USA Statutes : nevada
Title : Title 55 - BANKS AND RELATED ORGANIZATIONS
Chapter : CHAPTER 671 - ISSUERS OF INSTRUMENTS FOR TRANSMISSION OR PAYMENT OF MONEY
As used in this chapter, unless the
context otherwise requires:
1. “Check” means any check, draft, money order or other instrument
used for the transmission or payment of money. “Check” does not include a
traveler’s check.
2. “Licensee” means any person licensed under this chapter.
(Added to NRS by 1977, 1083; A 1985, 536)
1. This chapter does not apply to any:
(a) Bank, its parent or holding company or any subsidiary thereof,
trust company, savings bank, savings and loan association, credit union,
industrial bank or industrial loan and investment company, organized and
regulated under the laws of this state or of the United States;
(b) Foreign banking corporation licensed to do banking business in
this state; or
(c) Telegraph company providing a public message service.
2. Subsection 1 does not reduce or alter any liability otherwise
attaching to the sale, issuance, receipt for transmission or transmission
of checks or money in any form.
(Added to NRS by 1977, 1083; A 1983, 153)
The Commissioner may adopt such
reasonable regulations as may be necessary or appropriate for the
administration of this chapter.
(Added to NRS by 1977, 1083; A 1983, 1764; 1987, 1950)
1. A person shall not engage in the business of selling or issuing
checks or of receiving for transmission or transmitting money or credits
unless he is licensed pursuant to this chapter.
2. A person shall not engage in such business as an agent except
as an agent of a licensee or a payee.
(Added to NRS by 1977, 1083)
1. Every application for a license required pursuant to this
chapter must be in writing, signed by the applicant, and in the form
prescribed by the Commissioner.
2. The application must contain:
(a) The name and principal business address of the applicant and,
if incorporated, the date and place of its incorporation;
(b) The name and address of each of the applicant’s branch offices,
subsidiaries or affiliates, if any, which will be operated under the
license;
(c) The name and addresses, business and residential, of the
proprietor or partners of the applicant or, if the applicant is a
corporation or association, of each of the directors, trustees and
principal officers, and of any stockholder who owns 20 percent or more of
the applicant’s stock; and
(d) Such other pertinent information as the Commissioner requires.
3. The application must be accompanied by:
(a) A surety bond or securities as required by this chapter.
(b) A certified financial statement, satisfactory to the
Commissioner, showing that the applicant’s net worth exceeds $100,000,
unless the applicant’s surety bond or the securities deposited pursuant
to NRS 671.110 are in at least twice
the minimum principal sum required by NRS 671.100 .
(c) A nonrefundable fee of not more than $500 for the application
and survey. The applicant shall also pay such additional expenses
incurred in the process of investigation as the Commissioner deems
necessary.
(d) A fee of not less than $200 or more than $400, prorated on the
basis of the licensing year as provided by the Commissioner.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section. All money received
by the Commissioner pursuant to this section must be placed in the
Investigative Account created by NRS 232.545 .
5. The Commissioner shall consider an application to be withdrawn
if the Commissioner has not received all information and fees required to
complete the application within 6 months after the date the application
is first submitted to the Commissioner or within such later period as the
Commissioner determines in accordance with any existing policies of joint
regulatory partners. If an application is deemed to be withdrawn pursuant
to this subsection or if an applicant otherwise withdraws an application,
the Commissioner may not issue a license to the applicant unless the
applicant submits a new application and pays any required fees.
(Added to NRS by 1977, 1084; A 1981, 755; 1983, 1319, 1764; 1987,
1950; 1991, 1810; 2005, 1854 )
In
addition to any other requirements set forth by specific statute, each
person who applies for a license to engage in the business of selling or
issuing checks or of receiving for transmission or transmitting money or
credits must submit proof satisfactory to the Commissioner that the
person:
1. Is at least 21 years of age; and
2. Is a citizen of the United States or lawfully entitled to
remain and work in the United States.
(Added to NRS by 2005, 1854 )
1. Upon the filing of the application, payment of the fees and
approval of the surety bond or securities, the Commissioner shall
investigate the financial condition and responsibility, the financial and
business experience, and the character and general fitness of the
applicant and may investigate any partners, directors, trustees or
principal officers of the applicant.
2. If the Commissioner determines that the business of the
applicant will be conducted lawfully, honestly, fairly and efficiently,
the Commissioner shall issue a license to the applicant to engage in the
business of selling and issuing checks, receiving for transmission or
transmitting money or credits, or both.
(Added to NRS by 1977, 1084; A 1983, 1319, 1765; 1987, 1951)
1. A license issued pursuant to this chapter expires on June 30 of
the year following its issuance and thereafter expires on June 30 of each
year, unless it is earlier surrendered, suspended or revoked.
2. The license may be renewed from year to year upon the approval
of the Commissioner if the licensee files an application conforming to
the requirements for an initial application at least 60 days before the
expiration of his current license.
3. An application for the renewal of the license must be
accompanied by a fee of not more than $400. No investigation fee may be
charged for the renewal of the license. If the application or fee for
renewal is not filed within the required time, the Commissioner may renew
the expired license upon receipt of the application and fee for renewal,
and a fee of not more than $400 for late renewal.
4. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section. All fees collected
pursuant to this section must be deposited in the State Treasury pursuant
to the provisions of NRS 658.091 .
(Added to NRS by 1977, 1084; A 1981, 755, 991; 1983, 1765; 1987,
1951; 1989, 920; 2003, 3228 ; 2005, 1855 )
1. A license issued under this chapter is not transferable or
assignable.
2. The license entitles the holder to engage in business only at
the location or locations specified in his application or at a location
or locations operated by a duly appointed agent of the licensee.
3. A change must not be made in:
(a) The location of any place of business covered by the license;
(b) The name of the licensed business; or
(c) The licensee’s operation or services if the nature of the
change affects the qualification for the license,
Ê without prior notice to and approval of the Commissioner.
(Added to NRS by 1977, 1084; A 1983, 1766; 1987, 1951)
1. A separate license is not required for an agent of a licensee
unless the agent directly sells or delivers the licensee’s checks over
the counter to the public and, in the ordinary course of such business,
receives or has access to:
(a) The licensee’s checks which, after payment, are returned
through banking channels or otherwise for verification, reconciliation or
accounting with respect thereto; or
(b) Bank statements relating to checks so returned.
2. Each agent of a licensee who must be licensed pursuant to
subsection 1 must:
(a) Submit an application to the Commissioner which is in writing,
signed by the applicant and on a form prescribed by the Commissioner;
(b) Pay an application fee of not less than $200 and not more than
$500; and
(c) Pay a license fee of not less than $200 and not more than $500.
3. The Commissioner shall adopt regulations establishing the
amount of the fees required pursuant to this section.
4. The Commissioner shall consider an application to be withdrawn
if the Commissioner has not received all information and fees required to
complete the application within 6 months after the date the application
is first submitted to the Commissioner or within such later period as the
Commissioner determines in accordance with any existing policies of joint
regulatory partners. If an application is deemed to be withdrawn pursuant
to this subsection or if an applicant otherwise withdraws an application,
the Commissioner may not issue a license to the applicant unless the
applicant submits a new application and pays any required fees.
(Added to NRS by 1977, 1085; A 2005, 1855 )
1. Except as provided in NRS 671.110 , each licensee shall have in force a surety
bond payable to the State of Nevada for the use and benefit of any holder
of any outstanding check sold or issued by a licensee in the normal
course of business and for value in the following minimum principal sums:
(a) For the first location granted in the license, $10,000; and
(b) For each additional location in this state where its business
is conducted directly or through an agent, $5,000.
Ê The maximum amount of any surety bond required under this subsection is
$250,000.
2. The bond must be in a form satisfactory to the Commissioner,
issued by a bonding company authorized to do business in this state, and
must secure the faithful performance of the obligations of the licensee
respecting the sale or issuance of checks and receipt for transmission or
transmission of money or credits.
3. A licensee shall, within 10 days after the commencement of any
action or notice of entry of any judgment against him by any creditor or
claimant arising out of business regulated by this chapter, give notice
thereof to the Commissioner by registered or certified mail with details
sufficient to identify the action or judgment. The surety shall, within
10 days after it pays any claim or judgment to a creditor or claimant,
give notice thereof to the Commissioner by registered or certified mail
with details sufficient to identify the creditor or claimant and the
claim or judgment so paid.
4. Whenever the principal sum of the bond is reduced by recoveries
or payments thereon, the licensee shall furnish:
(a) A new or additional bond so that the total or aggregate
principal sum of the bonds equals the sum required under subsection 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 the bond to a creditor or
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
any insolvency or bankruptcy of the licensee.
6. The liability of the surety continues as to all transactions
entered into in good faith by the creditors and claimants with the
licensee’s agents within 30 days after:
(a) The licensee’s death or the dissolution or liquidation of his
business; or
(b) The termination of the bond,
Ê whichever event occurs first.
7. Whenever the Commissioner determines that the protection of the
public so requires, he may order that an increase be made in the
principal sum of the bond of any licensee, except that the Commissioner
may not order an increase of more than $10,000 if the licensee has
submitted a current financial statement, or more than $15,000 otherwise.
8. Neither a licensee nor his surety may cancel or alter a bond
except after notice to the Commissioner by registered or certified mail.
The cancellation or alteration is not effective until 10 days after
receipt of the notice by the Commissioner. A cancellation or alteration
does not affect any liability incurred or accrued on the bond before the
expiration of the 30-day period designated in subsection 6.
(Added to NRS by 1977, 1085; A 1983, 1766; 1987, 1951)
1. In lieu of any surety bond, or any portion of the principal sum
thereof as required by this chapter, a licensee may deposit with the
State Treasurer or with any bank, credit union or trust company
authorized to do business in this state as the licensee may select, with
the approval of the Commissioner:
(a) Interest-bearing stocks;
(b) Bills, bonds, notes, debentures or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed 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 or
guaranteed by this state,
Ê in an aggregate amount of, based upon principal amount or market value,
whichever is lower, of not less than the amount of the required surety
bond or portion thereof.
2. The securities must be held to secure the same obligation as
would the surety bond, but the depositor may receive any interest or
dividends and, with the approval of the Commissioner, substitute other
suitable securities for those deposited.
(Added to NRS by 1977, 1086; A 1983, 1767; 1987, 1953; 1999, 1545
)
1. Except as provided in subsection 4, once each year the
Commissioner shall examine the financial accounts of each licensee and
any other documents relevant to the conduct of the licensee’s business,
and the Commissioner may conduct examinations at additional times.
2. For the purpose of the examinations, the Commissioner may enter
upon any of the business premises of a licensee or his agents and obtain
access to the relevant documents. Any obstruction or denial of such an
entry or access is a violation of this chapter.
3. For each examination the Commissioner shall charge and collect
from the licensee a fee for conducting the examination and in preparing
and typing the report at the rate established pursuant to NRS 658.101
.
4. The Commissioner may accept a report of an audit of the
licensee which covers the most recent fiscal year in lieu of conducting
an examination.
(Added to NRS by 1977, 1086; A 1979, 956; 1983, 267, 1767; 1987,
1953, 2224)
In every place of business licensed or covered by a license under this
chapter, there shall be conspicuously posted at all times a schedule of
the rates charged for the sale or issuance of checks and the receipt for
transmission or transmission of money or credits. No fees may be charged
or collected in excess of the posted rates.
(Added to NRS by 1977, 1087)
1. All money or credits received by an agent of a licensee from
the sale and issuance of checks or for the purpose of transmission must
be remitted to the licensee or deposited with a bank or credit union
authorized to do business in this state for credit to an account of the
licensee not later than the third business day following its receipt.
2. Money received from the sale or issuance of checks or for the
purpose of transmission must not be commingled with the other assets of
the licensee or his agents.
3. If a license is suspended or terminated, the licensee shall
immediately deposit in an account in the name of the Commissioner, an
amount which is sufficient to make the total money in the account equal
to all outstanding checks in the State of Nevada sold or issued and money
or credits received but not transmitted.
4. Each licensee shall at all times maintain liquid assets,
government or municipal securities or other marketable securities having
a value, computed in accordance with generally accepted accounting
principles, equal to or more than the aggregate liability of the licensee
with respect to checks sold and issued and money or credits received for
transmission.
(Added to NRS by 1977, 1087; A 1983, 1768; 1987, 1953; 1999, 1545
)
1. Within 5 days after a discontinuance of a licensee’s business,
he shall inform the Commissioner of the discontinuance and shall
surrender his license for cancellation.
2. If, as a result of any investigation, hearing, report or
examination, the Commissioner finds that a licensee is insolvent or is
conducting his business in such a manner as to render his further
operations hazardous to the public, the Commissioner may, through an
order served by registered or certified mail upon the licensee and any
person possessing money of the licensee or his customers, require the
immediate discontinuance of the disbursement of the money and the
cessation of the licensee’s business. The order remains in effect until:
(a) It is set aside, in whole or in part, by the Commissioner;
(b) The licensee has been adjudged a bankrupt; or
(c) A receiver for the licensee has been appointed by a court of
competent jurisdiction.
3. If a court does not have jurisdiction over the licensee, the
Commissioner may take possession of the licensee’s business and property
until the licensee complies with the requirements of the Commissioner for
resumption of business or the licensee’s affairs are finally liquidated.
4. Whenever the Commissioner takes possession of a licensee’s
business and property, the Commissioner may petition the court for
appointment of a receiver to liquidate the affairs of the licensee.
(Added to NRS by 1977, 1087; A 1983, 1768; 1987, 1954)
1. The Commissioner may conduct any necessary investigations and
hearings to determine whether any licensee or other person has violated
any of the provisions of this chapter or whether any licensee has
conducted himself in a manner which requires the suspension, revocation
or denial of renewal of his license.
2. In conducting any investigation or hearing pursuant to this
chapter, the Commissioner, or any person designated by him, may require
the attendance and testimony of any person and compel the production of
all relevant books, records, accounts and other documents. The cost of
any examination or investigation, not to exceed $10 an hour, must be
borne by the licensee.
3. The Commissioner may require any licensee to submit such
reports concerning his business as the Commissioner deems necessary for
the enforcement of this chapter.
4. All reports of investigations and examinations and other
reports rendered pursuant to this section, and all correspondence and
memoranda relating to or arising therefrom, including any authenticated
copies thereof in the possession of any licensee or the Commissioner, are
confidential communications, are not subject to any subpoena, and must
not be made public unless the Commissioner determines that justice and
the public advantage will be served by their publication. This subsection
does not preclude any party to an administrative or judicial proceeding
from introducing into evidence any information or document otherwise
available or admissible.
(Added to NRS by 1977, 1087; A 1983, 1769; 1987, 1954)
1. If the Commissioner has reason to believe that grounds exist
for the suspension, revocation or denial of renewal of a license, he
shall give 10 days’ written notice to the licensee, stating the grounds
therefor, and shall set a date for a hearing, if a hearing is requested
by the licensee. If the protection of the public so requires, the
Commissioner may suspend the license at any time before the hearing.
2. At the conclusion of the hearing, the Commissioner shall enter
a written order either dismissing the charges or suspending, revoking or
denying the renewal of the license. The order must include a statement of
the grounds for the action taken by the Commissioner and becomes
effective 10 days after receipt of a copy of the order by the licensee at
his principal place of business. The Commissioner may immediately
suspend, revoke or deny the renewal of the license in a case where the
licensee has failed to maintain in effect the required surety bond or
insurance policy.
3. The grounds for suspension, revocation or denial of renewal of
a license are:
(a) Failure to pay the annual fee for renewal or the fee for late
renewal;
(b) Failure to maintain in effect the required bond or securities;
(c) Fraud, misrepresentation or omission of any material fact in
any application, statement or report;
(d) Failure to pay any judgment arising from the licensee’s
business within 30 days after the judgment becomes final or within 30
days after the expiration of a stay of execution on the judgment; or
(e) Violation of any provision of this chapter or any regulation
adopted or order issued by the Commissioner pursuant to this chapter.
4. Any action taken by the Commissioner pursuant to this section
is subject to judicial review in the first judicial district court.
(Added to NRS by 1977, 1088; A 1983, 1769; 1987, 1955; 1989, 920)
1. If a licensee fails to submit any report required pursuant to
this chapter or any regulation adopted pursuant thereto within the
prescribed period, the Commissioner may impose and collect a fee of not
more than $10 for each day the report is overdue.
2. The Commissioner shall adopt regulations establishing the
amount of the fee that may be imposed pursuant to this section.
(Added to NRS by 2005, 1854 )
In addition to any other remedy
or penalty, the Commissioner may impose an administrative fine of not
more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which
a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation
adopted pursuant thereto.
(Added to NRS by 2005, 1854 )
1. Any person who:
(a) Violates any provision of this chapter, or any regulation
adopted or order issued by the Commissioner pursuant to this chapter;
(b) Knowingly makes any false or misleading statement of a material
fact in any application, statement or report filed pursuant to this
chapter;
(c) Knowingly omits to state any material fact necessary to provide
the Commissioner with information lawfully required by him; or
(d) Refuses to permit or obstructs any lawful investigation,
examination, entry or access by the Commissioner,
Ê is guilty of a misdemeanor.
2. Each day during which a violation continues constitutes a
separate offense.
3. The imposition of any fine or term of imprisonment pursuant to
subsection 1:
(a) Is in addition to any suspension, revocation or denial of
renewal of a license which may result from the violation.
(b) Is not a bar to enforcement of this chapter by an injunction or
other appropriate civil remedy.
(Added to NRS by 1977, 1088; A 1983, 1770; 1987, 1955)
