by NRS

604A.400.

      (Added to NRS by 2005, 1701)

      NRS 604A.625  Investigation of applicant; notice; hearing; order.

      1.  Upon the filing of the application and

the payment of the fees required pursuant to NRS

604A.600, the Commissioner shall investigate the facts concerning the

application and the requirements provided for in NRS

604A.605 and 604A.635.

      2.  The Commissioner may hold a hearing on

the application at a time not less than 30 days after the date the application

was filed or not more than 60 days after that date. The hearing must be held in

the Office of the Commissioner or such other place as the Commissioner may

designate. Notice in writing of the hearing must be sent to the applicant and

to any licensee to which a notice of the application has been given and to such

other persons as the Commissioner may see fit, at least 10 days before the date

set for the hearing.

      3.  The Commissioner shall make his or her

order granting or denying the application within 10 days after the date of the

closing of the hearing, unless the period is extended by written agreement

between the applicant and the Commissioner.

      (Added to NRS by 2005, 1701)

      NRS 604A.630  Procedure upon denial of license.  If

the Commissioner finds that any applicant does not possess the requirements

specified in this chapter, he or she shall:

      1.  Enter an order denying the application

and notify the applicant of the denial.

      2.  Within 10 days after the entry of such

an order, file his or her findings and a summary of the evidence supporting

those findings and deliver a copy thereof to the applicant.

      (Added to NRS by 2005, 1702)

      NRS 604A.635  Issuance of license; display of license; issuance of additional

licenses for branch locations; contents of license; license not transferable or

assignable.

      1.  The Commissioner shall enter an order

granting an application if he or she finds that:

      (a) The financial responsibility, experience,

character and general fitness of the applicant are such as to command the

confidence of the public and to warrant belief that the business will be

operated lawfully, honestly, fairly and efficiently; and

      (b) The applicant has satisfied the requirements

set forth in NRS 604A.605.

      2.  If the Commissioner grants an

application, the Commissioner shall:

      (a) File his or her findings of fact together

with the transcript of any hearing held pursuant to the provisions of this

chapter; and

      (b) Issue to the licensee a license in such form

and size as is prescribed by the Commissioner for each location at which the licensee

proposes to do business.

      3.  Each licensee shall prominently display

his or her license at the location where he or she does business. The

Commissioner may issue additional licenses to the same licensee for each branch

location at which the licensee is authorized to operate under the license,

including, without limitation, each branch location where the licensee is

authorized to operate at a kiosk, through the Internet, through any telephone,

facsimile machine or other telecommunication device or through any other

machine, network, system, device or means, except that the Commissioner shall

not issue any license that would authorize the licensee to operate through any

automated loan machine prohibited by NRS 604A.400.

Nothing in this subsection requires a license for any place of business devoted

to accounting, recordkeeping or administrative purposes only.

      4.  Each license must:

      (a) State the address at which the business is to

be conducted; and

      (b) State fully:

             (1) The name and address of the licensee;

             (2) If the licensee is a copartnership or

association, the names of its members; and

             (3) If the licensee is a corporation, the

date and place of its incorporation.

      5.  A license is not transferable or

assignable.

      (Added to NRS by 2005, 1702)

      NRS 604A.640  Expiration, renewal and reinstatement of license; fees.

      1.  A license issued pursuant to the

provisions of this chapter expires annually on the anniversary of the issuance

of the license. A licensee must renew the license on or before the date on

which the license expires by paying:

      (a) A renewal fee of not more than $500; and

      (b) An additional fee of not more than $100 for

each branch location at which the licensee is authorized to operate under the

license.

      2.  A licensee who fails to renew his or

her license within the time required by this section is not licensed pursuant

to the provisions of this chapter.

      3.  The Commissioner may reinstate an

expired license upon receipt of the renewal fee and a fee for reinstatement.

      4.  The Commissioner shall adopt

regulations establishing the amount of the fees required pursuant to this

section.

      (Added to NRS by 2005, 1703; A 2005,

22nd Special Session, 100)

      NRS 604A.645  Change of control of licensee: Notice; application to

Commissioner.

      1.  A licensee shall immediately notify the

Commissioner of any change of control of the licensee.

      2.  A person who acquires stock,

partnership or member interests resulting in a change of control of the

licensee shall apply to the Commissioner for approval of the transfer. The

application must contain information which shows that the requirements for

obtaining a license pursuant to the provisions of this chapter will be

satisfied after the change of control. If the Commissioner determines that

those requirements will not be satisfied, he or she may deny the application

and forbid the applicant from participating in the business of the licensee.

      3.  As used in this section, “change of

control” means:

      (a) A transfer of voting stock, partnership or

member interests which results in giving a person, directly or indirectly, the

power to direct the management and policy of a licensee; or

      (b) A transfer of at least 25 percent of the

outstanding voting stock, partnership or member interests of the licensee.

      (Added to NRS by 2005, 1703)

      NRS 604A.650  Licensee must conduct business in accordance with license;

approval of business name; prohibition against using misleading or confusing

business name or printed forms.

      1.  A licensee shall not conduct the

business of making loans under any name, at any place or by any method,

including, without limitation, at a kiosk, through the Internet, through any telephone,

facsimile machine or other telecommunication device or through any other

machine, network, system, device or means, except as permitted in the license

or branch license issued to the licensee.

      2.  A licensee must obtain the approval of

the Commissioner before using or changing a business name.

      3.  A licensee shall not:

      (a) Use any business name which is identical or

similar to a business name used by another licensee under this chapter or which

may mislead or confuse the public.

      (b) Use any printed forms which may mislead or

confuse the public.

      (Added to NRS by 2005, 1703)

      NRS 604A.655  Restrictions on location where licensee may conduct business;

requirements to conduct business at same location as mortgage broker, mortgage

banker or pawnbroker.

      1.  Except as otherwise provided in this

section, a licensee may not conduct the business of making loans within any

office, suite, room or place of business in which any other lending business is

solicited or engaged in, except an insurance agency or notary public, or in

association or conjunction with any other business, unless authority to do so

is given by the Commissioner.

      2.  A licensee may conduct the business of

making loans in the same office or place of business as:

      (a) A mortgage broker if:

             (1) The licensee and the mortgage broker:

                   (I) Maintain separate accounts,

books and records;

                   (II) Are subsidiaries of the same

parent corporation; and

                   (III) Maintain separate licenses;

and

             (2) The mortgage broker is licensed by

this State pursuant to chapter 645B of NRS

and does not receive money to acquire or repay loans or maintain trust accounts

as provided by NRS 645B.175.

      (b) A mortgage banker if:

             (1) The licensee and the mortgage banker:

                   (I) Maintain separate accounts,

books and records;

                   (II) Are subsidiaries of the same

parent corporation; and

                   (III) Maintain separate licenses;

and

             (2) The mortgage banker is licensed by

this State pursuant to chapter 645E of NRS

and, if the mortgage banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to

acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

      3.  If a pawnbroker is licensed to operate

a check-cashing service, deferred deposit loan service, high-interest loan

service or title loan service, the pawnbroker may operate that service at the

same office or place of business from which he or she conducts business as a

pawnbroker pursuant to chapter 646 of NRS.

      (Added to NRS by 2005, 1704; A 2007, 942)

      NRS 604A.660  Change of address by licensee: Notice; approval by Commissioner;

penalty for failure to provide required notice.

      1.  A licensee who wishes to change the

address of an office or other place of business for which he or she has a

license pursuant to the provisions of this chapter must, at least 10 days

before changing the address, give written notice of the proposed change to the

Commissioner.

      2.  Upon receipt of the proposed change of

address pursuant to subsection 1, the Commissioner shall provide written

approval of the change and the date of the approval.

      3.  If a licensee fails to provide notice

as required pursuant to subsection 1, the Commissioner may impose a fine in an

amount not to exceed $500.

      4.  This section applies, without

limitation, to any office or other place of business at which the licensee

intends to operate a kiosk, through the Internet, through any telephone,

facsimile machine or other telecommunication device or through any other

machine, network, system, device or means, except that the licensee shall not

operate any automated loan machine prohibited by NRS

604A.400.

      (Added to NRS by 2005, 1704)

RECORDS, REPORTS AND EXAMINATIONS

      NRS 604A.700  Required books and records.

      1.  Each licensee shall keep and use in his

or her business such books and accounting records as are in accord with

generally accepted accounting practices.

      2.  Each licensee shall maintain a separate

written or electronic record or ledger card for the account of each customer

and shall set forth separately the amount of cash advance and the total amount

of interest and charges, but such a record may set forth precomputed declining

balances based on the scheduled payments, without a separation of principal and

charges.

      3.  Each licensee shall preserve all such

books and accounting records for at least 2 years after making the final entry

therein.

      4.  Each licensee who operates outside this

State an office or other place of business that is licensed pursuant to

provisions of this chapter shall:

      (a) Make available at a location within this

State the books, accounts, papers, records and files of the office or place of

business located outside this State to the Commissioner or a representative of

the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals

and lodging of the Commissioner or a representative of the Commissioner

incurred during any investigation or examination made at the office or place of

business located outside this State.

Ê The licensee

must be allowed to choose between the provisions of paragraph (a) or (b) in

complying with this subsection.

      5.  As used in this section, “amount of

cash advance” means the amount of cash or its equivalent actually received by a

customer or paid out at the customer’s direction or in his or her behalf.

      (Added to NRS by 2005, 1705)

      NRS 604A.710  Investigation of businesses; examination of books and records by

Commissioner.

      1.  For the purpose of discovering

violations of this chapter or securing information lawfully required under this

chapter, the Commissioner or his or her duly authorized representatives may at

any time investigate the business and examine the books, accounts, papers and

records used therein of:

      (a) Any licensee;

      (b) Any other person engaged in the business of

making loans or participating in such business as principal, agent, broker or

otherwise;

      (c) Any registered agent who represents a

licensee or any other person engaged in the business of making loans; and

      (d) Any person who the Commissioner has

reasonable cause to believe is violating or is about to violate any provision

of this chapter, whether or not the person claims to be within the authority or

beyond the scope of this chapter.

      2.  For the purpose of examination, the

Commissioner or his or her authorized representatives shall have and be given

free access to the offices and places of business, and the files, safes and

vaults of such persons.

      3.  The investigation of a registered agent

pursuant to subsection 1, including, without limitation, any books, accounts,

papers and records used therein, must be kept confidential except to the extent

necessary to enforce any provision of this chapter.

      4.  For the purposes of this section, any

person who advertises for, solicits or holds himself or herself out as willing

to make any deferred deposit loan, high-interest loan or title loan is presumed

to be engaged in the business of making loans.

      5.  This section does not entitle the

Commissioner or his or her authorized representatives to investigate the

business or examine the books, accounts, papers and records of any attorney who

is not a person described in paragraph (a), (b) or (d) of subsection 1, other

than examination of those books, accounts, papers and records maintained by

such attorney in his or her capacity as a registered agent, and then only to

the extent such books, accounts, papers and records are not subject to any

privilege in NRS 49.035 to 49.115, inclusive.

      (Added to NRS by 2005, 1706; A 2007, 943, 2721; 2009, 1730)

      NRS 604A.720  Authority of Commissioner to require attendance of witnesses and

production of books and records.

      1.  The Commissioner may require the

attendance of any person and examine him or her under oath regarding:

      (a) Any check-cashing service or loan service

regulated pursuant to the provisions of this chapter; or

      (b) The subject matter of any audit, examination,

investigation or hearing.

      2.  The Commissioner may require the

production of books, accounts, papers and records for any audit, examination,

investigation or hearing.

      (Added to NRS by 2005, 1706)

      NRS 604A.730  Annual examinations by Commissioner; exceptions.

      1.  At least once each year, the

Commissioner or his or her authorized representatives shall make an examination

of the place of business of each licensee and of the loans, transactions,

books, accounts, papers and records of the licensee so far as they pertain to

the business for which he or she is licensed pursuant to the provisions of this

chapter.

      2.  If, after auditing one or more branch

locations of the licensee, the Commissioner or his or her authorized

representatives conclude that the loans, disclosures, loan practices, computer

processes, filing systems and records are identical at each branch location,

the Commissioner may make an examination of only those branch locations he or

she deems necessary.

      (Added to NRS by 2005, 1706)

      NRS 604A.740  Fees for regulatory activities; penalties for failure to pay

fees.

      1.  The Commissioner shall charge and

collect from each licensee a fee of not more than $80 per hour for any

supervision, audit, examination, investigation or hearing conducted pursuant to

this chapter or any regulations adopted pursuant thereto.

      2.  The Commissioner shall bill each

licensee upon the completion of the activity for the fee required pursuant to

subsection 1. The licensee shall pay the fee within 30 days after the date the

bill is received. Except as otherwise provided in this subsection, any payment

received after the date due must include a penalty of 10 percent of the fee

plus an additional 1 percent of the fee for each month, or portion of a month,

that the fee is not paid. The Commissioner may waive the penalty for good

cause.

      3.  The failure of a licensee to pay the

fee required pursuant to subsection 1 as provided in this section constitutes

grounds for revocation of the license of the licensee.

      4.  The Commissioner shall adopt

regulations establishing the amount of the fee required pursuant to this

section.

      (Added to NRS by 2005, 1706; A 2005,

22nd Special Session, 100)

      NRS 604A.750  Annual report by licensee; composite reports.

      1.  Annually, on or before April 15, each

licensee shall file with the Commissioner a report of operations of the

licensed business for the preceding calendar year.

      2.  The licensee shall make the report

under oath and on a form prescribed by the Commissioner.

      3.  If any person or affiliated group holds

more than one license in this State, it may file a composite annual report.

      (Added to NRS by 2005, 1708)

      NRS 604A.760  Fees for failure to submit reports.

      1.  If a licensee fails to submit any

report required pursuant to this chapter or any regulation adopted pursuant

thereto within the prescribed period, the Commissioner may impose and collect a

fee of not more than $10 for each day the report is overdue.

      2.  The Commissioner shall adopt

regulations establishing the amount of the fee that may be imposed pursuant to

this section.

      (Added to NRS by 2005,

22nd Special Session, 101)

DISCIPLINARY ACTION

      NRS 604A.800  Temporary suspension of license: Conditions; notice; hearing;

terms of suspension.  If the

Commissioner finds that probable cause for revocation of any license exists and

that enforcement of the provisions of this chapter requires immediate

suspension of a license pending investigation, the Commissioner may, upon 5

days’ written notice and a hearing, enter an order suspending a license for a

period not exceeding 20 days, pending a hearing upon the revocation.

      (Added to NRS by 2005, 1707)

      NRS 604A.810  Order to desist and refrain; action to enjoin violation;

appointment of receiver.

      1.  Whenever the Commissioner has

reasonable cause to believe that any person is violating or is threatening to

or intends to violate any provision of this chapter, the Commissioner may, in

addition to all actions provided for in this chapter and without prejudice

thereto, enter an order requiring the person to desist or to refrain from such

violation.

      2.  The Attorney General or the

Commissioner may bring an action to enjoin a person from engaging in or

continuing a violation or from doing any act or acts in furtherance thereof. In

any such action, an order or judgment may be entered awarding a preliminary or

final injunction as may be deemed proper.

      3.  In addition to all other means provided

by law for the enforcement of a restraining order or injunction, the court in

which an action is brought may impound, and appoint a receiver for, the

property and business of the defendant, including books, papers, documents and

records pertaining thereto, or so much thereof as the court may deem reasonably

necessary to prevent violations of this chapter through or by means of the use

of property and business, whether such books, papers, documents and records are

in the possession of the defendant, a registered agent acting on behalf of the

defendant or any other person. A receiver, when appointed and qualified, has

such powers and duties as to custody, collection, administration, winding up

and liquidation of such property and business as may from time to time be

conferred upon the receiver by the court.

      (Added to NRS by 2005, 1707; A 2007, 2722)

      NRS 604A.820  Procedure for taking disciplinary action; authorized

disciplinary action; grounds.

      1.  If the Commissioner has reason to

believe that grounds for revocation or suspension of a license exist, the

Commissioner shall give 20 days’ written notice to the licensee stating the

contemplated action and, in general, the grounds therefor and set a date for a

hearing.

      2.  At the conclusion of a hearing, the

Commissioner shall:

      (a) Enter a written order either dismissing the

charges, revoking the license or suspending the license for a period of not

more than 60 days, which period must include any prior temporary suspension.

The Commissioner shall send a copy of the order to the licensee by registered

or certified mail.

      (b) Impose upon the licensee an administrative

fine of not more than $10,000 for each violation by the licensee of any

provision of this chapter or any regulation adopted pursuant thereto.

      (c) If a fine is imposed pursuant to this

section, enter such order as is necessary to recover the costs of the

proceeding, including investigative costs and attorney’s fees of the

Commissioner.

      3.  The grounds for revocation or

suspension of a license are that:

      (a) The licensee has failed to pay the annual

license fee;

      (b) The licensee, either knowingly or without any

exercise of due care to prevent it, has violated any provision of this chapter

or any lawful regulation adopted pursuant thereto;

      (c) The licensee has failed to pay a tax as

required pursuant to the provisions of chapter

363A of NRS;

      (d) Any fact or condition exists which would have

justified the Commissioner in denying the licensee’s original application for a

license pursuant to the provisions of this chapter; or

      (e) The licensee:

             (1) Failed to open an office for the

conduct of the business authorized by his or her license within 180 days after

the date the license was issued; or

             (2) Has failed to remain open for the

conduct of the business for a period of 180 days without good cause therefor.

      4.  Any revocation or suspension applies

only to the license granted to a person for the particular office for which

grounds for revocation or suspension exist.

      5.  An order suspending or revoking a

license becomes effective 5 days after being entered unless the order specifies

otherwise or a stay is granted.

      (Added to NRS by 2005, 1707; A 2005,

22nd Special Session, 100)

      NRS 604A.830  Additional grounds for disciplinary action.  In addition to any other lawful reasons, the

Commissioner may suspend or revoke a license if the licensee has engaged in any

act that would be grounds for denying a license pursuant to this chapter.

      (Added to NRS by 2005, 1707)

      NRS 604A.840  Surrender of license by licensee; effect of surrender.  A licensee may surrender any license issued

pursuant to the provisions of this chapter by delivering it to the Commissioner

with written notice of its surrender, but a surrender does not affect the

licensee’s civil or criminal liability for acts committed prior thereto.

      (Added to NRS by 2005, 1708)

      NRS 604A.850  Preexisting contracts unaffected by revocation, suspension,

expiration or surrender of license.  A

revocation, suspension, expiration or surrender of any license does not impair

or affect the obligation of any preexisting lawful loan agreement between the

licensee and any customer. Such a loan agreement and all lawful charges thereon

may be collected by the licensee, its successors or assigns.

      (Added to NRS by 2005, 1708)

REMEDIES AND PENALTIES

      NRS 604A.900  Remedies for certain willful violations.

      1.  Except as otherwise provided in this

section, if a licensee willfully:

      (a) Enters into a loan agreement for an amount of

interest or any other charge or fee that violates the provisions of this

chapter or any regulation adopted pursuant thereto;

      (b) Demands, collects or receives an amount of

interest or any other charge or fee that violates the provisions of this

chapter or any regulation adopted pursuant thereto; or

      (c) Commits any other act or omission that

violates the provisions of this chapter or any regulation adopted pursuant

thereto,

Ê the loan is

void and the licensee is not entitled to collect, receive or retain any

principal, interest or other charges or fees with respect to the loan.

      2.  The provisions of this section do not

apply if:

      (a) A licensee shows by a preponderance of the

evidence that the violation was not intentional and resulted from a bona fide

error of computation, notwithstanding the maintenance of procedures reasonably

adapted to avoid that error; and

      (b) Within 60 days after discovering the error,

the licensee notifies the customer of the error and makes whatever adjustments

in the account are necessary to correct the error.

      (Added to NRS by 2005, 1708)

      NRS 604A.910  Administrative fines for unlicensed activity.  In addition to any other remedy or penalty,

the Commissioner may impose an administrative fine of not more than $50,000

upon a person who, without a license, conducts any business or activity for

which a license is required pursuant to the provisions of this chapter.

      (Added to NRS by 2005, 1709; A 2005,

22nd Special Session, 101)

      NRS 604A.920  Other remedies for unlicensed activity.  If

a person operates a check-cashing service, deferred deposit loan service,

high-interest loan service or title loan service without obtaining a license

pursuant to this chapter:

      1.  Any contracts entered into by that

person for the cashing of a check or for a deferred deposit loan, high-interest

loan or title loan are voidable by the other party to the contract; and

      2.  In addition to any other remedy or

penalty, the other party to the contract may bring a civil action against the

person pursuant to NRS 604A.930.

      (Added to NRS by 2005,

22nd Special Session, 101; A 2007, 943)

      NRS 604A.930  Civil action.

      1.  Subject to the affirmative defense set

forth in subsection 3, in addition to any other remedy or penalty, if a person

violates any provision of NRS 604A.400, 604A.410 to 604A.500,

inclusive, 604A.610, 604A.615,

604A.650 or 604A.655

or any regulation adopted pursuant thereto, the customer may bring a civil

action against the person for:

      (a) Actual and consequential damages;

      (b) Punitive damages, which are subject to the

provisions of NRS 42.005;

      (c) Reasonable attorney’s fees and costs; and

      (d) Any other legal or equitable relief that the

court deems appropriate.

      2.  Subject to the affirmative defense set

forth in subsection 3, in addition to any other remedy or penalty, the customer

may bring a civil action against a person pursuant to subsection 1 to recover

an additional amount, as statutory damages, which is equal to $1,000 for each

violation if the person knowingly:

      (a) Operates a check-cashing service, deferred

deposit loan service, high-interest loan service or title loan service without

a license, in violation of NRS 604A.400;

      (b) Fails to include in a loan agreement a

disclosure of the right of the customer to rescind the loan, in violation of NRS 604A.410;

      (c) Violates any provision of NRS 604A.420;

      (d) Accepts collateral or security for a deferred

deposit loan, in violation of NRS 604A.435, except

that a check or written authorization for an electronic transfer of money shall

not be deemed to be collateral or security for a deferred deposit loan;

      (e) Uses or threatens to use the criminal process

in this State or any other state to collect on a loan made to the customer, in

violation of NRS 604A.440;

      (f) Includes in any written agreement a promise

by the customer to hold the person harmless, a confession of judgment by the

customer or an assignment or order for the payment of wages or other

compensation due the customer, in violation of NRS

604A.440;

      (g) Violates any provision of NRS 604A.485;

      (h) Violates any provision of NRS 604A.490; or

      (i) Violates any provision of NRS 604A.442.

      3.  A person may not be held liable in any

civil action brought pursuant to this section if the person proves, by a

preponderance of evidence, that the violation:

      (a) Was not intentional;

      (b) Was technical in nature; and

      (c) Resulted from a bona fide error,

notwithstanding the maintenance of procedures reasonably adapted to avoid any

such error.

      4.  For the purposes of subsection 3, a

bona fide error includes, without limitation, clerical errors, calculation

errors, computer malfunction and programming errors and printing errors, except

that an error of legal judgment with respect to the person’s obligations under

this chapter is not a bona fide error.

      (Added to NRS by 2005, 1709; A 2007, 943, 2847)

      NRS 604A.940  Exercise of jurisdiction over party to civil action; service of

summons to confer jurisdiction.

      1.  A court of this State may exercise

jurisdiction over a party to a civil action arising under the provisions of

this chapter on any basis not inconsistent with the Constitution of the State

of Nevada or the Constitution of the United States.

      2.  Personal service of summons upon a

party outside this State is sufficient to confer upon a court of this State

jurisdiction over the party so served if the service is made by delivering a

copy of the summons, together with a copy of the complaint, to the party served

in the manner provided by statute or rule of court for service upon a person of

like kind within this State.

      3.  In all cases of such service, the

defendant has 40 days, exclusive of the day of service, within which to answer

or plead.

      4.  This section provides an additional

manner of serving process and does not invalidate any other service.

      (Added to NRS by 2005, 1708)