[Rev. 11/21/2013 1:04:42
PM--2013]
CHAPTER 675 - INSTALLMENT LOANS
GENERAL PROVISIONS
NRS 675.010 Short
title.
NRS 675.020 Definitions.
NRS 675.030 Legislative
declaration.
NRS 675.035 Applicability
of chapter.
NRS 675.040 Applicability
of chapter; exemptions.
NRS 675.045 Certain
relationships between employees of Division of Financial Institutions and
licensees prohibited; termination of prohibited relationship.
NRS 675.050 Effect
of amendment or repeal of chapter on preexisting lawful contracts.
NRS 675.055 Exemption
from provisions governing making of loans: Application to Commissioner;
grounds; powers and duties of Commissioner; regulations; fees set by
regulation.
LICENSING
NRS 675.060 Unlicensed
dealing in loans prohibited; license required for each office or other place of
business.
NRS 675.070 Application
of NRS 675.060 to persons who seek to evade.
NRS 675.090 Application
for license: Form; contents; requirements when applying for license for office
or other place of business located outside State; withdrawal of application.
NRS 675.095 Application
for license: Additional requirements; fingerprints; grounds for refusal to
issue license.
NRS 675.100 Fees
for application and investigation; regulations.
NRS 675.110 Investigation
by Commissioner; notice; hearing; order.
NRS 675.120 Issuance
of license subsequent to findings by Commissioner.
NRS 675.130 Required
statements on license.
NRS 675.140 Expiration,
renewal and reinstatement of license; fees; regulations.
NRS 675.150 Procedure
for denial of license.
NRS 675.160 Disposition
of money collected pursuant to chapter.
GENERAL REGULATIONS
NRS 675.170 Regulations
and orders of Commissioner.
NRS 675.180 Licensee
to maintain minimum assets.
NRS 675.190 Posting
of licenses.
NRS 675.200 Transferability
or assignability of license.
NRS 675.210 Places
of business maintainable by licensee under license; issuance of more than one
license to licensee.
NRS 675.220 Change
of address by licensee: Notice; approval by Commissioner; penalty for failure to
provide required notice.
NRS 675.230 Restriction
on location of business of making loans.
NRS 675.240 Name
under which business transactable by licensee; loans by mail.
NRS 675.245 Use
or change of business name; prohibitions.
NRS 675.250 Books
and accounting records: Practices; preservation; requirements regarding office
or other place of business located outside State.
NRS 675.260 Annual
report by licensee; composite reports.
NRS 675.280 False,
misleading or deceptive advertising prohibited.
NRS 675.285 Commissioner
required to investigate alleged violations of chapter.
NRS 675.292 Violation
of federal law constitutes violation of chapter.
NRS 675.296 Practices
regarding customers who are members of military.
LOANS
NRS 675.300 Insurance
as security for loans: Conditions; limitations.
NRS 675.310 Collection
of loans made outside State.
NRS 675.330 Payment
in money, credit, goods or things in action, as consideration for sale,
assignment, or order of compensation, deemed loan of money; transaction subject
to provisions of chapter.
NRS 675.340 Assignment
of wages as security invalid.
NRS 675.350 Prohibited
practices by licensees.
NRS 675.360 Duties
of licensee.
LOANS FOR INDEFINITE TERM
NRS 675.361 Terms
of written agreement.
NRS 675.363 Calculation
of interest; billing cycle.
NRS 675.365 Fees
and charges.
NRS 675.367 Borrower
must be given description of rate and computation of interest; notice of
increase in rate of interest or change in terms.
NRS 675.369 Written
statement to borrower; copy of draft or order for payment.
REVOCATION AND SUSPENSION OF LICENSES
NRS 675.370 License
remains effective until expiration, surrender, revocation or suspension.
NRS 675.380 Authority
of Commissioner to investigate business; free access required.
NRS 675.390 Authority
of Commissioner to require attendance of witnesses and production of documents.
NRS 675.400 Commissioner
to examine licensee’s business annually; fee.
NRS 675.410 Temporary
suspension of license: Conditions; notice; hearing; term of suspension.
NRS 675.420 Surrender
of license by licensee; surrender as affecting licensee’s liability.
NRS 675.430 Order
to desist and refrain; action to enjoin violation; appointment and powers of
receiver.
NRS 675.440 Revocation
or suspension of license: Grounds; notice; hearing; order.
NRS 675.445 Revocation
or suspension of license: Additional grounds.
NRS 675.450 Preexisting
contracts unaffected by revocation, suspension, expiration or surrender of
license.
PENALTIES
NRS 675.470 Unlicensed
dealing in loans.
NRS 675.490 Administrative
fines.
_________
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GENERAL PROVISIONS
NRS 675.010 Short title. This
chapter shall be known and may be cited as the Nevada Installment Loan and
Finance Act.
(Added to NRS by 1959, 226)
NRS 675.020 Definitions. As
used in this chapter, unless the context otherwise requires:
1. “Amount of cash advance” means the
amount of cash or its equivalent actually received by a borrower or paid out at
his or her direction or on his or her behalf.
2. “Amount of loan obligation” means the
amount of cash advance plus the aggregate of charges added thereto pursuant to
authority of this chapter.
3. “Commissioner” means the Commissioner
of Financial Institutions.
4. “Community” means a contiguous area of
the same economic unit or metropolitan area as determined by the Commissioner,
and may include all or part of a city or several towns or cities.
5. “License” means a license, issued under
the authority of this chapter, to make loans in accordance with the provisions
of this chapter, at a single place of business.
6. “Licensee” means a person to whom one
or more licenses have been issued.
(Added to NRS by 1959, 226; A 1977, 193; 1983, 1805; 1985, 537; 1987, 1987)
NRS 675.030 Legislative declaration. The
Legislature finds as facts and determines that:
1. There exists in this state a widespread
demand for loans repayable in installments, which loans may or may not be made
on substantial security. This demand has been steadily increased by many social
and economic factors.
2. The expenses of making and collecting
installment loans are necessarily high in relation to the amounts lent.
3. It is the purpose of this chapter to:
(a) Bring under public supervision those engaged
in the business of making loans;
(b) Attract adequate commercial capital to the
business, so that the demand for such loans may be satisfied; and
(c) Ensure the availability in this state of
adequate, efficient and competitive financial services.
(Added to NRS by 1959, 227; A 1971, 1365; 1973, 1515;
1983, 1312; 1987,
178)
NRS 675.035 Applicability of chapter. The
provisions of this chapter apply to any person who:
1. Makes installment loans that are not
subject to regulation pursuant to chapter 604A
of NRS;
2. Is an affiliate, subsidiary or holding
company of a bank, national banking association, savings bank, trust company,
savings and loan association, credit union, mortgage broker, mortgage banker,
thrift company or insurance company; and
3. Seeks to evade its application by any
device, subterfuge or pretense, including, without limitation:
(a) Calling a loan by any other name;
(b) Using any agents, affiliates or subsidiaries
in an attempt to avoid the application of the provisions of this chapter; or
(c) 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 675.040, 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 material
economic interest in the revenues generated by the loan.
(Added to NRS by 2007, 945; A 2007, 1967; 2013, 1250)
NRS 675.040 Applicability of chapter; exemptions. This
chapter does not apply to:
1. Except as otherwise provided in NRS 675.035, a person doing business under 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, pawnbrokers or insurance companies.
2. A real estate investment trust, as
defined in 26 U.S.C. § 856.
3. 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.
4. 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.
5. 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.
6. Except as otherwise provided in this
subsection, 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.
7. A person who provides money for
investment in loans secured by a lien on real property, on his or her own
account.
8. A seller of real property who offers
credit secured by a mortgage of the property sold.
9. A person holding a nonrestricted state
gaming license issued pursuant to the provisions of chapter 463 of NRS.
10. A person licensed to do business
pursuant to chapter 604A of NRS with regard
to those services regulated pursuant to chapter
604A of NRS.
(Added to NRS by 1959, 227; A 1983, 153, 1313; 1989, 1064; 1991, 818; 1995, 1100; 1999, 3810; 2003, 3578; 2005, 1713; 2007, 945; 2013, 1251)
NRS 675.045 Certain relationships between employees of Division of Financial
Institutions and licensees prohibited; termination of prohibited relationship.
1. Except as provided in subsection 3, an
officer or employee of the Division of Financial Institutions 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 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 upon a secured installment debt or an
unsecured debt.
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 1983, 1805)
NRS 675.050 Effect of amendment or repeal of chapter on preexisting lawful
contracts. This chapter or any
part thereof may be modified, amended or repealed 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 contract between any licensee
and any borrower.
(Added to NRS by 1959, 227)
NRS 675.055 Exemption from provisions governing making of loans: Application
to Commissioner; grounds; powers and duties of Commissioner; regulations; fees
set by regulation.
1. A person may apply to the Commissioner
for an exemption from the provisions of this chapter governing the making of a
loan of money.
2. The Commissioner may grant the
exemption if he or she finds that:
(a) The making of the loan would not be
detrimental to the financial condition of the lender, borrower or person who is
providing the money for the loan;
(b) The lender, borrower or person who is
providing the money for the loan has established a record of sound performance,
efficient management, financial responsibility and integrity;
(c) The making of the loan is likely to increase
the availability of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to
the public interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for
which the exemption was granted has been made;
(b) Shall issue a written statement setting forth
the reasons for his or her decision to grant, deny or revoke an exemption; and
(c) Shall adopt regulations which provide the
application forms to be used to apply for an exemption and the fees to be paid
along with the application.
(Added to NRS by 1989, 1064)
LICENSING
NRS 675.060 Unlicensed dealing in loans prohibited; license required for
each office or other place of business.
1. No person may engage in the business of
lending in this State without first having obtained a license from the
Commissioner pursuant to this chapter for each office or other place of
business at which the person engages in such business, except that if a person
intends to engage in the business of lending in this State as a deferred
deposit loan service, high-interest loan service or title loan service, as
those terms are defined in chapter 604A of
NRS, the person must obtain a license from the Commissioner pursuant to chapter 604A of NRS before the person may
engage in any such business.
2. For the purpose of this section, a
person engages in the business of lending in this State if he or she:
(a) Solicits loans in this State or makes loans
to persons in this State, unless these are isolated, incidental or occasional
transactions; or
(b) Is located in this State and solicits loans
outside of this State or makes loans to persons located outside of this State,
unless these are isolated, incidental or occasional transactions.
(Added to NRS by 1959, 228; A 1971, 1366; 1973, 1515;
1983, 1313, 1806; 1987,
178, 1987;
1993, 2045;
2001, 2047;
2005, 1714;
2007, 946)
NRS 675.070 Application of NRS 675.060 to
persons who seek to evade. The
provisions of NRS 675.060 shall apply to any person
who seeks to evade its application by any device, subterfuge or pretense
whatever, including, but not thereby limiting the generality of the foregoing:
1. The loan, forbearance, use or sale of
credit (as guarantor, surety, endorser, comaker or otherwise), money, goods, or
things in action.
2. The use of collateral or related sales
or purchases of goods or services, or agreements to sell or purchase, whether
real or pretended.
3. Receiving or charging compensation for
goods or services, whether or not sold, delivered or provided.
4. The real or pretended negotiation,
arrangement or procurement of a loan through any use or activity of a third
person, whether real or fictitious.
(Added to NRS by 1959, 228)
NRS 675.090 Application for license: Form; contents; requirements when
applying for license for office or other place of business located outside
State; withdrawal of application.
1. Application for a license must be in
writing, under oath, and in the form prescribed by the Commissioner.
2. The application must:
(a) Provide the address of the office or other
place of business for which the application is submitted.
(b) Contain such further relevant information as
the Commissioner may require, including the names and addresses of the
partners, officers, directors or trustees, and of such of the principal owners
or members as will provide the basis for the investigations and findings
contemplated by NRS 675.110 and 675.120.
3. 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 paragraph (a) or (b) in complying with the
provisions of this subsection.
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 1959, 228; A 1983, 1806; 1987, 1987; 2001, 2047; 2005, 1881)
NRS 675.095 Application for license: Additional requirements; fingerprints;
grounds for refusal to issue 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, 1880)
NRS 675.100 Fees for application and investigation; regulations.
1. At the time of making the application,
the applicant shall pay to the Commissioner:
(a) A nonrefundable fee of not more than $1,000
for the application and survey;
(b) Any additional expenses incurred in the
process of investigation as the Commissioner deems necessary; and
(c) A fee of not less than $200 or more than
$1,000, prorated on the basis of the licensing year as provided by the
Commissioner.
2. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section. All money received by the Commissioner pursuant to this section must
be placed in the Investigative Account created by NRS 232.545.
(Added to NRS by 1959, 228; A 1981, 757; 1983, 1326,
1807; 1987,
1988; 1991,
1814; 2005,
1882)
NRS 675.110 Investigation by Commissioner; notice; hearing; order.
1. Upon the filing of the application and
the payment of the fees, the Commissioner shall investigate the facts
concerning the application and the requirements provided for in NRS 675.120.
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 nor more than 60 days after that date. The hearing must be held in
the Office of the Commissioner or such other place as he or she 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 1959, 229; A 1981, 104; 1983, 1807; 1987, 1988; 2001, 2048)
NRS 675.120 Issuance of license subsequent to findings by Commissioner. If the Commissioner finds:
1. That 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, within the
purposes of this chapter; and
2. That the applicant, unless he or she
will function solely as a loan broker, has available for the operation of the business
at the specified location liquid assets of at least $50,000,
Ê he or she
shall thereupon enter an order granting the application, and file his or her
findings of fact together with the transcript of any hearing held under this
chapter, and forthwith issue and deliver a license to the applicant.
(Added to NRS by 1959, 229; A 1971, 1366; 1983, 1807;
1987, 178, 1988; 2001, 2048)
NRS 675.130 Required statements on license. Each
license shall:
1. State the address at which the business
is to be conducted; and
2. State fully the name of the licensee,
and if the licensee is a copartnership or association, the names of its
members, and if a corporation, the date and place of its incorporation.
(Added to NRS by 1959, 229)
NRS 675.140 Expiration, renewal and reinstatement of license; fees;
regulations.
1. A license expires on December 31 of
each year unless renewed by the licensee through the payment, on or before that
date, of an annual fee of not more than $1,000 for each license held by the
licensee. The Commissioner may reinstate an expired license upon receipt of the
annual fee and a fee of not more than $400 for reinstatement.
2. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section.
(Added to NRS by 1959, 229; A 1981, 757; 1983, 1807; 1987, 1989; 1989, 922; 2005, 1882)
NRS 675.150 Procedure for denial of license.
1. If the Commissioner finds that any
applicant does not possess the requirements specified in this chapter, he or
she shall enter an order denying the application and forthwith notify the
applicant of the denial.
2. Within 10 days after the entry of such
an order, he or she shall file his or her findings and a summary of the
evidence supporting them and shall forthwith deliver a copy thereof to the
applicant.
(Added to NRS by 1959, 229; A 1983, 1326, 1808; 1987, 1989)
NRS 675.160 Disposition of money collected pursuant to chapter. Except as otherwise provided in NRS 675.100, all fees and charges collected under the
provisions of this chapter must be deposited in the State Treasury pursuant to
the provisions of NRS 658.091.
(Added to NRS by 1959, 230; A 1983, 1326; 2003, 3234)
GENERAL REGULATIONS
NRS 675.170 Regulations and orders of Commissioner.
1. The Commissioner may adopt regulations
and make orders for the administration and enforcement of this chapter, in
addition hereto and not inconsistent herewith.
2. Every regulation must be promulgated by
an order, and any ruling, demand, requirement or similar administrative act may
be promulgated by an order.
3. Every order must be in writing, must
state its effective date and the date of its promulgation, and must be entered
in an indexed permanent book which is a public record.
4. A copy of every order promulgating a
regulation and of every other order containing a requirement of general
application must be mailed to each licensee at least 20 days before the
effective date thereof.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)
NRS 675.180 Licensee to maintain minimum assets. Every
licensee shall maintain assets of at least $50,000 either used or readily
available for use in the conduct of the business of each licensed office.
(Added to NRS by 1959, 230; A 1971, 1366)
NRS 675.190 Posting of licenses. Each
license shall be kept conspicuously posted in the licensed place of business.
(Added to NRS by 1959, 230)
NRS 675.200 Transferability or assignability of license. Licenses shall not be transferable or
assignable.
(Added to NRS by 1959, 230)
NRS 675.210 Places of business maintainable by licensee under license;
issuance of more than one license to licensee. Not
more than one place of business may be maintained under the same license. The
Commissioner may issue additional licenses to the same licensee for other
business locations upon compliance with all the provisions of this chapter
governing issuance of a single license. Nothing herein requires a license for
any place of business devoted to accounting, recordkeeping or administrative
purposes only.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)
NRS 675.220 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 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.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989; 2001, 2049)
NRS 675.230 Restriction on location of business of making loans.
1. Except as otherwise provided in
subsection 2, a licensee may not conduct the business of making loans under
this chapter within any office, suite, room or place of business in which any
other 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 pursuant to this chapter in the same office or place of business
as:
(a) A mortgage broker if:
(1) The licensee and the mortgage broker:
(I) Operate as separate legal
entities;
(II) Maintain separate accounts,
books and records;
(III) Are subsidiaries of the same
parent corporation; and
(IV) 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) Operate as separate legal entities;
(II) Maintain separate accounts,
books and records;
(III) Are subsidiaries of the same
parent corporation; and
(IV) 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.
(Added to NRS by 1959, 230; A 1983, 1809; 1987, 1990; 1991, 884; 1999, 3810; 2003, 3579)
NRS 675.240 Name under which business transactable by licensee; loans by
mail. No licensee shall conduct
the business of making loans provided for by this chapter under any name or at
any place other than that stated in the license. Nothing herein shall prevent
the making of loans by mail nor prohibit accommodations to individual borrowers
when necessitated by hours of employment, sickness or other emergency
situations.
(Added to NRS by 1959, 231)
NRS 675.245 Use or change of business name; prohibitions.
1. A licensee must obtain the approval of
the Commissioner before using or changing a business name.
2. 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, 1881)
NRS 675.250 Books and accounting records: Practices; preservation;
requirements regarding office or other place of business located outside State.
1. Each licensee shall keep and use in his
or her business such books and accounting records as are in accord with sound
and accepted accounting practices.
2. Each licensee shall maintain a separate
record or ledger card for the account of each borrower 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 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 paragraph (a) or (b) in complying with the
provisions of this subsection.
(Added to NRS by 1959, 231; A 2001, 2049)
NRS 675.260 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 report must be made under oath and
must be in the form and contain information prescribed by the Commissioner.
3. If any person or affiliated group holds
more than one license in the state, it may file a composite annual report.
(Added to NRS by 1959, 231; A 1981, 753; 1983, 1809; 1987, 1990)
NRS 675.280 False, misleading or deceptive advertising prohibited. A licensee shall not advertise or permit to be
advertised in any manner whatsoever any false, misleading or deceptive
statement or representation with regard to the rates, terms or conditions for
loans.
(Added to NRS by 1959, 231; A 1971, 1366; 1973, 1516;
1987, 179)
NRS 675.285 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, 2726)
NRS 675.292 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, 2858)
NRS 675.296 Practices regarding customers who are members of military. Notwithstanding any other provision of law:
1. If a borrower is a member of the
military, a licensee shall:
(a) Honor the terms of any repayment plan between
the licensee and borrower, 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 borrower is a member of the military,
a licensee shall not:
(a) Garnish or threaten to garnish any wages or
salary of the borrower or his or her spouse; or
(b) Contact or threaten to contact the military
chain of command of a borrower in an effort to collect the loan.
3. If a borrower 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 borrower or his or her
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 2007, 2858)
LOANS
NRS 675.300 Insurance as security for loans: Conditions; limitations.
1. A licensee may request that a borrower
insure tangible property when offered as security for a loan under this chapter
against any substantial risk of loss, damage or destruction for an amount not
to exceed the actual value of the property and for a term and upon conditions
which are reasonable and appropriate considering the nature of the property and
the maturity and other circumstances of the loan.
2. A licensee may require that a borrower
provide title insurance on real property offered as security for a loan under
this chapter. The title insurance must be placed through a title insurance
company authorized to do business in this state.
3. A licensee may provide, obtain or take
as security for a loan:
(a) Insurance on the life and on the health or
disability, or both, of one or more parties obligated on the loan;
(b) Involuntary unemployment insurance;
(c) Insurance which protects his or her interest
in the collateral pledged for the loan;
(d) Single interest nonfiling insurance; or
(e) Any other credit-related insurance approved
by the Commissioner,
Ê if the
insurance complies with the applicable provisions of chapter 690A of NRS.
4. In accepting any insurance provided by
this section as security for a loan, the licensee may include the premiums or
identifiable charge as part of the principal or may deduct the premiums or
identifiable charge therefor from the proceeds of the loan, which premium or
identifiable charge must not exceed those filed with and approved by the
Commissioner of Insurance, and remit those premiums to the insurance company
writing the insurance, and any gain or advantage to the licensee, any employee,
officer, director, agent, affiliate or associate from the insurance or its sale
may not be considered as additional or further charge in connection with any
loan made under this chapter. Not more than one policy of life insurance and
one policy providing accident and health coverage may be written by a licensee
in connection with any loan transaction under this chapter, and a licensee
shall not require the borrower to be insured as a condition of any loan. If the
unpaid balance of the loan is prepaid in full by cash or other thing of value,
refinancing, renewal, a new loan or otherwise, the charge for any credit life
insurance and any credit accident and health insurance must be refunded or
credited as prescribed in chapter 690A of
NRS. The insurance must be written by a company authorized to conduct business
in this state, and the licensee shall not require the purchase of the insurance
from any agent or broker designated by the licensee.
5. The amount charged to a debtor by a
licensee for any type of coverage under a policy of insurance provided by this
section as security for a loan must not exceed the amount of the premium. In
the case of a single interest nonfiling policy of insurance, the amount charged
to a debtor by a licensee must not exceed the amount charged by a county
recorder for filing and releasing documents pursuant to NRS 104.9525.
6. As used in this section, “single
interest nonfiling insurance” means a contract of insurance for which a lender
pays a predetermined fee, which affords coverage to a lender in connection with
a specific loan, and which is obtained by the lender in lieu of perfecting a
security interest pursuant to chapter 104 of
NRS.
(Added to NRS by 1959, 233; A 1967, 976; 1971, 226,
1369, 1927, 1960; 1973, 1519; 1979, 828; 1987, 2303; 1993, 2045; 1999, 393)
NRS 675.310 Collection of loans made outside State. Any
loan made outside this state lawfully made 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 1959, 234; A 1971, 1370)
NRS 675.330 Payment in money, credit, goods or things in action, as
consideration for sale, assignment, or order of compensation, deemed loan of
money; transaction subject to provisions of chapter. The
payment of money, credit, goods or things in action, as consideration for any
sale, assignment or order for the payment of wages, salary, commissions or other
compensation for services earned or to be earned, shall, for the purposes of
regulation under this chapter, be deemed a loan of money secured by the sale,
assignment or order. The amount by which the compensation so sold, assigned or
ordered paid exceeds the amount of the consideration actually paid shall, for
the purposes of regulation under this chapter, be deemed interest or charges on
the loan from the date of the payment to the date the compensation is payable.
Such a transaction is subject to the provisions of this chapter.
(Added to NRS by 1959, 235; A 1971, 1371; 1973, 1520;
1987, 179)
NRS 675.340 Assignment of wages as security invalid. No assignment of wages, salary, commissions or
other compensation for services, whether earned or to be earned, given to a
licensee as security for a loan under this chapter, shall be valid.
(Added to NRS by 1959, 235)
NRS 675.350 Prohibited practices by licensees. No
licensee may:
1. Take any confession of judgment or any
power of attorney running to himself or herself or to any third person to
confess judgment or to appear for the borrower in a judicial proceeding.
2. Take any note or promise to pay which
does not disclose the date and amount of the loan obligation, a schedule or
description of the payments to be made thereon and the rate or aggregate amount
of the agreed charges.
3. Take any instrument in which blanks are
left to be filled in after the loan is made.
4. Take a lien upon real property as
security for any loan made under this chapter except real property upon which
is situated a mobile home or factory-built housing that also secures the loan,
and except such lien as is created by law through the rendition or recording of
a judgment.
(Added to NRS by 1959, 235; A 1959, 783; 1979, 829; 1991, 884)
NRS 675.360 Duties of licensee. Every
licensee shall:
1. Deliver to the borrower, or if more
than one, to one of them, at the time of making a loan under this chapter a
copy of the loan obligation or, in lieu thereof, a statement showing in clear
and distinct terms the date of the loan, the amount of the obligation, the date
of its maturity, if there is one, the nature of the security, if any, for the
loan, the name and address of the borrower and of the licensee, and the description
or schedule of payments on that loan.
2. Except as otherwise provided for loans
for an indefinite term in NRS 675.369, give to the
person making any cash payment on account of any loan a receipt at the time
that payment is made, showing the balance due, if any, after application of
that payment. A receipt showing the amount of the payment only may be given
temporarily and must be replaced within a reasonable time with a receipt as prescribed
in this subsection.
3. Permit payment in advance in an amount
equal to one or more full installments at any time during the regular business
hours of the licensee.
4. Upon repayment of a loan in full, mark
plainly every note or other evidence of the indebtedness or assignment signed
by any obligor, or a copy thereof, with the word “paid” or “cancelled,” and
release or provide the borrower evidence to release any mortgage or security
instrument no longer securing any indebtedness to the licensee.
(Added to NRS by 1959, 235; A 1985, 1679; 1995, 137)
LOANS FOR INDEFINITE TERM
NRS 675.361 Terms of written agreement. A
licensee may make a loan for an indefinite term under a written agreement
between the licensee and the borrower. Pursuant to this agreement:
1. The borrower may obtain cash advances
from the licensee periodically by a check, draft, credit card or any other
means or the licensee may pay out money at the borrower’s direction or on his
or her behalf;
2. An open-end account must be established
for the borrower and the amount of each cash advance made to the borrower and
any interest, charges and other costs must be debited to that account and any
payments on the loan or other credits must be credited to that account;
3. The interest and other charges must be
computed periodically on the unpaid balance in the borrower’s account; and
4. The borrower may pay his or her account
in full at any time without a penalty for prepayment, or if the account is not
in default, in monthly installments of fixed or determinable amounts as
provided in the agreement.
(Added to NRS by 1985, 1677)
NRS 675.363 Calculation of interest; billing cycle.
1. Under an agreement for a loan for an
indefinite term, the licensee may receive interest in any amount or at any
annual rate provided in the agreement. This interest must be calculated for
each billing cycle in either of the following ways:
(a) By multiplying the daily rate by the daily
unpaid balance in the account. The daily rate is determined by dividing the
annual rate of interest fixed by the agreement by 365. The daily unpaid balance
is determined by adding to any balance remaining unpaid as of the beginning of
each day any advances and any appropriate charges, including interest, and by
deducting therefrom any payments or other credits made or received on that day.
(b) By multiplying the monthly rate by the
average unpaid daily balance in the account for that billing cycle. The monthly
rate is determined by dividing the annual rate of interest by 12. The average
unpaid daily balance is determined by dividing the sum of all of the daily
unpaid balances during the billing cycle by the number of days in the cycle.
2. Unless otherwise provided in the
agreement, the billing cycle must be monthly. A billing cycle is monthly if the
closing date of the cycle is the same date each month or does not vary by more
than 4 days from that date.
(Added to NRS by 1985, 1677)
NRS 675.365 Fees and charges. In
addition to the interest allowed pursuant to NRS
675.363, a licensee may, pursuant to the agreement for a loan for an
indefinite term, receive from the borrower or add to the unpaid balance in that
borrower’s account:
1. Any fees imposed on the licensee
pursuant to this chapter;
2. Any charge for insurance under NRS 675.300;
3. A charge not exceeding 25 cents for
each transaction in which a loan or advance is made pursuant to the agreement
or an annual fee for the use of an open-end account in an amount not to exceed
$20;
4. If the interest calculated for any
billing cycle pursuant to NRS 675.363 is less than
50 cents:
(a) For a billing cycle which is monthly or
longer, a charge in an amount not exceeding 50 cents; or
(b) For a billing cycle less than monthly, a
charge in an amount equal to that portion of 50 cents which bears the same
relation to 50 cents as the number of days in the billing cycle bear to 365
divided by 12;
5. For any check written by the borrower
to the licensee which is returned, or any electronic transfer of money that
fails, because of insufficient funds, a charge of $10 or in an amount equal to
the charges imposed on the licensee because of his or her reliance on that
check or electronic transfer of money, whichever amount is greater; and
6. Any charge assessed the licensee by a
third party for the printing and distribution of any checks, drafts or other
instruments to be used by the borrower in obtaining advances pursuant to the
agreement.
(Added to NRS by 1985, 1678; A 1987, 1516; 2007, 946)
NRS 675.367 Borrower must be given description of rate and computation of
interest; notice of increase in rate of interest or change in terms.
1. In addition to the information required
in subsection 1 of NRS 675.360, a borrower under an
agreement for a loan for an indefinite term must be given a description of the
agreed annual interest rate, stated as a percentage, the conditions under which
interest will be charged and the method used to compute the interest for each
billing cycle.
2. The licensee shall notify a borrower of
any increase in the rate of interest to be charged or any other change in the
terms of the agreement for a loan for an indefinite term:
(a) No later than the date of the first billing
after the effective date of the change, if the change in the rate of interest
is pursuant to an agreement for the loan which is signed by the borrower and
specifies the formula for computation of the adjustment in the rate; or
(b) At least 30 days before the change is to take
place for all other loans for an indefinite term.
Ê The change
applies only to a debt incurred by the borrower after the effective date of the
change, unless otherwise agreed by the borrower. In determining the balance to
which an increase in the rate of interest applies, any payment received or
other credit made to the borrower’s account applies to the balance existing
before the date of that increase until that balance is paid in full.
(Added to NRS by 1985, 1678; A 1987, 1516)
NRS 675.369 Written statement to borrower; copy of draft or order for
payment.
1. If the account of a borrower on a loan
for an indefinite term shows a balance due or if any debits or credits were
entered on that account during a billing cycle, the licensee shall furnish to
the borrower, within a reasonable time after the end of the billing cycle, a
written statement setting forth:
(a) The unpaid balance in his or her account at
the beginning of the billing cycle;
(b) The date and amount of any loans or advances
made on the account during the billing cycle;
(c) Any payments or other credits made or
received on the account during the billing cycle;
(d) The amount of interest and other charges, if
any, made on the account during the billing cycle;
(e) The amount of the installment due and the
date on which that payment must be received; and
(f) The total amount remaining unpaid in the
account at the end of that billing cycle.
2. The licensee shall also, upon written
request of the borrower, furnish to the borrower a copy of any draft or order
for payment received on the account of the borrower during the billing cycle.
(Added to NRS by 1985, 1678; A 1989, 1065)
REVOCATION AND SUSPENSION OF LICENSES
NRS 675.370 License remains effective until expiration, surrender,
revocation or suspension. Each
license shall remain in full force and effect until it expires or is surrendered,
revoked or suspended as provided in this chapter.
(Added to NRS by 1959, 236; A 1989, 922)
NRS 675.380 Authority of Commissioner to investigate business; free access
required.
1. For the purpose of discovering
violations of this chapter or of 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
described in NRS 675.060 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 described in NRS 675.060; 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, files, safes and vaults of
such persons.
3. The investigation of a registered agent
pursuant to subsection 1, including, without limitation, any book, 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
loan transactions is presumed to be engaged in the business described in NRS 675.060.
5. This section does not entitle the
Commissioner or the authorized representatives of the Commissioner 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 1959, 236; A 1971, 1371; 1973, 1520;
1983, 1809; 1987,
179, 1990;
2007, 2726;
2009, 1731)
NRS 675.390 Authority of Commissioner to require attendance of witnesses and
production of documents. The
Commissioner may require the attendance of any person and examine him or her
under oath relative to loans or business regulated by this chapter or to the
subject matter of any examination, investigation or hearing, and may require
the production of books, accounts, papers and records.
(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)
NRS 675.400 Commissioner to examine licensee’s business annually; fee.
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, papers and records of the licensee so far as they pertain to the
business licensed under this chapter.
2. For each examination the Commissioner
shall charge and collect from the licensee a fee for conducting the examination
and preparing and typing the report of the examination at the rate established
pursuant to NRS 658.101.
3. All money collected by the Commissioner
pursuant to subsection 2 must be deposited in the State Treasury pursuant to
the provisions of NRS 658.091.
(Added to NRS by 1959, 236; A 1967, 977; 1979, 956;
1983, 1810; 1987,
1991, 2226;
2003, 3234)
NRS 675.410 Temporary suspension of license: Conditions; notice; hearing;
term of suspension. If the
Commissioner finds that probable cause for revocation of any license exists and
that enforcement of this chapter requires immediate suspension of a license
pending investigation, he or she 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 1959, 236; A 1971, 1371; 1977, 96;
1983, 1810; 1987,
1991)
NRS 675.420 Surrender of license by licensee; surrender as affecting
licensee’s liability. Any licensee
may surrender any license by delivering it to the Commissioner with written
notice of its surrender, but a surrender does not affect his or her civil or
criminal liability for acts committed prior thereto.
(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)
NRS 675.430 Order to desist and refrain; action to enjoin violation;
appointment and powers 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, he or she may, in addition to all
actions provided for in this chapter and without prejudice thereto, enter an
order requiring a person to desist or to refrain from such violation.
2. An action may be brought on the
relation of the Attorney General and the Commissioner 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 1959, 236; A 1983, 1810; 1987, 1991; 2007, 2726)
NRS 675.440 Revocation or suspension of license: Grounds; notice; hearing;
order.
1. If the Commissioner has reason to
believe that grounds for revocation or suspension of a license exist, he or she
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. A
copy of the order must be sent by registered or certified mail to the licensee.
(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 lawful regulation adopted under it.
(c) If a fine is imposed pursuant to this
section, enter such order as is necessary to recover the costs of the
proceeding, including his or her investigative costs and attorney’s fees.
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 under it;
(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 hereunder; or
(e) The applicant failed to open an office for
the conduct of the business authorized under this chapter within 120 days after
the date the license was issued, or has failed to remain open for the conduct
of the business for a period of 120 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 1959, 237; A 1983, 1811; 1987, 1992; 1993, 901; 2003,
20th Special Session, 226; 2005, 1882)
NRS 675.445 Revocation or suspension of license: Additional grounds. 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 this chapter.
(Added to NRS by 2005, 1881)
NRS 675.450 Preexisting contracts unaffected by revocation, suspension,
expiration or surrender of license. No
revocation, suspension, expiration or surrender of any license impairs or
affects the obligation of any preexisting lawful contract between the licensee
and any obligors. Such a contract and all lawful charges thereon may be
collected by the licensee, its successors or assigns.
(Added to NRS by 1959, 237; A 1989, 922)
PENALTIES
NRS 675.470 Unlicensed dealing in loans. Any
person and the several members, officers, directors, agents and employees
thereof who violate or participate in the violation of any provision of NRS 675.060 are guilty of a misdemeanor.
(Added to NRS by 1959, 238; A 1967, 649; 1989, 1065)
NRS 675.490 Administrative fines. In
addition to any other remedy or penalty, the Commissioner may impose an
administrative fine of not more than $10,000 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, 1881)
