Usa Nevada

USA Statutes : nevada
Title : Title 08 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS
Chapter : CHAPTER 97 - RETAIL INSTALLMENT SALES OF GOODS AND SERVICES
 As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 97.017
to 97.145 , inclusive, have the meanings ascribed to them
in those sections.

      (Added to NRS by 1965, 657; A 1993, 2756; 1995, 1801, 2600; 1997,
550)
 “Amount financed” means the
cash sale price of the goods or services which are the subject matter of
a retail installment contract less the amount of the buyer’s down payment
in money or goods or both, plus the amounts, if any, included therein, if
a separate identified charge is made therefor and stated in the contract,
for insurance and official fees.

      (Added to NRS by 1995, 1800)
 “Cash sale price” means the
price for which the seller would have sold or furnished to the buyer, and
the buyer would have bought or obtained from the seller, the goods or
services which are the subject matter of a retail installment
transaction, if the sale had been a sale for cash. The cash sale price
may include any taxes, registration and license fees, and charges for
transferring vehicle titles, delivery, installation, servicing, repairs,
alterations or improvements.

      (Added to NRS by 1965, 657)
 “Finance charge” means the
cost of credit indicated in a dollar amount. The term includes any charge
payable directly or indirectly by the buyer and imposed directly or
indirectly by the seller as an incident to or a condition of the
extension of credit. The term does not include any charge of a type
payable in a comparable cash transaction.

      (Added to NRS by 1995, 1801)
 “Goods” means:

      1.  All tangible personal property, whether movable at the time of
purchase or a fixture, which is used or bought for use primarily for
personal, family or household purposes; and

      2.  Merchandise certificates or coupons, issued by a retail seller,
to be used in their face amount in lieu of cash in exchange for goods or
services sold by such a seller.

      (Added to NRS by 1965, 658)
 “Official fees” means fees
prescribed by law for perfecting, transferring or releasing a security
interest created by a retail installment transaction.

      (Added to NRS by 1965, 658)
 “Rate” means the percentage which,
when multiplied times the unpaid balance for each month or other
installment period, yields the amount of the finance charge for that
month or period.

      (Added to NRS by 1965, 658; A 1993, 2756; 1995, 1801)
 “Retail buyer” or
“buyer” means a person who buys or hires goods from, or gives or agrees
to give a security interest in goods to, or agrees to have services
rendered or furnished from, a retail seller.

      (Added to NRS by 1965, 658; A 1967, 1201; 1995, 2600; 1997, 651)
 “Retail charge
agreement” means an agreement entered into or performed in this state
prescribing the terms of retail installment transactions in which the
buyer may pay, in installments, to a retail seller, the unpaid balance
due in a retail installment transaction, whether or not a security
interest in the goods sold is retained by the seller, and under the terms
of which a finance charge is to be computed in relation to the buyer’s
unpaid balance from time to time.

      (Added to NRS by 1965, 658; A 1967, 1201; 1993, 2756; 1995, 1801,
2600; 1997, 550)


      1.  “Retail installment contract” or “contract” means a contract,
other than a retail charge agreement or an instrument reflecting a sale
made pursuant thereto, entered into or performed in this state for a
retail installment transaction.

      2.  The term includes a security agreement and a bailment contract
or lease if the bailee or lessee contracts to pay as compensation for
their use a sum substantially equivalent to or in excess of the value of
the goods and if it is agreed that the bailee or lessee is bound to
become or, without giving further substantial value, has the option of
becoming the owner of the goods upon full compliance with the provisions
of the bailment or lease.

      3.  The term does not include a bailment or lease of a vehicle
where the lessee becomes or may become the owner of the vehicle by
payment to the lessor of an amount which is substantially equal to the
residual value or the unamortized capitalized cost, if the payment is not
nominal.

      (Added to NRS by 1965, 658; A 1979, 1264)
 “Retail
installment transaction” means a transaction in which a retail buyer
purchases goods or services from a retail seller pursuant to a retail
installment contract or a retail charge agreement which provides for a
finance charge and under which the buyer agrees to pay the total of
payments in one or more installments.

      (Added to NRS by 1965, 658; A 1993, 2756; 1995, 1801)
 “Retail seller”
or “seller” means:

      1.  A person engaged in the business of selling or leasing goods or
services to retail buyers or a licensee, franchisee, assignee or
corporate affiliate or subsidiary of such a person; or

      2.  A person, other than a financial institution, who enters into
agreements prescribing the terms for the extension of credit pursuant to
which the person may, with the buyer’s consent, purchase or acquire one
or more obligations of the buyer to a retail seller if the purchase,
lease, loan or other obligation to be paid in accordance with the
agreement is evidenced by a sales slip or memorandum.

      (Added to NRS by 1965, 658; A 1967, 1201; 1995, 1802, 2601; 1997,
550)
 “Services” means work, labor or
services of any kind when purchased primarily for personal, family or
household use and not for commercial or business use whether or not
furnished in connection with the delivery, installation, servicing,
repair or improvement of goods, and includes repairs, alterations or
improvements upon or in connection with real property, but does not
include services for which the price charged is required by law to be
determined or approved by or to be filed, subject to approval or
disapproval, with the United States or any state, or any department,
division, agency, officer or official of either as in the case of
transportation services.

      (Added to NRS by 1965, 659)
 “Total of payments” means
the amount financed plus the finance charge.

      (Added to NRS by 1965, 659; A 1993, 2756; 1995, 1802)

RETAIL INSTALLMENT CONTRACTS


      1.  Every retail installment contract must be contained in a single
document which must contain the entire agreement of the parties,
including any promissory notes or other evidences of indebtedness between
the parties relating to the transaction, except as otherwise provided in
NRS 97.205 and 97.235 , but:

      (a) If the buyer’s obligation to pay the total of payments is
represented by a promissory note secured by a chattel mortgage or other
security agreement, the promissory note may be a separate instrument if
the mortgage or security agreement recites the amount and terms of
payment of that note and the promissory note recites that it is secured
by a mortgage or security agreement.

      (b) In a transaction involving the repair, alteration or
improvement upon or in connection with real property, the contract may be
secured by a mortgage or deed of trust on the real property contained in
a separate document. Retail sales transactions for home improvements
which are financed or insured by the Federal Housing Administration are
not subject to the provisions of this chapter.

      2.  The contract must be dated, signed by the retail buyer and
completed as to all essential provisions, except as otherwise provided in
NRS 97.205 , 97.215 and 97.235 .
The printed or typed portion of the contract, other than instructions for
completion, must be in a size equal to at least 8-point type.

      3.  Any fee charged to the retail buyer for his cancellation of a
retail installment contract within 72 hours after its execution is
prohibited unless notice of the fee is clearly set forth in the printed
or typed portion of the contract.

      (Added to NRS by 1965, 659; A 1987, 369; 1995, 1802)

 The retail seller shall deliver to the retail buyer, or mail to him at
his address shown on the retail installment contract, a copy of the
contract as accepted by the seller, prior to the due date of the first
installment. Until the seller does so the buyer shall be obligated to pay
only the cash sales price. Any acknowledgment by the buyer of delivery of
a copy of the contract shall be in a size equal to at least 10-point bold
type and, if contained in the contract, shall appear directly above the
buyer’s signature.

      (Added to NRS by 1965, 659)


      1.  A retail installment contract must contain the names of the
seller and the buyer, the place of business of the seller, the residence
or other address of the buyer as specified by the buyer and a description
or identification of the goods sold or to be sold, or services furnished
or rendered or to be furnished or rendered. The contract also must
contain the following items, which must be set forth substantially in the
sequence appearing below:

      (a) The cash sale price of each item of goods or services.

      (b) The amount of the buyer’s down payment, identifying the amounts
paid in money and allowed for goods traded in.

      (c) The difference between paragraphs (a) and (b).

      (d) The aggregate amount, if any, included for insurance,
specifying the type or types of insurance and the terms of coverage.

      (e) The aggregate amount of official fees.

      (f) The amount financed, which is the sum of paragraphs (c), (d)
and (e).

      (g) The amount of the finance charge.

      (h) The amount of the total of payments owed by the buyer to the
seller, which is the sum of paragraphs (f) and (g).

      (i) The number of installments required to pay the total of
payments, the amount of each installment, and the date for payment of the
installments. If the final payment substantially exceeds the other
scheduled installments, it must be set forth separately.

      2.  Additional items may be included in the contract to explain the
calculations involved in determining the amount to be paid by the buyer.

      (Added to NRS by 1965, 659; A 1993, 2756; 1995, 1802)
 The amount of the finance charge in any retail installment
contract and of any other fee, expense or charge may be any amount agreed
upon by the parties.

      (Added to NRS by 1965, 660; A 1981, 1592; 1984, 5; 1993, 2757;
1995, 1803)


      1.  Retail installment contracts negotiated and entered into by
mail or telephone without solicitation in the personal presence of the
buyer and based upon a catalog of the seller, or other printed
solicitation of business may be made as provided in this section. Such
contracts when completed by the buyer need not contain the items required
by NRS 97.185 .

      2.  If such catalog or other printed solicitation clearly sets
forth the cash sale prices and other terms of sales to be made through
such medium, when the contract is received from the retail buyer, the
seller shall prepare a written memorandum containing all of the
information required by NRS 97.185 to
be included in a retail installment contract. In lieu of delivering a
copy of the contract to the retail buyer as provided in NRS 97.175 , the seller shall deliver to the buyer a copy
of such memorandum prior to the due date of the first installment payable
under the contract.

      3.  If the catalog or other printed solicitation does not set forth
all of the other terms of sales in addition to the cash sale prices, such
memorandum shall be delivered to the buyer prior to or at the time of
delivery of the goods or services.

      (Added to NRS by 1965, 660)
 The seller shall not obtain
the signature of the buyer to any contract when it contains blank spaces
of items which are essential provisions of the transaction except as
provided in NRS 97.205 and 97.235
, and except that if delivery of the
goods is not made at the time of the execution of the contract, the
identifying numbers or marks of the goods or similar information and the
due date of the first installment may be inserted by the seller in the
seller’s counterpart of the contract after it has been signed by the
buyer.

      (Added to NRS by 1965, 660)


      1.  Notwithstanding the provisions of any retail installment
contract to the contrary, if the rights of the buyer have not been
terminated or forfeited under the terms of the contract, the buyer may
prepay in full the unpaid total of payments thereof at any time before
its final due date and, if he does so, and if the contract is not in
default under any term or condition of the contract more than 2 months,
he is entitled to a refund of the unearned portion of the finance charge
for the prepayment. The amount of the refund must be computed by applying
the agreed rate of the finance charge to the unpaid total of payments.
Any greater amount of the finance charge which may have been precomputed
and included in the balance due must be refunded.

      2.  This section does not preclude the imposition of any penalty
for prepayment to which the parties may agree when the contract is
executed.

      (Added to NRS by 1965, 661; A 1983, 975; 1985, 1259; 1993, 2757;
1995, 1803)

CONSOLIDATING PURCHASES; RETAIL CHARGE AGREEMENTS


      1.  If retail installment purchases are made by a buyer from a
seller, the subsequent retail installment purchases may, by agreement of
the parties, be consolidated with a prior retail installment contract.
The finance charge for the consolidated contract must not, however,
exceed the aggregate of the finance charge for:

      (a) The original contract and any extension thereof by virtue of
the consolidation; and

      (b) The subsequent installment purchase or purchases.

      2.  In the event of such a consolidation, in lieu of the buyer’s
executing a retail installment contract respecting each subsequent
purchase, it is sufficient if the seller prepares a written memorandum of
each subsequent purchase, in which case the provisions of NRS 97.165
, 97.175 and 97.185
do not apply. Unless previously furnished in writing to the buyer by the
seller, by sales slip, memorandum or otherwise, the memorandum must set
forth with respect to each subsequent purchase the items set forth in
paragraphs (a) to (f), inclusive, of subsection 1 of NRS 97.185 , and in addition:

      (a) The unpaid balance of the previous contract or contracts;

      (b) The consolidated unpaid balance;

      (c) The amount of the finance charge;

      (d) The consolidated total of payments; and

      (e) The revised installments applicable to the consolidated total
of payments, if any, in accordance with NRS 97.185 .

ÊThe seller shall deliver to the buyer a copy of the memorandum before
the due date of the first installment of the consolidated contract.

      3.  When a subsequent purchase is made, the entire amount of all
payments made previous thereto must be applied toward the payment of the
previous time sale price or time sale prices. Each payment thereafter
received must be allocated to all of the various time sale prices in the
same ratio as the original cash sale prices of the various purchases bear
to one another. However, the amount of any initial or down payment on the
subsequent purchase must be allocated in its entirety to that purchase.

      4.  A retail installment contract may be contained in more than one
document, if one such document is an original document signed by the
retail buyer, stated to be applicable to purchases of goods or services
to be made by the retail buyer from time to time. In that case the
document, together with the sales slip, account book or other written
statement relating to each purchase must set forth all of the information
required by NRS 97.185 and constitutes
the retail installment contract for each purchase. On each succeeding
purchase pursuant to the original document, the sales slip, account book
or other written statement may at the option of the seller constitute the
memorandum required by this section.

      (Added to NRS by 1965, 661; A 1993, 2757; 1995, 1803)


      1.  The amount of the finance charge in any retail charge agreement
may be any amount, and the agreement may provide for the imposition of
any fee, expense or charge, agreed upon by the parties.

      2.  At or before the time a retail charge agreement is made the
seller shall advise the buyer in writing, on the application form or
otherwise, or orally, that the finance charge will be computed on the
outstanding balance for each month, which need not be a calendar month,
or other regular period agreed upon, the schedule or rate by which the
finance charge will be computed, and that the buyer may at any time pay
the total unpaid balance. If the information is given orally, the seller
shall, upon approval of the buyer’s credit, deliver or mail to the buyer
and the buyer’s address a memorandum setting forth the information.

      3.  The seller or holder of a retail charge agreement shall
promptly supply the buyer with a statement as of the end of each monthly
period, which need not be a calendar month, or other regular period
agreed upon, in which there is any unpaid balance thereunder. The
statement must set forth the following:

      (a) The unpaid balance under the retail charge agreement at the
beginning and end of the period;

      (b) Unless otherwise furnished by the seller to the buyer by sales
slip, memorandum or otherwise, a description or identification of the
goods or services purchased during the period, the cash sale price and
the date of each purchase;

      (c) The payments made by the buyer to the seller and any other
credits to the buyer during the period; and

      (d) The amount, if any, of any finance charge, fee, expense or
charge for the period.

      4.  If a change is to be made in the terms of a retail charge
agreement previously disclosed to the buyer, the seller shall mail or
deliver to the buyer a written disclosure of the proposed change not less
than 15 days before the effective date of the change. No notice is
required if the change involves:

      (a) Charges for late payment, documentary evidence or exceeding an
agreed limit;

      (b) A reduction of any component of a finance or other charge;

      (c) Suspension of future credit or termination of an account or
plan; or

      (d) The result of an agreement involving a court proceeding or of
the consumer’s default or delinquency, unless an increase is made in the
periodic rate or other finance charge.

      (Added to NRS by 1965, 662; A 1981, 1593; 1984, 5; 1993, 2758;
1995, 1804)


      1.  A retail seller shall be deemed to be a payee with respect to
any payment made on an account of a buyer by a check or other negotiable
instrument.

      2.  Upon the posting of a payment to an account of a buyer, a
retail seller has changed his position in reliance thereon if the payment
was made by a check or other negotiable instrument.

      3.  A payment made on an account of a buyer by a check or other
negotiable instrument is received by the retail seller in good faith if
the retail seller did not have actual knowledge that the check or other
negotiable instrument was forged, altered or unauthorized when it was
posted to the account.

      4.  An action or proceeding brought to determine liability for an
allegedly forged, altered or unauthorized check or other negotiable
instrument used to make payment on an account of a buyer must be
determined pursuant to the provisions of chapter 104 of NRS.

      (Added to NRS by 1995, 1801)

PROVISIONS COMMON TO RETAIL INSTALLMENT CONTRACTS AND RETAIL CHARGE
AGREEMENTS
 If the cost of any insurance is included in
the retail installment contract or retail charge agreement:

      1.  The contract or agreement must state the nature, purpose, term
and amount of the insurance, and in connection with the sale of a motor
vehicle, the contract must state that the insurance coverage ordered
under the terms of the contract does not include “bodily injury
liability,” “public liability,” and “property damage liability” coverage,
where such coverage is in fact not included.

      2.  The contract or agreement must state whether the insurance is
to be procured by the buyer or the seller.

      3.  The amount included for such insurance must not exceed the
premiums chargeable in accordance with the rate fixed for such insurance
by the insurer, except where the amount is less than $1.

      4.  If the insurance is to be procured by the seller or holder, he
shall, within 45 days after delivery of the goods or furnishing of the
services under the contract, deliver, mail or cause to be mailed to the
buyer, at the buyer’s address as specified in the contract, a notice
thereof or a copy of the policy or policies of insurance or a certificate
or certificates of the insurance so procured.

      5.  If any goods included in the down payment are insured, and the
insurance policy or rights thereunder are assigned to the seller, the
amount realized on the assignment must be refunded to the buyer or
credited on the next payment due under the contract or agreement.

      6.  If the contract or agreement requires the buyer to procure and
furnish insurance acceptable to the seller and the buyer fails so to
provide or such insurance as procured by the buyer is cancelled or
expires, the seller may procure the insurance in such form as the seller
may deem necessary, and the cost thereof together with a finance charge
may be added to the unpaid total of payments.

      (Added to NRS by 1965, 663; A 1993, 2759; 1995, 1805)


      1.  No provision of a retail installment contract or retail charge
agreement shall be valid by which the buyer agrees not to assert against
the seller or against an assignee a claim or defense arising out of the
sale.

      2.  No act or agreement of the retail buyer before or at the time
of the making of a retail installment contract, retail charge agreement
or purchases thereunder shall constitute a valid waiver of any of the
provisions of this chapter or of any remedies granted to the buyer by law.

      (Added to NRS by 1965, 663)
 Except as otherwise provided by specific
statute, the provisions of this chapter governing retail installment
transactions are exclusive, and the provisions of any other statute do
not apply to retail installment transactions governed by this chapter. If
there is a conflict between the provisions of this chapter and any other
statute, the provisions of this chapter control.

      (Added to NRS by 1965, 663; A 1981, 1593; 1993, 2760; 1995, 1806;
2001, 490 )

CONTRACTS FOR SALE OF VEHICLES
 For the purposes of NRS 97.299
and 97.301 , “vehicle” has the meaning ascribed to it in
NRS 482.135 .

      (Added to NRS by 1987, 1479)


      1.  The Commissioner of Financial Institutions shall prescribe, by
regulation, forms for the application for credit and contracts to be used
in the sale of vehicles if:

      (a) The sale involves the taking of a security interest to secure
all or a part of the purchase price of the vehicle;

      (b) The application for credit is made to or through the seller of
the vehicle;

      (c) The seller is a dealer; and

      (d) The sale is not a commercial transaction.

      2.  The forms prescribed pursuant to subsection 1 must meet the
requirements of NRS 97.165 , must be
accepted and acted upon by any lender to whom the application for credit
is made and, in addition to the information required in NRS 97.185 and required to be disclosed in such a
transaction by federal law, must:

      (a) Identify and itemize the items embodied in the cash sale price,
including the amount charged for a contract to service the vehicle after
it is purchased.

      (b) In specifying the amount of the buyer’s down payment, identify
the amounts paid in money and allowed for property given in trade and the
amount of any manufacturer’s rebate applied to the down payment.

      (c) Contain a description of any property given in trade as part of
the down payment.

      (d) Contain a description of the method for calculating the
unearned portion of the finance charge upon prepayment in full of the
unpaid total of payments as prescribed in NRS 97.225 .

      (e) Include the following notice in at least 10-point bold type:



NOTICE TO BUYER



       Do not sign this agreement before you read it or if it contains
any blank spaces. You are entitled to a completed copy of this agreement.
If you pay the amount due before the scheduled date of maturity of the
indebtedness and you are not in default in the terms of the contract for
more than 2 months, you are entitled to a refund of the unearned portion
of the finance charge. If you fail to perform your obligations under this
agreement, the vehicle may be repossessed and you may be liable for the
unpaid indebtedness evidenced by this agreement.



      3.  The Commissioner shall arrange for or otherwise cause the
translation into Spanish of the forms prescribed pursuant to subsection 1.

      4.  If a change in state or federal law requires the Commissioner
to amend the forms prescribed pursuant to subsection 1, the Commissioner
need not comply with the provisions of chapter 233B of NRS when making those amendments.

      5.  As used in this section:

      (a) “Commercial transaction” means any sale of a vehicle to a buyer
who purchases the vehicle solely or primarily for commercial use or
resale.

      (b) “Dealer” has the meaning ascribed to it in NRS 482.020 .

      (Added to NRS by 1987, 1479; A 1989, 458; 1993, 2760; 1995, 1806;
2003, 1906 )
 When a vehicle is sold in this state under the
circumstances described in subsection 1 of NRS 97.299 , the seller and any lender to whom the
application for credit is made shall use the forms prescribed pursuant to
that section.

      (Added to NRS by 1987, 1479; A 1989, 459)

REMEDIES, ENFORCEMENT AND PENALTIES
 A seller who enters into a
contract or retail charge agreement which does not comply with the
provisions of this chapter or who violates any provision of this chapter,
and a lender who violates NRS 97.301 ,
except as a result of an accidental or bona fide error is barred from the
recovery of any finance charge, official fees, or any charge for
delinquency or collection under or in connection with the related retail
installment contract or purchase under a retail charge agreement; but the
seller or lender may nevertheless recover from the buyer an amount equal
to the cash price of the goods or services and the cost to the seller or
lender of any insurance included in the transaction.

      (Added to NRS by 1965, 661; A 1987, 1480; 1993, 2761; 1995, 1807)
 The Attorney General
or the district attorney may bring an action in the name of the state
against any person to restrain and prevent any violation of this chapter.

      (Added to NRS by 1965, 664)
 In the enforcement of
this chapter, the Attorney General may accept an assurance of
discontinuance of any act or practice deemed in violation of this
chapter, from any person engaging in, or who has engaged in, such act or
practice. Any such assurance shall be in writing and be filed with and
subject to the approval of the district court of the county in which the
alleged violator resides or has his principal place of business. No such
assurance may be accepted after the commencement of any action by a
district attorney under NRS 97.315
without the consent of the district attorney.

      (Added to NRS by 1965, 664)
 Any person who violates any order or
injunction issued pursuant to this chapter shall forfeit and pay a civil
penalty of not more than $1,000. For the purposes of this section the
district court issuing any injunction shall retain jurisdiction, the
cause shall be continued, and in such cases the Attorney General acting
in the name of the state may petition for the recovery of civil penalties.

      (Added to NRS by 1965, 664)




USA Statutes : nevada