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- 83rd Session (2025)
Senate Bill No. 437–Committee on Commerce and Labor
CHAPTER..........
AN ACT relating to financial services; setting forth certain
requirements for a contract between an Internet consumer
lender and a resident of this State for the provision of a loan;
authorizing an Internet consumer lender to apply for a license
to engage in the business of lending for an offic e or place of
business located outside this State without having a license
for an office or place of business located inside this State;
exempting Internet consumer lenders from provisions
prohibiting a person from conducting the business of making
loans i n the same office or place of business as any other
business; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law prohibits a person from engaging in the business of lending in this
State without having first obtained a license from the Commissioner of Financial
Institutions for each office or other place of business in which the person engages
in the business of lending. (NRS 675.060) Under existing law, a person who wishes
to obtain a license for an office or place of business located outside this State is
required to have a license for an office or place of business located inside this State,
unless the person is an Internet business lender, which existing law defines to mean
a person who makes business loans exclusively through the Internet. (NRS
675.020, 675.090) Section 3 of this bill additionally authorizes an Internet
consumer lender to apply for a license to engage in the business of lending for an
office or place of business located outside this State w ithout having a license for an
office or place of business located inside this State. Section 2 of this bill defines the
term “Internet consumer lender” to mean a person who makes , solicits, brokers,
arranges or facilitates consumer loans exclusively through the Internet.
Existing law exempts Internet business lenders from provisions of existing law
which prohibit persons, with certain exceptions, from conducting the business of
making loans in the same office or place of business as any other business. ( NRS
675.230) Section 4 of this bill similarly exempts Internet consumer lenders from
those provisions.
Section 1 of this bill requires any contract between an Internet consumer lender
and a resident of this State for the provision of a loan to: (1) provide that the
contract is governed by the laws of this State; and (2) require that any process for
the resolution of disputes arising out of the contract occur in this State. Under
section 1, any condition, stipulation or provision in such a contract th at conflicts
with such requirements is contrary to public policy and is void and unenforceable.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 675 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. To the extent not preempted by federal law, any contract
between an Internet consumer lender and a resident of this State
for the provision of a loan must:
(a) Provide that the contract is governed by the laws of this
State; and
(b) Require that any litigation, arbitration or other process for
the resolution of disputes arising out of the contract occur in this
State.
2. Any condition, stipulation or provision in a contract
between an Internet consumer lender and a resident of this State
for the provision of a loan that conflicts with the provisions of this
section is contrary to public policy and is void and unenforceable.
Sec. 2. NRS 675.020 is hereby amended to read as follows:
675.020 As used i n 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 or her
direction or on his or her behalf.
2. “Amount of loan obligation” me ans the amount of cash
advance plus the aggregate of charges added thereto pursuant to
authority of this chapter.
3. “Breach of the security of the computerized data system” or
“breach” means the unauthorized acquisition of computerized data
from the computerized data system of the licensee that compromises
the security, confidentiality or integrity of personal information
maintained by the licensee. The term does not include the good faith
acquisition of personal information by an employee or agent of a
licensee for a legitimate purpose of the licensee, so long as the
personal information is not used for a purpose unrelated to the
licensee or subject to further authorized disclosure.
4. “Business of lending in this State” means that a person:
(a) Solicits loans in this State or makes loans to persons in this
State, unless these are isolated, incidental or occasional transactions;
or
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(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.
5. “Commissioner” means the Commissioner of Financial
Institutions.
6. “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.
7. “Computerized data system” means a system of software,
hardware or firmware, including, without limitation, a system of
web-based applications, that:
(a) Is owned, leased or licensed by a licensee;
(b) Is located at the place of business of the licensee or hosted
remotely; and
(c) Stores or provides access to personal information, financial
information or other data related to borrowers or potential
borrowers.
8. “Consumer credit” has the meaning ascribed to it in
NRS 604A.036.
9. “Covered service member” has the meaning ascribed to it in
NRS 604A.038.
10. “Dependent” has the meaning ascribed to it in
NRS 604A.057.
11. “Internet business lender” means a person who makes
business loans exclusively through the Internet.
12. “Internet consumer lender” means a person who makes ,
solicits, brokers, arranges or facilitates consumer loans
exclusively through the Internet.
13. “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.
[13.] 14. “Licensee” means a person to whom one or more
licenses have been issued.
[14.] 15. “Nationwide Multistate Licensing Sy stem and
Registry” or “Registry” has the meaning ascribed to it in
NRS 604A.083.
[15.] 16. “Personal information” has the meaning ascribed to it
in NRS 603A.040.
[16.] 17. “Remote location” means a location other than an
office or place of business for which a license has been issued
pursuant to this chapter and at which an employee of a licensee
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engages in the business of lending in this State pursuant to NRS
675.2965 to 675.299, inclusive.
Sec. 3. NRS 675.090 is hereby amended to read as follows:
675.090 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, dir ectors 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:
(a) The applicant is an Internet business lender or Internet
consumer lender; or
(b) The applicant or a subsidiary or affiliate of the applicant has
a license issued pur suant to this chapter for an office or other place
of business located in this State.
4. A person who wishes to apply for a license pursuant to
subsection 3 must submit with the application for a license a
statement signed by the applicant which states t hat 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.
The person must be allowed to choose between paragraph (a) or
(b) in complying with the provisions of this subsection.
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
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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.
Sec. 4. NRS 675.230 is hereby amended to read as follows:
675.230 1. Except as otherwise provided in subsections 2 and
3, a licensee may not conduct the business of making loans under
this chapter within any office, suite, ro om 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 m ay conduct the business of making loans
pursuant to this chapter in the same office or place of business as a
mortgage company if:
(a) The licensee and the mortgage company:
(1) Operate as separate legal entities;
(2) Maintain separate accounts, books and records;
(3) Are subsidiaries of the same parent corporation; and
(4) Maintain separate licenses; and
(b) The mortgage company is licensed by this state pursuant to
chapter 645B of NRS and does not receive money to acquire or
repay loans or maint ain trust accounts as provided by
NRS 645B.175.
3. A licensee who is an Internet business lender or Internet
consumer lender may conduct the business of making loans
pursuant to this chapter within any office, suite, room or place of
business in which any other business is solicited or engaged in.
Sec. 5. The amendatory provisions of this act do not apply to a
contract entered into before October 1, 2025.
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