2005 Nevada Revised Statutes - Chapter 675 — Installment Loans

CHAPTER 675 - INSTALLMENT LOANS

GENERAL PROVISIONS

NRS 675.010 Shorttitle.

NRS 675.020 Definitions.

NRS 675.030 Legislativedeclaration.

NRS 675.040 Applicability.

NRS 675.045 Certainrelationships between employees of Division of Financial Institutions andlicensees prohibited; termination of prohibited relationship.

NRS 675.050 Effectof amendment or repeal of chapter on preexisting lawful contracts.

NRS 675.055 Exemptionfrom provisions governing making of loans: Application to Commissioner;grounds; powers and duties of Commissioner; regulations; fees set byregulation.

LICENSING

NRS 675.060 Unlicenseddealing in loans prohibited; license required for each office or other place ofbusiness.

NRS 675.070 Applicationof NRS 675.060 to persons who seek toevade.

NRS 675.090 Applicationfor license: Form; contents; requirements when applying for license for officeor other place of business located outside State; withdrawal of application.

NRS 675.095 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue license.

NRS 675.100 Feesfor application and investigation; regulations.

NRS 675.110 Investigationby Commissioner; notice; hearing; order.

NRS 675.120 Issuanceof license subsequent to findings by Commissioner.

NRS 675.130 Requiredstatements on license.

NRS 675.140 Expiration,renewal and reinstatement of license; fees; regulations.

NRS 675.150 Procedurefor denial of license.

NRS 675.160 Dispositionof money collected pursuant to chapter.

GENERAL REGULATIONS

NRS 675.170 Regulationsand orders of Commissioner.

NRS 675.180 Licenseeto maintain minimum assets.

NRS 675.190 Postingof licenses.

NRS 675.200 Transferabilityor assignability of license.

NRS 675.210 Placesof business maintainable by licensee under license; issuance of more than onelicense to licensee.

NRS 675.220 Changeof address by licensee: Notice; approval by Commissioner; penalty for failure toprovide required notice.

NRS 675.230 Restrictionon location of business of making loans.

NRS 675.240 Nameunder which business transactable by licensee; loans by mail.

NRS 675.245 Useor change of business name; prohibitions.

NRS 675.250 Booksand accounting records: Practices; preservation; requirements regarding officeor other place of business located outside State.

NRS 675.260 Annualreport by licensee; composite reports.

NRS 675.280 False,misleading or deceptive advertising prohibited.

LOANS

NRS 675.300 Insuranceas security for loans: Conditions; limitations.

NRS 675.310 Collectionof loans made outside State.

NRS 675.330 Paymentin money, credit, goods or things in action, as consideration for sale,assignment, or order of compensation, deemed loan of money; transaction subjectto provisions of chapter.

NRS 675.340 Assignmentof wages as security invalid.

NRS 675.350 Prohibitedpractices by licensees.

NRS 675.360 Dutiesof licensee.

LOANS FOR INDEFINITE TERM

NRS 675.361 Termsof written agreement.

NRS 675.363 Calculationof interest; billing cycle.

NRS 675.365 Feesand charges.

NRS 675.367 Borrowermust be given description of rate and computation of interest; notice ofincrease in rate of interest or change in terms.

NRS 675.369 Writtenstatement to borrower; copy of draft or order for payment.

REVOCATION AND SUSPENSION OF LICENSES

NRS 675.370 Licenseremains effective until expiration, surrender, revocation or suspension.

NRS 675.380 Authorityof Commissioner to investigate business; free access required.

NRS 675.390 Authorityof Commissioner to require attendance of witnesses and production of documents.

NRS 675.400 Commissionerto examine licensees business annually; fee.

NRS 675.410 Temporarysuspension of license: Conditions; notice; hearing; term of suspension.

NRS 675.420 Surrenderof license by licensee; surrender as affecting licensees liability.

NRS 675.430 Orderto desist and refrain; action to enjoin violation; appointment and powers of receiver.

NRS 675.440 Revocationor suspension of license: Grounds; notice; hearing; order.

NRS 675.445 Revocationor suspension of license: Additional grounds.

NRS 675.450 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense.

PENALTIES

NRS 675.470 Unlicenseddealing in loans.

NRS 675.490 Administrativefines.

_________

GENERAL PROVISIONS

NRS 675.010 Shorttitle. This chapter shall be known and may becited as the Nevada Installment Loan and Finance Act.

(Added to NRS by 1959, 226)

NRS 675.020 Definitions. As used in this chapter, unless the context otherwiserequires:

1. Amount of cash advance means the amount of cashor its equivalent actually received by a borrower or paid out at his directionor on his behalf.

2. Amount of loan obligation means the amount ofcash advance plus the aggregate of charges added thereto pursuant to authorityof this chapter.

3. Commissioner means the Commissioner of FinancialInstitutions.

4. Community means a contiguous area of the sameeconomic unit or metropolitan area as determined by the Commissioner, and mayinclude all or part of a city or several towns or cities.

5. License means a license, issued under theauthority of this chapter, to make loans in accordance with the provisions ofthis chapter, at a single place of business.

6. Licensee means a person to whom one or morelicenses have been issued.

(Added to NRS by 1959, 226; A 1977, 193; 1983, 1805;1985, 537; 1987, 1987)

NRS 675.030 Legislativedeclaration. The legislature finds as factsand determines that:

1. There exists in this state a widespread demand forloans repayable in installments, which loans may or may not be made onsubstantial security. This demand has been steadily increased by many socialand economic factors.

2. The expenses of making and collecting installmentloans are necessarily high in relation to the amounts lent.

3. It is the purpose of this chapter to:

(a) Bring under public supervision those engaged in thebusiness of making loans;

(b) Attract adequate commercial capital to thebusiness, so that the demand for such loans may be satisfied; and

(c) Ensure the availability in this state of adequate,efficient and competitive financial services.

(Added to NRS by 1959, 227; A 1971, 1365; 1973, 1515;1983, 1312; 1987, 178)

NRS 675.040 Applicability. This chapter does not apply to:

1. A person doing business under the authority of anylaw of this State or of the United States relating to banks, savings banks,trust companies, savings and loan associations, credit unions, developmentcorporations, mortgage brokers, mortgage bankers, thrift companies, pawnbrokersor insurance companies.

2. A real estate investment trust, as defined in 26U.S.C. 856.

3. An employee benefit plan, as defined in 29 U.S.C. 1002(3), if the loan is made directly from money in the plan by the planstrustee.

4. An attorney at law rendering services in the performanceof his duties as an attorney at law if the loan is secured by real property.

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

6. Except as otherwise provided in this subsection,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.

7. A person who provides money for investment in loanssecured by a lien on real property, on his own account.

8. A seller of real property who offers credit securedby a mortgage of the property sold.

9. A person holding a nonrestricted state gaminglicense issued pursuant to the provisions of chapter463 of NRS.

10. A person licensed to do business pursuant to chapter 604A of NRS with regard to thoseservices regulated pursuant to chapter 604Aof NRS.

(Added to NRS by 1959, 227; A 1983, 153, 1313; 1989,1064; 1991, 818; 1995, 1100; 1999, 3810; 2003, 3578; 2005, 1713)

NRS 675.045 Certainrelationships between employees of Division of Financial Institutions andlicensees prohibited; termination of prohibited relationship.

1. Except as provided in subsection 3, an officer oremployee of the Division of Financial Institutions 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 in the unclassifiedservice of the State shall not obtain new extensions of credit from a licenseewhile 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 upon a secured installment debt or anunsecured debt.

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 1983, 1805)

NRS 675.050 Effectof amendment or repeal of chapter on preexisting lawful contracts. This chapter or any part thereof may be modified, amendedor repealed so as to effect a cancellation or alteration of any license orright of a licensee under this chapter, provided that such cancellation oralteration shall not impair or affect the obligation of any preexisting lawfulcontract between any licensee and any borrower.

(Added to NRS by 1959, 227)

NRS 675.055 Exemptionfrom provisions governing making of loans: Application to Commissioner;grounds; powers and duties of Commissioner; regulations; fees set byregulation.

1. A person may apply to the Commissioner for anexemption from the provisions of this chapter governing the making of a loan ofmoney.

2. The Commissioner may grant the exemption if hefinds that:

(a) The making of the loan would not be detrimental tothe financial condition of the lender, borrower or person who is providing themoney for the loan;

(b) The lender, borrower or person who is providing themoney for the loan has established a record of sound performance, efficientmanagement, financial responsibility and integrity;

(c) The making of the loan is likely to increase theavailability of capital for a sector of the state economy; and

(d) The making of the loan is not detrimental to thepublic interest.

3. The Commissioner:

(a) May revoke an exemption unless the loan for whichthe exemption was granted has been made;

(b) Shall issue a written statement setting forth thereasons for his decision to grant, deny or revoke an exemption; and

(c) Shall adopt regulations which provide theapplication forms to be used to apply for an exemption and the fees to be paidalong with the application.

(Added to NRS by 1989, 1064)

LICENSING

NRS 675.060 Unlicenseddealing in loans prohibited; license required for each office or other place ofbusiness.

1. No person may engage in the business of lending inthis State without first having obtained a license from the Commissionerpursuant to this chapter for each office or other place of business at whichthe person engages in such business, except that if a person intends to engagein the business of lending in this State as a deferred deposit loan service,short-term loan service or title loan service, as those terms are defined in chapter 604A of NRS, the person must obtain alicense from the Commissioner pursuant to chapter604A of NRS before the person may engage in any such business.

2. For the purpose of this section, a person engagesin the business of lending in this State if he:

(a) Solicits loans in this State or makes loans topersons in this State, unless these are isolated, incidental or occasionaltransactions; or

(b) Is located in this State and solicits loans outsideof this State or makes loans to persons located outside of this State, unlessthese are isolated, incidental or occasional transactions.

(Added to NRS by 1959, 228; A 1971, 1366; 1973, 1515;1983, 1313, 1806; 1987, 178, 1987; 1993, 2045; 2001, 2047; 2005, 1714)

NRS 675.070 Applicationof NRS675.060 to persons who seek to evade. Theprovisions of NRS 675.060 shall apply toany person who seeks to evade its application by any device, subterfuge orpretense whatever, including, but not thereby limiting the generality of theforegoing:

1. The loan, forbearance, use or sale of credit (asguarantor, surety, endorser, comaker or otherwise), money, goods, or things inaction.

2. The use of collateral or related sales or purchasesof goods or services, or agreements to sell or purchase, whether real orpretended.

3. Receiving or charging compensation for goods orservices, whether or not sold, delivered or provided.

4. The real or pretended negotiation, arrangement orprocurement of a loan through any use or activity of a third person, whetherreal or fictitious.

(Added to NRS by 1959, 228)

NRS 675.090 Applicationfor license: Form; contents; requirements when applying for license for officeor other place of business located outside State; withdrawal of application.

1. Application for a license must be in writing, underoath, and in the form prescribed by the Commissioner.

2. The application must:

(a) Provide the address of the office or other place ofbusiness for which the application is submitted.

(b) Contain such further relevant information as theCommissioner may require, including the names and addresses of the partners, officers,directors or trustees, and of such of the principal owners or members as willprovide the basis for the investigations and findings contemplated by NRS 675.110 and 675.120.

3. A person may apply for a license for an office 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 paragraph (a) or (b) in complying with theprovisions of this subsection.

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, the Commissionermay not issue a license to the applicant unless the applicant submits a newapplication and pays any required fees.

(Added to NRS by 1959, 228; A 1983, 1806; 1987, 1987;2001, 2047; 2005, 1881)

NRS 675.095 Applicationfor license: Additional requirements; fingerprints; grounds for refusal toissue 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 for whichthe applicant seeks to be licensed in a manner which protects the interests ofthe 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, 1880)

NRS 675.100 Feesfor application and investigation; regulations.

1. At the time of making the application, theapplicant shall pay to the Commissioner:

(a) A nonrefundable fee of not more than $1,000 for theapplication and survey;

(b) Any additional expenses incurred in the process ofinvestigation as the Commissioner deems necessary; and

(c) A fee of not less than $200 or more than $1,000,prorated on the basis of the licensing year as provided by the Commissioner.

2. The Commissioner shall adopt regulationsestablishing the amount of the fees required pursuant to this section. Allmoney received by the Commissioner pursuant to this section must be placed inthe Investigative Account created by NRS232.545.

(Added to NRS by 1959, 228; A 1981, 757; 1983, 1326,1807; 1987, 1988; 1991, 1814; 2005, 1882)

NRS 675.110 Investigationby Commissioner; notice; hearing; order.

1. Upon the filing of the application and the paymentof the fees, the Commissioner shall investigate the facts concerning theapplication and the requirements provided for in NRS 675.120.

2. The Commissioner may hold a hearing on theapplication at a time not less than 30 days after the date the application wasfiled nor 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 1959, 229; A 1981, 104; 1983, 1807;1987, 1988; 2001,2048)

NRS 675.120 Issuanceof license subsequent to findings by Commissioner. Ifthe Commissioner finds:

1. That the financial responsibility, experience,character and general fitness of the applicant are such as to command theconfidence of the public and to warrant belief that the business will beoperated lawfully, honestly, fairly and efficiently, within the purposes ofthis chapter; and

2. That the applicant, unless he will function solelyas a loan broker, has available for the operation of the business at thespecified location liquid assets of at least $50,000,

he shallthereupon enter an order granting the application, and file his findings offact together with the transcript of any hearing held under this chapter, andforthwith issue and deliver a license to the applicant.

(Added to NRS by 1959, 229; A 1971, 1366; 1983, 1807;1987, 178, 1988; 2001,2048)

NRS 675.130 Requiredstatements on license. Each license shall:

1. State the address at which the business is to beconducted; and

2. State fully the name of the licensee, and if thelicensee is a copartnership or association, the names of its members, and if acorporation, the date and place of its incorporation.

(Added to NRS by 1959, 229)

NRS 675.140 Expiration,renewal and reinstatement of license; fees; regulations.

1. A license expires on December 31 of each yearunless renewed by the licensee through the payment, on or before that date, ofan annual fee of not more than $1,000 for each license held by him. TheCommissioner may reinstate an expired license upon receipt of the annual feeand a fee of not more than $400 for reinstatement.

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

(Added to NRS by 1959, 229; A 1981, 757; 1983, 1807;1987, 1989; 1989, 922; 2005,1882)

NRS 675.150 Procedurefor denial of license.

1. If the Commissioner finds that any applicant doesnot possess the requirements specified in this chapter, he shall enter an orderdenying the application and forthwith notify the applicant of the denial.

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

(Added to NRS by 1959, 229; A 1983, 1326, 1808; 1987,1989)

NRS 675.160 Dispositionof money collected pursuant to chapter. Exceptas otherwise provided in NRS 675.100,all fees and charges collected under the provisions of this chapter must bedeposited in the State Treasury pursuant to the provisions of NRS 658.091.

(Added to NRS by 1959, 230; A 1983, 1326; 2003, 3234)

GENERAL REGULATIONS

NRS 675.170 Regulationsand orders of Commissioner.

1. The Commissioner may adopt regulations and makeorders for the administration and enforcement of this chapter, in additionhereto and not inconsistent herewith.

2. Every regulation must be promulgated by an order,and any ruling, demand, requirement or similar administrative act may bepromulgated by an order.

3. Every order must be in writing, must state itseffective date and the date of its promulgation, and must be entered in anindexed permanent book which is a public record.

4. A copy of every order promulgating a regulation andof every other order containing a requirement of general application must bemailed to each licensee at least 20 days before the effective date thereof.

(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)

NRS 675.180 Licenseeto maintain minimum assets. Every licenseeshall maintain assets of at least $50,000 either used or readily available foruse in the conduct of the business of each licensed office.

(Added to NRS by 1959, 230; A 1971, 1366)

NRS 675.190 Postingof licenses. Each license shall be keptconspicuously posted in the licensed place of business.

(Added to NRS by 1959, 230)

NRS 675.200 Transferabilityor assignability of license. Licenses shallnot be transferable or assignable.

(Added to NRS by 1959, 230)

NRS 675.210 Placesof business maintainable by licensee under license; issuance of more than onelicense to licensee. Not more than one placeof business may be maintained under the same license. The Commissioner mayissue additional licenses to the same licensee for other business locationsupon compliance with all the provisions of this chapter governing issuance of asingle license. Nothing herein requires a license for any place of businessdevoted to accounting, recordkeeping or administrative purposes only.

(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)

NRS 675.220 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 this chaptermust, at least 10 days before changing the address, give written notice of theproposed 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.

(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989;2001, 2049)

NRS 675.230 Restrictionon location of business of making loans.

1. Except as otherwise provided in subsection 2, alicensee may not conduct the business of making loans under this chapter withinany office, suite, room or place of business in which any other business issolicited or engaged in, except an insurance agency or notary public, or inassociation or conjunction with any other business, unless authority to do so isgiven by the Commissioner.

2. A licensee may conduct the business of making loanspursuant to this chapter in the same office or place of business as:

(a) A mortgage broker if:

(1) The licensee and the mortgage broker:

(I) Operate as separate legal entities;

(II) Maintain separate accounts, books andrecords;

(III) Are subsidiaries of the same parentcorporation; and

(IV) 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) Operate as separate legal entities;

(II) Maintain separate accounts, books andrecords;

(III) Are subsidiaries of the same parentcorporation; and

(IV) 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.

(Added to NRS by 1959, 230; A 1983, 1809; 1987, 1990;1991, 884; 1999, 3810;2003, 3579)

NRS 675.240 Nameunder which business transactable by licensee; loans by mail. No licensee shall conduct the business of making loansprovided for by this chapter under any name or at any place other than thatstated in the license. Nothing herein shall prevent the making of loans by mailnor prohibit accommodations to individual borrowers when necessitated by hoursof employment, sickness or other emergency situations.

(Added to NRS by 1959, 231)

NRS 675.245 Useor change of business name; prohibitions.

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

2. 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, 1881)

NRS 675.250 Booksand accounting records: Practices; preservation; requirements regarding officeor other place of business located outside State.

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

2. Each licensee shall maintain a separate record orledger card for the account of each borrower and shall set forth separately theamount of cash advance and the total amount of interest and charges, but such arecord may set forth precomputed declining balances based on the scheduledpayments, 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 this chaptershall:

(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 paragraph (a) or (b) in complying with theprovisions of this subsection.

(Added to NRS by 1959, 231; A 2001, 2049)

NRS 675.260 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 report must be made under oath and must be inthe form and contain information prescribed by the Commissioner.

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

(Added to NRS by 1959, 231; A 1981, 753; 1983, 1809;1987, 1990)

NRS 675.280 False,misleading or deceptive advertising prohibited. Alicensee shall not advertise or permit to be advertised in any mannerwhatsoever any false, misleading or deceptive statement or representation withregard to the rates, terms or conditions for loans.

(Added to NRS by 1959, 231; A 1971, 1366; 1973, 1516;1987, 179)

LOANS

NRS 675.300 Insuranceas security for loans: Conditions; limitations.

1. A licensee may request that a borrower insuretangible property when offered as security for a loan under this chapteragainst any substantial risk of loss, damage or destruction for an amount notto exceed the actual value of the property and for a term and upon conditionswhich are reasonable and appropriate considering the nature of the property andthe maturity and other circumstances of the loan.

2. A licensee may require that a borrower providetitle insurance on real property offered as security for a loan under thischapter. The title insurance must be placed through a title insurance companyauthorized to do business in this state.

3. A licensee may provide, obtain or take as securityfor a loan:

(a) Insurance on the life and on the health ordisability, or both, of one or more parties obligated on the loan;

(b) Involuntary unemployment insurance;

(c) Insurance which protects his interest in thecollateral pledged for the loan;

(d) Single interest nonfiling insurance; or

(e) Any other credit-related insurance approved by theCommissioner,

if theinsurance complies with the applicable provisions of chapter 690A of NRS.

4. In accepting any insurance provided by this sectionas security for a loan, the licensee may include the premiums or identifiable chargeas part of the principal or may deduct the premiums or identifiable chargetherefor from the proceeds of the loan, which premium or identifiable chargemust not exceed those filed with and approved by the Commissioner of Insurance,and remit those premiums to the insurance company writing the insurance, andany gain or advantage to the licensee, any employee, officer, director, agent,affiliate or associate from the insurance or its sale may not be considered asadditional or further charge in connection with any loan made under thischapter. Not more than one policy of life insurance and one policy providingaccident and health coverage may be written by a licensee in connection withany loan transaction under this chapter, and a licensee shall not require theborrower to be insured as a condition of any loan. If the unpaid balance of theloan is prepaid in full by cash or other thing of value, refinancing, renewal,a new loan or otherwise, the charge for any credit life insurance and anycredit accident and health insurance must be refunded or credited as prescribedin chapter 690A of NRS. The insurance mustbe written by a company authorized to conduct business in this state, and thelicensee shall not require the purchase of the insurance from any agent orbroker designated by the licensee.

5. The amount charged to a debtor by a licensee forany type of coverage under a policy of insurance provided by this section assecurity for a loan must not exceed the amount of the premium. In the case of asingle interest nonfiling policy of insurance, the amount charged to a debtorby a licensee must not exceed the amount charged by a county recorder forfiling and releasing documents pursuant to NRS104.9525.

6. As used in this section, single interest nonfilinginsurance means a contract of insurance for which a lender pays apredetermined fee, which affords coverage to a lender in connection with aspecific loan, and which is obtained by the lender in lieu of perfecting asecurity interest pursuant to chapter 104 ofNRS.

(Added to NRS by 1959, 233; A 1967, 976; 1971, 226,1369, 1927, 1960; 1973, 1519; 1979, 828; 1987, 2303; 1993, 2045; 1999, 393)

NRS 675.310 Collectionof loans made outside State. Any loan made outsidethis state lawfully made as permitted by the laws of the state in which theloan was made may be collected or otherwise enforced in this state inaccordance with its terms.

(Added to NRS by 1959, 234; A 1971, 1370)

NRS 675.330 Paymentin money, credit, goods or things in action, as consideration for sale,assignment, or order of compensation, deemed loan of money; transaction subjectto provisions of chapter. The payment ofmoney, credit, goods or things in action, as consideration for any sale,assignment or order for the payment of wages, salary, commissions or othercompensation for services earned or to be earned, shall, for the purposes ofregulation under this chapter, be deemed a loan of money secured by the sale,assignment or order. The amount by which the compensation so sold, assigned orordered paid exceeds the amount of the consideration actually paid shall, forthe purposes of regulation under this chapter, be deemed interest or charges onthe loan from the date of the payment to the date the compensation is payable.Such a transaction is subject to the provisions of this chapter.

(Added to NRS by 1959, 235; A 1971, 1371; 1973, 1520;1987, 179)

NRS 675.340 Assignmentof wages as security invalid. No assignment ofwages, salary, commissions or other compensation for services, whether earnedor to be earned, given to a licensee as security for a loan under this chapter,shall be valid.

(Added to NRS by 1959, 235)

NRS 675.350 Prohibitedpractices by licensees. No licensee may:

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

2. Take any note or promise to pay which does notdisclose the date and amount of the loan obligation, a schedule or descriptionof the payments to be made thereon and the rate or aggregate amount of theagreed charges.

3. Take any instrument in which blanks are left to befilled in after the loan is made.

4. Take a lien upon real property as security for anyloan made under this chapter except real property upon which is situated amobile home or factory-built housing that also secures the loan, and exceptsuch lien as is created by law through the rendition or recording of ajudgment.

(Added to NRS by 1959, 235; A 1959, 783; 1979, 829;1991, 884)

NRS 675.360 Dutiesof licensee. Every licensee shall:

1. Deliver to the borrower, or if more than one, toone of them, at the time of making a loan under this chapter a copy of the loanobligation or, in lieu thereof, a statement showing in clear and distinct termsthe date of the loan, the amount of the obligation, the date of its maturity,if there is one, the nature of the security, if any, for the loan, the name andaddress of the borrower and of the licensee, and the description or schedule ofpayments on that loan.

2. Except as otherwise provided for loans for anindefinite term in NRS 675.369, give tothe person making any cash payment on account of any loan a receipt at the timethat payment is made, showing the balance due, if any, after application ofthat payment. A receipt showing the amount of the payment only may be giventemporarily and must be replaced within a reasonable time with a receipt asprescribed in this subsection.

3. Permit payment in advance in an amount equal to oneor more full installments at any time during the regular business hours of thelicensee.

4. Upon repayment of a loan in full, mark plainlyevery note or other evidence of the indebtedness or assignment signed by anyobligor, or a copy thereof, with the word paid or cancelled, and release orprovide the borrower evidence to release any mortgage or security instrument nolonger securing any indebtedness to the licensee.

(Added to NRS by 1959, 235; A 1985, 1679; 1995, 137)

LOANS FOR INDEFINITE TERM

NRS 675.361 Termsof written agreement. A licensee may make aloan for an indefinite term under a written agreement between the licensee andthe borrower. Pursuant to this agreement:

1. The borrower may obtain cash advances from thelicensee periodically by a check, draft, credit card or any other means or thelicensee may pay out money at the borrowers direction or on his behalf;

2. An open-end account must be established for theborrower and the amount of each cash advance made to the borrower and anyinterest, charges and other costs must be debited to that account and anypayments on the loan or other credits must be credited to that account;

3. The interest and other charges must be computedperiodically on the unpaid balance in the borrowers account; and

4. The borrower may pay his account in full at anytime without a penalty for prepayment, or if the account is not in default, inmonthly installments of fixed or determinable amounts as provided in theagreement.

(Added to NRS by 1985, 1677)

NRS 675.363 Calculationof interest; billing cycle.

1. Under an agreement for a loan for an indefiniteterm, the licensee may receive interest in any amount or at any annual rateprovided in the agreement. This interest must be calculated for each billingcycle in either of the following ways:

(a) By multiplying the daily rate by the daily unpaidbalance in the account. The daily rate is determined by dividing the annualrate of interest fixed by the agreement by 365. The daily unpaid balance isdetermined by adding to any balance remaining unpaid as of the beginning ofeach day any advances and any appropriate charges, including interest, and by deductingtherefrom any payments or other credits made or received on that day.

(b) By multiplying the monthly rate by the averageunpaid daily balance in the account for that billing cycle. The monthly rate isdetermined by dividing the annual rate of interest by 12. The average unpaiddaily balance is determined by dividing the sum of all of the daily unpaidbalances during the billing cycle by the number of days in the cycle.

2. Unless otherwise provided in the agreement, thebilling cycle must be monthly. A billing cycle is monthly if the closing dateof the cycle is the same date each month or does not vary by more than 4 daysfrom that date.

(Added to NRS by 1985, 1677)

NRS 675.365 Feesand charges. In addition to the interestallowed pursuant to NRS 675.363, alicensee may, pursuant to the agreement for a loan for an indefinite term,receive from the borrower or add to the unpaid balance in that borrowersaccount:

1. Any fees imposed on the licensee pursuant to thischapter;

2. Any charge for insurance under NRS 675.300;

3. A charge not exceeding 25 cents for eachtransaction in which a loan or advance is made pursuant to the agreement or anannual fee for the use of an open-end account in an amount not to exceed $20;

4. If the interest calculated for any billing cyclepursuant to NRS 675.363 is less than 50cents:

(a) For a billing cycle which is monthly or longer, acharge in an amount not exceeding 50 cents; or

(b) For a billing cycle less than monthly, a charge inan amount equal to that portion of 50 cents which bears the same relation to 50cents as the number of days in the billing cycle bear to 365 divided by 12;

5. For any check written by the borrower to thelicensee which is returned for insufficient funds, a charge of $10 or in anamount equal to the charges imposed on the licensee because of his reliance onthat check, whichever amount is greater; and

6. Any charge assessed the licensee by a third partyfor the printing and distribution of any checks, drafts or other instruments tobe used by the borrower in obtaining advances pursuant to the agreement.

(Added to NRS by 1985, 1678; A 1987, 1516)

NRS 675.367 Borrowermust be given description of rate and computation of interest; notice ofincrease in rate of interest or change in terms.

1. In addition to the information required insubsection 1 of NRS 675.360, a borrowerunder an agreement for a loan for an indefinite term must be given a descriptionof the agreed annual interest rate, stated as a percentage, the conditionsunder which interest will be charged and the method used to compute theinterest for each billing cycle.

2. The licensee shall notify a borrower of anyincrease in the rate of interest to be charged or any other change in the termsof the agreement for a loan for an indefinite term:

(a) No later than the date of the first billing afterthe effective date of the change, if the change in the rate of interest ispursuant to an agreement for the loan which is signed by the borrower andspecifies the formula for computation of the adjustment in the rate; or

(b) At least 30 days before the change is to take placefor all other loans for an indefinite term.

The changeapplies only to a debt incurred by the borrower after the effective date of thechange, unless otherwise agreed by the borrower. In determining the balance towhich an increase in the rate of interest applies, any payment received orother credit made to the borrowers account applies to the balance existingbefore the date of that increase until that balance is paid in full.

(Added to NRS by 1985, 1678; A 1987, 1516)

NRS 675.369 Writtenstatement to borrower; copy of draft or order for payment.

1. If the account of a borrower on a loan for anindefinite term shows a balance due or if any debits or credits were entered onthat account during a billing cycle, the licensee shall furnish to theborrower, within a reasonable time after the end of the billing cycle, awritten statement setting forth:

(a) The unpaid balance in his account at the beginningof the billing cycle;

(b) The date and amount of any loans or advances madeon the account during the billing cycle;

(c) Any payments or other credits made or received onthe account during the billing cycle;

(d) The amount of interest and other charges, if any,made on the account during the billing cycle;

(e) The amount of the installment due and the date onwhich that payment must be received; and

(f) The total amount remaining unpaid in the account atthe end of that billing cycle.

2. The licensee shall also, upon written request ofthe borrower, furnish to the borrower a copy of any draft or order for paymentreceived on the account of the borrower during the billing cycle.

(Added to NRS by 1985, 1678; A 1989, 1065)

REVOCATION AND SUSPENSION OF LICENSES

NRS 675.370 Licenseremains effective until expiration, surrender, revocation or suspension. Each license shall remain in full force and effect untilit expires or is surrendered, revoked or suspended as provided in this chapter.

(Added to NRS by 1959, 236; A 1989, 922)

NRS 675.380 Authorityof Commissioner to investigate business; free access required.

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 describedin NRS 675.060 or participating in suchbusiness as principal, agent, broker or otherwise; 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, files, safes and vaults of such persons.

3. For the purposes of this section, any person whoadvertises for, solicits or holds himself out as willing to make loantransactions is presumed to be engaged in the business described in NRS 675.060.

(Added to NRS by 1959, 236; A 1971, 1371; 1973, 1520;1983, 1809; 1987, 179, 1990)

NRS 675.390 Authorityof Commissioner to require attendance of witnesses and production of documents. The Commissioner may require the attendance of any personand examine him under oath relative to loans or business regulated by thischapter or to the subject matter of any examination, investigation or hearing,and may require the production of books, accounts, papers and records.

(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)

NRS 675.400 Commissionerto examine licensees business annually; fee.

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, papers and records ofthe licensee so far as they pertain to the business licensed under thischapter.

2. For each examination the Commissioner shall chargeand collect from the licensee a fee for conducting the examination andpreparing and typing the report of the examination at the rate establishedpursuant to NRS 658.101.

3. All money collected by the Commissioner pursuant tosubsection 2 must be deposited in the State Treasury pursuant to the provisionsof NRS 658.091.

(Added to NRS by 1959, 236; A 1967, 977; 1979, 956;1983, 1810; 1987, 1991, 2226; 2003, 3234)

NRS 675.410 Temporarysuspension of license: Conditions; notice; hearing; term of suspension. If the Commissioner finds that probable cause for revocationof any license exists and that enforcement of this chapter requires immediatesuspension of a license pending investigation, he may, upon 5 days writtennotice and a hearing, enter an order suspending a license for a period notexceeding 20 days, pending a hearing upon the revocation.

(Added to NRS by 1959, 236; A 1971, 1371; 1977, 96;1983, 1810; 1987, 1991)

NRS 675.420 Surrenderof license by licensee; surrender as affecting licensees liability. Any licensee may surrender any license by delivering it tothe Commissioner with written notice of its surrender, but a surrender does notaffect his civil or criminal liability for acts committed prior thereto.

(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)

NRS 675.430 Orderto desist and refrain; action to enjoin violation; appointment and powers ofreceiver.

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 aperson to desist or to refrain from such violation.

2. An action may be brought on the relation of theAttorney General and the Commissioner to enjoin a person from engaging in orcontinuing a violation or from doing any act or acts in furtherance thereof. Inany such action, an order or judgment may be entered awarding a preliminary orfinal injunction as may be deemed 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 1959, 236; A 1983, 1810; 1987, 1991)

NRS 675.440 Revocationor suspension of license: Grounds; notice; hearing; order.

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. Acopy of the order must be sent by registered or certified mail to the licensee.

(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 lawful regulation adopted under it.

(c) If a fine is imposed pursuant to this section,enter such order as is necessary to recover the costs of the proceeding,including his 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 under it;

(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 hereunder; or

(e) The applicant failed to open an office for theconduct of the business authorized under this chapter within 120 days after thedate the license was issued, or has failed to remain open for the conduct ofthe business for a period of 120 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 1959, 237; A 1983, 1811; 1987, 1992;1993, 901; 2003,20th Special Session, 226; 2005, 1882)

NRS 675.445 Revocationor suspension of license: Additional grounds. Inaddition to any other lawful reasons, the Commissioner may suspend or revoke alicense if the licensee has engaged in any act that would be grounds fordenying a license pursuant this chapter.

(Added to NRS by 2005, 1881)

NRS 675.450 Preexistingcontracts unaffected by revocation, suspension, expiration or surrender oflicense. No revocation, suspension, expirationor surrender of any license impairs or affects the obligation of anypreexisting lawful contract between the licensee and any obligors. Such acontract and all lawful charges thereon may be collected by the licensee, itssuccessors or assigns.

(Added to NRS by 1959, 237; A 1989, 922)

PENALTIES

NRS 675.470 Unlicenseddealing in loans. Any person and the severalmembers, officers, directors, agents and employees thereof who violate orparticipate in the violation of any provision of NRS 675.060 are guilty of a misdemeanor.

(Added to NRS by 1959, 238; A 1967, 649; 1989, 1065)

NRS 675.490 Administrativefines. In addition to any other remedy or penalty,the Commissioner may impose an administrative fine of not more than $10,000upon a person who, without a license, conducts any business or activity forwhich a license is required pursuant to the provisions of this chapter.

(Added to NRS by 2005, 1881)

 

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