Senate Amendment to Assembly Bill No. 64 Second Reprint (BDR 54-1204)
Proposed by: Committee on Commerce and Labor
Amendment Box: Replaces Amendment No. 1178. Resolves conflicts in sections 102, 104 and 118 with sections 15, 185 and 186 of S.B. No. 39. Resolves conflict in section 118 with section 98 of S.B. No. 61. Makes substantive changes.
Resolves Conflicts with: SB39, SB61
Amends: Summary: Title: Preamble: Joint Sponsorship:
ASSEMBLY ACTION
Initial and Date | SENATE ACTION Initial and DateAdopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by adding new sections designated sections 3.3 and 3.5, following sec. 3, to read as follows:
"Sec. 3.3.
"Commercial mortgage loan" means a loan that:1. Directly or indirectly, is secured by a lien on commercial property; and
2. Is created with the consent of the owner of the commercial property.
Sec. 3.5.
"Commercial property" means any real property which is located in this state and which is not used for a residential dwelling or dwellings intended for occupancy by four or fewer families.".Amend the bill as a whole by adding a new section designated sec. 6.5, following sec. 6, to read as follows:
"Sec. 6.5.
"Institutional investor" means a person who, in the regular course of business, makes commercial mortgage loans of more than $250,000 that are funded exclusively from one or more of the following sources:1. The person’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the person’s financial statements.
2. Correspondent contracts between the person and another institutional investor or between the person and a depository financial institution, trust company, profit-sharing or pension trust, installment lender or insurance company.
3. An affiliate’s cash, corporate capital or warehouse credit lines at a depository financial institution or other sources that are liability items on the affiliate’s financial statements for which the affiliate’s assets are pledged. As used in this subsection, "affiliate" means another person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person who is the institutional investor.".
Amend sec. 8, page 2, by deleting lines 7 through 13 and inserting:
"Sec. 8.
1. "Mortgage company" means any of the following:(a) A person who, directly or indirectly:
(1) Holds himself out as being able to:
(I) Buy or sell notes secured by liens on real property; or
(II) Make loans secured by liens on real property using his own money; and
(2) Does not engage in any other act or transaction described in the
".Amend sec. 8, page 2, between lines 16 and 17, by inserting:
"
(b) A person who, directly or indirectly:(1) Negotiates, originates or makes or offers to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and
(2) Does not engage in any other act or transaction described in the definition of "mortgage broker," as set forth in section 57 of this act, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS.
".Amend sec. 41, page 19, by deleting lines 31 through 42 and inserting:
"in the State of Nevada
.2. Except as otherwise provided in subsection 1 and section 40 of this act, as a condition to
doing business in2. The form of the bond required is as follows:]
3. The surety bond must be in substantially the following form:
".Amend sec. 41, page 20, between lines 39 and 40, by inserting:
"
4. Each construction control shall initially deposit a surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 40 of this act in the amount of $20,000. Not later than 3 months after the initial deposit and annually thereafter, the construction control shall:(a) Submit to the state contractors’ board a signed and notarized affidavit attesting to the average monthly balance in the trust account maintained by the construction control; and
(b) Deposit a surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 40 of this act in the following amount based upon the average monthly balance in the trust account maintained by the construction control:
AVERAGE MONTHLY BALANCE AMOUNT OF BOND OR
SECURITY REQUIRED
Less than $2,000,000 $20,000
$2,000,000 or more but less than $4,000,000 40,000
$4,000,000 or more but less than $6,000,000 60,000
$6,000,000 or more but less than $8,000,000 80,000
$8,000,000 or more but less than $12,000,000 120,000
$12,000,000 or more but less than $20,000,000 200,000
$20,000,000 or more 250,000
Amend sec. 42, pages 20 and 21, by deleting lines 42 and 43 on page 20 and lines 1 and 2 on page 21, and inserting:
"645A.031,
Amend sec. 42, page 21, by deleting lines 25 and 26 and inserting:
"
Amend sec. 42, page 22, between lines 13 and 14, by inserting:
"
4. Each escrow agency shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of NRS 645A.031 in the following amount based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160:AVERAGE MONTHLY BALANCE AMOUNT OF BOND OR
SECURITY REQUIRED
$50,000 or less $20,000
More than $50,000 but not more than $250,000 50,000
More than $250,000 but not more than $500,000 100,000
More than $500,000 but not more than $750,000 150,000
More than $750,000 but not more than $1,000,000 200,000
More than $1,000,000 250,000
The commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the escrow agency based upon the expected average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160. After the initial deposit, the commissioner shall, on a semiannual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the escrow agency based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160.
".Amend sec. 44, page 23, by deleting lines 9 through 20 and inserting:
"pursuant to this chapter in the same office or place of business as
(a) A firm or corporation that is exempt from licensing as a mortgage company pursuant to subsection 6 of section 10 of this act.
(b) A
mortgage company if:
Amend sec. 46, page 23, line 25, by deleting:
"
or mortgage agent".Amend the bill as a whole by adding a new section designated sec. 53.5, following sec. 53, to read as follows:
"Sec. 53.5.
"Financial services license or registration" means any license or registration issued in this state or any other state, district or territory of the United States that authorizes the person who holds the license or registration to engage in any business or activity described in the provisions of this chapter, sections 2 to 39, inclusive, of this act, chapter 604, 645, 645A, 645C or 649 of NRS or Title 55 or 56 of NRS.".Amend sec. 55, page 24, line 2, by deleting:
"
or mortgage agent".Amend sec. 57, page 24, line 14, by deleting "
any" and inserting "a".Amend the bill as a whole by adding new sections designated sections 61.3 through 61.7, following sec. 61, to read as follows:
"Sec. 61.3.
1. The advisory council on mortgage investments and mortgage lending is hereby created.2. The advisory council consists of five members appointed by the legislative commission from a list of persons provided by the commissioner.
3. The members of the advisory council:
(a) Must be persons who have experience with, an interest in or a knowledge of issues relating to mortgage investments or mortgage lending. Such persons may include, without limitation, investors, public officers and employees, licensees and persons who have engaged in or been involved with any business, profession or occupation relating to mortgage investments or mortgage lending.
(b) Serve terms of 2 years and at the pleasure of the legislative commission.
(c) May be reappointed.
(d) Serve without compensation and may not receive a per diem allowance or travel expenses.
4. Any vacancy in the membership of the advisory council must be filled for the remainder of the unexpired term in the same manner as the original appointment.
5. A member of the advisory council who is an officer or employee of this state or a political subdivision of this state must be relieved from his duties without loss of his regular compensation so that he may prepare for and attend meetings of the advisory council and perform any work necessary to carry out the duties of the advisory council in the most timely manner practicable. A state agency or political subdivision of this state shall not require an officer or employee who is a member of the advisory council to make up the time he is absent from work to carry out his duties as a member of the advisory council or use annual vacation or compensatory time for the absence.
6. Notwithstanding any other provision of law, a member of the advisory council:
(a) Is not disqualified from public employment or holding a public office because of his membership on the advisory council; and
(b) Does not forfeit his public office or public employment because of his membership on the advisory council.
Sec. 61.5.
1. The members of the advisory council on mortgage investments and mortgage lending shall elect a chairman and a vice chairman from among their membership. The vice chairman shall perform the duties of the chairman during any absence of the chairman.2. The advisory council may meet at least once each calendar quarter and at other times on the call of the chairman or a majority of its members.
3. The meetings of the advisory council may be held at any location designated by the chairman or a majority of its members.
4. A majority of the members of the advisory council constitutes a quorum for the transaction of all business.
5. The chairman may appoint subcommittees of the members of the advisory council to consider specific problems relating to mortgage investments or mortgage lending.
Sec. 61.7.
The purpose of the advisory council on mortgage investments and mortgage lending is to:1. Consult with, advise and make recommendations to the commissioner in all matters relating to mortgage investments and mortgage lending.
2. Make recommendations to the legislature concerning the enactment of any legislation relating to mortgage investments and mortgage lending.
3. Make recommendations to the legislature and the commissioner concerning educational requirements and other qualifications for persons who are engaged in any business, profession or occupation relating to mortgage investments and mortgage lending.
4. Conduct hearings, conferences and special studies on all matters relating to mortgage investments and mortgage lending.
5. Provide a forum for the consideration and discussion of all matters relating to mortgage investments and mortgage lending.
6. Gather and disseminate information relating to mortgage investments and mortgage lending.
7. Engage in other activities that are designed to promote, improve and protect the reliability and stability of mortgage investments and mortgage lending in this state.
".Amend sec. 62, page 24, line 40, by deleting:
"
Except as otherwise provided in section 78 of this act:".Amend sec. 62, page 25, line 19, by deleting:
"
or mortgage agent".Amend sec. 62, page 25, line 21, by deleting:
"
broker or mortgage agent," and inserting "broker,".Amend sec. 62, page 25, line 22, by deleting:
"
or mortgage agent".Amend sec. 63, pages 25 and 26, by deleting lines 39 through 41 on page 25 and lines 1 through 3 on page 26, and inserting:
"Sec. 63.
The commissioner may refuse to issue a license to an applicant if the commissioner has reasonable cause to believe that the applicant or any general partner, officer or director of the applicant has, after October 1, 1999, employed or proposed to employ a person as a mortgage agent or authorized or proposed to authorize a person to be associated with a mortgage broker as a mortgage agent at a time when the applicant or the general partner, officer or director knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:1. Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or
2. Had a financial services license or registration suspended or revoked within the immediately preceding 10 years.
".Amend the bill as a whole by adding a new section designated sec. 64.5, following sec. 64, to read as follows:
"Sec. 64.5.
The provisions of sections 63 and 64 of this act do not limit the authority of the commissioner to refuse to issue a license to an applicant for any other lawful reason or pursuant to any other provision of law.".Amend sec. 66, pages 26 and 27, by deleting lines 25 through 43 on page 26 and lines 1 through 3 on page 27, and inserting:
"Sec. 66.
1. A person shall not act as or provide any of the services of a mortgage agent or otherwise engage in, carry on or hold himself out as engaging in or carrying on the activities of a mortgage agent if the person:(a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or
(b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.
2. A mortgage agent may not be associated with or employed by more than one mortgage broker at the same time.
3. A mortgage broker shall register with the division each person who will be associated with or employed by the mortgage broker as a mortgage agent. To register a person as a mortgage agent, a mortgage broker must:
(a) Submit to the division a registration form which is provided by the division and which:
(1) States the name, residence address and business address of the person;
(2) Is signed by the person;
(3) Includes a provision by which the person gives his written consent to an investigation of his credit history, criminal history and background; and
(4) Includes any other information or supporting materials required by the regulations adopted by the commissioner. Such information or supporting materials may include, without limitation, a complete set of fingerprints from the person, the social security number of the person and other forms of identification of the person; and
(b) Pay the actual costs and expenses incurred by the division to investigate the credit history, criminal history and background of the person. All money received pursuant to this paragraph must be placed in the investigative account created by NRS 232.545.
4. A mortgage broker shall not employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent if the mortgage broker has not registered the person with the division pursuant to subsection 3 or if the person:
(a) Has been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or
(b) Has had a financial services license or registration suspended or revoked within the immediately preceding 10 years.
5. If a mortgage agent terminates his association or employment with a mortgage broker for any reason, the mortgage broker shall, not later than the end of the next business day following the date of termination:
(a) Deliver to the mortgage agent or send by certified mail to the last known residence address of the mortgage agent a written statement which advises him that his termination is being reported to the division; and
(b) Deliver or send by certified mail to the division:
(1) A written statement of the circumstances surrounding the termination; and
(2) A copy of the written statement that the mortgage broker delivers or mails to the mortgage agent pursuant to paragraph (a).
".Amend sec. 67, page 27, by deleting lines 6 and 7 and inserting:
"
2. The provisions of this chapter do not prohibit a licensee from:".Amend sec. 68, page 27, by deleting lines 18 through 23 and inserting:
"
the licensee shall fully disclose his status as, connection to or relationship with the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer to each investor, and the licensee shall not require, as a condition to an investor acquiring ownership of or a beneficial interest in a loan secured by a lien on real property, that the investor transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer or that the investor authorize the licensee to transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer on behalf of the investor.".Amend sec. 68, page 27, by deleting lines 32 through 34 and inserting:
"
chapter; and(b) Any general partner, officer or director of such a person.
".Amend sec. 69, pages 27 and 28, by deleting lines 35 through 42 on page 27 and lines 1 through 22 on page 28, and inserting:
"Sec. 69.
1. If a mortgage broker maintains any accounts described in NRS 645B.175, the mortgage broker and his mortgage agents shall not engage in any activity that is authorized pursuant to this chapter, unless the mortgage broker maintains continuously a minimum net worth in the following amount based upon the average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175:AVERAGE MONTHLY BALANCE MINIMUM NET WORTH REQUIRED
$100,000 or less $25,000
More than $100,000 but not more than $250,000 50,000
More than $250,000 but not more than $500,000 100,000
More than $500,000 but not more than $1,000,000 200,000
More than $1,000,000 250,000
The commissioner shall determine the appropriate initial minimum net worth that must be maintained by the mortgage broker pursuant to this section based upon the expected average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175. After determining the initial minimum net worth that must be maintained by the mortgage broker, the commissioner shall, on an annual basis, determine the appropriate minimum net worth that must be maintained by the mortgage broker pursuant to this section based upon the average monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175.
2. If requested by the commissioner, a mortgage broker who is subject to the provisions of this section and his mortgage agents shall submit to the commissioner or allow the commissioner to examine any documentation or other evidence that is related to determining the net worth of the mortgage broker.
3. The commissioner:
".Amend sec. 72, page 29, line 32, by deleting "
1.".Amend sec. 72, pages 29 and 30, by deleting lines 39 through 42 on page 29 and lines 1 through 12 on page 30.
Amend sec. 73, page 30, line 13, after "73." by inserting "
1.".Amend sec. 73, page 30, by deleting lines 19 through 39 and inserting:
"
(a) Include in the report that the mortgage broker submits to the commissioner pursuant to subsection 2 of NRS 645B.080 the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2;(b) Not later than 15 days after the last day of each such month, mail to the last known address of each investor who owns a beneficial interest in the loan a notice containing the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2; and
(c) Comply with the provisions of this section each month on a continuing basis until:
(1) The debtor or his designee remedies the delinquency in payments and any default; or
(2) The lien securing the loan is extinguished.
2. The commissioner:
(a) Shall adopt regulations prescribing the information relating to delinquencies in payments and defaults that a mortgage broker must include in his report to the commissioner and in the notice mailed to investors pursuant to subsection 1. Such regulations may provide for variations between the information that a mortgage broker must include in his report to the commissioner and the information that a mortgage broker must include in the notice mailed to investors.
(b) May adopt any other regulations that are necessary to carry out the provisions of this section.
".Amend sec. 75, page 31, by deleting lines 17 through 26 and inserting:
"
services for loans in which the investor owns a beneficial interest; and(b) The provisions of the power of attorney:
(1) Have been approved by the commissioner;
(2) Expressly prohibit the mortgage broker and his mortgage agents from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the mortgage broker obtains written approval for the subordination from the investor; and
(3) Expressly prohibit the mortgage broker and his mortgage agents from using or releasing any money in which the investor owns a beneficial interest with regard to a specific loan for a purpose that is not directly related to providing services for the loan unless, before any such money is used or released for another purpose, the mortgage broker obtains written approval from the investor to use or release the money for the other purpose.
2. A mortgage broker or mortgage agent shall not act as the attorney in fact or the agent of an investor with respect to the giving of written approval pursuant to paragraph (b) of subsection 1. An investor and a mortgage broker or mortgage agent may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.
3. A power of attorney which designates a mortgage broker or
".Amend the bill as a whole by deleting sec. 78 and adding:
"Sec. 78. (Deleted by amendment.)".
Amend sec. 79, page 34, by deleting lines 38 and 39 and inserting:
"
association, the commissioner may take any disciplinary action set".Amend sec. 81, page 35, line 10, by deleting:
"
or section 78 of this act".Amend sec. 82, page 35, by deleting lines 28 and 29 and inserting:
"
limitation, a violation of any provision of NRS 645B.100 or 645B.120; or".Amend sec. 85, page 37, by deleting lines 32 and 33 and inserting:
"6. Except as otherwise provided in this subsection, any firm or corporation:".
Amend sec. 86, page 38, by deleting lines 40 and 41 and inserting:
"
mortgage agent.".Amend sec. 86, page 39, line 10, by deleting "
and" and inserting:"
and, if applicable,".Amend sec. 86, page 39, by deleting lines 17 through 43 and inserting:
"
2. If a mortgage broker will conduct business at one or more branch offices within this state, the mortgage broker must apply for a license for each such branch office.3. Except as otherwise provided in this chapter, the
commissioner shall issue a license to an applicant as a mortgageAmend sec. 86, page 40, line 10, by deleting:
"
or mortgage agent".Amend sec. 87, page 40, line 33, by deleting:
"
or mortgage agent".Amend sec. 87, page 41, line 1, by deleting:
"
or mortgage agent".Amend sec. 88, pages 41 and 42, by deleting lines 19 through 42 on page 41 and lines 1 through 4 on page 42, and inserting:
2. A
Amend sec. 89, page 44, by deleting lines 2 through 26 and inserting:
"
6. A person must pay the following fees to apply for or to renew a".Amend sec. 89, page 44, line 32, by deleting "
8." and inserting "7.".Amend sec. 89, page 44, line 35, by deleting "
9." and inserting "8.".Amend sec. 90, page 44, line 41, by deleting "
and".Amend sec. 90, page 44, line 42, by deleting "
mortgage agents".Amend sec. 90, page 45, line 27, by deleting:
"
and mortgage agents".Amend sec. 92, page 46, line 13, by deleting "
and".Amend sec. 92, page 46, line 14, by deleting "
mortgage agent".Amend sec. 92, page 46, line 15, by deleting:
"
or mortgage agent".Amend sec. 92, page 46, line 17, by deleting:
"
or mortgage agent".Amend sec. 93, page 46, line 42, by deleting:
"
or mortgage agent".Amend sec. 93, page 47, line 2, by deleting:
"
or mortgage agent".Amend sec. 93, page 47, line 6, by deleting:
"
or mortgage agent".Amend sec. 93, page 47, line 9, by deleting "
or".Amend sec. 93, page 47, line 10, by deleting "
mortgage agent".Amend sec. 93, page 47, line 15, by deleting:
"
broker or mortgage agent;" and inserting "broker;".Amend sec. 95, page 48, by deleting lines 4 through 6 and inserting:
"645B.100 1.
Amend sec. 95, page 48, by deleting lines 19 through 22 and inserting:
"
2. For each violation committed by a licensee, the commissioner mayAmend sec. 95, page 49, by deleting lines 27 through 29 and inserting:
"
cause for the revocation of the license of the mortgage broker, whether or not the mortgage agent commits the act;(s) Has employed a person as a mortgage agent or authorized a person to be associated with the licensee as a mortgage agent at a time when the licensee knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:
(1) Had been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude; or
(2) Had a financial services license or registration suspended or revoked within the immediately preceding 10 years; or
(t) Has not conducted verifiable business as a mortgage
Amend sec. 95, pages 49 and 50, by deleting lines 39 through 43 on page 49 and lines 1 through 37 on page 50.
Amend sec. 96, page 50, line 43, by deleting:
"
broker or mortgage agent," and inserting "broker,".Amend sec. 96, page 51, line 8, by deleting:
"
or mortgage agent".Amend sec. 98, page 51, line 35, by deleting:
"
broker, mortgage agent" and inserting "broker".Amend sec. 98, page 51, line 37, by deleting:
"
or mortgage agent".Amend sec. 98, page 51, line 43, by deleting:
"
or mortgage agent".Amend sec. 98, page 52, lines 2 and 3 by deleting:
"
or mortgage broker".Amend sec. 98, page 52, line 21, by deleting:
"
broker, mortgage agent" and inserting "broker".Amend sec. 98, page 52, line 29, by deleting:
"
broker, mortgage agent" and inserting "broker".Amend sec. 98, page 52, line 32, by deleting:
"
broker, mortgage agent" and inserting "broker".Amend sec. 101, page 55, by deleting lines 5 and 6 and inserting:
"
the amount of any advance fee, salary, deposit or money paid toAmend sec. 102, page 55, by deleting line 31 and inserting:
"645B.170 1. All money paid to
Amend sec. 102, page 55, line 34, by deleting "
"
Amend sec. 104, page 59, lines 6 and 7, by deleting "
"
Amend sec. 105, page 59, line 32, by deleting "
subsection 5;" and inserting "this section;".Amend sec. 105, page 59, after "
3." by inserting:"
In addition to the requirements of subsections 1 and 2, a mortgage broker or mortgage agent shall not accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, unless the mortgage broker or mortgage agent gives the investor a written form by which the investor may request that the mortgage broker authorize the commissioner to release the mortgage broker’s financial statement to the investor. Such a form must be given to the investor for each loan. If the investor, before giving money to the mortgage broker for the loan, requests that the mortgage broker authorize the release of a financial statement pursuant to this subsection, the mortgage broker and his mortgage agents shall not accept money from the investor for that loan until the mortgage broker receives notice from the commissioner that the financial statement has been released to the investor.4.
".Amend sec. 105, page 60, line 3, by deleting "
4." and inserting "5.".Amend sec. 105, page 60, line 6, by deleting "
5." and inserting "6.".Amend sec. 105, page 60, by deleting lines 34 through 37 and inserting:
"
officer or director of the mortgage broker within the preceding 12 months, and the nature of any such disciplinary action;(4) Whether the mortgage broker or any general partner, officer or director of the mortgage broker has been convicted
".Amend sec. 105, page 61, line 1, by deleting "
6." and inserting "7.".Amend sec. 105, page 61, line 3, by deleting "
subsection 5," and inserting "this section,".Amend sec. 105, page 61, by deleting line 12 and inserting:
"
8. In carrying out the provisions of subsection 7, the commissioner".Amend sec. 105, page 61, line 22, by deleting "
8." and inserting "9.".Amend sec. 105, page 61, line 29, by deleting "
disclosure".Amend sec. 108, pages 62 and 63, by deleting lines 28 through 42 on page 62 and lines 1 through 13 on page 63, and inserting:
1. Each mortgage2. In addition to the requirements set forth in this chapter, each
".Amend sec. 108, page 63, between lines 19 and 20, by inserting:
"
3. If a mortgage broker violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices or any federal statute or regulation concerning deceptive advertising or the advertising of interest rates, in addition to any sanction or penalty imposed by state or federal law upon the mortgage broker for the violation, the commissioner may take any disciplinary action set forth in subsection 2 of NRS 645B.100 against the mortgage broker.".Amend sec. 113, page 64, line 33, by deleting:
"
or mortgage agent".Amend sec. 113, page 64, line 35, by deleting:
"
or mortgage agent".Amend sec. 113, page 64, line 36, by deleting:
"
or mortgage agent".Amend sec. 118, page 66, line 31, by deleting "bank accounts;" and inserting:
"accounts in banks or credit unions;".
Amend sec. 118, page 67, line 11, by deleting "80.270," and inserting "80.280,".
Amend sec. 120, page 72, line 6, after "
and" by inserting:"
the investigation of".Amend sec. 120, page 72, by deleting line 13 and inserting:
"and in
investigating persons associated with those institutions;".Amend sec. 122, page 73, by deleting lines 21 and 22 and inserting:
"
(a) In the order the checks were written;
(b) From the lowest check number to the highest check number; or
(c) In
order of ascending amounts, the check for the smallest sum being presented first.".Amend sec. 125, page 75, by deleting lines 9 through 21 and inserting:
"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 company if:
Amend sec. 127, page 75, by deleting lines 25 through 28 and inserting:
"
Title and except as otherwise provided in subsection 4 and section 128 of this act, as a condition to doing business in this state, each title agent and title insurer shall deposit with the commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 3, which is executed by a corporate surety satisfactory to the".Amend sec. 127, page 76, line 5, by deleting:
"
in the amount of $250,000,".Amend sec. 127, page 76, by deleting lines 36 through 41 and inserting:
"
3. Each title agent and title insurer shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of section 128 of this act in an amount that:(a) Is not less than $20,000 or 2 percent of the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250, whichever is greater; and
(b) Is not more than $250,000.
The commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. After the initial deposit, the commissioner shall, on an annual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.
4. A title agent or title insurer may offset or reduce the amount of the surety bond or substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection 3 by the amount of any of the following:
(a) Cash or securities deposited with the commissioner in this state pursuant to NRS 680A.140 or 682B.015.
".Amend sec. 127, page 77, by deleting lines 4 through 6 and inserting:
"
(e) Other bonds or policies of insurance maintained by the title agent".Amend the bill as a whole by adding a new section designated sec. 130.5, following sec. 130, to read as follows:
"Sec. 130.5. Section 15 of Senate Bill No. 39 of this session is hereby amended to read as follows:
Sec. 15. NRS 80.015 is hereby amended to read as follows:
(a) Maintaining, defending or settling any proceeding;
(b) Holding meetings of the board of directors or stockholders or carrying on other activities concerning internal corporate affairs;
(c) Maintaining
(d) Maintaining offices or agencies for the transfer, exchange and registration of the corporation’s own securities or maintaining trustees or depositaries with respect to those securities;
(e) Making sales through independent contractors;
(f) Soliciting or receiving orders outside of this state through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside of this state and filling them by shipping goods into this state;
(g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;
(h) Securing or collecting debts or enforcing mortgages and security interests in property securing the debts;
(i) Owning, without more, real or personal property;
(j) Isolated transactions completed within 30 days and not a part of a series of similar transactions;
(k) The production of motion pictures as defined in NRS 231.020;
(l) Transacting business as an out-of-state depository institution pursuant to the provisions of Title 55 of NRS; and
(m) Transacting business in interstate commerce.
2. The list of activities in subsection 1 is not exhaustive.
3. A person who is not doing business in this state within the meaning of this section need not qualify or comply with any provision of NRS 80.010 to
(a) Maintains an office in this state for the transaction of business; or
(b) Solicits or accepts deposits in the state, except pursuant to the provisions of chapter 666 or 666A of NRS.".
Amend the bill as a whole by deleting sec. 132 and adding:
"Sec. 132. (Deleted by amendment.)".
Amend sec. 137, page 80, by deleting lines 8 through 15 and inserting:
"Sec. 137. Notwithstanding the amendatory provisions of section 66 of this act, a mortgage broker may, until July 1, 2000, employ a person as a mortgage agent or authorize a person to be associated with the mortgage broker as a mortgage agent without registering the person with the division of financial institutions of the department of business and industry as a mortgage agent.".
Amend the bill as a whole by renumbering sec. 138 as sec. 139 and adding a new section designated sec. 138, following sec. 137, to read as follows:
"Sec. 138. 1. Notwithstanding the amendatory provisions of section 42 of this act, if, on October 1, 1999, a person holds a valid license as an escrow agency that was issued by the commissioner of financial institutions pursuant to chapter 645A of NRS before October 1, 1999, the person is not required, before July 1, 2000, to deposit a corporate surety bond or a substitute form of security in the amount set forth in the amendatory provisions of section 42 of this act.
2. Notwithstanding the amendatory provisions of section 127 of this act, if, on October 1, 1999, a person holds a valid license or certificate of authority as a title agent or title insurer that was issued by the commissioner of insurance pursuant to Title 57 of NRS before October 1, 1999,
the person is not required, before July 1, 2000, to deposit a corporate surety bond or a substitute form of security in the amount set forth in the amendatory provisions of section 127 of this act.".
Amend sec. 138, page 80, by deleting lines 16 and 17 and inserting:
"Sec. 139. 1. This section and sections 1 to 101, inclusive, 103, 105 to 117, inclusive, 119 to 138, inclusive, of this act become effective upon passage and approval for".
Amend sec. 138, page 80, by deleting line 20 and inserting:
"2. Sections 102, 104 and 118 of this act become effective upon passage and approval for the purpose of adopting any regulations necessary to carry out the provisions of this act, and at 12:01 a.m. on October 1, 1999, for all other purposes.".
Amend the title of the bill to read as follows: