USA Statutes : nevada
Title : Title 56 - OTHER FINANCIAL INSTITUTIONS
Chapter : CHAPTER 675 - INSTALLMENT LOANS
This chapter shall be known and may be
cited as the Nevada Installment Loan and Finance Act.
(Added to NRS by 1959, 226)
As used in this chapter, unless the
context otherwise requires:
1. “Amount of cash advance” means the amount of cash or its
equivalent actually received by a borrower or paid out at his direction
or on his behalf.
2. “Amount of loan obligation” means the amount of cash advance
plus the aggregate of charges added thereto pursuant to authority of this
chapter.
3. “Commissioner” means the Commissioner of Financial Institutions.
4. “Community” means a contiguous area of the same economic unit
or metropolitan area as determined by the Commissioner, and may include
all or part of a city or several towns or cities.
5. “License” means a license, issued under the authority of this
chapter, to make loans in accordance with the provisions of this chapter,
at a single place of business.
6. “Licensee” means a person to whom one or more licenses have
been issued.
(Added to NRS by 1959, 226; A 1977, 193; 1983, 1805; 1985, 537;
1987, 1987)
The legislature finds as
facts and determines that:
1. There exists in this state a widespread demand for loans
repayable in installments, which loans may or may not be made on
substantial security. This demand has been steadily increased by many
social and economic factors.
2. The expenses of making and collecting installment loans 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 the business of
making loans;
(b) Attract adequate commercial capital to the business, 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)
This chapter does not apply to:
1. A person doing business under the authority of any law of this
State or of the United States relating to banks, savings banks, trust
companies, savings and loan associations, credit unions, development
corporations, mortgage brokers, mortgage bankers, thrift companies,
pawnbrokers or insurance companies.
2. A real estate investment trust, as defined in 26 U.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 plan’s trustee.
4. An attorney at law rendering services in the performance of his
duties as an attorney at law if the loan is secured by real property.
5. A real estate broker rendering services in the performance of
his duties as a real estate broker if the loan is secured by real
property.
6. Except as otherwise provided in this subsection, any firm or
corporation:
(a) Whose principal purpose or activity is lending money on real
property which is secured by a mortgage;
(b) Approved by the Federal National Mortgage Association as a
seller or servicer; and
(c) Approved by the Department of Housing and Urban Development and
the Department of Veterans Affairs.
7. A person who provides money for investment in loans secured by
a lien on real property, on his own account.
8. A seller of real property who offers credit secured by a
mortgage of the property sold.
9. A person holding a nonrestricted state gaming license issued
pursuant to the provisions of chapter 463 of
NRS.
10. A person licensed to do business pursuant to chapter 604A
of NRS with regard to those services
regulated pursuant to chapter 604A of NRS.
(Added to NRS by 1959, 227; A 1983, 153, 1313; 1989, 1064; 1991,
818; 1995, 1100; 1999, 3810 ; 2003, 3578 ; 2005, 1713 )
1. Except as provided in subsection 3, an officer or employee of
the Division of Financial Institutions shall not:
(a) Be directly or indirectly interested in or act on behalf of any
licensee;
(b) Receive, directly or indirectly, any payment from any licensee;
(c) Be indebted to any licensee;
(d) Engage in the negotiation of loans for others with any
licensee; or
(e) Obtain credit or services from a licensee conditioned upon a
fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division in the unclassified service of the
State shall not obtain new extensions of credit from a licensee while in
office.
3. Any officer or employee of the Division of Financial
Institutions may be indebted to a licensee on the same terms as are
available to the public generally upon a secured installment debt or an
unsecured debt.
4. If an officer or employee of the Division of Financial
Institutions has a service, a preferred consideration, an interest or a
relationship prohibited by this section at the time of his appointment or
employment, or obtains it during his employment, he shall terminate it
within 120 days after the date of his appointment or employment or the
discovery of the prohibited act.
(Added to NRS by 1983, 1805)
This chapter or any part thereof may be
modified, amended or repealed so as to effect a cancellation or
alteration of any license or right of a licensee under this chapter,
provided that such cancellation or alteration shall not impair or affect
the obligation of any preexisting lawful contract between any licensee
and any borrower.
(Added to NRS by 1959, 227)
1. A person may apply to the Commissioner for an exemption from
the provisions of this chapter governing the making of a loan of money.
2. The Commissioner may grant the exemption if he finds that:
(a) The making of the loan would not be detrimental to the
financial condition of the lender, borrower or person who is providing
the money for the loan;
(b) The lender, borrower or person who is providing the money for
the loan has established a record of sound performance, efficient
management, financial responsibility and integrity;
(c) The making of the loan is likely to increase the availability
of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to the public
interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for which the exemption
was granted has been made;
(b) Shall issue a written statement setting forth the reasons for
his decision to grant, deny or revoke an exemption; and
(c) Shall adopt regulations which provide the application forms to
be used to apply for an exemption and the fees to be paid along with the
application.
(Added to NRS by 1989, 1064)
LICENSING
1. No person may engage in the business of lending in this State
without first having obtained a license from the Commissioner pursuant to
this chapter for each office or other place of business at which the
person engages in such business, except that if a person intends to
engage in 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 a license from the Commissioner pursuant to
chapter 604A of NRS before the person may
engage in any such business.
2. For the purpose of this section, a person engages in the
business of lending in this State if he:
(a) Solicits loans in this State or makes loans to persons in this
State, unless these are isolated, incidental or occasional transactions;
or
(b) Is located in this State and solicits loans outside of this
State or makes loans to persons located outside of this State, unless
these 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 )
060 to persons who seek to evade. The provisions
of NRS 675.060 shall apply to any
person who seeks to evade its application by any device, subterfuge or
pretense whatever, including, but not thereby limiting the generality of
the foregoing:
1. The loan, forbearance, use or sale of credit (as guarantor,
surety, endorser, comaker or otherwise), money, goods, or things in
action.
2. The use of collateral or related sales or purchases of goods or
services, or agreements to sell or purchase, whether real or pretended.
3. Receiving or charging compensation for goods or services,
whether or not sold, delivered or provided.
4. The real or pretended negotiation, arrangement or procurement
of a loan through any use or activity of a third person, whether real or
fictitious.
(Added to NRS by 1959, 228)
1. Application for a license must be in writing, under oath, and
in the form prescribed by the Commissioner.
2. The application must:
(a) Provide the address of the office or other place of business
for which the application is submitted.
(b) Contain such further relevant information as the Commissioner
may require, including the names and addresses of the partners, officers,
directors or trustees, and of such of the principal owners or members as
will provide 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 or other place
of business located outside this State from which the applicant will
conduct business in this State if the applicant or a subsidiary or
affiliate of the applicant has a license issued pursuant to this chapter
for an office or other place of business located in this State and if the
applicant submits with the application for a license a statement signed
by the applicant which states that the applicant agrees to:
(a) Make available at a location within this State the books,
accounts, papers, records and files of the office or place of business
located outside this State to the Commissioner or a representative of the
Commissioner; or
(b) Pay the reasonable expenses for travel, meals and lodging of
the Commissioner or a representative of the Commissioner incurred during
any investigation or examination made at the office or place of business
located outside this State.
Ê The person must be allowed to choose between paragraph (a) or (b) in
complying with the provisions of this subsection.
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 1959, 228; A 1983, 1806; 1987, 1987; 2001, 2047
; 2005, 1881 )
1. In addition to any other requirements set forth in this
chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and
integrity and is competent to transact the business for which the
applicant seeks to be licensed in a manner which protects the interests
of the general public.
(2) Has not made a false statement of material fact on the
application for the license.
(3) Has not committed any of the acts specified in
subsection 2.
(4) Has not had a license issued pursuant to this chapter
suspended or revoked within the 10 years immediately preceding the date
of the application.
(5) Has not been convicted of, or entered a plea of nolo
contendere to, a felony or any crime involving fraud, misrepresentation
or 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 or lawfully
entitled to remain and work in the United States.
(b) A complete set of his fingerprints and written permission
authorizing the Division of Financial Institutions of the Department of
Business and Industry to forward the fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the
Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may
refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or
done by a holder of a license, would be grounds for the suspension or
revocation of the license.
(b) Has previously been refused a license pursuant to this chapter
or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal
or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the
Commissioner in support of the application for the license.
(Added to NRS by 2005, 1880 )
1. At the time of making the application, the applicant shall pay
to the Commissioner:
(a) A nonrefundable fee of not more than $1,000 for the application
and survey;
(b) Any additional expenses incurred in the process of
investigation 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 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 .
(Added to NRS by 1959, 228; A 1981, 757; 1983, 1326, 1807; 1987,
1988; 1991, 1814; 2005, 1882 )
1. Upon the filing of the application and the payment of the fees,
the Commissioner shall investigate the facts concerning the application
and the requirements provided for in NRS 675.120 .
2. The Commissioner may hold a hearing on the application at a
time not less than 30 days after the date the application was filed nor
more than 60 days after that date. The hearing must be held in the Office
of the Commissioner or such other place as he may designate. Notice in
writing of the hearing must be sent to the applicant and to any licensee
to which a notice of the application has been given and to such other
persons as the Commissioner may see fit, at least 10 days before the date
set for the hearing.
3. The Commissioner shall make his order granting or denying the
application within 10 days after the date of the closing of the hearing,
unless the period is extended by written agreement between the applicant
and the Commissioner.
(Added to NRS by 1959, 229; A 1981, 104; 1983, 1807; 1987, 1988;
2001, 2048 )
If the Commissioner finds:
1. That the financial responsibility, experience, character and
general fitness of the applicant are such as to command the confidence of
the public and to warrant belief that the business will be operated
lawfully, honestly, fairly and efficiently, within the purposes of this
chapter; and
2. That the applicant, unless he will function solely as a loan
broker, has available for the operation of the business at the specified
location liquid assets of at least $50,000,
Ê he shall thereupon enter an order granting the application, and file
his findings of fact together with the transcript of any hearing held
under this chapter, and forthwith issue and deliver a license to the
applicant.
(Added to NRS by 1959, 229; A 1971, 1366; 1983, 1807; 1987, 178,
1988; 2001, 2048 )
Each license shall:
1. State the address at which the business is to be conducted; and
2. State fully the name of the licensee, and if the licensee is a
copartnership or association, the names of its members, and if a
corporation, the date and place of its incorporation.
(Added to NRS by 1959, 229)
1. A license expires on December 31 of each year unless renewed by
the licensee through the payment, on or before that date, of an annual
fee of not more than $1,000 for each license held by him. The
Commissioner may reinstate an expired license upon receipt of the annual
fee and a fee of not more than $400 for reinstatement.
2. The Commissioner shall adopt regulations establishing 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 )
1. If the Commissioner finds that any applicant does not possess
the requirements specified in this chapter, he shall enter an order
denying the application and forthwith notify the applicant of the denial.
2. Within 10 days after the entry of such an order, he shall file
his findings and a summary of the evidence supporting them and shall
forthwith deliver a copy thereof to the applicant.
(Added to NRS by 1959, 229; A 1983, 1326, 1808; 1987, 1989)
Except as otherwise provided in NRS 675.100 , all fees and charges collected under the
provisions of this chapter must be deposited 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
1. The Commissioner may adopt regulations and make orders for the
administration and enforcement of this chapter, in addition hereto and
not inconsistent herewith.
2. Every regulation must be promulgated by an order, and any
ruling, demand, requirement or similar administrative act may be
promulgated by an order.
3. Every order must be in writing, must state its effective date
and the date of its promulgation, and must be entered in an indexed
permanent book which is a public record.
4. A copy of every order promulgating a regulation and of every
other order containing a requirement of general application must be
mailed to each licensee at least 20 days before the effective date
thereof.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)
Every licensee
shall maintain assets of at least $50,000 either used or readily
available for use in the conduct of the business of each licensed office.
(Added to NRS by 1959, 230; A 1971, 1366)
Each license shall be kept
conspicuously posted in the licensed place of business.
(Added to NRS by 1959, 230)
Licenses
shall not be transferable or assignable.
(Added to NRS by 1959, 230)
Not more than
one place of business may be maintained under the same license. The
Commissioner may issue additional licenses to the same licensee for other
business locations upon compliance with all the provisions of this
chapter governing issuance of a single license. Nothing herein requires a
license for any place of business devoted to accounting, recordkeeping or
administrative purposes only.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989)
1. A licensee who wishes to change the address of an office or
other place of business for which he has a license pursuant to this
chapter must, at least 10 days before changing the address, give written
notice of the proposed change to the Commissioner.
2. Upon receipt of the proposed change of address pursuant to
subsection 1, the Commissioner shall provide written approval of the
change and the date of the approval.
3. If a licensee fails to provide notice as required pursuant to
subsection 1, the Commissioner may impose a fine in an amount not to
exceed $500.
(Added to NRS by 1959, 230; A 1983, 1808; 1987, 1989; 2001, 2049
)
1. Except as otherwise provided in subsection 2, a licensee may
not conduct the business of making loans under this chapter within any
office, suite, room or place of business in which any other business is
solicited or engaged in, except an insurance agency or notary public, or
in association or conjunction with any other business, unless authority
to do so is given by the Commissioner.
2. A licensee may conduct the business of making loans pursuant 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 and records;
(III) Are subsidiaries of the same parent corporation;
and
(IV) Maintain separate licenses; and
(2) The mortgage broker is licensed by this state pursuant
to chapter 645B of NRS and does not receive
money to acquire or repay loans or maintain trust accounts as provided 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 and records;
(III) Are subsidiaries of the same parent corporation;
and
(IV) Maintain separate licenses; and
(2) The mortgage banker is licensed by this state 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 to acquire
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 )
No licensee shall conduct the business of making loans
provided for by this chapter under any name or at any place other than
that stated in the license. Nothing herein shall prevent the making of
loans by mail nor prohibit accommodations to individual borrowers when
necessitated by hours of employment, sickness or other emergency
situations.
(Added to NRS by 1959, 231)
1. A licensee must obtain the approval of the Commissioner before
using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a
business name used by another licensee under this chapter or which may
mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
(Added to NRS by 2005, 1881 )
1. Each licensee shall keep and use in his business such books and
accounting records as are in accord with sound and accepted accounting
practices.
2. Each licensee shall maintain a separate record or ledger card
for the account of each borrower and shall set forth separately the
amount of cash advance and the total amount of interest and charges, but
such a record may set forth precomputed declining balances based on the
scheduled payments, without a separation of principal and charges.
3. Each licensee shall preserve all such books and accounting
records for at least 2 years after making the final entry therein.
4. Each licensee who operates outside this state an office or
other place of business that is licensed pursuant to this chapter shall:
(a) Make available at a location within this state the books,
accounts, papers, records and files of the office or place of business
located outside this state to the Commissioner or a representative of the
Commissioner; or
(b) Pay the reasonable expenses for travel, meals and lodging of
the Commissioner or a representative of the Commissioner incurred during
any investigation or examination made at the office or place of business
located outside this state.
Ê The licensee must be allowed to choose between paragraph (a) or (b) in
complying with the provisions of this subsection.
(Added to NRS by 1959, 231; A 2001, 2049 )
1. Annually, on or before April 15, each licensee shall file with
the Commissioner a report of operations of the licensed business for the
preceding calendar year.
2. The report must be made under oath and must be in the form and
contain information prescribed by the Commissioner.
3. If any person or affiliated group holds more than one license
in the state, it may file a composite annual report.
(Added to NRS by 1959, 231; A 1981, 753; 1983, 1809; 1987, 1990)
A licensee shall not advertise or permit to be advertised in any manner
whatsoever any false, misleading or deceptive statement or representation
with regard to the rates, terms or conditions for loans.
(Added to NRS by 1959, 231; A 1971, 1366; 1973, 1516; 1987, 179)
LOANS
1. A licensee may request that a borrower insure tangible property
when offered as security for a loan under this chapter against any
substantial risk of loss, damage or destruction for an amount not to
exceed the actual value of the property and for a term and upon
conditions which are reasonable and appropriate considering the nature of
the property and the maturity and other circumstances of the loan.
2. A licensee may require that a borrower provide title insurance
on real property offered as security for a loan under this chapter. The
title insurance must be placed through a title insurance company
authorized to do business in this state.
3. A licensee may provide, obtain or take as security for a loan:
(a) Insurance on the life and on the health or disability, or both,
of one or more parties obligated on the loan;
(b) Involuntary unemployment insurance;
(c) Insurance which protects his interest in the collateral pledged
for the loan;
(d) Single interest nonfiling insurance; or
(e) Any other credit-related insurance approved by the Commissioner,
Ê if the insurance complies with the applicable provisions of chapter
690A of NRS.
4. In accepting any insurance provided by this section as security
for a loan, the licensee may include the premiums or identifiable charge
as part of the principal or may deduct the premiums or identifiable
charge therefor from the proceeds of the loan, which premium or
identifiable charge must not exceed those filed with and approved by the
Commissioner of Insurance, and remit those premiums to the insurance
company writing the insurance, and any gain or advantage to the licensee,
any employee, officer, director, agent, affiliate or associate from the
insurance or its sale may not be considered as additional or further
charge in connection with any loan made under this chapter. Not more than
one policy of life insurance and one policy providing accident and health
coverage may be written by a licensee in connection with any loan
transaction under this chapter, and a licensee shall not require the
borrower to be insured as a condition of any loan. If the unpaid balance
of the loan 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 any credit accident and health insurance must be
refunded or credited as prescribed in chapter 690A of NRS. The insurance must be written by a company
authorized to conduct business in this state, and the licensee shall not
require the purchase of the insurance from any agent or broker designated
by the licensee.
5. The amount charged to a debtor by a licensee for any type of
coverage under a policy of insurance provided by this section as security
for a loan must not exceed the amount of the premium. In the case of a
single interest nonfiling policy of insurance, the amount charged to a
debtor by a licensee must not exceed the amount charged by a county
recorder for filing and releasing documents pursuant to NRS 104.9525
.
6. As used in this section, “single interest nonfiling insurance”
means a contract of insurance for which a lender pays a predetermined
fee, which affords coverage to a lender in connection with a specific
loan, and which is obtained by the lender in lieu of perfecting a
security interest pursuant to chapter 104 of
NRS.
(Added to NRS by 1959, 233; A 1967, 976; 1971, 226, 1369, 1927,
1960; 1973, 1519; 1979, 828; 1987, 2303; 1993, 2045; 1999, 393 )
Any loan made
outside this state lawfully made as permitted by the laws of the state in
which the loan was made may be collected or otherwise enforced in this
state in accordance with its terms.
(Added to NRS by 1959, 234; A 1971, 1370)
The payment
of money, credit, goods or things in action, as consideration for any
sale, assignment or order for the payment of wages, salary, commissions
or other compensation for services earned or to be earned, shall, for the
purposes of regulation 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 or ordered paid exceeds the amount of the
consideration actually paid shall, for the purposes of regulation under
this chapter, be deemed interest or charges on the 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)
No
assignment of wages, salary, commissions or other compensation for
services, whether earned or to be earned, given to a licensee as security
for a loan under this chapter, shall be valid.
(Added to NRS by 1959, 235)
No licensee may:
1. Take any confession of judgment or any power of attorney
running to himself or to any third person to confess judgment or to
appear for the borrower in a judicial proceeding.
2. Take any note or promise to pay which does not disclose the
date and amount of the loan obligation, a schedule or description of the
payments to be made thereon and the rate or aggregate amount of the
agreed charges.
3. Take any instrument in which blanks are left to be filled in
after the loan is made.
4. Take a lien upon real property as security for any loan made
under this chapter except real property upon which is situated a mobile
home or factory-built housing that also secures the loan, and except such
lien as is created by law through the rendition or recording of a
judgment.
(Added to NRS by 1959, 235; A 1959, 783; 1979, 829; 1991, 884)
Every licensee shall:
1. Deliver to the borrower, or if more than one, to one of them,
at the time of making a loan under this chapter a copy of the loan
obligation or, in lieu thereof, a statement showing in clear and distinct
terms the 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 and address of the borrower and of the licensee, and the
description or schedule of payments on that loan.
2. Except as otherwise provided for loans for an indefinite term
in NRS 675.369 , give to the person
making any cash payment on account of any loan a receipt at the time that
payment is made, showing the balance due, if any, after application of
that payment. A receipt showing the amount of the payment only may be
given temporarily and must be replaced within a reasonable time with a
receipt as prescribed in this subsection.
3. Permit payment in advance in an amount equal to one or more
full installments at any time during the regular business hours of the
licensee.
4. Upon repayment of a loan in full, mark plainly every note or
other evidence of the indebtedness or assignment signed by any obligor,
or a copy thereof, with the word “paid” or “cancelled,” and release or
provide the borrower evidence to release any mortgage or security
instrument no longer securing any indebtedness to the licensee.
(Added to NRS by 1959, 235; A 1985, 1679; 1995, 137)
LOANS FOR INDEFINITE TERM
A licensee may make a
loan for an indefinite term under a written agreement between the
licensee and the borrower. Pursuant to this agreement:
1. The borrower may obtain cash advances from the licensee
periodically by a check, draft, credit card or any other means or the
licensee may pay out money at the borrower’s direction or on his behalf;
2. An open-end account must be established for the borrower and
the amount of each cash advance made to the borrower and any interest,
charges and other costs must be debited to that account and any payments
on the loan or other credits must be credited to that account;
3. The interest and other charges must be computed periodically on
the unpaid balance in the borrower’s account; and
4. The borrower may pay his account in full at any time without a
penalty for prepayment, or if the account is not in default, in monthly
installments of fixed or determinable amounts as provided in the
agreement.
(Added to NRS by 1985, 1677)
1. Under an agreement for a loan for an indefinite term, the
licensee may receive interest in any amount or at any annual rate
provided in the agreement. This interest must be calculated for each
billing cycle in either of the following ways:
(a) By multiplying the daily rate by the daily unpaid balance in
the account. The daily rate is determined by dividing the annual rate of
interest fixed by the agreement by 365. The daily unpaid balance is
determined by adding to any balance remaining unpaid as of the beginning
of each day any advances and any appropriate charges, including interest,
and by deducting therefrom any payments or other credits made or received
on that day.
(b) By multiplying the monthly rate by the average unpaid daily
balance in the account for that billing cycle. The monthly rate is
determined by dividing the annual rate of interest by 12. The average
unpaid daily balance is determined by dividing the sum of all of the
daily unpaid balances during the billing cycle by the number of days in
the cycle.
2. Unless otherwise provided in the agreement, the billing cycle
must be monthly. A billing cycle is monthly if the closing date of the
cycle is the same date each month or does not vary by more than 4 days
from that date.
(Added to NRS by 1985, 1677)
In addition to the interest allowed
pursuant to NRS 675.363 , a licensee
may, pursuant to the agreement for a loan for an indefinite term, receive
from the borrower or add to the unpaid balance in that borrower’s account:
1. Any fees imposed on the licensee pursuant to this chapter;
2. Any charge for insurance under NRS 675.300 ;
3. A charge not exceeding 25 cents for each transaction in which a
loan or advance is made pursuant to the agreement or an annual fee for
the use of an open-end account in an amount not to exceed $20;
4. If the interest calculated for any billing cycle pursuant to
NRS 675.363 is less than 50 cents:
(a) For a billing cycle which is monthly or longer, a charge in an
amount not exceeding 50 cents; or
(b) For a billing cycle less than monthly, a charge in an amount
equal to that portion of 50 cents which bears the same relation to 50
cents as the number of days in the billing cycle bear to 365 divided by
12;
5. For any check written by the borrower to the licensee which is
returned for insufficient funds, a charge of $10 or in an amount equal to
the charges imposed on the licensee because of his reliance on that
check, whichever amount is greater; and
6. Any charge assessed the licensee by a third party for the
printing and distribution of any checks, drafts or other instruments to
be used by the borrower in obtaining advances pursuant to the agreement.
(Added to NRS by 1985, 1678; A 1987, 1516)
1. In addition to the information required in subsection 1 of NRS
675.360 , a borrower under an agreement
for a loan for an indefinite term must be given a description of the
agreed annual interest rate, stated as a percentage, the conditions under
which interest will be charged and the method used to compute the
interest for each billing cycle.
2. The licensee shall notify a borrower of any increase in the
rate of interest to be charged or any other change in the terms of the
agreement for a loan for an indefinite term:
(a) No later than the date of the first billing after the effective
date of the change, if the change in the rate of interest is pursuant to
an agreement for the loan which is signed by the borrower and specifies
the formula for computation of the adjustment in the rate; or
(b) At least 30 days before the change is to take place for all
other loans for an indefinite term.
Ê The change applies only to a debt incurred by the borrower after the
effective date of the change, unless otherwise agreed by the borrower. In
determining the balance to which an increase in the rate of interest
applies, any payment received or other credit made to the borrower’s
account applies to the balance existing before the date of that increase
until that balance is paid in full.
(Added to NRS by 1985, 1678; A 1987, 1516)
1. If the account of a borrower on a loan for an indefinite term
shows a balance due or if any debits or credits were entered on that
account during a billing cycle, the licensee shall furnish to the
borrower, within a reasonable time after the end of the billing cycle, a
written statement setting forth:
(a) The unpaid balance in his account at the beginning of the
billing cycle;
(b) The date and amount of any loans or advances made on the
account during the billing cycle;
(c) Any payments or other credits made or received on the 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 on which that
payment must be received; and
(f) The total amount remaining unpaid in the account at the end of
that billing cycle.
2. The licensee shall also, upon written request of the borrower,
furnish to the borrower a copy of any draft or order for payment received
on the account of the borrower during the billing cycle.
(Added to NRS by 1985, 1678; A 1989, 1065)
REVOCATION AND SUSPENSION OF LICENSES
Each license shall remain in full force and
effect until it expires or is surrendered, revoked or suspended as
provided in this chapter.
(Added to NRS by 1959, 236; A 1989, 922)
1. For the purpose of discovering violations of this chapter or of
securing information lawfully required under this chapter, the
Commissioner or his duly authorized representatives may at any time
investigate the business and examine the books, accounts, papers and
records used therein of:
(a) Any licensee;
(b) Any other person engaged in the business described in NRS
675.060 or participating in such
business as principal, agent, broker or otherwise; and
(c) Any person who the Commissioner has reasonable cause to believe
is violating or is about to violate any provision of this chapter,
whether or not the person claims to be within the authority or beyond the
scope of this chapter.
2. For the purpose of examination the Commissioner or his
authorized representatives shall have and be given free access to the
offices and places of business, files, safes and vaults of such persons.
3. For the purposes of this section, any person who advertises
for, solicits or holds himself out as willing to make loan transactions
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)
The Commissioner may require the
attendance of any person and examine him under oath relative to loans or
business regulated by this chapter 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)
1. At least once each year, the Commissioner or his authorized
representatives shall make an examination of the place of business of
each licensee and of the loans, transactions, books, papers and records
of the licensee so far as they pertain to the business licensed under
this chapter.
2. For each examination the Commissioner shall charge and collect
from the licensee a fee for conducting the examination and preparing and
typing the report of the examination at the rate established pursuant to
NRS 658.101 .
3. All money collected by the Commissioner pursuant to subsection
2 must be deposited in the State Treasury pursuant to the provisions of
NRS 658.091 .
(Added to NRS by 1959, 236; A 1967, 977; 1979, 956; 1983, 1810;
1987, 1991, 2226; 2003, 3234 )
If the Commissioner finds that probable
cause for revocation of any license exists and that enforcement of this
chapter requires immediate suspension of a license pending investigation,
he may, upon 5 days’ written notice and a hearing, enter an order
suspending a license for a period not exceeding 20 days, pending a
hearing upon the revocation.
(Added to NRS by 1959, 236; A 1971, 1371; 1977, 96; 1983, 1810;
1987, 1991)
Any licensee may surrender any license
by delivering it to the Commissioner with written notice of its
surrender, but a surrender does not affect his civil or criminal
liability for acts committed prior thereto.
(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)
1. Whenever the Commissioner has reasonable cause to believe that
any person is violating or is threatening to or intends to violate any
provision of this chapter, he may, in addition to all actions provided
for in this chapter and without prejudice thereto, enter an order
requiring a person to desist or to refrain from such violation.
2. An action may be brought on the relation of the Attorney
General and the Commissioner to enjoin a person from engaging in or
continuing a violation or from doing any act or acts in furtherance
thereof. In any such action, an order or judgment may be entered awarding
a preliminary or final injunction as may be deemed proper.
3. In addition to all other means provided by law for the
enforcement of a restraining order or injunction, the court in which an
action is brought may impound, and appoint a receiver for, the property
and business of the defendant, including books, papers, documents and
records pertaining thereto, or so much thereof as the court may deem
reasonably necessary to prevent violations of this chapter through or by
means of the use of property and business. A receiver, when appointed and
qualified, has such powers and duties as to custody, collection,
administration, winding up and liquidation of such property and business
as may from time to time be conferred upon him by the court.
(Added to NRS by 1959, 236; A 1983, 1810; 1987, 1991)
1. If the Commissioner has reason to believe that grounds for
revocation or suspension of a license exist, he shall give 20 days’
written 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 Commissioner shall:
(a) Enter a written order either dismissing the charges, revoking
the license, or suspending the license for a period of not more than 60
days, which period must include any prior temporary suspension. A copy of
the order must be sent by registered or certified mail to the licensee.
(b) Impose upon the licensee an administrative fine of not more
than $10,000 for each violation by the licensee of any provision of this
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 attorney’s fees.
3. The grounds for revocation or suspension of a license are that:
(a) The licensee has failed to pay the annual license fee;
(b) The licensee, either knowingly or without any exercise of due
care to prevent it, has violated any provision of this chapter or any
lawful regulation adopted under it;
(c) The licensee has failed to pay a tax as required pursuant to
the provisions of chapter 363A of NRS;
(d) Any fact or condition exists which would have justified the
Commissioner in denying the licensee’s original application for a license
hereunder; or
(e) The applicant failed to open an office for the conduct of the
business authorized under this chapter within 120 days after the date the
license was issued, or has failed to remain open for the conduct of the
business for a period of 120 days without good cause therefor.
4. Any revocation or suspension applies only to the license
granted to a person for the particular office for which grounds for
revocation or suspension exist.
5. An order suspending or revoking a license becomes effective 5
days after being entered unless the order specifies otherwise or a stay
is granted.
(Added to NRS by 1959, 237; A 1983, 1811; 1987, 1992; 1993, 901;
2003, 20th Special Session, 226 ; 2005, 1882 )
In addition to any other lawful reasons, the Commissioner may
suspend or revoke a license if the licensee has engaged in any act that
would be grounds for denying a license pursuant this chapter.
(Added to NRS by 2005, 1881 )
No revocation,
suspension, expiration or surrender of any license impairs or affects the
obligation of any preexisting lawful contract between the licensee and
any obligors. Such a contract and all lawful charges thereon may be
collected by the licensee, its successors or assigns.
(Added to NRS by 1959, 237; A 1989, 922)
PENALTIES
Any person and the
several members, officers, directors, agents and employees thereof who
violate or participate 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)
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, without a license, conducts any
business or activity for which a license is required pursuant to the
provisions of this chapter.
(Added to NRS by 2005, 1881 )
