Amendment No. CA25

Conference Committee Amendment to Assembly Bill No. 431 Second Reprint (BDR 52-182)

Proposed by: First Conference Committee

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted 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 5.1 through 5.7, following sec. 5, to read as follows:

"Sec. 5.1. Chapter 604 of NRS is hereby amended by adding thereto the provisions set forth as sections 5.2 to 5.5, inclusive, of this act.

Sec. 5.2. 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.

Sec. 5.3. 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.

Sec. 5.4. 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.

Sec. 5.5. 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 do 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 deposits 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 section 5.2 of this act 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.

Sec. 5.6. NRS 604.160 is hereby amended to read as follows:

604.160 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 . [or entering into a deferred deposit transaction.] The notice must be signed by the customer before [any such services are] the service is provided.

Sec. 5.7. NRS 604.170 is hereby amended to read as follows:

604.170 1. The commissioner may establish by regulation:

(a) The fees that may be imposed by a check-cashing [or deferred deposit] service for cashing checks ; [or entering into a deferred deposit transaction;] 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.".

Amend the title of the bill, second line, after "practices;" by inserting:

"revising the provisions regarding loans in the form of deferred deposits;".

Amend the summary of the bill, first line, after "lessees," by inserting "borrowers,".