2005 Nevada Revised Statutes - Chapter 97 — Retail Installment Sales of Goods and Services
Title 8 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS
CHAPTER 97 - RETAIL INSTALLMENT SALES OFGOODS AND SERVICES
GENERAL PROVISIONS
NRS 97.015 Definitions.
NRS 97.017 Amountfinanced defined.
NRS 97.025 Cashsale price defined.
NRS 97.031 Financecharge defined.
NRS 97.035 Goodsdefined.
NRS 97.055 Officialfees defined.
NRS 97.075 Ratedefined.
NRS 97.085 Retailbuyer and buyer defined.
NRS 97.095 Retailcharge agreement defined.
NRS 97.105 Retailinstallment contract and contract defined.
NRS 97.115 Retailinstallment transaction defined.
NRS 97.125 Retailseller and seller defined.
NRS 97.135 Servicesdefined.
NRS 97.145 Totalof payments defined.
RETAIL INSTALLMENT CONTRACTS
NRS 97.165 Contractcontained in single document; date, signatures and size of type; fee forcancellation.
NRS 97.175 Sellerto deliver or mail copy of contract to buyer.
NRS 97.185 Contentsof contract.
NRS 97.195 Amountof finance charge and any other fee, expense or charge.
NRS 97.205 Contractsnegotiated and entered into by mail or telephone based on sellers catalog orprinted solicitation; preparation and delivery of memorandum.
NRS 97.215 Blankspaces in contracts.
NRS 97.225 Prepaymentof unpaid total of payments; refund.
CONSOLIDATING PURCHASES; RETAIL CHARGE AGREEMENTS
NRS 97.235 Consolidatedcontracts; memoranda.
NRS 97.245 Retailcharge agreements: Finance charge; contents of monthly statements; notice ofchange in terms.
NRS 97.253 Rightsof retail seller; action to determine liability for unauthorized negotiableinstrument used to make payment.
PROVISIONS COMMON TO RETAIL INSTALLMENT CONTRACTS AND RETAILCHARGE AGREEMENTS
NRS 97.265 Insurance.
NRS 97.275 Invalidityof provisions of contract or agreement; waiver of provisions of chapterineffective.
NRS 97.285 Provisionsof chapter governing retail installment transactions exclusive.
CONTRACTS FOR SALE OF VEHICLES
NRS 97.297 Vehicledefined.
NRS 97.299 Formsfor contracts and applications for credit: Adoption of regulations prescribingforms; contents; acceptance; translation into Spanish; amendment of forms.
NRS 97.301 Formsfor contracts and application for credit: When use is mandatory.
REMEDIES, ENFORCEMENT AND PENALTIES
NRS 97.305 Violationbar to recovery.
NRS 97.315 Injunctionto prevent violation.
NRS 97.325 Assuranceof discontinuance.
NRS 97.335 Civilpenalties.
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GENERAL PROVISIONS
NRS
(Added to NRS by 1965, 657; A 1993, 2756; 1995, 1801,2600; 1997, 550)
NRS
(Added to NRS by 1995, 1800)
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(Added to NRS by 1965, 657)
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(Added to NRS by 1995, 1801)
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1. All tangible personal property, whether movable at thetime of purchase or a fixture, which is used or bought for use primarily forpersonal, family or household purposes; and
2. Merchandise certificates or coupons, issued by aretail seller, to be used in their face amount in lieu of cash in exchange forgoods or services sold by such a seller.
(Added to NRS by 1965, 658)
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(Added to NRS by 1965, 658)
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(Added to NRS by 1965, 658; A 1993, 2756; 1995, 1801)
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(Added to NRS by 1965, 658; A 1967, 1201; 1995, 2600;1997, 651)
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(Added to NRS by 1965, 658; A 1967, 1201; 1993, 2756;1995, 1801, 2600; 1997, 550)
NRS
1. Retail installment contract or contract means acontract, other than a retail charge agreement or an instrument reflecting asale made pursuant thereto, entered into or performed in this state for aretail installment transaction.
2. The term includes a security agreement and abailment contract or lease if the bailee or lessee contracts to pay ascompensation for their use a sum substantially equivalent to or in excess ofthe value of the goods and if it is agreed that the bailee or lessee is boundto become or, without giving further substantial value, has the option ofbecoming the owner of the goods upon full compliance with the provisions of thebailment or lease.
3. The term does not include a bailment or lease of avehicle where the lessee becomes or may become the owner of the vehicle bypayment to the lessor of an amount which is substantially equal to the residualvalue or the unamortized capitalized cost, if the payment is not nominal.
(Added to NRS by 1965, 658; A 1979, 1264)
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(Added to NRS by 1965, 658; A 1993, 2756; 1995, 1801)
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1. A person engaged in the business of selling orleasing goods or services to retail buyers or a licensee, franchisee, assigneeor corporate affiliate or subsidiary of such a person; or
2. A person, other than a financial institution, whoenters into agreements prescribing the terms for the extension of creditpursuant to which the person may, with the buyers consent, purchase or acquireone or more obligations of the buyer to a retail seller if the purchase, lease,loan or other obligation to be paid in accordance with the agreement isevidenced by a sales slip or memorandum.
(Added to NRS by 1965, 658; A 1967, 1201; 1995, 1802,2601; 1997, 550)
NRS
(Added to NRS by 1965, 659)
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(Added to NRS by 1965, 659; A 1993, 2756; 1995, 1802)
RETAIL INSTALLMENT CONTRACTS
NRS
1. Every retail installment contract must be containedin a single document which must contain the entire agreement of the parties,including any promissory notes or other evidences of indebtedness between theparties relating to the transaction, except as otherwise provided in
(a) If the buyers obligation to pay the total ofpayments is represented by a promissory note secured by a chattel mortgage orother security agreement, the promissory note may be a separate instrument ifthe mortgage or security agreement recites the amount and terms of payment ofthat note and the promissory note recites that it is secured by a mortgage orsecurity agreement.
(b) In a transaction involving the repair, alterationor improvement upon or in connection with real property, the contract may besecured by a mortgage or deed of trust on the real property contained in aseparate document. Retail sales transactions for home improvements which arefinanced or insured by the Federal Housing Administration are not subject tothe provisions of this chapter.
2. The contract must be dated, signed by the retailbuyer and completed as to all essential provisions, except as otherwiseprovided in NRS 97.205,
3. Any fee charged to the retail buyer for hiscancellation of a retail installment contract within 72 hours after itsexecution is prohibited unless notice of the fee is clearly set forth in theprinted or typed portion of the contract.
(Added to NRS by 1965, 659; A 1987, 369; 1995, 1802)
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(Added to NRS by 1965, 659)
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1. A retail installment contract must contain thenames of the seller and the buyer, the place of business of the seller, theresidence or other address of the buyer as specified by the buyer and adescription or identification of the goods sold or to be sold, or servicesfurnished or rendered or to be furnished or rendered. The contract also mustcontain the following items, which must be set forth substantially in thesequence appearing below:
(a) The cash sale price of each item of goods orservices.
(b) The amount of the buyers down payment, identifyingthe amounts paid in money and allowed for goods traded in.
(c) The difference between paragraphs (a) and (b).
(d) The aggregate amount, if any, included forinsurance, specifying the type or types of insurance and the terms of coverage.
(e) The aggregate amount of official fees.
(f) The amount financed, which is the sum of paragraphs(c), (d) and (e).
(g) The amount of the finance charge.
(h) The amount of the total of payments owed by thebuyer to the seller, which is the sum of paragraphs (f) and (g).
(i) The number of installments required to pay thetotal of payments, the amount of each installment, and the date for payment ofthe installments. If the final payment substantially exceeds the otherscheduled installments, it must be set forth separately.
2. Additional items may be included in the contract toexplain the calculations involved in determining the amount to be paid by thebuyer.
(Added to NRS by 1965, 659; A 1993, 2756; 1995, 1802)
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(Added to NRS by 1965, 660; A 1981, 1592; 1984, 5;1993, 2757; 1995, 1803)
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1. Retail installment contracts negotiated and enteredinto by mail or telephone without solicitation in the personal presence of thebuyer and based upon a catalog of the seller, or other printed solicitation ofbusiness may be made as provided in this section. Such contracts when completedby the buyer need not contain the items required by
2. If such catalog or other printed solicitationclearly sets forth the cash sale prices and other terms of sales to be madethrough such medium, when the contract is received from the retail buyer, theseller shall prepare a written memorandum containing all of the informationrequired by NRS 97.185 to be included ina retail installment contract. In lieu of delivering a copy of the contract tothe retail buyer as provided in NRS 97.175,the seller shall deliver to the buyer a copy of such memorandum prior to thedue date of the first installment payable under the contract.
3. If the catalog or other printed solicitation doesnot set forth all of the other terms of sales in addition to the cash saleprices, such memorandum shall be delivered to the buyer prior to or at the timeof delivery of the goods or services.
(Added to NRS by 1965, 660)
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(Added to NRS by 1965, 660)
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1. Notwithstanding the provisions of any retailinstallment contract to the contrary, if the rights of the buyer have not beenterminated or forfeited under the terms of the contract, the buyer may prepayin full the unpaid total of payments thereof at any time before its final duedate and, if he does so, and if the contract is not in default under any termor condition of the contract more than 2 months, he is entitled to a refund ofthe unearned portion of the finance charge for the prepayment. The amount ofthe refund must be computed by applying the agreed rate of the finance chargeto the unpaid total of payments. Any greater amount of the finance charge whichmay have been precomputed and included in the balance due must be refunded.
2. This section does not preclude the imposition ofany penalty for prepayment to which the parties may agree when the contract isexecuted.
(Added to NRS by 1965, 661; A 1983, 975; 1985, 1259;1993, 2757; 1995, 1803)
CONSOLIDATING PURCHASES; RETAIL CHARGE AGREEMENTS
NRS
1. If retail installment purchases are made by a buyerfrom a seller, the subsequent retail installment purchases may, by agreement ofthe parties, be consolidated with a prior retail installment contract. Thefinance charge for the consolidated contract must not, however, exceed theaggregate of the finance charge for:
(a) The original contract and any extension thereof byvirtue of the consolidation; and
(b) The subsequent installment purchase or purchases.
2. In the event of such a consolidation, in lieu ofthe buyers executing a retail installment contract respecting each subsequentpurchase, it is sufficient if the seller prepares a written memorandum of eachsubsequent purchase, in which case the provisions of
(a) The unpaid balance of the previous contract orcontracts;
(b) The consolidated unpaid balance;
(c) The amount of the finance charge;
(d) The consolidated total of payments; and
(e) The revised installments applicable to theconsolidated total of payments, if any, in accordance with
The sellershall deliver to the buyer a copy of the memorandum before the due date of thefirst installment of the consolidated contract.
3. When a subsequent purchase is made, the entireamount of all payments made previous thereto must be applied toward the paymentof the previous time sale price or time sale prices. Each payment thereafterreceived must be allocated to all of the various time sale prices in the sameratio as the original cash sale prices of the various purchases bear to one another.However, the amount of any initial or down payment on the subsequent purchasemust be allocated in its entirety to that purchase.
4. A retail installment contract may be contained inmore than one document, if one such document is an original document signed bythe retail buyer, stated to be applicable to purchases of goods or services tobe made by the retail buyer from time to time. In that case the document,together with the sales slip, account book or other written statement relatingto each purchase must set forth all of the information required by
(Added to NRS by 1965, 661; A 1993, 2757; 1995, 1803)
NRS
1. The amount of the finance charge in any retailcharge agreement may be any amount, and the agreement may provide for theimposition of any fee, expense or charge, agreed upon by the parties.
2. At or before the time a retail charge agreement ismade the seller shall advise the buyer in writing, on the application form orotherwise, or orally, that the finance charge will be computed on theoutstanding balance for each month, which need not be a calendar month, orother regular period agreed upon, the schedule or rate by which the financecharge will be computed, and that the buyer may at any time pay the totalunpaid balance. If the information is given orally, the seller shall, upon approvalof the buyers credit, deliver or mail to the buyer and the buyers address amemorandum setting forth the information.
3. The seller or holder of a retail charge agreementshall promptly supply the buyer with a statement as of the end of each monthlyperiod, which need not be a calendar month, or other regular period agreedupon, in which there is any unpaid balance thereunder. The statement must setforth the following:
(a) The unpaid balance under the retail chargeagreement at the beginning and end of the period;
(b) Unless otherwise furnished by the seller to thebuyer by sales slip, memorandum or otherwise, a description or identificationof the goods or services purchased during the period, the cash sale price andthe date of each purchase;
(c) The payments made by the buyer to the seller andany other credits to the buyer during the period; and
(d) The amount, if any, of any finance charge, fee,expense or charge for the period.
4. If a change is to be made in the terms of a retailcharge agreement previously disclosed to the buyer, the seller shall mail ordeliver to the buyer a written disclosure of the proposed change not less than15 days before the effective date of the change. No notice is required if thechange involves:
(a) Charges for late payment, documentary evidence orexceeding an agreed limit;
(b) A reduction of any component of a finance or othercharge;
(c) Suspension of future credit or termination of anaccount or plan; or
(d) The result of an agreement involving a courtproceeding or of the consumers default or delinquency, unless an increase ismade in the periodic rate or other finance charge.
(Added to NRS by 1965, 662; A 1981, 1593; 1984, 5;1993, 2758; 1995, 1804)
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1. A retail seller shall be deemed to be a payee withrespect to any payment made on an account of a buyer by a check or othernegotiable instrument.
2. Upon the posting of a payment to an account of abuyer, a retail seller has changed his position in reliance thereon if thepayment was made by a check or other negotiable instrument.
3. A payment made on an account of a buyer by a checkor other negotiable instrument is received by the retail seller in good faithif the retail seller did not have actual knowledge that the check or othernegotiable instrument was forged, altered or unauthorized when it was posted tothe account.
4. An action or proceeding brought to determineliability for an allegedly forged, altered or unauthorized check or othernegotiable instrument used to make payment on an account of a buyer must bedetermined pursuant to the provisions of chapter104 of NRS.
(Added to NRS by 1995, 1801)
PROVISIONS COMMON TO RETAIL INSTALLMENT CONTRACTS ANDRETAIL CHARGE AGREEMENTS
NRS
1. The contract or agreement must state the nature,purpose, term and amount of the insurance, and in connection with the sale of amotor vehicle, the contract must state that the insurance coverage orderedunder the terms of the contract does not include bodily injury liability,public liability, and property damage liability coverage, where suchcoverage is in fact not included.
2. The contract or agreement must state whether theinsurance is to be procured by the buyer or the seller.
3. The amount included for such insurance must notexceed the premiums chargeable in accordance with the rate fixed for suchinsurance by the insurer, except where the amount is less than $1.
4. If the insurance is to be procured by the seller orholder, he shall, within 45 days after delivery of the goods or furnishing ofthe services under the contract, deliver, mail or cause to be mailed to the buyer,at the buyers address as specified in the contract, a notice thereof or a copyof the policy or policies of insurance or a certificate or certificates of theinsurance so procured.
5. If any goods included in the down payment areinsured, and the insurance policy or rights thereunder are assigned to theseller, the amount realized on the assignment must be refunded to the buyer orcredited on the next payment due under the contract or agreement.
6. If the contract or agreement requires the buyer toprocure and furnish insurance acceptable to the seller and the buyer fails soto provide or such insurance as procured by the buyer is cancelled or expires,the seller may procure the insurance in such form as the seller may deemnecessary, and the cost thereof together with a finance charge may be added tothe unpaid total of payments.
(Added to NRS by 1965, 663; A 1993, 2759; 1995, 1805)
NRS
1. No provision of a retail installment contract orretail charge agreement shall be valid by which the buyer agrees not to assertagainst the seller or against an assignee a claim or defense arising out of thesale.
2. No act or agreement of the retail buyer before orat the time of the making of a retail installment contract, retail chargeagreement or purchases thereunder shall constitute a valid waiver of any of theprovisions of this chapter or of any remedies granted to the buyer by law.
(Added to NRS by 1965, 663)
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(Added to NRS by 1965, 663; A 1981, 1593; 1993, 2760;1995, 1806; 2001, 490)
CONTRACTS FOR SALE OF VEHICLES
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(Added to NRS by 1987, 1479)
NRS
1. The Commissioner of Financial Institutions shallprescribe, by regulation, forms for the application for credit and contracts tobe used in the sale of vehicles if:
(a) The sale involves the taking of a security interestto secure all or a part of the purchase price of the vehicle;
(b) The application for credit is made to or throughthe seller of the vehicle;
(c) The seller is a dealer; and
(d) The sale is not a commercial transaction.
2. The forms prescribed pursuant to subsection 1 mustmeet the requirements of NRS 97.165,must be accepted and acted upon by any lender to whom the application forcredit is made and, in addition to the information required in
(a) Identify and itemize the items embodied in the cashsale price, including the amount charged for a contract to service the vehicleafter it is purchased.
(b) In specifying the amount of the buyers downpayment, identify the amounts paid in money and allowed for property given intrade and the amount of any manufacturers rebate applied to the down payment.
(c) Contain a description of any property given intrade as part of the down payment.
(d) Contain a description of the method for calculatingthe unearned portion of the finance charge upon prepayment in full of theunpaid total of payments as prescribed in NRS97.225.
(e) Include the following notice in at least 10-pointbold type:
NOTICETO BUYER
Do not sign this agreementbefore you read it or if it contains any blank spaces. You are entitled to acompleted copy of this agreement. If you pay the amount due before the scheduleddate of maturity of the indebtedness and you are not in default in the terms ofthe contract for more than 2 months, you are entitled to a refund of theunearned portion of the finance charge. If you fail to perform your obligationsunder this agreement, the vehicle may be repossessed and you may be liable forthe unpaid indebtedness evidenced by this agreement.
3. The Commissioner shall arrange for or otherwisecause the translation into Spanish of the forms prescribed pursuant tosubsection 1.
4. If a change in state or federal law requires theCommissioner to amend the forms prescribed pursuant to subsection 1, theCommissioner need not comply with the provisions of
5. As used in this section:
(a) Commercial transaction means any sale of avehicle to a buyer who purchases the vehicle solely or primarily for commercialuse or resale.
(b) Dealer has the meaning ascribed to it in
(Added to NRS by 1987, 1479; A 1989, 458; 1993, 2760;1995, 1806; 2003,1906)
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(Added to NRS by 1987, 1479; A 1989, 459)
REMEDIES, ENFORCEMENT AND PENALTIES
NRS
(Added to NRS by 1965, 661; A 1987, 1480; 1993, 2761;1995, 1807)
NRS
(Added to NRS by 1965, 664)
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(Added to NRS by 1965, 664)
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(Added to NRS by 1965, 664)
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