Nevada

CHAPTER 604
CHECK-CASHING AND DEFERRED DEPOSIT SERVICES
NRS 604.010 Definitions.
NRS 604.020 "Cashing" defined.
NRS 604.030 "Check" defined.
NRS 604.040 "Check-cashing service" defined.
NRS 604.050 "Commissioner" defined.
NRS 604.060 "Deferred deposit" defined.
NRS 604.070 "Deferred deposit service" defined.
NRS 604.080 "Registrant" defined.
NRS 604.090 Registration required; applicability of chapter.
NRS 604.100 Application for registration: Contents; fee.
NRS 604.110 Surety bond.
NRS 604.120 Deposit of securities in lieu of surety bond.
NRS 604.130 Certificate of registration: Issuance; form and size; contents; display.
NRS 604.140 Expiration and renewal of certificate of registration.
NRS 604.150 Change of control of registrant: Notification and application to Commissioner.
NRS 604.160 Registrant to post and give written notice of fees charged; signature of customer required on notice.
NRS 604.162 Limitations on fees for check not paid upon presentment because of insufficient funds.
NRS 604.164 Registrant deferring deposits to provide each borrower with written agreement; contents.
NRS 604.166 Registrant may pursue collection proceedings upon default on loan made in form of deferred deposit; charges and interest.
NRS 604.170 Regulations.
NRS 604.180 Prohibited acts by registrant relating to deferred deposit.
NRS 604.190 Commissioner to charge registrant fee for supervision, examination, audit, investigation or hearing; billing and payment; penalty for late payment; failure to pay grounds for revocation of certificate of registration.


NRS 604.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 604.020 to 604.080, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1997, 2370)
NRS 604.020 "Cashing" defined. "Cashing" means providing currency or a negotiable instrument in exchange for a check.
(Added to NRS by 1997, 2370)
NRS 604.030 "Check" defined. "Check" means a check, draft or money order, but does not include a traveler's check or an instrument of payment drawn on a foreign account in foreign money.
(Added to NRS by 1997, 2371)
NRS 604.040 "Check-cashing service" defined. "Check-cashing service" means any person engaged in the business of cashing checks for a fee, service charge or other consideration.
(Added to NRS by 1997, 2371)
NRS 604.050 "Commissioner" defined. "Commissioner" means the Commissioner of Financial Institutions.
(Added to NRS by 1997, 2371)
NRS 604.060 "Deferred deposit" defined. "Deferred deposit" means a transaction in which, pursuant to a written agreement:
1. A customer tenders to a person a personal check drawn upon the account of the customer; and
2. The person:
(a) Provides to the customer an amount of money that is equal to the face value of the check, less any fee charged for the transaction; and
(b) Agrees not to cash the check for a specified period.
(Added to NRS by 1997, 2371)


NRS 604.070 "Deferred deposit service" defined. "Deferred deposit service" means any person engaged in the business of deferring deposits for a fee, service charge or other consideration.
(Added to NRS by 1997, 2371)


NRS 604.080 "Registrant" defined. "Registrant" means a person who has been issued a certificate of registration to operate a check-cashing or deferred deposit service pursuant to this chapter.
(Added to NRS by 1997, 2371)
NRS 604.090 Registration required; applicability of chapter.
1. Except as otherwise provided in subsection 2, it is unlawful to operate a check-cashing or deferred deposit service without being registered with the Commissioner.
2. The provisions of this chapter do not apply to:
(a) A person doing business pursuant to 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.
(b) A person licensed to make installment loans pursuant to chapter 675 of NRS.
(c) A person who is primarily engaged in the retail sale of goods or services who:
(1) As an incident to or independently of a retail sale or service from time to time cashes checks for a fee or other consideration of not more than $2; and
(2) Does not hold himself out as a check-cashing service.
(d) A person while performing any act authorized by a license issued pursuant to chapter 671 of NRS.
(e) A person who holds a nonrestricted gaming license issued pursuant to chapter 463 of NRS while performing any act in the course of that licensed operation.
(f) A person who is exclusively engaged in a check-cashing service relating to out-of-state checks.
(g) A corporation organized pursuant to the laws of this state that has been continuously and exclusively engaged in a check-cashing service in this state since July 1, 1973.
(Added to NRS by 1997, 2371; A 1999, 3808; 2003, 3577)


NRS 604.100 Application for registration: Contents; fee.
1. An application for registration pursuant to this chapter must be made in writing, under oath and on a form prescribed by the Commissioner. The application must include:
(a) If the applicant is a natural person, the name and address of the applicant.
(b) If the applicant is a business entity, the name and address of each:
(1) Partner;
(2) Officer;
(3) Director;
(4) Manager or member who acts in a managerial capacity; and
(5) Registered agent,
Êof the business entity.
(c) Such other information concerning the financial responsibility, background, experience and activities of the applicant and its:
(1) Partners;
(2) Officers;
(3) Directors; and
(4) Managers or members who act in a managerial capacity,
Êas the Commissioner determines is necessary.
(d) The address of each location at which the applicant proposes to do business.
(e) If the applicant intends to provide deferred deposit services in addition to check-cashing services, a statement of that intent.
2. Each application for registration must be accompanied by a nonrefundable registration fee of $250.
(Added to NRS by 1997, 2372)


NRS 604.110 Surety bond.
1. Except as otherwise provided in NRS 604.120, each application for registration must be accompanied by a surety bond payable to the State of Nevada in the amount of $50,000 for the use and benefit of any customer receiving the registrant's check-cashing or deferred deposit service.
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 registrant respecting the provision of the check-cashing or deferred deposit service.
3. A registrant 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 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 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 registrant shall furnish:
(a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to 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 registrant, or by any insolvency or bankruptcy of the registrant.
6. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the registrant's agents within 30 days after:
(a) The registrant's death or the dissolution or liquidation of his business; or
(b) The termination of the bond,
Êwhichever event occurs first.
7. A registrant or his surety shall not cancel or alter a bond except after notice to the Commissioner by 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 1997, 2372)


NRS 604.120 Deposit of securities in lieu of surety bond.
1. In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a registrant may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this state as the registrant 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,
Êin 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 1997, 2373; A 1999, 1520)


NRS 604.130 Certificate of registration: Issuance; form and size; contents; display.
1. The Commissioner shall issue to each registrant a certificate of registration in such form and size as is prescribed by the Commissioner for each location at which the registrant proposes to do business. Each certificate of registration must show the name and address of the registrant.
2. Each registrant shall prominently display his certificate of registration at the location where he does business.
(Added to NRS by 1997, 2374)


NRS 604.140 Expiration and renewal of certificate of registration.
1. A certificate of registration issued pursuant to this chapter expires annually on the anniversary of the issuance of the certificate. A registrant must renew his certificate of registration on or before the date on which the certificate expires by paying a renewal fee of $250 and an additional fee of $50 for each branch location at which the registrant is authorized to operate under the certificate of registration.
2. For the purposes of NRS 604.090, a registrant who fails to renew his certificate of registration within the time required by this section is not registered pursuant to this chapter.
(Added to NRS by 1997, 2374)
NRS 604.150 Change of control of registrant: Notification and application to Commissioner.
1. A registrant shall immediately notify the Commissioner of any change of control of the registrant.
2. A person who acquires stock, partnership or member interests resulting in a change of control of the registrant shall apply to the Commissioner for approval of the transfer. The application must contain information which shows that the requirements of this chapter for obtaining a certificate of registration will be satisfied after the change of control. If the Commissioner determines that those requirements will not be satisfied, he may deny the application and forbid the applicant from participating in the business of the registrant.
3. As used in this section, "change of control" means:
(a) A transfer of voting stock, partnership or member interests which results in giving a person, directly or indirectly, the power to direct the management and policy of a registrant; or
(b) A transfer of at least 25 percent of the outstanding voting stock, partnership or member interests of the licensee.
(Added to NRS by 1997, 2374)
NRS 604.160 Registrant to post and give written notice of fees charged; signature of customer required on notice. A registrant shall:
1. Post in a conspicuous place in every location at which he conducts business under his certificate of registration a notice that states the fees charged for cashing checks or entering into a deferred deposit transaction.
2. Give written notice to each customer of the fees charged for cashing checks. The notice must be signed by the customer before the service is provided.
(Added to NRS by 1997, 2374; A 1999, 3284)
NRS 604.162 Limitations on fees for check not paid upon presentment because of insufficient funds. If a check is not paid upon presentment because of insufficient funds, the registrant may collect a fee of not more than $25. Only two such fees may be charged regardless of the number of times the check is presented for payment.
(Added to NRS by 1999, 3283)
NRS 604.164 Registrant deferring deposits to provide each borrower with written agreement; contents. A registrant, before deferring a deposit, shall provide each borrower with a written agreement, approved by the Commissioner, which the borrower may keep and which contains the following information, in English:
1. The identity of the registrant deferring the deposit and the name of the registrant and the name and title of the employee who signs the agreement;
2. An itemization of the fees and interest to be paid by the borrower;
3. Disclosures required for a similar transaction by the federal Truth in Lending Act;
4. Disclosures required under any applicable state statute or regulation; and
5. A clear description of the borrower's obligations under the deferred deposit.
(Added to NRS by 1999, 3282)
NRS 604.166 Registrant may pursue collection proceedings upon default on loan made in form of deferred deposit; charges and interest. If the borrower defaults on the original loan made in the form of a deferred deposit, or on any extension thereof, whichever is later, the registrant may immediately pursue any available collection proceedings on the amount of the loan made in the form of a deferred deposit and all accrued charges and interest that are then due. The interest charged from the date of the default on the loan made in the form of a deferred deposit, or on any extension thereof, must not exceed a rate equal to or less than the prime rate at the largest bank in the State of Nevada, as ascertained by the Commissioner on January 1 or July 1, as the case may be, immediately preceding the date of default, plus 10 percent.
(Added to NRS by 1999, 3283)
NRS 604.170 Regulations.
1. The Commissioner may establish by regulation:
(a) The fees that may be imposed by a check-cashing service for cashing checks; and
(b) The penalties that may be imposed by the Commissioner for a violation of the provisions of this chapter or the regulations adopted pursuant thereto.
2. The Commissioner shall adopt such other regulations as are necessary to carry out the provisions of this chapter.
(Added to NRS by 1997, 2371; A 1999, 3284)
NRS 604.180 Prohibited acts by registrant relating to deferred deposit. It is unlawful for a registrant to:
1. Use or threaten to use the criminal process in this or any other state, or any civil process not available to creditors generally, to collect on a deferred deposit.
2. Make a loan made in the form of a deferred deposit that exceeds one-third of the borrower's expected monthly net income during the term of the deferred deposit unless justified by particular circumstances. A registrant is not in violation of the provisions of this subsection if the borrower presents evidence of monthly net income to the registrant and represents to the registrant in writing that the deferred deposit does not exceed one-third of the borrower's expected monthly net income during the term of the deferred deposit.
3. Charge to cash a check representing the proceeds of a deferred deposit.
4. Make more than one loan in the form of a deferred deposit to the same borrower at one time unless the borrower is seeking multiple loans in the form of a deferred deposit that do not exceed the limit set forth in subsection 2.
5. Establish or extend the period for the repayment, renewal, refinancing or consolidation of an outstanding loan made in the form of a deferred deposit to the same borrower beyond 10 weeks after the expiration of the initial loan period.
6. Accept any collateral for a loan made in the form of a deferred deposit.
7. Include in the written agreement required by NRS 604.164 for a loan made in the form of a deferred deposit:
(a) A promise by the borrower to hold the lender harmless;
(b) A confession of judgment by the borrower;
(c) An assignment or order for payment of wages or other compensation due the borrower; or
(d) A waiver of any claim or defense arising out of the agreement or a waiver of any provision of this chapter.
(Added to NRS by 1999, 3283)
NRS 604.190 Commissioner to charge registrant fee for supervision, examination, audit, investigation or hearing; billing and payment; penalty for late payment; failure to pay grounds for revocation of certificate of registration.
1. The Commissioner shall charge and collect from each registrant a fee of $40 per hour for any supervision, examination, audit, investigation or hearing conducted pursuant to this chapter or any regulations adopted pursuant to this chapter.
2. The Commissioner shall bill each registrant upon the completion of the activity for the fee established pursuant to subsection 1. The fee must be paid within 30 days after the date the bill is received. Except as otherwise provided in this subsection, any payment received after the date due must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause.
3. The failure of a registrant to pay the fee required pursuant to subsection 1 as provided in this section constitutes grounds for revocation of the certificate of registration of the registrant.
(Added to NRS by 2001, 2047)