2005 Nevada Revised Statutes - Chapter 604A — Deferred Deposit Loans, Short-Term Loans, Title Loans and Check-Cashing Services

CHAPTER 604A - DEFERRED DEPOSIT LOANS,SHORT-TERM LOANS, TITLE LOANS AND CHECK-CASHING SERVICES

GENERAL PROVISIONS

NRS 604A.010 Definitions.

NRS 604A.015 Automatedloan machine defined.

NRS 604A.020 Cashingdefined.

NRS 604A.025 Checkdefined.

NRS 604A.030 Check-cashingservice defined.

NRS 604A.035 Commissionerdefined.

NRS 604A.040 Customerdefined.

NRS 604A.045 Defaultdefined.

NRS 604A.050 Deferreddeposit loan defined.

NRS 604A.055 Deferreddeposit loan service defined.

NRS 604A.060 Electronictransfer of money defined.

NRS 604A.065 Extensiondefined.

NRS 604A.070 Graceperiod defined.

NRS 604A.075 Licenseedefined.

NRS 604A.080 Loandefined.

NRS 604A.085 Refundanticipation loan defined.

NRS 604A.090 RegulationZ defined.

NRS 604A.095 Short-termloan defined.

NRS 604A.100 Short-termloan service defined.

NRS 604A.105 Titleloan defined.

NRS 604A.110 Titleloan service defined.

NRS 604A.115 Titleto a vehicle or title defined.

NRS 604A.120 Truthin Lending Act defined.

NRS 604A.125 Vehicledefined.

NRS 604A.150 Additionalterms defined under federal law; calculation of amount financed, annualpercentage rate and finance charge.

SCOPE AND APPLICABILITY

NRS 604A.200 Applicationof chapter to persons who seek to evade its provisions.

NRS 604A.210 Chapterdoes not prohibit licensee from offering customer grace period.

NRS 604A.220 Uniformityof application and construction; resolution of conflicts.

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

NRS 604A.240 Collectionof loans made outside State.

NRS 604A.250 Exemptionsfrom chapter.

ADMINISTRATION

NRS 604A.300 Regulations.

NRS 604A.310 Certainrelationships between employees of Division of Financial Institutions andlicensees prohibited; duty to terminate prohibited relationships.

REGULATION OF BUSINESS PRACTICES

NRS 604A.400 Unlawfulacts; criminal penalties.

NRS 604A.405 Requirednotices and disclosures.

NRS 604A.410 Writtenloan agreement required; contents.

NRS 604A.415 Collectionof defaulted loan; civil action to collect debt; venue.

NRS 604A.420 Practicesregarding customers called to active duty in military.

NRS 604A.425 Prohibitedacts by licensee regarding amount of loan.

NRS 604A.430 Prohibitedacts by licensee regarding multiple loans to same customer.

NRS 604A.435 Prohibitedacts by licensee: Accepting certain collateral or other types of security;failing to make certain disclosures; taking incomplete instruments; requiringthe purchase of insurance or other goods or services; failing to comply withpayment plan; charging fee to cash certain checks.

NRS 604A.440 Prohibitedacts by licensee: Improper lending and collection practices; deceptive tradepractices; false, misleading and deceptive advertising; using agent, affiliateor subsidiary to avoid requirements or prohibitions of chapter.

NRS 604A.445 Titleloans: Restrictions on duration of loan and periods of extension.

NRS 604A.450 Titleloans: Prohibited acts by licensee regarding amount of loan and customersability to repay loan.

NRS 604A.455 Titleloans: Applicability of Uniform Commercial Code; repossession of vehicle; civilaction.

NRS 604A.460 Rescissionof loan by customer.

NRS 604A.465 Paymentof loan in full.

NRS 604A.470 Partialpayment on loan.

NRS 604A.475 Repaymentplan.

NRS 604A.480 Limitationson using proceeds of new loan to pay balance of outstanding loan; exceptions.

NRS 604A.485 Limitationson amounts licensee may collect after default.

NRS 604A.490 Limitationson fees licensee may collect for check not paid upon presentment; standards forcivil liability and criminal prosecution.

NRS 604A.495 Receiptrequired for each payment by customer; contents.

NRS 604A.500 Requirementsregarding person acting as agent or assisting in making loan.

LICENSING

NRS 604A.600 Applicationfor license.

NRS 604A.605 Additionalmaterials to be submitted with application; grounds for denial of license.

NRS 604A.610 Suretybond.

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

NRS 604A.620 Applicationfor license for office or other place of business located outside State.

NRS 604A.625 Investigationof applicant; notice; hearing; order.

NRS 604A.630 Procedureupon denial of license.

NRS 604A.635 Issuanceof license; display of license; issuance of additional licenses for branchlocations; contents of license; license not transferable or assignable.

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

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

NRS 604A.650 Licenseemust conduct business in accordance with license; approval of business name;prohibition against using misleading or confusing business name or printedforms.

NRS 604A.655 Restrictionson location where licensee may conduct business; requirements to conductbusiness at same location as mortgage broker, mortgage banker or pawnbroker.

NRS 604A.660 Changeof address by licensee: Notice; approval by Commissioner; penalty for failureto provide required notice.

RECORDS, REPORTS AND EXAMINATIONS

NRS 604A.700 Requiredbooks and records.

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

NRS 604A.720 Authorityof Commissioner to require attendance of witnesses and production of books andrecords.

NRS 604A.730 Annualexaminations by Commissioner; exceptions.

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

NRS 604A.750 Annualreport by licensee; composite reports.

NRS 604A.760 Feesfor failure to submit reports.

DISCIPLINARY ACTION

NRS 604A.800 Temporarysuspension of license: Conditions; notice; hearing; terms of suspension.

NRS 604A.810 Orderto desist and refrain; action to enjoin violation; appointment of receiver.

NRS 604A.820 Procedurefor taking disciplinary action; authorized disciplinary action; grounds.

NRS 604A.830 Additionalgrounds for disciplinary action.

NRS 604A.840 Surrenderof license by licensee; effect of surrender.

NRS 604A.850 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense.

REMEDIES AND PENALTIES

NRS 604A.900 Remediesfor certain willful violations.

NRS 604A.910 Administrativefines for unlicensed activity.

NRS 604A.920 Otherremedies for unlicensed activity.

NRS 604A.930 Civilaction.

NRS 604A.940 Exerciseof jurisdiction over party to civil action; service of summons to conferjurisdiction.

_________

GENERAL PROVISIONS

NRS 604A.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS604A.015 to 604A.125, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 2005, 1683)

NRS 604A.015 Automatedloan machine defined.

1. Automated loan machine means any machine or otherdevice, 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 toreceive a deferred deposit loan or short-term loan through the machine or otherdevice; and

(c) Is set up, installed, operated or maintained by oron behalf of the person making the loan or any agent, affiliate or subsidiaryof the person.

2. The term does not include any machine or otherdevice used directly by a customer to access the Internet unless the machine orother device is made available to the customer by the person making the loan orany agent, affiliate or subsidiary of the person.

(Added to NRS by 2005, 1683)

NRS 604A.020 Cashingdefined. Cashing means providing currency ora negotiable instrument in exchange for a check.

(Added to NRS by 2005, 1684)

NRS 604A.025 Checkdefined.

1. Check means:

(a) A draft, other than a documentary draft, payable ondemand and drawn on a bank; or

(b) A cashiers check or tellers check.

2. An instrument may be a check even though it isdescribed on its face by another term, such as money order.

(Added to NRS by 2005, 1684)

NRS 604A.030 Check-cashingservice defined. Check-cashing servicemeans any person engaged in the business of cashing checks for a fee, servicecharge or other consideration.

(Added to NRS by 2005, 1684)

NRS 604A.035 Commissionerdefined. Commissioner means the Commissionerof Financial Institutions.

(Added to NRS by 2005, 1684)

NRS 604A.040 Customerdefined. Customer means any person whoreceives or attempts to receive check-cashing services, deferred deposit loanservices, short-term loan services or title loan services from another person.

(Added to NRS by 2005, 1684)

NRS 604A.045 Defaultdefined.

1. Default means the failure of a customer to:

(a) Make a scheduled payment on a loan on or before thedue date for the payment under the terms of a lawful loan agreement and anygrace period that complies with the provisions of NRS 604A.210 or under the terms of anylawful extension or repayment plan relating to the loan and any grace periodthat complies with the provisions of NRS604A.210; or

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

(1) The expiration of the initial loan period asset forth in a lawful loan agreement and any grace period that complies withthe provisions of NRS 604A.210; or

(2) The due date of any lawful extension orrepayment plan relating to the loan and any grace period that complies with theprovisions of NRS 604A.210, providedthat the due date of the extension or repayment plan does not violate the provisionsof this chapter.

2. A default occurs on the day immediately followingthe date of the customers failure to perform as described in subsection 1.

(Added to NRS by 2005, 1684)

NRS 604A.050 Deferreddeposit loan defined. Deferred deposit loanmeans 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 thecustomer; or

(b) Written authorization for an electronic transfer ofmoney 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 isequal to the face value of the check or the amount specified in the writtenauthorization for an electronic transfer of money, less any fee charged for thetransaction; and

(b) Agrees, for a specified period, not to cash thecheck or execute an electronic transfer of money for the amount specified inthe written authorization.

(Added to NRS by 2005, 1684)

NRS 604A.055 Deferreddeposit loan service defined. Deferreddeposit loan service means any person engaged in the business of makingdeferred deposit loans for a fee, service charge or other consideration.

(Added to NRS by 2005, 1684)

NRS 604A.060 Electronictransfer of money defined. Electronic transferof money means any transfer of money, other than a transaction initiated by acheck or other similar instrument, that is initiated through an electronicterminal, telephone, computer or magnetic tape for the purpose of ordering,instructing or authorizing a financial institution to debit or credit anaccount.

(Added to NRS by 2005, 1684)

NRS 604A.065 Extensiondefined.

1. Extension means any extension or rollover of aloan beyond the date on which the loan is required to be paid in full under theoriginal terms of the loan agreement, regardless of the name given to theextension or rollover.

2. The term does not include a grace period.

(Added to NRS by 2005, 1685)

NRS 604A.070 Graceperiod defined. Grace period means anyperiod of deferment offered gratuitously by a licensee to a customer if thelicensee complies with the provisions of NRS604A.210.

(Added to NRS by 2005, 1685)

NRS 604A.075 Licenseedefined. Licensee means any person who hasbeen issued one or more licenses to operate a check-cashing service, deferreddeposit loan service, short-term loan service or title loan service pursuant tothe provisions of this chapter.

(Added to NRS by 2005, 1685)

NRS 604A.080 Loandefined. Loan means any deferred depositloan, short-term loan or title loan, or any extension or repayment plan relatingto such a loan, made at any location or through any method, including, withoutlimitation, at a kiosk, through the Internet, through any telephone, facsimilemachine or other telecommunication device or through any other machine,network, system, device or means.

(Added to NRS by 2005, 1685)

NRS 604A.085 Refundanticipation loan defined. Refundanticipation loan means a loan offered or made to a taxpayer by a lender orthrough a facilitator based on the taxpayers anticipated federal income taxrefund.

(Added to NRS by 2005, 1685)

NRS 604A.090 RegulationZ defined. Regulation Z means the federalregulations, as amended, 12 C.F.R. Part 226, adopted pursuant to the Truth inLending Act and commonly known as Regulation Z.

(Added to NRS by 2005, 1685)

NRS 604A.095 Short-termloan defined.

1. Short-term loan means a loan made to a customerpursuant to a loan agreement which, under its original terms:

(a) Charges an annual percentage rate of more than 40percent; and

(b) Requires the loan to be paid in full in less than 1year.

2. The term does not include:

(a) A deferred deposit loan;

(b) A title loan; or

(c) A refund anticipation loan.

(Added to NRS by 2005, 1685)

NRS 604A.100 Short-termloan service defined. Short-term loan servicemeans any person engaged in the business of providing short-term loans for afee, service charge or other consideration.

(Added to NRS by 2005, 1685)

NRS 604A.105 Titleloan defined.

1. Title loan means a loan made to a customerpursuant to a loan agreement which, under its original terms:

(a) Charges an annual percentage rate of more than 35percent; and

(b) Requires the customer to secure the loan by givingpossession of the title to a vehicle legally owned by the customer to theperson making the loan, or to any agent, affiliate or subsidiary of the person,whether or not the person making the loan or taking possession of the titleperfects a security interest in the vehicle by having the persons name notedon the title as a lienholder.

2. The term does not include:

(a) A loan which creates a purchase-money securityinterest in a vehicle or the refinancing of any such loan; or

(b) Any other loan for which a vehicle is used assecurity or collateral if the person making the loan, or any agent, affiliateor subsidiary of the person, does not take possession of the title.

(Added to NRS by 2005, 1685)

NRS 604A.110 Titleloan service defined. Title loan servicemeans 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 Titleto a vehicle or title defined. Title to avehicle or title means a certificate of title or ownership issued pursuantto the laws of this State that identifies the legal owner of a vehicle or anysimilar document issued pursuant to the laws of another jurisdiction.

(Added to NRS by 2005, 1686)

NRS 604A.120 Truthin Lending Act defined. Truth in LendingAct means the federal Truth in Lending Act, as amended, 15 U.S.C. 1601 etseq.

(Added to NRS by 2005, 1686)

NRS 604A.125 Vehicledefined.

1. Vehicle means any vehicle, whether or notself-propelled, that is designed or intended for land transportation if thelegal 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 ortracks; or

(g) Any other vehicles which are similar in nature tothe vehicles listed in paragraphs (a) to (f), inclusive, and which theCommissioner, by regulation, excludes from the definition of vehicle.

(Added to NRS by 2005, 1686)

NRS 604A.150 Additionalterms defined under federal law; calculation of amount financed, annualpercentage rate and finance charge.

1. As used in this chapter, unless the contextotherwise requires, the following terms have the meanings ascribed to them inthe 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, propercalculation of the amount financed, annual percentage rate and finance chargefor a loan must be made in accordance with the Truth in Lending Act andRegulation Z.

(Added to NRS by 2005, 1686)

SCOPE AND APPLICABILITY

NRS 604A.200 Applicationof chapter to persons who seek to evade its provisions. The provisions of this chapter apply to any person whoseeks to evade its application by any device, subterfuge or pretense,including, without limitation, calling a loan by any other name or using anyagents, affiliates or subsidiaries in an attempt to avoid the application ofthe provisions of this chapter.

(Added to NRS by 2005, 1686)

NRS 604A.210 Chapterdoes not prohibit licensee from offering customer grace period. The provisions of this chapter do not prohibit a licenseefrom offering a customer a grace period on the repayment of a loan or anextension 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 theoutstanding loan during such a grace period.

(Added to NRS by 2005, 1686)

NRS 604A.220 Uniformityof application and construction; resolution of conflicts.

1. The provisions of this chapter must be interpretedso as to effectuate their general purpose to provide for, to the extent practicable,uniform regulation of the loans and transactions that are subject to theprovisions of this chapter.

2. If there is a conflict between the provisions ofthis chapter and the provisions of any other general law regulating loans andsimilar transactions, the provisions of this chapter control.

(Added to NRS by 2005, 1686)

NRS 604A.230 Effectof amendment or repeal of chapter on preexisting lawful contracts. This chapter or any part thereof may be modified, amendedor repealed by the Legislature so as to effect a cancellation or alteration ofany license or right of a licensee under this chapter, provided that suchcancellation or alteration shall not impair or affect the obligation of anypreexisting lawful loan agreement between any licensee and any customer.

(Added to NRS by 2005, 1687)

NRS 604A.240 Collectionof loans made outside State. Any loan lawfullymade outside this State as permitted by the laws of the state in which the loanwas made may be collected or otherwise enforced in this State in accordancewith its terms.

(Added to NRS by 2005, 1687)

NRS 604A.250 Exemptionsfrom chapter. The provisions of this chapterdo not apply to:

1. A person doing business pursuant to the authorityof any law of this State or of the United States relating to banks, savingsbanks, trust companies, savings and loan associations, credit unions,development corporations, mortgage brokers, mortgage bankers, thrift companiesor insurance companies.

2. A person who is primarily engaged in the retailsale of goods or services who:

(a) As an incident to or independently of a retail saleor service, from time to time cashes checks for a fee or other consideration ofnot more than $2; and

(b) Does not hold himself out as a check-cashingservice.

3. A person while performing any act authorized by alicense issued pursuant to chapter 671 of NRS.

4. A person who holds a nonrestricted gaming licenseissued pursuant to chapter 463 of NRS whileperforming any act in the course of that licensed operation.

5. A person who is exclusively engaged in acheck-cashing service relating to out-of-state checks.

6. A corporation organized pursuant to the laws ofthis State that has been continuously and exclusively engaged in acheck-cashing service in this State since July 1, 1973.

7. A pawnbroker, unless the pawnbroker operates acheck-cashing service, deferred deposit loan service, short-term loan serviceor title loan service.

8. A real estate investment trust, as defined in 26U.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 planstrustee.

10. An attorney at law rendering services in theperformance of his duties as an attorney at law if the loan is secured by realproperty.

11. A real estate broker rendering services in theperformance of his duties as a real estate broker if the loan is secured byreal property.

12. Any firm or corporation:

(a) Whose principal purpose or activity is lendingmoney on real property which is secured by a mortgage;

(b) Approved by the Federal National MortgageAssociation as a seller or servicer; and

(c) Approved by the Department of Housing and UrbanDevelopment and the Department of Veterans Affairs.

13. A person who provides money for investment inloans secured by a lien on real property, on his own account.

14. A seller of real property who offers creditsecured 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 loanservice, short-term loan service or title loan service.

(Added to NRS by 2005, 1687)

ADMINISTRATION

NRS 604A.300 Regulations.

1. The Commissioner may establish by regulation thefees that a licensee who provides check-cashing services may impose for cashingchecks.

2. The Commissioner shall adopt any other regulationsas are necessary to carry out the provisions of this chapter.

(Added to NRS by 2005, 1688)

NRS 604A.310 Certainrelationships between employees of Division of Financial Institutions andlicensees prohibited; duty to terminate prohibited relationships.

1. Except as otherwise provided in subsection 3, anofficer or employee of the Division of Financial Institutions of the Departmentof Business and Industry shall not:

(a) Be directly or indirectly interested in or act onbehalf of any licensee;

(b) Receive, directly or indirectly, any payment fromany licensee;

(c) Be indebted to any licensee;

(d) Engage in the negotiation of loans for others withany licensee; or

(e) Obtain credit or services from a licenseeconditioned upon a fraudulent practice or undue or unfair preference over othercustomers.

2. An employee of the Division of FinancialInstitutions in the unclassified service of the State shall not obtain newextensions of credit from a licensee while in office.

3. Any officer or employee of the Division ofFinancial Institutions may be indebted to a licensee on the same terms as areavailable to the public generally.

4. If an officer or employee of the Division ofFinancial Institutions has a service, a preferred consideration, an interest ora relationship prohibited by this section at the time of his appointment oremployment, or obtains it during his employment, he shall terminate it within120 days after the date of his appointment or employment or the discovery ofthe prohibited act.

(Added to NRS by 2005, 1705)

REGULATION OF BUSINESS PRACTICES

NRS 604A.400 Unlawfulacts; criminal penalties.

1. A person, including, without limitation, a personlicensed pursuant to chapter 675 of NRS, shallnot operate a check-cashing service, deferred deposit loan service, short-termloan service or title loan service unless the person is licensed with theCommissioner pursuant to the provisions of this chapter.

2. A person must have a license regardless of thelocation 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 othermachine, network, system, device or means, except that the person shall notoperate such a service through any automated loan machine in violation of theprovisions of subsection 3.

3. A person shall not operate a deferred deposit loanservice or short-term loan service through any automated loan machine, and theCommissioner shall not issue a license that authorizes the licensee to conductbusiness 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 anyprovision of this section is guilty of a misdemeanor.

(Added to NRS by 2005, 1688; A 2005, 22nd SpecialSession, 97)

NRS 604A.405 Requirednotices and disclosures.

1. A licensee shall post in a conspicuous place inevery location at which he conducts business under his license:

(a) A notice that states the fees he charges forproviding check-cashing services, deferred deposit loan services, short-termloan services or title loan services.

(b) A notice that states a toll-free telephone numberto the Office of the Commissioner to handle concerns or complaints ofcustomers.

TheCommissioner shall adopt regulations prescribing the form and size of thenotices required by this subsection.

2. If a licensee offers loans to customers at a kiosk,through the Internet, through any telephone, facsimile machine or othertelecommunication device or through any other machine, network, system, deviceor means, except for an automated loan machine prohibited by NRS 604A.400, the licensee shall, asappropriate to the location or method for making the loan, post in aconspicuous place where customers will see it before they enter into a loan, ordisclose in an open and obvious manner to customers before they enter into aloan, a notice that states:

(a) The types of loans the licensee offers and the feeshe charges for making each type of loan; and

(b) A list of the states where the licensee is licensedor authorized to conduct business from outside this State with customerslocated in this State.

3. A licensee who provides check-cashing servicesshall give written notice to each customer of the fees he charges for cashingchecks. The customer must sign the notice before the licensee provides thecheck-cashing service.

(Added to NRS by 2005, 1688)

NRS 604A.410 Writtenloan agreement required; contents.

1. Before making any loan to a customer, a licenseeshall provide to the customer a written loan agreement which may be kept by thecustomer and which must be written in:

(a) English, if the transaction is conducted inEnglish; or

(b) Spanish, if the transaction is conducted inSpanish.

2. The loan agreement must include, withoutlimitation, the following information:

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

(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 anda description and the amount of every fee charged, regardless of the name givento the fee and regardless of whether the fee is required to be included in the financecharge under the Truth in Lending Act and Regulation Z;

(d) A disclosure of the right of the customer torescind a loan pursuant to the provisions of this chapter;

(e) A disclosure of the right of the customer to payhis loan in full or in part with no additional charge pursuant to theprovisions of this chapter;

(f) A disclosure stating that, if the customer defaultson the loan, the customer has the opportunity within 30 days of the date ofdefault to enter into a repayment plan with a term of at least 90 days, andthat the licensee must offer the repayment plan to the customer before thelicensee commences any civil action or process of alternative disputeresolution or, if appropriate for the loan, before the licensee repossesses avehicle; and

(g) Any other disclosures required under the Truth inLending Act and Regulation Z or under any other applicable federal or statestatute or regulation.

(Added to NRS by 2005, 1689)

NRS 604A.415 Collectionof defaulted loan; civil action to collect debt; venue.

1. If a customer defaults on a loan, the licensee maycollect the debt owed to the licensee only in a professional, fair and lawfulmanner. When collecting such a debt, the licensee must act in accordance withand must not violate sections 803 to 812, inclusive, of the federal Fair DebtCollection 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 acustomer to collect a debt, the court may award:

(a) Court costs;

(b) Costs of service of process, except that the costsmust not exceed the amount of the fees charged by the sheriff or constable forservice of process in the county where the action was brought or, if thecustomer was not served in that county, in the county where the customer wasserved; and

(c) Reasonable attorneys fees. In determining theamount of the attorneys fees and whether they are reasonable, the court shallconsider the complexity of the case, the amount of the debt and whether thelicensee 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 aJustice Court against a customer to collect a debt; and

(b) The customer resides in the county where the loanwas made,

the licenseeis required to commence the civil action in the Justice Court for the townshipwhere the loan was made unless, after the date of default and before thelicensee commences the civil action, the customer signs an affidavit agreeingto try the action in another Justice Court having jurisdiction over the subjectmatter 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 Practicesregarding customers called to active duty in military.

1. If a customer is called to active duty in themilitary, a licensee shall:

(a) Defer for the duration of the active duty allcollection activity against the customer and his property, including, withoutlimitation, any community property in which the customer has an interest; and

(b) Honor the terms of any repayment plan between thelicensee and customer, including, without limitation, any repayment plannegotiated through military counselors or third-party credit counselors.

2. When collecting any defaulted loan, a licenseeshall not:

(a) Garnish or threaten to garnish any wages or salarypaid to a customer for active service in the military; or

(b) Contact or threaten to contact the military chainof command of a customer in an effort to collect the defaulted loan.

3. As used in this section, military means the ArmedForces of the United States, a reserve component thereof or the National Guard.

(Added to NRS by 2005, 1690)

NRS 604A.425 Prohibitedacts by licensee regarding amount of loan.

1. A licensee shall not:

(a) Make a deferred deposit loan that exceeds 25percent of the expected gross monthly income of the customer when the loan ismade; or

(b) Make a short-term loan which, under the terms ofthe loan agreement, requires any monthly payment that exceeds 25 percent of theexpected gross monthly income of the customer.

2. A licensee is not in violation of the provisions ofthis section if the customer presents evidence of his gross monthly income tothe licensee and represents to the licensee in writing that:

(a) For a deferred deposit loan, the loan does not exceed25 percent of his expected gross monthly income when the loan is made; or

(b) For a short-term loan, the monthly payment requiredunder the terms of the loan agreement does not exceed 25 percent of hisexpected gross monthly income.

(Added to NRS by 2005, 1690)

NRS 604A.430 Prohibitedacts by licensee regarding multiple loans to same customer. A licensee shall not make more than one deferred depositloan or short-term loan to the same customer at one time or before anyoutstanding balance is paid in full on an existing loan made by that licenseeto the customer unless:

1. The customer is seeking multiple loans that do notexceed the limits set forth in NRS604A.425;

2. The licensee charges the same or a lower annualpercentage rate for any additional loans as he charged for the initial loan;

3. Except for that part of the finance charge whichconsists of interest only, the licensee does not impose any other charge or feeto initiate any additional loans, except that a licensee who makes deferreddeposit loans or short-term loans in accordance with the provisions ofsubsection 2 of NRS 604A.480 maycharge a reasonable fee for preparing documents in an amount that does notexceed $50; and

4. If the additional loans are deferred deposit loansand the customer provides one or more additional checks that are not paid uponpresentment, the licensee does not charge any fees to the customer pursuant to NRS 604A.490, except for the fees allowedpursuant to that section for the first check that is not paid upon presentment.

(Added to NRS by 2005, 1690)

NRS 604A.435 Prohibitedacts by licensee: Accepting certain collateral or other types of security;failing to make certain disclosures; taking incomplete instruments; requiringthe purchase of insurance or other goods or services; failing to comply with paymentplan; charging fee to cash certain checks. Alicensee shall not:

1. Accept:

(a) Collateral as security for a loan, except that atitle to a vehicle may be accepted as security for a title loan.

(b) An assignment of wages, salary, commissions orother compensation for services, whether earned or to be earned, as securityfor a loan.

(c) A check as security for a short-term loan or titleloan.

(d) More than one check or written authorization for anelectronic transfer of money for each deferred deposit loan.

(e) A check or written authorization for an electronictransfer of money for any deferred deposit loan in an amount which exceeds thetotal of payments set forth in the disclosure statement required by the Truthin Lending Act and Regulation Z that is provided to the customer.

2. Take any note or promise to pay which does notdisclose the date and amount of the loan, amount financed, annual percentagerate, finance charge, total of payments, payment schedule and a description andthe amount of every fee charged, regardless of the name given to the fee andregardless of whether the fee is required to be included in the finance chargeunder the Truth in Lending Act and Regulation Z.

3. Take any instrument, including a check or writtenauthorization for an electronic transfer of money, in which blanks are left tobe filled in after the loan is made.

4. Make any transaction contingent on the purchase ofinsurance or any other goods or services or sell any insurance to the customerwith the loan.

5. Fail to comply with a payment plan which isnegotiated and agreed to by the licensee and customer.

6. Charge any fee to cash a check representing theproceeds of a loan made by the licensee or any agent, affiliate or subsidiaryof the licensee.

(Added to NRS by 2005, 1691)

Notwithstanding certain definitions in the provisionsof former NRS ch. 604 (cf. NRS ch. 604A), a deferred deposit transactionis an extension of credit, and such a transaction is subject to Regulation Z ofthe federal Truth in Lending Act if the transaction is entered into primarilyfor personal, family or household purposes. (See also NRS 604A.150, 604A.410, 604A.435 and 604A.485.) (N.B., in 2005, the provisionsof NRS ch. 604 were repealed and replaced bythe provisions of NRS ch. 604A.) AGO 99-04(2-1-1999)

NRS 604A.440 Prohibitedacts by licensee: Improper lending and collection practices; deceptive tradepractices; false, misleading and deceptive advertising; using agent, affiliateor subsidiary to avoid requirements or prohibitions of chapter. A licensee shall not:

1. Use or threaten to use the criminal process in thisState or any other state, or any civil process not available to creditorsgenerally, to collect on a loan made to a customer.

2. Commence a civil action or any process ofalternative dispute resolution or repossess a vehicle before the customerdefaults under the original term of a loan agreement or before the customerdefaults under any repayment plan, extension or grace period negotiated andagreed to by the licensee and customer, unless otherwise authorized pursuant tothis chapter.

3. Take any confession of judgment or any power ofattorney running to himself or to any third person to confess judgment or toappear for the customer in a judicial proceeding.

4. Include in any written agreement:

(a) A promise by the customer to hold the licenseeharmless;

(b) A confession of judgment by the customer;

(c) An assignment or order for the payment of wages orother compensation due the customer; or

(d) A waiver of any claim or defense arising out of theloan agreement or a waiver of any provision of this chapter. The provisions ofthis paragraph do not apply to the extent preempted by federal law.

5. Engage in any deceptive trade practice, as definedin chapter 598 of NRS, including, withoutlimitation, making a false representation.

6. Advertise or permit to be advertised in any mannerany false, misleading or deceptive statement or representation with regard tothe rates, terms or conditions for loans.

7. Use or attempt to use any agent, affiliate orsubsidiary to avoid the requirements or prohibitions of this chapter.

(Added to NRS by 2005, 1691)

NRS 604A.445 Titleloans: Restrictions on duration of loan and periods of extension. Notwithstanding any other provision of this chapter to thecontrary:

1. The original term of a title loan must not exceed30 days.

2. The title loan may be extended for not more thansix additional periods of extension, with each such period not to exceed 30days, if:

(a) Any interest or charges accrued during the originalterm of the title loan or any period of extension of the title loan are notcapitalized or added to the principal amount of the title loan during anysubsequent period of extension;

(b) The annual percentage rate charged on the titleloan during any period of extension is not more than the annual percentage ratecharged 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, processingfees, late fees, default fees or any other fees, regardless of the name givento the fees, are charged in connection with any extension of the title loan.

(Added to NRS by 2005, 1692)

NRS 604A.450 Titleloans: Prohibited acts by licensee regarding amount of loan and customersability to repay loan. A licensee who makestitle loans shall not:

1. Make a title loan that exceeds the fair marketvalue of the vehicle securing the title loan.

2. Make a title loan without regard to the ability ofthe customer seeking the title loan to repay the title loan, including thecustomers current and expected income, obligations and employment.

3. Make a title loan without requiring the customer tosign an affidavit which states that:

(a) The customer has provided the licensee with trueand correct information concerning the customers income, obligations,employment and ownership of the vehicle; and

(b) The customer has the ability to repay the titleloan.

(Added to NRS by 2005, 1692)

NRS 604A.455 Titleloans: Applicability of Uniform Commercial Code; repossession of vehicle; civilaction.

1. Except where in conflict with the provisions ofthis section, the provisions of chapter 104 ofNRS apply to any title loan between a licensee and a customer.

2. Except as otherwise provided in this section, if acustomer defaults on a title loan, or on any extension or repayment planrelating to the title loan, the sole remedy of the licensee who made the titleloan is to seek repossession and sale of the vehicle which the customer used tosecure the title loan. The licensee may not pursue the customer personally for:

(a) Payment of the loan, unless the licensee proves thecustomer 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 thevehicle which the customer used to secure the title loan, unless the licenseeproves the customer damaged or otherwise committed or permitted waste on thevehicle. For the purposes of this paragraph, it shall not be deemed waste forthe customer to continue to use the vehicle in the same manner it was usedbefore he entered into the title loan.

3. If a vehicle is repossessed pursuant to thissection:

(a) By the licensee or his employees, the licenseeshall make reasonably available to the customer any personal property in orupon 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 thecustomer any personal property in or upon the vehicle.

4. If a customer uses fraud to secure a title loan orif the customer wrongfully transfers any interest in the vehicle to a thirdparty before the title loan is repaid, the licensee may bring a civil actionagainst 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 feesnegotiated and agreed to by the licensee and customer as permitted under thischapter, less any prior payments made by the customer;

(b) Reasonable attorneys fees and costs; and

(c) Any other legal or equitable relief that the courtdeems appropriate.

5. As used in this section, fraud means anintentional misrepresentation, deception or concealment of a material factknown to the customer with the intent to deprive the licensee of his rights orproperty or to otherwise injure the licensee. The term includes, withoutlimitation, giving to a licensee as security for a title loan the title to avehicle which does not belong to the customer.

(Added to NRS by 2005, 1692)

NRS 604A.460 Rescissionof loan by customer.

1. A customer may rescind a loan on or before theclose of business on the next day of business at the location where the loanwas 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 gaveto the customer pursuant to the loan. Upon receipt of the original check, thelicensee shall refund any fee charged to the customer to initiate the loan.

2. If a customer rescinds a loan pursuant to thissection, the licensee:

(a) Shall not charge the customer any fee forrescinding the loan; and

(b) Upon receipt of the sum of money or check pursuantto subsection 1, shall give to the customer a receipt showing the account paidin full and:

(1) If the customer gave to the licensee a checkor a written authorization for an electronic transfer of money to initiate adeferred deposit loan, the check or written authorization stamped void;

(2) If the customer gave to the licensee apromissory note to initiate a short-term loan, a copy of the promissory notestamped void or the receipt stamped paid in full; or

(3) If the customer gave to the licensee a titleto a vehicle to initiate the title loan, the title.

(Added to NRS by 2005, 1693)

NRS 604A.465 Paymentof loan in full.

1. A customer may pay a loan, or any extensionthereof, in full at any time, without an additional charge or fee, before thedate his final payment on the loan, or any extension thereof, is due.

2. If a customer pays the loan in full, including allinterest, charges and fees negotiated and agreed to by the licensee andcustomer as permitted under this chapter, the licensee shall:

(a) Give to the customer:

(1) If the customer gave to the licensee a checkor a written authorization for an electronic transfer of money to initiate adeferred deposit loan, the check or the written authorization stamped void;

(2) If the customer gave to the licensee apromissory note to initiate a short-term loan, the promissory note stampedvoid or a receipt stamped paid in full; or

(3) If the customer gave to the licensee a titleto a vehicle to initiate a title loan, the title; and

(b) Give to the customer a receipt with the followinginformation:

(1) The name and address of the licensee;

(2) The identification number assigned to theloan agreement or other information that identifies the loan;

(3) The date of the payment;

(4) The amount paid;

(5) An itemization of interest, charges andfees;

(6) A statement that the loan is paid in full;and

(7) If more than one loan made by the licenseeto the customer was outstanding at the time the payment was made, a statementindicating to which loan the payment was applied.

(Added to NRS by 2005, 1693)

 

NRS 604A.470 Partialpayment on loan.

1. A customer may make a partial payment on a loan, orany extension thereof, at any time without an additional charge or fee.

2. If a customer makes such a partial payment, thelicensee 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 loanagreement 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 thecustomer was outstanding at the time the payment was made, a statementindicating to which loan the payment was applied.

(Added to NRS by 2005, 1694)

NRS 604A.475 Repaymentplan.

1. Before a licensee attempts to collect theoutstanding balance on a loan in default by commencing any civil action orprocess of alternative dispute resolution or by repossessing a vehicle, thelicensee shall offer the customer an opportunity to enter into a repaymentplan. The licensee:

(a) Is required to make the offer available to thecustomer for a period of at least 30 days after the date of default; and

(b) Is not required to make such an offer more thanonce for each loan.

2. Not later than 15 days after the date of default,the licensee shall provide to the customer written notice of the opportunity toenter into a repayment plan. The written notice must:

(a) Be in English, if the initial transaction wasconducted in English, or in Spanish, if the initial transaction was conductedin Spanish;

(b) State the date by which the customer must act toenter into a repayment plan;

(c) Explain the procedures the customer must follow toenter into a repayment plan;

(d) If the licensee requires the customer to make aninitial payment to enter into a repayment plan, explain the requirement andstate the amount of the initial payment and the date the initial payment mustbe made;

(e) State that the customer has the opportunity toenter into a repayment plan with a term of at least 90 days after the date ofdefault; and

(f) Include the following amounts:

(1) The total of payments or the remainingbalance on the original loan;

(2) Any payments made on the loan;

(3) Any charges added to the loan amount allowedpursuant to the provisions of this chapter; and

(4) The total amount due if the customer entersinto a repayment plan.

3. Under the terms of any repayment plan pursuant tothis section:

(a) The customer must enter into the repayment plan notlater than 30 days after the date of default, unless the licensee allows alonger period;

(b) The licensee must allow the period for repayment toextend at least 90 days after the date of default, unless the customer agreesto a shorter term;

(c) The licensee may require the customer to make aninitial payment of not more than 20 percent of the total amount due under theterms of the repayment plan;

(d) For a deferred deposit loan:

(1) The licensee may require a customer toprovide, as security, one or more checks or written authorizations for anelectronic transfer of money which equal the total amount due under the termsof the repayment plan;

(2) The licensee shall, if the customer makes apayment in the amount of a check or written authorization taken as security forthat payment, return to the customer the check or written authorization stampedvoid or destroy the check or written authorization; and

(3) The licensee shall not charge any fee to thecustomer pursuant to NRS 604A.490 fora check which is provided as security during the repayment plan and which isnot paid upon presentment if, in connection with that loan, the licensee haspreviously charged at least one such fee.

4. If the licensee and customer enter into a repaymentplan pursuant to this section, the licensee shall honor the terms of therepayment plan, and the licensee shall not:

(a) Except as otherwise provided by this chapter, chargeany other amount to a customer, including, without limitation, any amount orcharge payable directly or indirectly by the customer and imposed directly orindirectly by the licensee as an incident to or as a condition of entering intoa repayment plan. Such an amount includes, without limitation:

(1) Any interest, regardless of the name givento the interest, other than the interest charged pursuant to the original loanagreement at a rate which does not exceed the annual percentage rate chargedduring the term of the original loan agreement; or

(2) Any origination fees, set-up fees,collection fees, transaction fees, negotiation fees, handling fees, processingfees, late fees, default fees or any other fees, regardless of the name givento the fee;

(b) Except as otherwise provided in this section, acceptany additional security or collateral from the customer to enter into the repaymentplan;

(c) Sell to the customer any insurance or require thecustomer to purchase insurance or any other goods or services to enter into therepayment plan;

(d) Make any other loan to the customer, unless thecustomer 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 collectthe outstanding balance by commencing any civil action or process of alternativedispute resolution or by repossessing a vehicle, unless the customer defaultson the repayment plan; or

(f) Attempt to collect an amount that is greater thanthe amount owed under the terms of the repayment plan.

5. If the licensee and customer enter into a repaymentplan pursuant to this section, the licensee shall:

(a) Prepare a written agreement establishing therepayment 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 repaymentplan, including, without limitation, the total amount due under the terms ofthe repayment plan.

6. Each time a customer makes a payment pursuant to arepayment plan, the licensee shall give to the customer a receipt with thefollowing information:

(a) The name and address of the licensee;

(b) The identification number assigned to the loanagreement 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 customermakes the final payment, a statement that the loan is paid in full; and

(f) If more than one loan made by the licensee to thecustomer was outstanding at the time the payment was made, a statementindicating to which loan the payment was applied.

7. If the customer defaults on the repayment plan, thelicensee may, to collect the outstanding balance, commence any civil action orprocess of alternative dispute resolution or repossess a vehicle as otherwiseauthorized pursuant to this chapter.

(Added to NRS by 2005, 1694)

NRS 604A.480 Limitationson using proceeds of new loan to pay balance of outstanding loan; exceptions.

1. Except as otherwise provided in subsection 2, if acustomer agrees to establish or extend the period for the repayment, renewal,refinancing or consolidation of an outstanding loan by using the proceeds of anew deferred deposit loan or short-term loan to pay the balance of theoutstanding loan, the licensee shall not establish or extend such a periodbeyond 60 days after the expiration of the initial loan period.

2. This section does not apply to a deferred depositloan or short-term loan if the licensee:

(a) Makes the deferred deposit loan or short-term loanto a customer pursuant to a loan agreement which, under its original terms:

(1) Charges an annual percentage rate of lessthan 200 percent;

(2) Requires the customer to make a payment onthe loan at least once every 30 days;

(3) Requires the loan to be paid in full in notless than 150 days; and

(4) Provides that interest does not accrue onthe loan at the annual percentage rate set forth in the loan agreement afterthe date of maturity of the loan;

(b) Performs a credit check of the customer with amajor consumer reporting agency before making the loan;

(c) Reports information relating to the loan experienceof the customer to a major consumer reporting agency;

(d) Gives the customer the right to rescind thedeferred deposit loan or short-term loan within 5 days after the loan is madewithout charging the customer any fee for rescinding the loan;

(e) Participates in good faith with a counseling agencythat is:

(1) Accredited by the Council on Accreditationfor Services for Families and Children, Inc., or its successor organization;and

(2) A member of the National Foundation forCredit Counseling, or its successor organization; and

(f) Does not commence any civil action or process ofalternative dispute resolution on a defaulted loan or any extension orrepayment plan thereof.

(Added to NRS by 2005, 1696)

NRS 604A.485 Limitationson amounts licensee may collect after default.

1. Except as otherwise provided in NRS 604A.445, if a customer defaults on aloan or on any extension or repayment plan relating to the loan, whichever islater, the licensee may collect only the following amounts from the customer,less all payments made before and after default:

(a) The principal amount of the loan.

(b) The interest accrued before the expiration of theinitial loan period at the annual percentage rate set forth in the disclosurestatement required by the Truth in Lending Act and Regulation Z that isprovided to the customer. If there is an extension relating to the loan, thelicensee may charge and collect interest pursuant to this paragraph for aperiod 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 theinitial loan period or after any extension or repayment plan that is allowedpursuant to this chapter, whichever is later, at an annual percentage rate notto exceed the prime rate at the largest bank in Nevada, as ascertained by theCommissioner, on January 1 or July 1, as the case may be, immediately precedingthe expiration of the initial loan period, plus 10 percent. The licensee maycharge and collect interest pursuant to this paragraph for a period not toexceed 90 days. After that period, the licensee shall not charge or collect anyinterest on the loan.

(d) Any fees allowed pursuant to NRS 604A.490 for a check that is not paidupon presentment because the account of the customer contains insufficientfunds or has been closed.

2. Except for the interest and fees permitted pursuantto subsection 1 and any other charges expressly permitted pursuant to NRS 604A.430, 604A.445 and 604A.475, the licensee shall not chargeany other amount to a customer, including, without limitation, any amount orcharge payable directly or indirectly by the customer and imposed directly orindirectly by the licensee as an incident to or as a condition of the extensionof the period for the payment of the loan or the extension of credit. Such anamount includes, without limitation:

(a) Any interest, other than the interest chargedpursuant 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)

Notwithstanding certain definitions in the provisionsof former NRS ch. 604 (cf. NRS ch. 604A), a deferred deposit transactionis an extension of credit, and such a transaction is subject to Regulation Z ofthe federal Truth in Lending Act if the transaction is entered into primarilyfor personal, family or household purposes. (See also NRS 604A.150, 604A.410, 604A.435 and 604A.485.) (N.B., in 2005, the provisionsof NRS ch. 604 were repealed and replaced bythe provisions of NRS ch. 604A.) AGO 99-04(2-1-1999)

NRS 604A.490 Limitationson fees licensee may collect for check not paid upon presentment; standards forcivil liability and criminal prosecution.

1. A licensee may collect a fee of not more than $25if a check is not paid upon presentment because the account of the customercontains insufficient funds or has been closed.

2. If the account of the customer containsinsufficient funds, the licensee may collect only two fees of $25 eachregardless of the number of times the check is presented for payment.

3. If the account of the customer has been closed, thelicensee may collect only one fee of $25 regardless of the number of times thecheck is presented for payment.

4. A customer is not liable for damages pursuant to NRS 41.620 or to criminal prosecution for aviolation of chapter 205 of NRS unless thecustomer acted with criminal intent.

(Added to NRS by 2005, 1698)

NRS 604A.495 Receiptrequired for each payment by customer; contents. Inaddition to any other provision in this chapter, each time a customer makes apayment to a licensee, the licensee shall give to the customer a receipt withthe following information:

1. The name and address of the licensee;

2. The identification number assigned to the loanagreement 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 customermakes a final payment, a statement that the loan is paid in full; and

6. If more than one loan made by the licensee to thecustomer was outstanding at the time the payment was made, a statementindicating to which loan the payment was applied.

(Added to NRS by 2005, 1698)

NRS 604A.500 Requirementsregarding person acting as agent or assisting in making loan.

1. A person shall not act as an agent for or assist alicensee in the making of a loan unless the licensee complies with allapplicable federal and state laws, regulations and guidelines.

2. The provisions of this section do not apply to theagent or assistant to a state or federally chartered bank, thrift company,savings and loan association or industrial loan company if the state orfederally chartered bank, thrift company, savings and loan association orindustrial loan company:

(a) Initially advances the loan proceeds to thecustomer; and

(b) Does not sell, assign or transfer a preponderanteconomic interest in the loan to the agent or assistant or an affiliate orsubsidiary of the state or federally chartered bank, thrift company, savingsand loan association or industrial loan company, unless selling, assigning ortransferring a preponderant economic interest is expressly permitted by theprimary 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 astate or federally chartered bank, thrift company, savings and loan associationor industrial loan company in the making of a loan and the licensee can showthat the standards set forth in subsection 2 are satisfied, the licensee mustcomply with all other provisions in this chapter to the extent they are notpreempted by other state or federal law.

(Added to NRS by 2005, 1698)

LICENSING

NRS 604A.600 Applicationfor license.

1. An application for a license pursuant to theprovisions of this chapter must be made in writing, under oath and on a formprescribed by the Commissioner. The application must include:

(a) If the applicant is a natural person, the name andaddress of the applicant.

(b) If the applicant is a business entity, the name andaddress of each:

(1) Partner;

(2) Officer;

(3) Director;

(4) Manager or member who acts in a managerialcapacity; and

(5) Registered agent,

of thebusiness entity.

(c) Such other information, as the Commissionerdetermines 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 managerialcapacity.

(d) The address of each location at which the applicantproposes to do business under the license, including, without limitation, eachlocation where the applicant will operate at a kiosk, through the Internet,through any telephone, facsimile machine or other telecommunication device orthrough any other machine, network, system, device or means, except that theapplicant shall not propose to do business through any automated loan machineprohibited by NRS 604A.400.

(e) If the applicant is or intends to be licensed toprovide more than one type of service pursuant to the provisions of thischapter, a statement of that intent and which services he provides or intendsto provide.

2. Each application for a license must be accompaniedby:

(a) A nonrefundable application fee;

(b) Such additional expenses incurred in the process ofinvestigation 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.

All moneyreceived by the Commissioner pursuant to this subsection must be placed in theInvestigative Account for Financial Institutions created by NRS 232.545.

3. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.

4. The Commissioner shall consider an application tobe withdrawn if the Commissioner has not received all information and feesrequired to complete the application within 6 months after the date theapplication is first submitted to the Commissioner or within such later periodas the Commissioner determines in accordance with any existing policies ofjoint regulatory partners. If an application is deemed to be withdrawn pursuantto this subsection or if an applicant otherwise withdraws an application, theCommissioner may not issue a license to the applicant unless the applicantsubmits a new application and pays any required fees.

(Added to NRS by 2005, 1699)

NRS 604A.605 Additionalmaterials to be submitted with application; grounds for denial of license.

1. In addition to any other requirements set forth inthis chapter, each applicant must submit:

(a) Proof satisfactory to the Commissioner that theapplicant:

(1) Has a good reputation for honesty,trustworthiness and integrity and is competent to transact the business forwhich the applicant seeks to be licensed in a manner which protects theinterests of the general public.

(2) Has not made a false statement of materialfact on the application for the license.

(3) Has not committed any of the acts specifiedin subsection 2.

(4) Has not had a license issued pursuant tothis chapter suspended or revoked within the 10 years immediately preceding thedate of the application.

(5) Has not been convicted of, or entered a pleaof nolo contendere to, a felony or any crime involving fraud, misrepresentationor 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 orlawfully entitled to remain and work in the United States.

(b) A complete set of his fingerprints and writtenpermission authorizing the Division of Financial Institutions of the Departmentof Business and Industry to forward the fingerprints to the Central Repositoryfor Nevada Records of Criminal History for submission to the Federal Bureau ofInvestigation for its report.

2. In addition to any other lawful reasons, theCommissioner may refuse to issue a license to an applicant if the applicant:

(a) Has committed or participated in any act which, ifcommitted or done by a holder of a license, would be grounds for the suspensionor revocation of the license.

(b) Has previously been refused a license pursuant tothis chapter or has had such a license suspended or revoked.

(c) Has participated in any act which was a basis forthe refusal or revocation of a license pursuant to this chapter.

(d) Has falsified any of the information submitted tothe Commissioner in support of the application for the license.

(Added to NRS by 2005, 1702; A 2005, 22nd SpecialSession, 99)

NRS 604A.610 Suretybond.

1. Except as otherwise provided in NRS 604A.615, each application for a licensepursuant to the provisions of this chapter must be accompanied by a surety bondpayable to the State of Nevada in the amount of $50,000 plus an additional $5,000for each branch location at which the applicant proposes to do business underthe license. Thereafter, each licensee shall maintain the surety bond so thatthe amount of the surety bond is $50,000 plus an additional $5,000 for eachbranch location at which the licensee does business under the license. Thesurety bond required by this section is for the use and benefit of any customerreceiving the services of the licensee at any location at which the licenseedoes business under the license.

2. Each bond must be in a form satisfactory to theCommissioner, issued by a bonding company authorized to do business in thisState and must secure the faithful performance of the obligations of thelicensee respecting the provision of the services.

3. A licensee shall, within 10 days after thecommencement of any action or notice of entry of any judgment against him byany creditor or claimant arising out of business regulated by this chapter givenotice thereof to the Commissioner by certified mail with details sufficient toidentify the action or judgment. The surety shall, within 10 days after it paysany claim or judgment to a creditor or claimant, give notice thereof to theCommissioner by certified mail with details sufficient to identify the creditoror claimant and the claim or judgment so paid.

4. Whenever the principal sum of any bond is reducedby recoveries or payments thereon, the licensee shall furnish:

(a) A new or additional bond so that the total oraggregate principal sum of the bonds equals the sum required pursuant tosubsection 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 creditoror 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 anyinsolvency or bankruptcy of the licensee.

6. The liability of the surety continues as to alltransactions entered into in good faith by the creditors and claimants with theagents of the licensee within 30 days after:

(a) The death of the licensee or the dissolution orliquidation of his business; or

(b) The termination of the bond,

whicheverevent occurs first.

7. A licensee or his surety shall not cancel or altera bond except after notice to the Commissioner by certified mail. Thecancellation or alteration is not effective until 10 days after receipt of thenotice by the Commissioner. A cancellation or alteration does not affect anyliability incurred or accrued on the bond before the expiration of the 30-dayperiod designated in subsection 6.

(Added to NRS by 2005, 1700; A 2005, 22nd SpecialSession, 97)

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

1. In lieu of any surety bond, or any portion of theprincipal sum thereof as required pursuant to the provisions of this chapter, alicensee may deposit with the State Treasurer or with any bank, credit union ortrust company authorized to do business in this State as the licensee mayselect, with the approval of the Commissioner:

(a) Interest-bearing stocks;

(b) Bills, bonds, notes, debentures or otherobligations of the United States or any agency or instrumentality thereof, orguaranteed 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 orguaranteed by this State,

in anaggregate amount, based upon principal amount or market value, whichever islower, of not less than the amount of any required surety bond or portionthereof.

2. The securities must be held to secure the sameobligation as would any surety bond, but the depositor may receive any interestor dividends and, with the approval of the Commissioner, substitute othersuitable securities for those deposited.

(Added to NRS by 2005, 1700; A 2005, 22nd SpecialSession, 98)

NRS 604A.620 Applicationfor license for office or other place of business located outside State.

1. A person may apply for a license for an office orother place of business located outside this State from which the applicantwill conduct business in this State if the applicant or a subsidiary oraffiliate of the applicant has a license issued pursuant to this chapter for anoffice or other place of business located in this State and if the applicantsubmits with the application for a license a statement signed by the applicantwhich states that the applicant agrees to:

(a) Make available at a location within this State thebooks, accounts, papers, records and files of the office or place of businesslocated outside this State to the Commissioner or a representative of theCommissioner; or

(b) Pay the reasonable expenses for travel, meals andlodging of the Commissioner or a representative of the Commissioner incurredduring any investigation or examination made at the office or place of businesslocated outside this State.

The personmust be allowed to choose between the provisions of paragraph (a) or (b) incomplying with the provisions of this subsection.

2. This section applies, without limitation, to anyoffice or other place of business located outside this State from which theapplicant will conduct business in this State at a kiosk, through the Internet,through any telephone, facsimile machine or other telecommunication device orthrough any other machine, network, system, device or means, except that theapplicant shall not conduct business in this State through any automated loanmachine prohibited by NRS 604A.400.

(Added to NRS by 2005, 1701)

NRS 604A.625 Investigationof applicant; notice; hearing; order.

1. Upon the filing of the application and the paymentof the fees required pursuant to NRS604A.600, the Commissioner shall investigate the facts concerning theapplication and the requirements provided for in NRS 604A.605 and 604A.635.

2. The Commissioner may hold a hearing on theapplication at a time not less than 30 days after the date the application wasfiled or not more than 60 days after that date. The hearing must be held in theOffice of the Commissioner or such other place as he may designate. Notice inwriting of the hearing must be sent to the applicant and to any licensee towhich a notice of the application has been given and to such other persons asthe Commissioner may see fit, at least 10 days before the date set for thehearing.

3. The Commissioner shall make his order granting ordenying the application within 10 days after the date of the closing of thehearing, unless the period is extended by written agreement between theapplicant and the Commissioner.

(Added to NRS by 2005, 1701)

NRS 604A.630 Procedureupon denial of license. If the Commissionerfinds that any applicant does not possess the requirements specified in thischapter, he shall:

1. Enter an order denying the application and notifythe applicant of the denial.

2. Within 10 days after the entry of such an order,file his findings and a summary of the evidence supporting those findings anddeliver a copy thereof to the applicant.

(Added to NRS by 2005, 1702)

NRS 604A.635 Issuanceof license; display of license; issuance of additional licenses for branchlocations; contents of license; license not transferable or assignable.

1. The Commissioner shall enter an order granting anapplication if he finds that:

(a) The financial responsibility, experience, characterand general fitness of the applicant are such as to command the confidence ofthe public and to warrant belief that the business will be operated lawfully,honestly, fairly and efficiently; and

(b) The applicant has satisfied the requirements setforth in NRS 604A.605.

2. If the Commissioner grants an application, theCommissioner shall:

(a) File his findings of fact together with thetranscript of any hearing held pursuant to the provisions of this chapter; and

(b) Issue to the licensee a license in such form andsize as is prescribed by the Commissioner for each location at which thelicensee proposes to do business.

3. Each licensee shall prominently display his licenseat the location where he does business. The Commissioner may issue additionallicenses to the same licensee for each branch location at which the licensee isauthorized to operate under the license, including, without limitation, eachbranch location where the licensee is authorized to operate at a kiosk, throughthe Internet, through any telephone, facsimile machine or othertelecommunication device or through any other machine, network, system, deviceor means, except that the Commissioner shall not issue any license that wouldauthorize the licensee to operate through any automated loan machine prohibitedby NRS 604A.400. Nothing in thissubsection 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 beconducted; and

(b) State fully:

(1) The name and address of the licensee;

(2) If the licensee is a copartnership orassociation, the names of its members; and

(3) If the licensee is a corporation, the dateand 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 thischapter expires annually on the anniversary of the issuance of the license. Alicensee must renew his license on or before the date on which the licenseexpires by paying:

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

(b) An additional fee of not more than $100 for eachbranch location at which the licensee is authorized to operate under thelicense.

2. A licensee who fails to renew his license withinthe time required by this section is not licensed pursuant to the provisions ofthis chapter.

3. The Commissioner may reinstate an expired licenseupon receipt of the renewal fee and a fee for reinstatement.

4. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section.

(Added to NRS by 2005, 1703; A 2005, 22nd SpecialSession, 100)

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

1. A licensee shall immediately notify theCommissioner of any change of control of the licensee.

2. A person who acquires stock, partnership or memberinterests resulting in a change of control of the licensee shall apply to theCommissioner for approval of the transfer. The application must containinformation which shows that the requirements for obtaining a license pursuantto the provisions of this chapter will be satisfied after the change ofcontrol. If the Commissioner determines that those requirements will not besatisfied, he may deny the application and forbid the applicant fromparticipating in the business of the licensee.

3. As used in this section, change of control means:

(a) A transfer of voting stock, partnership or memberinterests which results in giving a person, directly or indirectly, the powerto direct the management and policy of a licensee; or

(b) A transfer of at least 25 percent of theoutstanding voting stock, partnership or member interests of the licensee.

(Added to NRS by 2005, 1703)

NRS 604A.650 Licenseemust conduct business in accordance with license; approval of business name;prohibition against using misleading or confusing business name or printedforms.

1. A licensee shall not conduct the business of makingloans under any name, at any place or by any method, including, withoutlimitation, at a kiosk, through the Internet, through any telephone, facsimilemachine or other telecommunication device or through any other machine,network, system, device or means, except as permitted in the license or branchlicense issued to the licensee.

2. A licensee must obtain the approval of theCommissioner before using or changing a business name.

3. A licensee shall not:

(a) Use any business name which is identical or similarto a business name used by another licensee under this chapter or which maymislead or confuse the public.

(b) Use any printed forms which may mislead or confusethe public.

(Added to NRS by 2005, 1703)

NRS 604A.655 Restrictionson location where licensee may conduct business; requirements to conductbusiness at same location as mortgage broker, mortgage banker or pawnbroker.

1. Except as otherwise provided in this section, alicensee 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 orengaged in, except an insurance agency or notary public, or in association orconjunction with any other business, unless authority to do so is given by theCommissioner.

2. A licensee may conduct the business of making loansin 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 andrecords;

(II) Are subsidiaries of the same parentcorporation; and

(III) Maintain separate licenses; and

(2) The mortgage broker is licensed by thisState pursuant to chapter 645B of NRS anddoes not receive money to acquire or repay loans or maintain trust accounts asprovided by NRS 645B.175.

(b) A mortgage banker if:

(1) The licensee and the mortgage banker:

(I) Maintain separate accounts, books andrecords;

(II) Are subsidiaries of the same parentcorporation; and

(III) Maintain separate licenses; and

(2) The mortgage banker is licensed by thisState 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 toacquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

3. If a pawnbroker is licensed to operate acheck-cashing service, deferred deposit loan service, short-term loan serviceor title loan service, the pawnbroker may operate that service at the sameoffice or place of business from which he conducts business as a pawnbrokerpursuant to chapter 646 of NRS.

(Added to NRS by 2005, 1704)

NRS 604A.660 Changeof address by licensee: Notice; approval by Commissioner; penalty for failureto provide required notice.

1. A licensee who wishes to change the address of anoffice or other place of business for which he has a license pursuant to theprovisions 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 addresspursuant to subsection 1, the Commissioner shall provide written approval ofthe change and the date of the approval.

3. If a licensee fails to provide notice as requiredpursuant to subsection 1, the Commissioner may impose a fine in an amount notto exceed $500.

4. This section applies, without limitation, to anyoffice or other place of business at which the licensee intends to operate akiosk, through the Internet, through any telephone, facsimile machine or othertelecommunication device or through any other machine, network, system, deviceor means, except that the licensee shall not operate any automated loan machineprohibited by NRS 604A.400.

(Added to NRS by 2005, 1704)

RECORDS, REPORTS AND EXAMINATIONS

NRS 604A.700 Requiredbooks and records.

1. Each licensee shall keep and use in his businesssuch books and accounting records as are in accord with generally acceptedaccounting practices.

2. Each licensee shall maintain a separate written orelectronic record or ledger card for the account of each customer and shall setforth separately the amount of cash advance and the total amount of interestand charges, but such a record may set forth precomputed declining balancesbased on the scheduled payments, without a separation of principal and charges.

3. Each licensee shall preserve all such books andaccounting records for at least 2 years after making the final entry therein.

4. Each licensee who operates outside this State anoffice or other place of business that is licensed pursuant to provisions ofthis chapter shall:

(a) Make available at a location within this State thebooks, accounts, papers, records and files of the office or place of businesslocated outside this State to the Commissioner or a representative of theCommissioner; or

(b) Pay the reasonable expenses for travel, meals andlodging of the Commissioner or a representative of the Commissioner incurredduring any investigation or examination made at the office or place of businesslocated outside this State.

The licenseemust be allowed to choose between the provisions of paragraph (a) or (b) incomplying with this subsection.

5. As used in this section, amount of cash advancemeans the amount of cash or its equivalent actually received by a customer orpaid out at his direction or in his behalf.

(Added to NRS by 2005, 1705)

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

1. For the purpose of discovering violations of thischapter or of securing information lawfully required under this chapter, theCommissioner or his duly authorized representatives may at any time investigatethe business and examine the books, accounts, papers and records used thereinof:

(a) Any licensee;

(b) Any other person engaged in the business of makingloans or participating in such business as principal, agent, broker orotherwise; and

(c) Any person who the Commissioner has reasonablecause to believe is violating or is about to violate any provision of thischapter, whether or not the person claims to be within the authority or beyondthe scope of this chapter.

2. For the purpose of examination, the Commissioner orhis authorized representatives shall have and be given free access to theoffices and places of business, and the files, safes and vaults of suchpersons.

3. For the purposes of this section, any person whoadvertises for, solicits or holds himself out as willing to make any deferreddeposit loan, short-term loan or title loan is presumed to be engaged in thebusiness of making loans.

(Added to NRS by 2005, 1706)

NRS 604A.720 Authorityof Commissioner to require attendance of witnesses and production of books andrecords.

1. The Commissioner may require the attendance of anyperson and examine him under oath regarding:

(a) Any check-cashing service or loan service regulatedpursuant 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 ofbooks, accounts, papers and records for any audit, examination, investigationor hearing.

(Added to NRS by 2005, 1706)

NRS 604A.730 Annualexaminations by Commissioner; exceptions.

1. At least once each year, the Commissioner or hisauthorized representatives shall make an examination of the place of businessof each licensee and of the loans, transactions, books, accounts, papers andrecords of the licensee so far as they pertain to the business for which he islicensed pursuant to the provisions of this chapter.

2. If, after auditing one or more branch locations ofthe licensee, the Commissioner or his authorized representatives conclude thatthe loans, disclosures, loan practices, computer processes, filing systems andrecords are identical at each branch location, the Commissioner may make anexamination of only those branch locations he deems necessary.

(Added to NRS by 2005, 1706)

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

1. The Commissioner shall charge and collect from eachlicensee a fee of not more than $80 per hour for any supervision, audit,examination, investigation or hearing conducted pursuant to this chapter or anyregulations adopted pursuant thereto.

2. The Commissioner shall bill each licensee upon thecompletion of the activity for the fee required pursuant to subsection 1. Thelicensee 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 thedate due must include a penalty of 10 percent of the fee plus an additional 1percent of the fee for each month, or portion of a month, that the fee is notpaid. The Commissioner may waive the penalty for good cause.

3. The failure of a licensee to pay the fee requiredpursuant to subsection 1 as provided in this section constitutes grounds forrevocation of the license of the licensee.

4. TheCommissioner shall adopt regulations establishing the amount of the feerequired pursuant to this section.

(Added to NRS by 2005, 1706; A 2005, 22ndSpecial Session, 100)

NRS 604A.750 Annualreport by licensee; composite reports.

1. Annually, on or before April 15, each licenseeshall file with the Commissioner a report of operations of the licensedbusiness for the preceding calendar year.

2. The licensee shall make the report under oath andon a form prescribed by the Commissioner.

3. If any person or affiliated group holds more thanone license in this State, it may file a composite annual report.

(Added to NRS by 2005, 1708)

NRS 604A.760 Feesfor failure to submit reports.

1. If a licensee fails to submit any report requiredpursuant to this chapter or any regulation adopted pursuant thereto within theprescribed period, the Commissioner may impose and collect a fee of not morethan $10 for each day the report is overdue.

2. The Commissioner shall adopt regulationsestablishing the amount of the fee that may be imposed pursuant to thissection.

(Added to NRS by 2005, 22ndSpecial Session, 101)

DISCIPLINARY ACTION

NRS 604A.800 Temporarysuspension of license: Conditions; notice; hearing; terms of suspension. If the Commissioner finds that probable cause for revocationof any license exists and that enforcement of the provisions of this chapterrequires immediate suspension of a license pending investigation, he may, upon5 days written notice and a hearing, enter an order suspending a license for aperiod not exceeding 20 days, pending a hearing upon the revocation.

(Added to NRS by 2005, 1707)

NRS 604A.810 Orderto desist and refrain; action to enjoin violation; appointment of receiver.

1. Whenever the Commissioner has reasonable cause tobelieve that any person is violating or is threatening to or intends to violateany provision of this chapter, he may, in addition to all actions provided forin this chapter and without prejudice thereto, enter an order requiring theperson to desist or to refrain from such violation.

2. The Attorney General or the Commissioner may bringan action to enjoin a person from engaging in or continuing a violation or fromdoing any act or acts in furtherance thereof. In any such action, an order orjudgment may be entered awarding a preliminary or final injunction as may bedeemed proper.

3. In addition to all other means provided by law forthe enforcement of a restraining order or injunction, the court in which anaction is brought may impound, and appoint a receiver for, the property andbusiness of the defendant, including books, papers, documents and recordspertaining thereto, or so much thereof as the court may deem reasonablynecessary to prevent violations of this chapter through or by means of the useof property and business. A receiver, when appointed and qualified, has suchpowers and duties as to custody, collection, administration, winding up andliquidation of such property and business as may from time to time be conferredupon him by the court.

(Added to NRS by 2005, 1707)

NRS 604A.820 Procedurefor taking disciplinary action; authorized disciplinary action; grounds.

1. If the Commissioner has reason to believe thatgrounds for revocation or suspension of a license exist, he shall give 20 dayswritten 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 Commissionershall:

(a) Enter a written order either dismissing thecharges, revoking the license or suspending the license for a period of notmore than 60 days, which period must include any prior temporary suspension.The Commissioner shall send a copy of the order to the licensee by registeredor certified mail.

(b) Impose upon the licensee an administrative fine ofnot more than $10,000 for each violation by the licensee of any provision ofthis 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 his investigative costs and attorneys fees.

3. The grounds for revocation or suspension of alicense are that:

(a) The licensee has failed to pay the annual licensefee;

(b) The licensee, either knowingly or without anyexercise of due care to prevent it, has violated any provision of this chapteror any lawful regulation adopted pursuant thereto;

(c) The licensee has failed to pay a tax as requiredpursuant to the provisions of chapter 363Aof NRS;

(d) Any fact or condition exists which would havejustified the Commissioner in denying the licensees original application for alicense pursuant to the provisions of this chapter; or

(e) The licensee:

(1) Failed to open an office for the conduct ofthe business authorized by his license within 180 days after the date hislicense was issued; or

(2) Has failed to remain open for the conduct ofthe business for a period of 180 days without good cause therefor.

4. Any revocation or suspension applies only to thelicense granted to a person for the particular office for which grounds forrevocation or suspension exist.

5. An order suspending or revoking a license becomeseffective 5 days after being entered unless the order specifies otherwise or astay is granted.

(Added to NRS by 2005, 1707; A 2005, 22ndSpecial Session, 100)

NRS 604A.830 Additionalgrounds for disciplinary action. In additionto any other lawful reasons, the Commissioner may suspend or revoke a licenseif the licensee has engaged in any act that would be grounds for denying alicense pursuant this chapter.

(Added to NRS by 2005, 1707)

NRS 604A.840 Surrenderof license by licensee; effect of surrender. Alicensee may surrender any license issued pursuant to the provisions of thischapter by delivering it to the Commissioner with written notice of itssurrender, but a surrender does not affect his civil or criminal liability foracts committed prior thereto.

(Added to NRS by 2005, 1708)

NRS 604A.850 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense. A revocation, suspension, expirationor surrender of any license does not impair or affect the obligation of anypreexisting lawful loan agreement between the licensee and any customer. Such aloan 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 Remediesfor certain willful violations.

1. Except as otherwise provided in this section, if alicensee willfully:

(a) Enters into a loan agreement for an amount ofinterest or any other charge or fee that violates the provisions of thischapter or any regulation adopted pursuant thereto;

(b) Demands, collects or receives an amount of interestor any other charge or fee that violates the provisions of this chapter or anyregulation adopted pursuant thereto; or

(c) Commits any other act or omission that violates theprovisions of this chapter or any regulation adopted pursuant thereto,

the loan isvoid and the licensee is not entitled to collect, receive or retain anyprincipal, 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 evidencethat the violation was not intentional and resulted from a bona fide error ofcomputation, notwithstanding the maintenance of procedures reasonably adaptedto avoid that error; and

(b) Within 60 days after discovering the error, thelicensee notifies the customer of the error and makes whatever adjustments inthe account are necessary to correct the error.

(Added to NRS by 2005, 1708)

NRS 604A.910 Administrativefines for unlicensed activity. In addition toany other remedy or penalty, the Commissioner may impose an administrative fineof not more than $50,000 upon a person who, without a license, conducts any businessor activity for which a license is required pursuant to the provisions of thischapter.

(Added to NRS by 2005, 1709; A 2005, 22ndSpecial Session, 101)

NRS 604A.920 Otherremedies for unlicensed activity. If a personoperates a check-cashing service, deferred deposit loan service, short-termloan service or title loan service without obtaining a license pursuant to thischapter:

1. Any contracts entered into by that person for thecashing of a check or for a deferred deposit loan, short-term loan or titleloan are voidable by the other party to the contract; and

2. In addition to any other remedy or penalty, theother party to the contract may bring a civil action against the personpursuant to NRS 604A.930.

(Added to NRS by 2005, 22ndSpecial Session, 101)

NRS 604A.930 Civilaction.

1. Subject to the affirmative defense set forth insubsection 3, in addition to any other remedy or penalty, if a person violatesany provision of NRS 604A.400, 604A.410 to 604A.500, inclusive, 604A.610, 604A.615, 604A.650 or 604A.655 or any regulation adoptedpursuant thereto, the customer may bring a civil action against the person forany or all of the following relief:

(a) Actual and consequential damages;

(b) Punitive damages, which are subject to theprovisions of NRS 42.005;

(c) Reasonable attorneys fees and costs; and

(d) Any other legal or equitable relief that the courtdeems appropriate.

2. Subject to the affirmative defense set forth insubsection 3, in addition to any other remedy or penalty, the customer maybring a civil action against a person pursuant to subsection 1 to recover anadditional amount, as statutory damages, which is equal to $1,000 for eachviolation if the person knowingly:

(a) Operates a check-cashing service, deferred depositloan service, short-term loan service or title loan service without a license,in violation of NRS 604A.400;

(b) Fails to include in a loan agreement a disclosureof 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 deferreddeposit loan, in violation of NRS 604A.435,except that a check or written authorization for an electronic transfer ofmoney shall not be deemed to be collateral or security for a deferred depositloan;

(e) Uses or threatens to use the criminal process inthis State or any other state to collect on a loan made to the customer, inviolation of NRS 604A.440;

(f) Includes in any written agreement a promise by thecustomer to hold the person harmless, a confession of judgment by the customeror an assignment or order for the payment of wages or other compensation duethe customer, in violation of NRS 604A.440;

(g) Violates any provision of NRS 604A.485; or

(h) Violates any provision of NRS 604A.490.

3. A person may not be held liable in any civil actionbrought pursuant to this section if the person proves, by a preponderance ofevidence, that the violation:

(a) Was not intentional;

(b) Was technical in nature; and

(c) Resulted from a bona fide error, notwithstandingthe maintenance of procedures reasonably adapted to avoid any such error.

4. For the purposes of subsection 3, a bona fide errorincludes, without limitation, clerical errors, calculation errors, computermalfunction and programming errors and printing errors, except that an error oflegal judgment with respect to the persons obligations under this chapter isnot a bona fide error.

(Added to NRS by 2005, 1709)

NRS 604A.940 Exerciseof jurisdiction over party to civil action; service of summons to conferjurisdiction.

1. A court of this State may exercise jurisdictionover a party to a civil action arising under the provisions of this chapter onany basis not inconsistent with the Constitution of the State of Nevada or theConstitution of the United States.

2. Personal service of summons upon a party outsidethis State is sufficient to confer upon a court of this State jurisdiction overthe 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 mannerprovided by statute or rule of court for service upon a person of like kindwithin this State.

3. In all cases of such service, the defendant has 40days, exclusive of the day of service, within which to answer or plead.

4. This section provides an additional manner ofserving process and does not invalidate any other service.

(Added to NRS by 2005, 1708)

 

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