Assembly Bill No. 324–Assemblymen Goldwater, Dini, Cegavske, Parks, Manendo, Berman, Buckley, Freeman, Lee
and Smith

 

March 12, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises various provisions regarding regulation of mortgage brokers, mortgage agents and mortgage companies. (BDR 54‑491)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to financial institutions; creating the mortgage industry commission; prescribing the powers and duties of the mortgage industry commission and its executive director; transferring the responsibilities of regulating mortgage brokers, mortgage agents and mortgage companies from the commissioner of financial institutions to the mortgage industry commission and its executive director; revising various provisions relating to the regulation of mortgage brokers and mortgage agents; revising provisions concerning certain powers of attorney; eliminating the advisory council on mortgage investments and mortgage lending; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 645B of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 14, inclusive, of this act.

1-3    Sec. 2.  “Executive director” means the executive director of the

1-4  commission.

1-5    Sec. 3. “Loan secured by a lien on real property” includes, without

1-6  limitation, any loan associated with a mobile home, a manufactured

1-7  home or other similar home if the loan is secured, in whole or in part, by

1-8  a lien on real property.

1-9    Sec. 4.  “Mortgage company” has the meaning ascribed to it in
NRS 645E.100.

1-10    Sec. 5.  For the purposes of this chapter:

1-11    1.  The southern district of Nevada consists of the counties of Clark,

1-12  Esmeralda, Lincoln and Nye; and

1-13    2.  The northern district of Nevada consists of all other counties of

1-14  this state.

2-1    Sec. 6.  1.  The mortgage industry commission is hereby created.

2-2    2.  The commission consists of five members appointed by the

2-3  governor. The governor shall appoint to the commission:

2-4    (a) Three members who are residents of the southern district of

2-5  Nevada; and

2-6    (b) Two members who are residents of the northern district of Nevada.

2-7    3.  If, during his term, a member changes his residency to a location

2-8  outside of the district from which he was appointed, the member shall be

2-9  deemed to have resigned from his office, and the office shall be deemed

2-10  to be vacant.

2-11    4.  A person may not be appointed to the commission unless the

2-12  person:

2-13    (a) Is a citizen of the United States;

2-14    (b) Has been a resident of this state for at least 5 years immediately

2-15  preceding the date of his appointment; and

2-16    (c) For at least 3 years immediately preceding the date of his

2-17  appointment:

2-18      (1) Has held a valid license issued by this state as a mortgage

2-19  broker or mortgage company or has been a general partner, director or

2-20  officer of such a mortgage broker or mortgage company; or

2-21      (2) Has been actively and legally engaged in this state in the

2-22  business of mortgage lending or in the activities of a mortgage agent.

2-23    5.  Before entering upon the duties of his office, a member shall take:

2-24    (a) The constitutional oath of office; and

2-25    (b) An oath that he is legally qualified to serve as a member of the

2-26  commission.

2-27    Sec. 7.  1.  After the initial terms, the members of the commission

2-28  must be appointed to terms of 3 years. Upon the expiration of his term, a

2-29  member continues to serve on the commission until a qualified person

2-30  has been appointed as his successor.

2-31    2.  Members of the commission may not be appointed to serve more

2-32  than two consecutive terms, excluding any appointment to:

2-33    (a) An initial term of less than 3 years; and

2-34    (b) An unexpired term that does not exceed 18 months.

2-35    3.  A person who has been appointed to serve two consecutive terms

2-36  on the commission may be appointed to the commission if, on the date of

2-37  his most recent appointment, more than 3 years have elapsed since the

2-38  expiration of his last term.

2-39    4.  Any vacancy in the membership of the commission must be filled

2-40  for the remainder of the unexpired term in the same manner as the

2-41  original appointment.

2-42    Sec. 8.  1.  The commission shall:

2-43    (a) Operate on the basis of a fiscal year beginning on July 1 and

2-44  ending on June 30.

2-45    (b) At the first meeting of each fiscal year, select one member as

2-46  chairman and one member as vice chairman. The chairmanship of the

2-47  commission must alternate each fiscal year between a member who is a

2-48  resident of the southern district of Nevada and a member who is a

2-49  resident of the northern district of Nevada. The vice chairman may not

3-1  be a resident of the same district as the chairman. If a vacancy occurs in

3-2  the chairmanship or vice chairmanship, the vacancy must be filled for

3-3  the remainder of the unexpired term by a member who is a resident of

3-4  the same district as his predecessor. The vice chairman shall perform the

3-5  duties of the chairman during any absence of the chairman.

3-6    2.  The commission:

3-7    (a) Shall hold at least two meetings each year, one in the southern

3-8  district of Nevada and one in the northern district of Nevada; and

3-9    (b) May hold additional meetings each year at the call of the

3-10  chairman or upon a written request submitted to the executive director by

3-11  two members of the commission.

3-12    3.  The chairman shall designate the time and place for each meeting

3-13  of the commission. Not later than 3 working days before each meeting,

3-14  the executive director shall give each member of the commission written

3-15  notice of the time, place and purpose of the meeting.

3-16    4.  Three members of the commission constitute a quorum. A

3-17  majority of the members present during a quorum may take any action or

3-18  make any decision as the commission.

3-19    5.  The commission shall:

3-20    (a) Prepare and maintain a record of its transactions and

3-21  proceedings; and

3-22    (b) Adopt a seal of which each court of this state shall take judicial

3-23  notice.

3-24    6.  While engaged in the business of the commission, each member of

3-25  the commission is entitled to receive:

3-26    (a) A salary of not more than $80 per day, as fixed by the commission;

3-27  and

3-28    (b) A per diem allowance and travel expenses at a rate fixed by the

3-29  commission. The rate must not exceed the rate provided for officers and

3-30  employees of this state generally.

3-31    Sec. 9. 1.  The commission shall designate the location of the

3-32  principal office of the commission. If the principal office of the

3-33  commission is located in:

3-34    (a) The southern district of Nevada, the commission shall establish at

3-35  least one branch office in the northern district of Nevada.

3-36    (b) The northern district of Nevada, the commission shall establish at

3-37  least one branch office in the southern district of Nevada.

3-38    2.  Within the limits of legislative appropriation, the commission may

3-39  establish such additional branch offices in this state as it considers

3-40  necessary to carry out its functions and duties.

3-41    3.  The executive director shall conduct business primarily in the

3-42  principal office of the commission.

3-43    Sec. 10.  The commission may delegate to the executive director:

3-44    1.  The authority of the commission to take any disciplinary action

3-45  and to impose any fines and penalties; and

3-46    2.  Any other authority conferred on the commission by this chapter,

3-47  chapter 645E of NRS and any other specific statute relating to the

3-48  powers and duties of the commission.

4-1    Sec. 11.  1.  The commission shall appoint an executive director

4-2  who:

4-3    (a) Within the limits of legislative appropriation, is entitled to receive

4-4  such compensation as is fixed by the commission;

4-5    (b) Is in the unclassified service of the state; and

4-6    (c) Serves at the pleasure of the commission.

4-7    2.  The executive director may not be:

4-8    (a) A member of the commission; or

4-9    (b) A licensed mortgage broker or mortgage company, a partner,

4-10  director or officer of a licensed mortgage broker or mortgage company

4-11  or, directly or indirectly, interested in, employed by or associated with a

4-12  licensed mortgage broker or mortgage company.

4-13    3.  Except as otherwise provided in NRS 284.143, the executive

4-14  director shall devote his entire time and attention to the business of his

4-15  office and shall not pursue any other business or occupation or hold any

4-16  other office of profit.

4-17    4.  The executive director:

4-18    (a) Is subject to the supervision of the commission;

4-19    (b) Is responsible for administering and carrying out the policies and

4-20  administrative functions of the commission;

4-21    (c) Shall direct and supervise all the technical and administrative

4-22  functions of the commission;

4-23    (d) Shall report to the commission all relevant and important matters

4-24  concerning the administration of the office of the commission;

4-25    (e) Shall perform the duties set forth in this chapter, chapter 645E of

4-26  NRS and any other specific statute and the duties prescribed or delegated

4-27  by the commission; and

4-28    (f) Shall perform any lawful act which he considers necessary or

4-29  desirable to carry out the purposes and provisions of this chapter,

4-30  chapter 645E of NRS and any other specific statute relating to the

4-31  powers and duties of the commission.

4-32    Sec. 12. 1.  Within the limits of legislative appropriation, the

4-33  executive director may employ such persons as he deems necessary to

4-34  carry out the functions and duties of the commission.

4-35    2.  A person employed by the executive director may not be:

4-36    (a) A member of the commission; or

4-37    (b) A licensed mortgage broker or mortgage company, a partner,

4-38  director or officer of a licensed mortgage broker or mortgage company

4-39  or, directly or indirectly, interested in, employed by or associated with a

4-40  licensed mortgage broker or mortgage company.

4-41    3.  While engaged in the business of the commission, the executive

4-42  director and each person employed by the executive director is entitled to

4-43  receive a per diem allowance and travel expenses at a rate fixed by the

4-44  commission. The rate must not exceed the rate provided for officers and

4-45  employees of this state generally.

4-46    Sec. 13.  The commission, the commissioner of financial institutions

4-47  and the division of financial institutions shall cooperate with, share

4-48  records and information with and assist each other to the extent

4-49  necessary to carry out the provisions of this chapter, chapter 645E of

5-1  NRS and any other specific statute relating to the powers and duties of

5-2  the commission, the commissioner of financial institutions and the

5-3  division of financial institutions.

5-4    Sec. 14.  1.  The attorney general is the attorney for the commission

5-5  and the executive director.

5-6    2.  The attorney general shall designate one or more of his deputies to

5-7  conduct actions, proceedings and hearings for the commission and the

5-8  executive director. Such deputies shall advise the commission and the

5-9  executive director on all matters relating to the commission.

5-10    Sec. 15.  NRS 645B.010 is hereby amended to read as follows:

5-11    645B.010  As used in this chapter, unless the context otherwise

5-12  requires, the words and terms defined in NRS 645B.0103 to 645B.0135,

5-13  inclusive, and sections 2, 3 and 4 of this act have the meanings ascribed to

5-14  them in those sections.

5-15    Sec. 16.  NRS 645B.0105 is hereby amended to read as follows:

5-16    645B.0105  [“Commissioner” means the commissioner of financial

5-17  institutions.] “Commission” means:

5-18    1.  The mortgage industry commission created pursuant to section 6

5-19  of this act; and

5-20    2.  The executive director if the mortgage industry commission has

5-21  delegated its authority to the executive director pursuant to section 10 of

5-22  this act.

5-23    Sec. 17.  NRS 645B.0111 is hereby amended to read as follows:

5-24    645B.0111  “Division[”] of financial institutions” means the division

5-25  of financial institutions of the department of business and industry.

5-26    Sec. 18.  NRS 645B.0127 is hereby amended to read as follows:

5-27    645B.0127  1.  “Mortgage broker” means a person who, directly or

5-28  indirectly:

5-29    (a) Holds himself out for hire to serve as an agent for any person in an

5-30  attempt to obtain a loan which will be secured by a lien on real property;

5-31    (b) Holds himself out for hire to serve as an agent for any person who

5-32  has money to lend, if the loan is or will be secured by a lien on real

5-33  property;

5-34    (c) Holds himself out as being able to make loans secured by liens on

5-35  real property;

5-36    (d) Holds himself out as being able to buy or sell notes secured by liens

5-37  on real property; or

5-38    (e) Offers for sale in this state any security which is exempt from

5-39  registration under state or federal law and purports to make investments in

5-40  promissory notes secured by liens on real property.

5-41    2.  The term does not include a person who is licensed as a mortgage

5-42  company[, as defined in NRS 645E.100,] pursuant to chapter 645E of

5-43  NRS, unless the person is also licensed as a mortgage broker pursuant to

5-44  this chapter.

5-45    Sec. 19.  NRS 645B.016 is hereby amended to read as follows:

5-46    645B.016  Except as otherwise provided in NRS 645B.690:

5-47    1.  A person who claims an exemption from the provisions of this

5-48  chapter pursuant to subsection 1 or 6 of NRS 645B.015 must:

6-1    (a) File a written application for a certificate of exemption with the

6-2  office of the [commissioner;] commission;

6-3    (b) Pay the fee required pursuant to NRS 645B.050; and

6-4    (c) Include with the written application satisfactory proof that the

6-5  person meets the requirements of subsection 1 or 6 of NRS 645B.015.

6-6    2.  The [commissioner] commission may require a person who claims

6-7  an exemption from the provisions of this chapter pursuant to subsections 2

6-8  to 5, inclusive, or 7 to 10, inclusive, of NRS 645B.015 to:

6-9    (a) File a written application for a certificate of exemption with the

6-10  office of the [commissioner;] commission;

6-11    (b) Pay the fee required pursuant to NRS 645B.050; and

6-12    (c) Include with the written application satisfactory proof that the

6-13  person meets the requirements of at least one of those exemptions.

6-14    3.  A certificate of exemption expires automatically if, at any time, the

6-15  person who claims the exemption no longer meets the requirements of at

6-16  least one exemption set forth in the provisions of NRS 645B.015.

6-17    4.  If a certificate of exemption expires automatically pursuant to this

6-18  section, the person shall not provide any of the services of a mortgage

6-19  broker or otherwise engage in, carry on or hold himself out as engaging in

6-20  or carrying on the business of a mortgage broker, unless the person applies

6-21  for and is issued:

6-22    (a) A license as a mortgage broker pursuant to this chapter; or

6-23    (b) Another certificate of exemption.

6-24    5.  The [commissioner] commission may impose upon a person who is

6-25  required to apply for a certificate of exemption or who holds a certificate of

6-26  exemption an administrative fine of not more than $10,000 for each

6-27  violation that he commits, if the person:

6-28    (a) Has knowingly made or caused to be made to the [commissioner]

6-29  commission any false representation of material fact;

6-30    (b) Has suppressed or withheld from the [commissioner] commission

6-31  any information which the person possesses and which, if submitted by

6-32  him, would have rendered the person ineligible to hold a certificate of

6-33  exemption; or

6-34    (c) Has violated any provision of this chapter, a regulation adopted

6-35  pursuant to this chapter or an order of the [commissioner] commission that

6-36  applies to a person who is required to apply for a certificate of exemption

6-37  or who holds a certificate of exemption.

6-38    Sec. 20.  NRS 645B.018 is hereby amended to read as follows:

6-39    645B.018  1.  A person may apply to the [commissioner] commission

6-40  for an exemption from the provisions of this chapter governing the making

6-41  of a loan of money.

6-42    2.  The [commissioner] commission may grant the exemption if [he]

6-43  the commission finds that:

6-44    (a) The making of the loan would not be detrimental to the financial

6-45  condition of the lender, the debtor or the person who is providing the

6-46  money for the loan;

6-47    (b) The lender, the debtor or the person who is providing the money for

6-48  the loan has established a record of sound performance, efficient

6-49  management, financial responsibility and integrity;

7-1    (c) The making of the loan is likely to increase the availability of capital

7-2  for a sector of the state economy; and

7-3    (d) The making of the loan is not detrimental to the public interest.

7-4    3.  The [commissioner:] commission:

7-5    (a) May revoke an exemption unless the loan for which the exemption

7-6  was granted has been made; and

7-7    (b) Shall issue a written statement setting forth the reasons for [his] its

7-8  decision to grant, deny or revoke an exemption.

7-9    Sec. 21.  NRS 645B.020 is hereby amended to read as follows:

7-10    645B.020  1.  A person who wishes to be licensed as a mortgage

7-11  broker must file a written application for a license with the office of the

7-12  [commissioner] commission and pay the fee required pursuant to
NRS 645B.050. An application for a license as a mortgage broker must:

7-13    (a) Be verified.

7-14    (b) State the name, residence address and business address of the

7-15  applicant and the location of each principal office and branch office at

7-16  which the mortgage broker will conduct business within this state.

7-17    (c) State the name under which the applicant will conduct business as a

7-18  mortgage broker.

7-19    (d) List the name, residence address and business address of each

7-20  person who will:

7-21      (1) If the applicant is not a natural person, have an interest in the

7-22  mortgage broker as a principal, partner, officer, director or trustee,

7-23  specifying the capacity and title of each such person.

7-24      (2) Be associated with or employed by the mortgage broker as a

7-25  mortgage agent.

7-26    (e) If the applicant is a natural person, include the social security

7-27  number of the applicant.

7-28    (f) Include a general business plan and a [manual for policies and

7-29  procedures for the mortgage broker and his mortgage agents that includes,

7-30  without limitation, the underwriting standards, restrictions and] description

7-31  of the policies and procedures that the mortgage broker and his mortgage

7-32  agents will follow to arrange and service loans and to conduct business

7-33  pursuant to this chapter.

7-34    (g) State the length of time the applicant has been engaged in the

7-35  business of a broker.

7-36    (h) Include a financial statement of the applicant and, if applicable,

7-37  satisfactory proof that the applicant will be able to maintain continuously

7-38  the net worth required pursuant to NRS 645B.115.

7-39    (i) Include any other information required pursuant to the regulations

7-40  adopted by the [commissioner] commission or an order of the

7-41  [commissioner.] commission.

7-42    2.  If a mortgage broker will conduct business at one or more branch

7-43  offices within this state, the mortgage broker must apply for a license for

7-44  each such branch office.

7-45    3.  Except as otherwise provided in this chapter, the [commissioner]

7-46  commission shall issue a license to an applicant as a mortgage broker if:

7-47    (a) The application complies with the requirements of this chapter;

8-1    (b) The applicant submits the statement required pursuant to
NRS 645B.023, if the applicant is required to do so; and

8-2    (c) The applicant and each general partner, officer or director of the

8-3  applicant, if the applicant is a partnership, corporation or unincorporated

8-4  association:

8-5       (1) Has a good reputation for honesty, trustworthiness and integrity

8-6  and displays competence to transact the business of a mortgage broker in a

8-7  manner which safeguards the interests of the general public. The applicant

8-8  must submit satisfactory proof of these qualifications to the

8-9  [commissioner.] commission.

8-10      (2) Has not been convicted of, or entered a plea of nolo contendere

8-11  to, a felony or any crime involving fraud, misrepresentation or moral

8-12  turpitude.

8-13      (3) Has not made a false statement of material fact on his application.

8-14      (4) Has not had a license that was issued pursuant to the provisions of

8-15  this chapter or chapter 645E of NRS suspended or revoked within the 10

8-16  years immediately preceding the date of his application.

8-17      (5) Has not had a license that was issued in any other state, district or

8-18  territory of the United States or any foreign country suspended or revoked

8-19  within the 10 years immediately preceding the date of his application.

8-20      (6) Has not violated any provision of this chapter or chapter 645E of

8-21  NRS, a regulation adopted pursuant thereto or an order of the

8-22  [commissioner.] commission.

8-23    Sec. 22.  NRS 645B.023 is hereby amended to read as follows:

8-24    645B.023  1.  A natural person who applies for the issuance or

8-25  renewal of a license as a mortgage broker shall submit to the

8-26  [commissioner] commission the statement prescribed by the welfare

8-27  division of the department of human resources pursuant to NRS 425.520.

8-28  The statement must be completed and signed by the applicant.

8-29    2.  The [commissioner] commission shall include the statement

8-30  required pursuant to subsection 1 in:

8-31    (a) The application or any other forms that must be submitted for the

8-32  issuance or renewal of the license; or

8-33    (b) A separate form prescribed by the [commissioner.] commission.

8-34    3.  A license as a mortgage broker may not be issued or renewed by the

8-35  [commissioner] commission if the applicant is a natural person who:

8-36    (a) Fails to submit the statement required pursuant to subsection 1; or

8-37    (b) Indicates on the statement submitted pursuant to subsection 1 that he

8-38  is subject to a court order for the support of a child and is not in

8-39  compliance with the order or a plan approved by the district attorney or

8-40  other public agency enforcing the order for the repayment of the amount

8-41  owed pursuant to the order.

8-42    4.  If an applicant indicates on the statement submitted pursuant to

8-43  subsection 1 that he is subject to a court order for the support of a child and

8-44  is not in compliance with the order or a plan approved by the district

8-45  attorney or other public agency enforcing the order for the repayment of

8-46  the amount owed pursuant to the order, the [commissioner] commission

8-47  shall advise the applicant to contact the district attorney or other public

9-1  agency enforcing the order to determine the actions that the applicant may

9-2  take to satisfy the arrearage.

9-3    Sec. 23.  NRS 645B.0243 is hereby amended to read as follows:

9-4    645B.0243  The [commissioner] commission may refuse to issue a

9-5  license to an applicant if the [commissioner] commission has reasonable

9-6  cause to believe that the applicant or any general partner, officer or director

9-7  of the applicant has, after October 1, 1999, employed or proposed to

9-8  employ a person as a mortgage agent or authorized or proposed to

9-9  authorize a person to be associated with a mortgage broker as a mortgage

9-10  agent at a time when the applicant or the general partner, officer or director

9-11  knew or, in light of all the surrounding facts and circumstances, reasonably

9-12  should have known that the person:

9-13    1.  Had been convicted of, or entered a plea of nolo contendere to, a

9-14  felony or any crime involving fraud, misrepresentation or moral turpitude;

9-15  or

9-16    2.  Had a financial services license or registration suspended or revoked

9-17  within the immediately preceding 10 years.

9-18    Sec. 24.  NRS 645B.0245 is hereby amended to read as follows:

9-19    645B.0245  1.  If an applicant is a natural person, the [commissioner]

9-20  commission may refuse to issue a license to the applicant if the

9-21  [commissioner] commission has reasonable cause to believe that the

9-22  applicant would be subject to control by a relative who would be ineligible

9-23  to be licensed pursuant to this chapter.

9-24    2.  If an applicant is a partnership, corporation or unincorporated

9-25  association, the [commissioner] commission may refuse to issue a license

9-26  to the applicant if:

9-27    (a) Any member of the partnership or any officer or director of the

9-28  corporation or unincorporated association has committed any act or

9-29  omission that would be cause for refusing to issue a license to a natural

9-30  person; or

9-31    (b) The [commissioner] commission has reasonable cause to believe

9-32  that any member of the partnership or any officer or director of the

9-33  corporation or unincorporated association would be subject to control by a

9-34  relative who would be ineligible to be licensed pursuant to this chapter.

9-35    Sec. 25.  NRS 645B.0247 is hereby amended to read as follows:

9-36    645B.0247  The provisions of NRS 645B.0243 and 645B.0245 do not

9-37  limit the authority of the [commissioner] commission to refuse to issue a

9-38  license to an applicant for any other lawful reason or pursuant to any other

9-39  provision of law.

9-40    Sec. 26.  NRS 645B.025 is hereby amended to read as follows:

9-41    645B.025  1.  A mortgage broker shall post each license in a

9-42  conspicuous place in the office to which it pertains.

9-43    2.  A mortgage broker may not transfer or assign a license to another

9-44  person, unless the [commissioner gives his] commission gives its written

9-45  approval.

9-46    Sec. 27.  NRS 645B.035 is hereby amended to read as follows:

9-47    645B.035  1.  A license entitles a licensee to engage only in [the] :

9-48    (a) The activities authorized by this chapter[.] ; and

10-1    (b) The activities authorized by chapter 645E of NRS, unless the

10-2  licensee engages in such activities with the intent to circumvent or avoid

10-3  the provisions of this chapter. A licensee who engages in activities

10-4  authorized by chapter 645E of NRS remains subject to the provisions of

10-5  this chapter while engaged in such activities.

10-6    2.  The provisions of this chapter do not prohibit a licensee from:

10-7    (a) Holding a license as a mortgage company pursuant to chapter 645E

10-8  of NRS; or

10-9    (b) Conducting the business of a mortgage company and the business of

10-10  a mortgage broker in the same office or place of business.

10-11  Sec. 28.  NRS 645B.050 is hereby amended to read as follows:

10-12  645B.050  1.  A license issued pursuant to this chapter expires each

10-13  year on June 30, unless it is renewed. To renew a license, the licensee must

10-14  submit to the [commissioner] commission on or before June 30 of each

10-15  year:

10-16  (a) An application for renewal;

10-17  (b) The fee required to renew the license pursuant to this section; and

10-18  (c) If the licensee is a natural person, the statement required pursuant to

10-19  NRS 645B.023.

10-20  2.  If the licensee fails to submit any item required pursuant to

10-21  subsection 1 to the [commissioner] commission on or before June 30 of

10-22  any year, the license is canceled. The [commissioner] commission may

10-23  reinstate a canceled license if the licensee submits to the [commissioner:]

10-24  commission:

10-25  (a) An application for renewal;

10-26  (b) The fee required to renew the license pursuant to this section;

10-27  (c) If the licensee is a natural person, the statement required pursuant to

10-28  NRS 645B.023; and

10-29  (d) A reinstatement fee of $200.

10-30  3.  Except as otherwise provided in NRS 645B.016, a certificate of

10-31  exemption issued pursuant to this chapter expires each year on December

10-32  31, unless it is renewed. To renew a certificate of exemption, a person must

10-33  submit to the [commissioner] commission on or before December 31 of

10-34  each year:

10-35  (a) An application for renewal that includes satisfactory proof that the

10-36  person meets the requirements for an exemption from the provisions of this

10-37  chapter; and

10-38  (b) The fee required to renew the certificate of exemption.

10-39  4.  If the person fails to submit any item required pursuant to

10-40  subsection 3 to the [commissioner] commission on or before December 31

10-41  of any year, the certificate of exemption is canceled. Except as otherwise

10-42  provided in NRS 645B.016, the [commissioner] commission may reinstate

10-43  a canceled certificate of exemption if the person submits to the

10-44  [commissioner:] commission:

10-45  (a) An application for renewal that includes satisfactory proof that the

10-46  person meets the requirements for an exemption from the provisions of this

10-47  chapter;

10-48  (b) The fee required to renew the certificate of exemption; and

10-49  (c) A reinstatement fee of $100.

11-1    5.  A person must pay the following fees to apply for, to be issued or to

11-2  renew a license as a mortgage broker pursuant to this chapter:

11-3    (a) To file an original application or a license, $1,500 for the principal

11-4  office and $40 for each branch office. The person must also pay such

11-5  additional expenses incurred in the process of investigation as the

11-6  [commissioner] commission deems necessary. All money received by the

11-7  [commissioner] commission pursuant to this paragraph must be placed in

11-8  the investigative account created by NRS 232.545.

11-9    (b) To be issued a license, $1,000 for the principal office and $60 for

11-10  each branch office.

11-11  (c) To renew a license, $500 for the principal office and $100 for each

11-12  branch office.

11-13  6.  A person must pay the following fees to apply for or to renew a

11-14  certificate of exemption pursuant to this chapter:

11-15  (a) To file an application for a certificate of exemption, $200.

11-16  (b) To renew a certificate of exemption, $100.

11-17  7.  To be issued a duplicate copy of any license or certificate of

11-18  exemption, a person must make a satisfactory showing of its loss and pay a

11-19  fee of $10.

11-20  8.  Except as otherwise provided in this chapter, all fees received

11-21  pursuant to this chapter must be deposited in the state treasury for credit to

11-22  the state general fund.

11-23  Sec. 29.  NRS 645B.060 is hereby amended to read as follows:

11-24  645B.060  1.  Subject to the administrative control of the director of

11-25  the department of business and industry, the [commissioner] commission

11-26  shall exercise general supervision and control over mortgage brokers doing

11-27  business in this state.

11-28  2.  In addition to the other duties imposed upon [him] the commission

11-29  by law, the [commissioner] commission shall:

11-30  (a) Adopt any regulations [prescribing standards for determining

11-31  whether a mortgage broker has maintained adequate supervision of a

11-32  mortgage agent pursuant to this chapter.

11-33  (b) Adopt any other regulations] that are necessary to carry out the

11-34  provisions of this chapter, except as to loan brokerage fees.

11-35  [(c)] (b) Conduct such investigations as may be necessary to determine

11-36  whether any person has violated any provision of this chapter, a regulation

11-37  adopted pursuant to this chapter or an order of the [commissioner.

11-38  (d)] commission.

11-39  (c) Conduct an annual examination of each mortgage broker doing

11-40  business in this state.

11-41  [(e)] The annual examination must include, without limitation, a

11-42  formal exit review with the mortgage broker. The commission shall adopt

11-43  regulations prescribing:

11-44     (1) Standards for determining the rating of each mortgage broker

11-45  based upon the results of the annual examination; and

11-46     (2) Procedures for resolving any objections made by the mortgage

11-47  broker to the results of the annual examination. The results of the

11-48  annual examination may not be opened to public inspection pursuant to

12-1  NRS 645B.090 until any objections made by the mortgage broker have

12-2  been decided by the commission.

12-3    (d) Conduct such other examinations, periodic or special audits,

12-4  investigations and hearings as may be necessary and proper for the

12-5  efficient administration of the laws of this state regarding mortgage brokers

12-6  and mortgage agents. The [commissioner] commission shall adopt

12-7  regulations specifying the general guidelines that will be followed when a

12-8  periodic or special audit of a mortgage broker is conducted pursuant to this

12-9  chapter.

12-10  [(f)] (e) Classify as confidential certain records and information

12-11  obtained by the [division] commission when those matters are obtained

12-12  from a governmental agency upon the express condition that they remain

12-13  confidential. This paragraph does not limit examination by the legislative

12-14  auditor.

12-15  [(g)] (f) Conduct such examinations and investigations as are necessary

12-16  to ensure that mortgage brokers meet the requirements of this chapter for

12-17  obtaining a license, both at the time of the application for a license and

12-18  thereafter on a continuing basis.

12-19  3.  For each special audit, investigation or examination, a mortgage

12-20  broker shall pay a fee based on the [rate established] rates that the

12-21  commission establishes by regulation. In establishing such rates, the

12-22  commission shall consider:

12-23  (a) The complexity of the various audits, investigations and

12-24  examinations to which the rates apply;

12-25  (b) The skill required to conduct the audits, investigations and

12-26  examinations;

12-27  (c) The expenses associated with conducting the audits, investigations

12-28  and examinations and preparing reports;

12-29  (d) The rates established by the commissioner of financial institutions

12-30  pursuant to NRS 658.101[.] for supervision and examination of other

12-31  financial institutions; and

12-32  (e) Any other factors the commission deems relevant.

12-33  Sec. 30.  NRS 645B.070 is hereby amended to read as follows:

12-34  645B.070  1.  In the conduct of any examination, periodic or special

12-35  audit, investigation or hearing, the [commissioner] commission may:

12-36  (a) Compel the attendance of any person by subpoena.

12-37  (b) Administer oaths.

12-38  (c) Examine any person under oath concerning the business and conduct

12-39  of affairs of any person subject to the provisions of this chapter and in

12-40  connection therewith require the production of any books, records or

12-41  papers relevant to the inquiry.

12-42  2.  Any person subpoenaed under the provisions of this section who

12-43  willfully refuses or willfully neglects to appear at the time and place named

12-44  in the subpoena or to produce books, records or papers required by the

12-45  [commissioner,] commission, or who refuses to be sworn or answer as a

12-46  witness, is guilty of a misdemeanor and shall be punished as provided in

12-47  NRS 645B.950.

12-48  3.  The [commissioner] commission may assess against and collect

12-49  from a person all costs, including, without limitation, reasonable attorney’s

13-1  fees, that are attributable to any examination, periodic or special audit,

13-2  investigation or hearing that is conducted to examine or investigate the

13-3  conduct, activities or business of the person pursuant to this chapter.

13-4    Sec. 31.  NRS 645B.075 is hereby amended to read as follows:

13-5    645B.075  1.  The commission shall employ a certified public

13-6  accountant to review and conduct independent audits and examinations

13-7  of mortgage brokers. The commission shall levy an assessment upon

13-8  each mortgage broker to cover all the costs related to the employment of

13-9  the certified public accountant and the performance of the audits and

13-10  examinations.

13-11  2.  Each mortgage broker shall pay the assessment levied pursuant to

13-12  [NRS 658.055.] this section.

13-13  3.  Each mortgage broker and mortgage agent shall cooperate fully with

13-14  the audits and examinations performed pursuant [thereto.] to this section.

13-15  4.  The assessments collected by the commission pursuant to this

13-16  section must be deposited in the state treasury for credit to the account

13-17  for auditing mortgage brokers and mortgage companies, which is hereby

13-18  created in the state general fund. The commission shall use the money in

13-19  the account, and may advance money from the account, for the purposes

13-20  set forth in this section and NRS 645E.320.

13-21  Sec. 32.  NRS 645B.080 is hereby amended to read as follows:

13-22  645B.080  1.  Each mortgage broker shall keep and maintain at all

13-23  times at each location where the mortgage broker conducts business in this

13-24  state complete and suitable records of all mortgage transactions made by

13-25  the mortgage broker at that location. Each mortgage broker shall also keep

13-26  and maintain at all times at each such location all original books, papers

13-27  and data, or copies thereof, clearly reflecting the financial condition of the

13-28  business of the mortgage broker.

13-29  2.  Each mortgage broker shall submit to the [commissioner]

13-30  commission each month a report of the mortgage broker’s activity for the

13-31  previous month. The report must:

13-32  (a) Specify the volume of loans arranged by the mortgage broker for the

13-33  month or state that no loans were arranged in that month;

13-34  (b) Include any information required pursuant to NRS 645B.260 or

13-35  pursuant to the regulations adopted by the [commissioner;] commission;

13-36  and

13-37  (c) Be submitted to the [commissioner] commission by the 15th day of

13-38  the month following the month for which the report is made.

13-39  3.  The [commissioner] commission may adopt regulations prescribing

13-40  accounting procedures for mortgage brokers handling trust accounts and

13-41  the requirements for keeping records relating to such accounts.

13-42  Sec. 33.  NRS 645B.085 is hereby amended to read as follows:

13-43  645B.085  1.  Except as otherwise provided in this section, not later

13-44  than 60 days after the last day of each fiscal year for a mortgage broker, the

13-45  mortgage broker shall submit to the [commissioner] commission a

13-46  financial statement that:

13-47  (a) Is dated not earlier than the last day of the fiscal year; and

13-48  (b) Has been prepared from the books and records of the mortgage

13-49  broker by an independent public accountant who holds a permit to engage

14-1  in the practice of public accounting in this state that has not been revoked

14-2  or suspended.

14-3    2.  The [commissioner] commission may grant a reasonable extension

14-4  for the submission of a financial statement pursuant to this section if a

14-5  mortgage broker requests such an extension before the date on which the

14-6  financial statement is due.

14-7    3.  If a mortgage broker maintains any accounts described in subsection

14-8  1 of NRS 645B.175, the financial statement submitted pursuant to this

14-9  section must be audited. If a mortgage broker maintains any accounts

14-10  described in subsection 4 of NRS 645B.175, those accounts must be

14-11  audited. The public accountant who prepares the report of an audit shall

14-12  submit a copy of the report to the [commissioner] commission at the same

14-13  time that he submits the report to the mortgage broker.

14-14  4.  The [commissioner] commission shall adopt regulations prescribing

14-15  the scope of an audit conducted pursuant to subsection 3.

14-16  Sec. 34.  NRS 645B.090 is hereby amended to read as follows:

14-17  645B.090  1.  Except as otherwise provided in this section or by

14-18  specific statute, all papers, documents, reports and other written

14-19  instruments filed with the [commissioner] commission pursuant to this

14-20  chapter are open to public inspection.

14-21  2.  Except as otherwise provided in subsection 3, the [commissioner]

14-22  commission may withhold from public inspection or refuse to disclose to a

14-23  person, for such time as the [commissioner] commission considers

14-24  necessary, any information that, in [his judgment,] the judgment of the

14-25  commission, would:

14-26  (a) Impede or otherwise interfere with an investigation that is currently

14-27  pending against a mortgage broker;

14-28  (b) Have an undesirable effect on the welfare of the public or the

14-29  welfare of any mortgage broker or mortgage agent; or

14-30  (c) Give any mortgage broker a competitive advantage over any other

14-31  mortgage broker.

14-32  3.  The [commissioner] commission shall disclose the following

14-33  information concerning a mortgage broker to any person who requests it:

14-34  (a) The findings and results of any investigation which has been

14-35  completed during the immediately preceding 5 years against the mortgage

14-36  broker pursuant to the provisions of this chapter and which has resulted in

14-37  a finding by the [commissioner] commission that the mortgage broker

14-38  committed a violation of a provision of this chapter, a regulation adopted

14-39  pursuant to this chapter or an order of the [commissioner;] commission;

14-40  and

14-41  (b) The nature of any disciplinary action that has been taken during the

14-42  immediately preceding 5 years against the mortgage broker pursuant to the

14-43  provisions of this chapter.

14-44  Sec. 35.  NRS 645B.095 is hereby amended to read as follows:

14-45  645B.095  1.  As used in this section, “change of control” means:

14-46  (a) A transfer of voting stock which results in giving a person, directly

14-47  or indirectly, the power to direct the management and policy of a mortgage

14-48  broker; or

15-1    (b) A transfer of at least 25 percent of the outstanding voting stock of a

15-2  mortgage broker.

15-3    2.  The [commissioner] commission must be notified of a transfer of 5

15-4  percent or more of the outstanding voting stock of a mortgage broker and

15-5  must approve a transfer of voting stock of a mortgage broker which

15-6  constitutes a change of control.

15-7    3.  The person who acquires stock resulting in a change of control of

15-8  the mortgage broker shall apply to the [commissioner] commission for

15-9  approval of the transfer. The application must contain information which

15-10  shows that the requirements of this chapter for obtaining a license will be

15-11  satisfied after the change of control. Except as otherwise provided in

15-12  subsection 4, the [commissioner] commission shall conduct an

15-13  investigation to determine whether those requirements will be satisfied. If,

15-14  after the investigation, the [commissioner] commission denies the

15-15  application, [he] the commission may forbid the applicant from

15-16  participating in the business of the mortgage broker.

15-17  4.  A mortgage broker may submit a written request to the

15-18  [commissioner] commission to waive an investigation pursuant to

15-19  subsection 3. The [commissioner] commission may grant a waiver if the

15-20  applicant has undergone a similar investigation by a state or federal agency

15-21  in connection with the licensing of or his employment with a financial

15-22  institution.

15-23  Sec. 36.  NRS 645B.115 is hereby amended to read as follows:

15-24  645B.115  1.  If a mortgage broker maintains any accounts described

15-25  in NRS 645B.175, the mortgage broker and his mortgage agents shall not

15-26  engage in any activity that is authorized pursuant to this chapter, unless the

15-27  mortgage broker maintains continuously a minimum net worth in the

15-28  following amount based upon the average monthly balance of the accounts

15-29  maintained by the mortgage broker pursuant to NRS 645B.175:

15-30  AVERAGE MONTHLY BALANCE   MINIMUM NET

15-31                                                                                 WORTH REQUIRED

15-32  $100,000 or less...................................... $25,000

15-33  More than $100,000 but not more than $250,000   50,000

15-34  More than $250,000 but not more than $500,000   100,000

15-35  More than $500,000 but not more than $1,000,000   200,000

15-36  More than $1,000,000.............................. 250,000

15-37  The [commissioner] commission shall determine the appropriate initial

15-38  minimum net worth that must be maintained by the mortgage broker

15-39  pursuant to this section based upon the expected average monthly balance

15-40  of the accounts maintained by the mortgage broker pursuant to
NRS 645B.175. After determining the initial minimum net worth that must

15-41  be maintained by the mortgage broker, the [commissioner] commission

15-42  shall, on an annual basis, determine the appropriate minimum net worth

15-43  that must be maintained by the mortgage broker pursuant to this section

15-44  based upon the average monthly balance of the accounts maintained by the

15-45  mortgage broker pursuant to NRS 645B.175.

15-46  2.  If requested by the [commissioner,] commission, a mortgage broker

15-47  who is subject to the provisions of this section and his mortgage agents

15-48  shall submit to the [commissioner] commission or allow the

16-1  [commissioner] commission to examine any documentation or other

16-2  evidence that is related to determining the net worth of the mortgage

16-3  broker.

16-4    3.  The [commissioner:] commission:

16-5    (a) Shall adopt regulations prescribing standards for determining the net

16-6  worth of a mortgage broker; and

16-7    (b) May adopt any other regulations that are necessary to carry out the

16-8  provisions of this section.

16-9    Sec. 37.  NRS 645B.170 is hereby amended to read as follows:

16-10  645B.170  1.  All money paid to a mortgage broker and his mortgage

16-11  agents for payment of taxes or insurance premiums on real property which

16-12  secures any loan arranged by the mortgage broker must be deposited in an

16-13  insured depository financial institution and kept separate, distinct and apart

16-14  from money belonging to the mortgage broker. Such money, when

16-15  deposited, is to be designated as an “impound trust account” or under some

16-16  other appropriate name indicating that the accounts are not the money of

16-17  the mortgage broker.

16-18  2.  The mortgage broker has a fiduciary duty to each debtor with

16-19  respect to the money in an impound trust account.

16-20  3.  The mortgage broker shall, upon reasonable notice, account to any

16-21  debtor whose real property secures a loan arranged by the mortgage broker

16-22  for any money which that person has paid to the mortgage broker for the

16-23  payment of taxes or insurance premiums on the real property.

16-24  4.  The mortgage broker shall, upon reasonable notice, account to the

16-25  [commissioner] commission for all money in an impound trust account.

16-26  5.  A mortgage broker shall:

16-27  (a) Require contributions to an impound trust account in an amount

16-28  reasonably necessary to pay the obligations as they become due.

16-29  (b) Within 30 days after the completion of the annual review of an

16-30  impound trust account, notify the debtor:

16-31     (1) Of the amount by which the contributions exceed the amount

16-32  reasonably necessary to pay the annual obligations due from the account;

16-33  and

16-34     (2) That the debtor may specify the disposition of the excess money

16-35  within 20 days after receipt of the notice. If the debtor fails to specify such

16-36  a disposition within that time, the mortgage broker shall maintain the

16-37  excess money in the account.

16-38  This subsection does not prohibit a mortgage broker from requiring

16-39  additional amounts to be paid into an impound trust account to recover a

16-40  deficiency that exists in the account.

16-41  6.  A mortgage broker shall not make payments from an impound trust

16-42  account in a manner that causes a policy of insurance to be canceled or

16-43  causes property taxes or similar payments to become delinquent.

16-44  Sec. 38.  NRS 645B.175 is hereby amended to read as follows:

16-45  645B.175  1.  Except as otherwise provided in this section, all money

16-46  received by a mortgage broker and his mortgage agents from an investor to

16-47  acquire ownership of or a beneficial interest in a loan secured by a lien on

16-48  real property must:

16-49  (a) Be deposited in:

17-1      (1) An insured depository financial institution; or

17-2      (2) An escrow account which is controlled by a person who is

17-3  independent of the parties and subject to instructions regarding the account

17-4  which are approved by the parties.

17-5    (b) Be kept separate from money:

17-6      (1) Belonging to the mortgage broker in an account appropriately

17-7  named to indicate that the money does not belong to the mortgage broker.

17-8      (2) Received pursuant to subsection 4.

17-9    2.  Except as otherwise provided in this section, the amount held in

17-10  trust pursuant to subsection 1 must be released:

17-11  (a) Upon completion of the loan, including proper recordation of the

17-12  respective interests or release, or upon completion of the transfer of the

17-13  ownership or beneficial interest therein, to the debtor or his designee less

17-14  the amount due the mortgage broker for the payment of any fee or service

17-15  charge;

17-16  (b) If the loan or the transfer thereof is not consummated, to each

17-17  investor who furnished the money held in trust; or

17-18  (c) Pursuant to any instructions regarding the escrow account.

17-19  3.  The amount held in trust pursuant to subsection 1 must not be

17-20  released to the debtor or his designee unless:

17-21  (a) The amount released is equal to the total amount of money which is

17-22  being loaned to the debtor for that loan, less the amount due the mortgage

17-23  broker for the payment of any fee or service charge; and

17-24  (b) The mortgage broker has provided a written instruction to a title

17-25  agent or title insurer requiring that a lender’s policy of title insurance or

17-26  appropriate title endorsement, which names as an insured each investor

17-27  who owns a beneficial interest in the loan, be issued for the real property

17-28  securing the loan.

17-29  4.  Except as otherwise provided in this section, all money paid to a

17-30  mortgage broker and his mortgage agents by a person in full or in partial

17-31  payment of a loan secured by a lien on real property[,] must:

17-32  (a) Be deposited in:

17-33     (1) An insured depository financial institution; or

17-34     (2) An escrow account which is controlled by a person who is subject

17-35  to instructions regarding the account which are approved by the parties.

17-36  (b) Be kept separate from money:

17-37     (1) Belonging to the mortgage broker in an account appropriately

17-38  named to indicate that it does not belong to the mortgage broker.

17-39     (2) Received pursuant to subsection 1.

17-40  5.  Except as otherwise provided in this section, the amount held in

17-41  trust pursuant to subsection 4:

17-42  (a) Must be released, upon the deduction and payment of any fee or

17-43  service charge due the mortgage broker, to each investor who owns a

17-44  beneficial interest in the loan in exact proportion to the beneficial interest

17-45  that he owns in the loan; and

17-46  (b) Must not be released, in any proportion, to an investor who owns a

17-47  beneficial interest in the loan, unless the amount described in paragraph (a)

17-48  is also released to every other investor who owns a beneficial interest in
the loan.

18-1    6.  An investor may waive, in writing, the right to receive one or more

18-2  payments, or portions thereof, that are released to other investors in the

18-3  manner set forth in subsection 5. A mortgage broker or mortgage agent

18-4  shall not act as the attorney in fact or the agent of an investor with respect

18-5  to the giving of a written waiver pursuant to this subsection. Any such

18-6  written waiver applies only to the payment or payments, or portions

18-7  thereof, that are included in the written waiver and does not affect the right

18-8  of the investor to:

18-9    (a) Receive the waived payment or payments, or portions thereof, at a

18-10  later date; or

18-11  (b) Receive all other payments in full and in accordance with the

18-12  provisions of subsection 5.

18-13  7.  Upon reasonable notice, any mortgage broker described in this

18-14  section shall:

18-15  (a) Account to any investor or debtor who has paid to the mortgage

18-16  broker or his mortgage agents money that is required to be deposited in a

18-17  trust account pursuant to this section; and

18-18  (b) Account to the [commissioner] commission for all money which the

18-19  mortgage broker and his mortgage agents have received from each investor

18-20  or debtor and which the mortgage broker is required to deposit in a trust

18-21  account pursuant to this section.

18-22  8.  Money received by a mortgage broker and his mortgage agents

18-23  pursuant to this section from a person who is not associated with the

18-24  mortgage broker may be held in trust for not more than 45 days before an

18-25  escrow account must be opened in connection with the loan. If, within this

18-26  45-day period, the loan or the transfer therefor is not consummated, the

18-27  money must be returned within 24 hours. If the money is so returned, it

18-28  may not be reinvested with the mortgage broker for at least 15 days.

18-29  9.  If a mortgage broker or a mortgage agent receives any money

18-30  pursuant to this section, the mortgage broker or mortgage agent, after the

18-31  deduction and payment of any fee or service charge due the mortgage

18-32  broker, shall not release the money to:

18-33  (a) Any person who does not have a contractual or legal right to receive

18-34  the money; or

18-35  (b) Any person who has a contractual right to receive the money if the

18-36  mortgage broker or mortgage agent knows or, in light of all the

18-37  surrounding facts and circumstances, reasonably should know that the

18-38  person’s contractual right to receive the money violates any provision of

18-39  this chapter or a regulation adopted pursuant to this chapter.

18-40  Sec. 39.  NRS 645B.185 is hereby amended to read as follows:

18-41  645B.185  1.  A mortgage broker or mortgage agent shall not accept

18-42  money from an investor to acquire ownership of or a beneficial interest in a

18-43  loan secured by a lien on real property unless:

18-44  (a) The investor and the mortgage broker or mortgage agent sign and

18-45  date a disclosure form that complies with the provisions of this section; and

18-46  (b) The mortgage broker or mortgage agent gives the investor the

18-47  original disclosure form that has been signed and dated.

18-48  2.  An investor and a mortgage broker or mortgage agent must sign and

18-49  date a separate disclosure form pursuant to subsection 1 for each loan in

19-1  which the investor invests his money. A mortgage broker or mortgage

19-2  agent shall not act as the attorney in fact or the agent of an investor with

19-3  respect to the signing or dating of any disclosure form.

19-4    3.  In addition to the requirements of subsections 1 and 2, a mortgage

19-5  broker or mortgage agent shall not accept money from an investor to

19-6  acquire ownership of or a beneficial interest in a loan secured by a lien on

19-7  real property, unless the mortgage broker or mortgage agent gives the

19-8  investor a written form by which the investor may request that the

19-9  mortgage broker authorize the [commissioner] commission to release the

19-10  mortgage broker’s financial statement to the investor. Such a form must be

19-11  given to the investor for each loan. If the investor, before giving money to

19-12  the mortgage broker for the loan, requests that the mortgage broker

19-13  authorize the release of a financial statement pursuant to this subsection,

19-14  the mortgage broker and his mortgage agents shall not accept money from

19-15  the investor for that loan until the mortgage broker receives notice from the

19-16  [commissioner] commission that the financial statement has been released

19-17  to the investor.

19-18  4.  An investor and a mortgage broker or mortgage agent may not agree

19-19  to alter or waive the provisions of this section by contract or other

19-20  agreement. Any such contract or agreement is void and must not be given

19-21  effect to the extent that it violates the provisions of this section.

19-22  5.  A mortgage broker shall retain a copy of each disclosure form that is

19-23  signed and dated pursuant to subsection 1 for the period that is prescribed

19-24  in the regulations adopted by the [commissioner.] commission.

19-25  6.  The standard provisions for each such disclosure form must include,

19-26  without limitation, statements:

19-27  (a) Explaining the risks of investing through the mortgage broker,

19-28  including, without limitation:

19-29     (1) The possibility that the debtor may default on the loan;

19-30     (2) The nature of the losses that may result through foreclosure;

19-31     (3) The fact that payments of principal and interest are not guaranteed

19-32  and that the investor may lose the entire amount of principal that he has

19-33  invested;

19-34     (4) The fact that the mortgage broker is not a depository financial

19-35  institution and that the investment is not insured by any depository

19-36  insurance and is not otherwise insured or guaranteed by the federal or state

19-37  government; and

19-38     (5) Any other information required pursuant to the regulations

19-39  adopted by the [commissioner;] commission; and

19-40  (b) Disclosing to the investor the following information if the

19-41  information is known or, in light of all the surrounding facts and

19-42  circumstances, reasonably should be known to the mortgage broker:

19-43     (1) Whether the real property that will secure the loan is encumbered

19-44  by any other liens and, if so, the priority of each such lien, the amount of

19-45  debt secured by each such lien and the current status of that debt,

19-46  including, without limitation, whether the debt is being paid or is in

19-47  default;

20-1      (2) Whether the mortgage broker or any general partner, officer,

20-2  director or mortgage agent of the mortgage broker has any direct or indirect

20-3  interest in the debtor;

20-4      (3) Whether any disciplinary action has been taken by the

20-5  [commissioner] commission against the mortgage broker or any general

20-6  partner, officer or director of the mortgage broker within the preceding 12

20-7  months, and the nature of any such disciplinary action;

20-8      (4) Whether the mortgage broker or any general partner, officer or

20-9  director of the mortgage broker has been convicted within the preceding 12

20-10  months for violating any law, ordinance or regulation that involves fraud,

20-11  misrepresentation or a deceitful, fraudulent or dishonest business practice;

20-12  and

20-13     (5) Any other information required pursuant to the regulations

20-14  adopted by the [commissioner.] commission.

20-15  7.  Whether or not a mortgage broker is required to disclose any

20-16  information to investors through a disclosure form that complies with the

20-17  provisions of this section, the [commissioner] commission may order the

20-18  mortgage broker to disclose to investors or to the general public any

20-19  information concerning the mortgage broker, any general partner, officer,

20-20  director or mortgage agent of the mortgage broker or any loan in which the

20-21  mortgage broker is or has been involved[, if the commissioner, in his

20-22  judgment,] if, in the judgment of the commission, it believes that the

20-23  information:

20-24  (a) Would be of material interest to a reasonable investor who is

20-25  deciding whether to invest money with the mortgage broker; or

20-26  (b) Is necessary to protect the welfare of the public.

20-27  8.  In carrying out the provisions of subsection 7, the [commissioner]

20-28  commission may, without limitation, order a mortgage broker to include

20-29  statements of disclosure prescribed by the [commissioner:] commission:

20-30  (a) In the disclosure form that must be given to investors pursuant to

20-31  subsection 1;

20-32  (b) In additional disclosure forms that must be given to investors before

20-33  or after they have invested money through the mortgage broker; or

20-34  (c) In any advertisement that the mortgage broker uses in carrying on

20-35  his business.

20-36  9.  The [commissioner:] commission:

20-37  (a) Shall adopt regulations prescribing the period for which a mortgage

20-38  broker must retain a copy of each disclosure form that is given to investors;

20-39  and

20-40  (b) May adopt any other regulations that are necessary to carry out the

20-41  provisions of this section, including, without limitation, regulations

20-42  specifying the size of print and any required formatting or typesetting that a

20-43  mortgage broker must use in any form that is given to investors.

20-44  Sec. 40.  NRS 645B.189 is hereby amended to read as follows:

20-45  645B.189  1.  Each mortgage broker shall include in each

20-46  advertisement that the mortgage broker uses in carrying on his business:

20-47  (a) A statement of disclosure in substantially the following form:

 

21-1  Money invested through a mortgage broker is not guaranteed to earn

21-2  any interest or return and is not insured.

 

21-3    (b) Any other statements of disclosure required pursuant to the

21-4  regulations adopted by the [commissioner] commission or required

21-5  pursuant to an order of the [commissioner] commission entered in

21-6  accordance with subsections 7 and 8 of NRS 645B.185.

21-7    2.  Each mortgage broker shall submit any proposed advertisement that

21-8  the mortgage broker intends to use in carrying on his business to the

21-9  [commissioner] commission for approval.

21-10  3.  In addition to the requirements set forth in this chapter, each

21-11  advertisement that a mortgage broker uses in carrying on his business must

21-12  comply with the requirements of:

21-13  (a) NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade

21-14  practices; and

21-15  (b) Any applicable federal statute or regulation concerning deceptive

21-16  advertising and the advertising of interest rates.

21-17  4.  If a mortgage broker violates any provision of NRS 598.0903 to

21-18  598.0999, inclusive, concerning deceptive trade practices or any federal

21-19  statute or regulation concerning deceptive advertising or the advertising of

21-20  interest rates, in addition to any sanction or penalty imposed by state or

21-21  federal law upon the mortgage broker for the violation, the [commissioner]

21-22  commission may take any disciplinary action set forth in subsection 2 of

21-23  NRS 645B.670 against the mortgage broker.

21-24  5.  The [commissioner] commission may adopt any regulations that are

21-25  necessary to carry out the provisions of this section.

21-26  Sec. 41.  NRS 645B.260 is hereby amended to read as follows:

21-27  645B.260  1.  If a mortgage broker maintains any accounts described

21-28  in subsection 4 of NRS 645B.175 in which the mortgage broker deposits

21-29  payments from a debtor on a loan secured by a lien on real property and, on

21-30  the last day of any month, the debtor has failed to make two or more

21-31  consecutive payments in accordance with the terms of the loan, the

21-32  mortgage broker shall:

21-33  (a) Include in the report that the mortgage broker submits to the

21-34  [commissioner] commission pursuant to subsection 2 of NRS 645B.080

21-35  the information relating to delinquencies in payments and defaults that is

21-36  required by the regulations adopted pursuant to subsection 2;

21-37  (b) Not later than 15 days after the last day of each such month, mail to

21-38  the last known address of each investor who owns a beneficial interest in

21-39  the loan a notice containing the information relating to delinquencies in

21-40  payments and defaults that is required by the regulations adopted pursuant

21-41  to subsection 2; and

21-42  (c) Comply with the provisions of this section each month on a

21-43  continuing basis until:

21-44     (1) The debtor or his designee remedies the delinquency in payments

21-45  and any default; or

21-46     (2) The lien securing the loan is extinguished.

21-47  2.  The [commissioner:] commission:

22-1    (a) Shall adopt regulations prescribing the information relating to

22-2  delinquencies in payments and defaults that a mortgage broker must

22-3  include in his report to the [commissioner] commission and in the notice

22-4  mailed to investors pursuant to subsection 1. Such regulations may provide

22-5  for variations between the information that a mortgage broker must include

22-6  in his report to the [commissioner] commission and the information that a

22-7  mortgage broker must include in the notice mailed to investors.

22-8    (b) May adopt any other regulations that are necessary to carry out the

22-9  provisions of this section.

22-10  Sec. 42.  NRS 645B.300 is hereby amended to read as follows:

22-11  645B.300  1.  Except as otherwise provided in subsection 4, a

22-12  mortgage broker or mortgage agent shall not accept money from an

22-13  investor to acquire ownership of or a beneficial interest in a loan secured

22-14  by a lien on real property, unless the mortgage broker has obtained a

22-15  written appraisal of the real property securing the loan.

22-16  2.  The written appraisal of the real property:

22-17  (a) Must be performed by an appraiser who is authorized to perform

22-18  appraisals in this state; and

22-19  (b) Must not be performed by the mortgage broker or a mortgage agent,

22-20  unless the mortgage broker or mortgage agent is certified or licensed to

22-21  perform such an appraisal pursuant to chapter 645C of NRS.

22-22  3.  A copy of the written appraisal of the real property must be:

22-23  (a) Maintained at each office of the mortgage broker where money is

22-24  accepted from an investor to acquire ownership of or a beneficial interest in

22-25  a loan secured by a lien on the real property; and

22-26  (b) Made available during normal business hours for inspection by each

22-27  such investor and the [commissioner.] commission.

22-28  4.  A mortgage broker is not required to obtain a written appraisal of

22-29  the real property pursuant to this section if the mortgage broker obtains a

22-30  written waiver of the appraisal from each investor who acquires ownership

22-31  of or a beneficial interest in a loan secured by a lien on the real property. A

22-32  mortgage broker or mortgage agent shall not act as the attorney in fact or

22-33  the agent of an investor with respect to the giving of a written waiver

22-34  pursuant to this subsection.

22-35  5.  As used in this section, “appraisal” has the meaning ascribed to it in

22-36  NRS 645C.030.

22-37  Sec. 43.  NRS 645B.330 is hereby amended to read as follows:

22-38  645B.330  1.  A mortgage broker or mortgage agent shall not engage

22-39  in any act or transaction on behalf of an investor pursuant to a power of

22-40  attorney unless:

22-41  (a) The power of attorney is executed for the sole purpose of providing

22-42  services for [loans] not more than one specific loan in which the investor

22-43  owns a beneficial interest; and

22-44  (b) The provisions of the power of attorney:

22-45     (1) Have been approved by the [commissioner;] commission;

22-46     (2) Expressly prohibit the mortgage broker and his mortgage agents

22-47  from engaging in any act or transaction that subordinates the priority of a

22-48  recorded deed of trust unless, before such an act or transaction, the

23-1  mortgage broker obtains written approval for the subordination from
the investor;

23-2      (3) Expressly prohibit the mortgage broker and his mortgage agents

23-3  from using or releasing any money in which the investor owns a beneficial

23-4  interest with regard to [a] the specific loan for a purpose that is not directly

23-5  related to providing services for the loan unless, before any such money is

23-6  used or released for another purpose, the mortgage broker obtains written

23-7  approval from the investor to use or release the money for the other

23-8  purpose; and

23-9      (4) Expressly provide that the power of attorney is effective only for

23-10  [a period of not more than 6 months unless, before the date on which the

23-11  period expires, the mortgage broker obtains written approval from the

23-12  investor to extend the power of attorney for an additional period of not

23-13  more than 6 months. The mortgage broker may, on a continuing basis,

23-14  obtain written approval from the investor to extend the power of attorney

23-15  for one or more consecutive periods of not more than 6 months each,

23-16  except that the investor may execute only one written approval for an

23-17  extension during each such 6-month period.] the term of the specific loan.

23-18  2.  A mortgage broker or mortgage agent shall not act as the attorney in

23-19  fact or the agent of an investor with respect to the giving of written

23-20  approval pursuant to paragraph (b) of subsection 1. An investor and a

23-21  mortgage broker or mortgage agent may not agree to alter or waive the

23-22  provisions of this section by contract or other agreement. Any such

23-23  contract or agreement is void and must not be given effect to the extent that

23-24  it violates the provisions of this section.

23-25  3.  [A] Except as otherwise provided in subsection 4, a power of

23-26  attorney which designates a mortgage broker or mortgage agent as the

23-27  attorney in fact or the agent of an investor and which violates the

23-28  provisions of this section is void and must not be given effect with regard

23-29  to any act or transaction that occurs on or after October 1, 1999, whether or

23-30  not the power of attorney is or has been executed by the investor before, on

23-31  or after October 1, 1999.

23-32  4.  The provisions of subsection 3 do not apply to a power of attorney

23-33  that designates a mortgage broker or mortgage agent as the attorney in

23-34  fact or the agent of an investor if the power of attorney:

23-35  (a) Was executed before July 1, 2001; and

23-36  (b) Complied with the provisions of this section that were in effect on

23-37  October 1, 1999.

23-38  5.  The provisions of this section do not limit the right of an investor to

23-39  include provisions in a power of attorney that are more restrictive than the

23-40  provisions set forth in subsection 1.

23-41  Sec. 44.  NRS 645B.450 is hereby amended to read as follows:

23-42  645B.450  1.  A person shall not act as or provide any of the services

23-43  of a mortgage agent or otherwise engage in, carry on or hold himself out as

23-44  engaging in or carrying on the activities of a mortgage agent if the person:

23-45  (a) Has been convicted of, or entered a plea of nolo contendere to, a

23-46  felony or any crime involving fraud, misrepresentation or moral turpitude;

23-47  or

24-1    (b) Has had a financial services license or registration suspended or

24-2  revoked within the immediately preceding 10 years.

24-3    2.  A mortgage agent may not be associated with or employed by more

24-4  than one mortgage broker at the same time.

24-5    3.  A mortgage broker shall register with the [division] commission

24-6  each person who will be associated with or employed by the mortgage

24-7  broker as a mortgage agent. To register a person as a mortgage agent, a

24-8  mortgage broker must:

24-9    (a) Submit to the [division] commission a registration form which is

24-10  provided by the [division] commission and which:

24-11     (1) States the name, residence address and business address of the

24-12  person;

24-13     (2) Is signed by the person;

24-14     (3) Includes a provision by which the person gives his written

24-15  consent to an investigation of his credit history, criminal history and

24-16  background; and

24-17     (4) Includes any other information or supporting materials required

24-18  by the regulations adopted by the [commissioner.] commission. Such

24-19  information or supporting materials may include, without limitation, a

24-20  complete set of fingerprints from the person, the social security number of

24-21  the person and other forms of identification of the person; and

24-22  (b) Pay the actual costs and expenses incurred by the [division]

24-23  commission to investigate the credit history, criminal history and

24-24  background of the person. All money received pursuant to this paragraph

24-25  must be placed in the investigative account created by NRS 232.545.

24-26  4.  A mortgage broker shall not employ a person as a mortgage agent or

24-27  authorize a person to be associated with the mortgage broker as a mortgage

24-28  agent if the mortgage broker has not registered the person with the

24-29  [division] commission pursuant to subsection 3 or if the person:

24-30  (a) Has been convicted of, or entered a plea of nolo contendere to, a

24-31  felony or any crime involving fraud, misrepresentation or moral turpitude;

24-32  or

24-33  (b) Has had a financial services license or registration suspended or

24-34  revoked within the immediately preceding 10 years.

24-35  5.  If a mortgage agent terminates his association or employment with a

24-36  mortgage broker for any reason, the mortgage broker shall, not later than

24-37  the [end of the next] third business day following the date of termination:

24-38  (a) Deliver to the mortgage agent or send by certified mail to the last

24-39  known residence address of the mortgage agent a written statement which

24-40  advises him that his termination is being reported to the [division;]

24-41  commission; and

24-42  (b) Deliver or send by certified mail to the [division:] commission:

24-43     (1) A written statement of the circumstances surrounding the

24-44  termination; and

24-45     (2) A copy of the written statement that the mortgage broker delivers

24-46  or mails to the mortgage agent pursuant to paragraph (a).

 

 

 

25-1    Sec. 45.  NRS 645B.460 is hereby amended to read as follows:

25-2    645B.460  1.  A mortgage broker shall[:

25-3    1.  Teach his mortgage agents the fundamentals of mortgage lending

25-4  and the ethics of the profession; and

25-5    2.  Supervise] exercise reasonable supervision over the activities of his

25-6  mortgage agents . [and the operation of his business.] Such reasonable

25-7  supervision must include, as appropriate:

25-8    (a) The establishment of written or oral policies and procedures for

25-9  his mortgage agents;

25-10  (b) Continuing education and training for his mortgage agents in the

25-11  requirements of this chapter and the regulations of the commission and

25-12  other forms of continuing education and training for his mortgage

25-13  agents; and

25-14  (c) The establishment of a system to review, oversee and inspect the

25-15  activities of his mortgage agents, including, without limitation:

25-16     (1) Transactions handled by his mortgage agents pursuant to this

25-17  chapter;

25-18     (2) Communications between his mortgage agents and a party to

25-19  such a transaction;

25-20     (3) Documents prepared by his mortgage agents that may have a

25-21  material effect upon the rights or obligations of a party to such a

25-22  transaction; and

25-23     (4) The handling by his mortgage agents of any fee, deposit or

25-24  money paid to the mortgage broker or his mortgage agents or held in

25-25  trust by the mortgage broker or his mortgage agents pursuant to this

25-26  chapter.

25-27  2.  The commission shall allow a mortgage broker to take into

25-28  consideration the total number of mortgage agents associated with or

25-29  employed by the mortgage broker when the mortgage broker determines

25-30  the form and extent of the policies and procedures for those mortgage

25-31  agents, the continuing education and training for those mortgage agents,

25-32  and the system to review, oversee and inspect the activities of those

25-33  mortgage agents.

25-34  3.  The commission may adopt regulations prescribing standards for

25-35  determining whether a mortgage broker has exercised reasonable

25-36  supervision over the activities of a mortgage agent pursuant to this

25-37  section.

25-38  Sec. 46.  NRS 645B.600 is hereby amended to read as follows:

25-39  645B.600  1.  A person may[, in accordance with the regulations

25-40  adopted pursuant to subsection 2,] file with the commission a complaint

25-41  [with the commissioner,] alleging that another person has violated a

25-42  provision of this chapter, a regulation adopted pursuant to this chapter or

25-43  an order of the [commissioner.

25-44  2.  The commissioner shall adopt regulations prescribing:

25-45  (a) The form that such a complaint must take;

25-46  (b) The information that must be included in such a complaint; and

25-47  (c) The procedures that a person must follow to file such a complaint.]

25-48  commission.

25-49  2.  A complaint filed pursuant to this section must:

26-1    (a) Be in writing;

26-2    (b) Be signed by the person filing the complaint or the authorized

26-3  representative of the person filing the complaint;

26-4    (c) Contain an address and a telephone number for the person filing

26-5  the complaint or the authorized representative of the person filing the

26-6  complaint;

26-7    (d) Describe the nature of the alleged violation in as much detail as

26-8  possible;

26-9    (e) Include as exhibits copies of all documentation supporting the

26-10  complaint; and

26-11  (f) Include any other information or supporting materials required by

26-12  the regulations adopted by the commission or by an order of the

26-13  commission.

26-14  Sec. 47.  NRS 645B.610 is hereby amended to read as follows:

26-15  645B.610  1.  If a person properly files a complaint with the

26-16  [commissioner] commission pursuant to NRS 645B.600, the

26-17  [commissioner] commission shall investigate each violation alleged in the

26-18  complaint, unless the [commissioner] commission has previously

26-19  investigated the alleged violation.

26-20  2.  Except as otherwise provided in subsection 2 of NRS 645B.090, if

26-21  the [commissioner] commission does not conduct an investigation of an

26-22  alleged violation pursuant to subsection 1 because [he] the commission

26-23  previously has investigated the alleged violation, the [commissioner]

26-24  commission shall provide to the person who filed the complaint a written

26-25  summary of the previous investigation and the nature of any disciplinary

26-26  action that was taken as a result of the previous investigation.

26-27  3.  If the [commissioner] commission conducts an investigation of an

26-28  alleged violation pursuant to subsection 1, the [commissioner] commission

26-29  shall determine from the investigation whether there is reasonable cause to

26-30  believe that the person committed the alleged violation.

26-31  4.  If, upon investigation, the [commissioner] commission determines

26-32  that there is not reasonable cause to believe that the person committed the

26-33  alleged violation, the [commissioner] commission shall provide the reason

26-34  for [his] its determination, in writing, to the person who filed the complaint

26-35  and to the person alleged to have committed the violation.

26-36  5.  Except as otherwise provided in subsection 6, if, upon investigation,

26-37  the [commissioner] commission determines that there is reasonable cause

26-38  to believe that the person committed the alleged violation, the

26-39  [commissioner] commission shall:

26-40  (a) Schedule a hearing concerning the alleged violation;

26-41  (b) Mail to the last known address of the person who filed the complaint

26-42  written notice that must include, without limitation:

26-43     (1) The date, time and place of the hearing; and

26-44     (2) A statement of each alleged violation that will be considered at

26-45  the hearing; and

26-46  (c) By personal service in accordance with the Nevada Rules of Civil

26-47  Procedure and any applicable provision of NRS, serve written notice of the

26-48  hearing to the person alleged to have committed the violation. The written

27-1  notice that is served pursuant to this paragraph must include, without

27-2  limitation:

27-3      (1) The date, time and place of the hearing;

27-4      (2) A copy of the complaint and a statement of each alleged violation

27-5  that will be considered at the hearing; and

27-6      (3) A statement informing the person that, pursuant to
NRS 645B.760, if he fails to appear, without reasonable cause, at the

27-7  hearing:

27-8        (I) He is guilty of a misdemeanor; and

27-9        (II) The [commissioner] commission is authorized to conduct the

27-10  hearing in his absence, draw any conclusions that the [commissioner]

27-11  commission deems appropriate from his failure to appear and render a

27-12  decision concerning each alleged violation.

27-13  6.  The [commissioner] commission is not required to schedule or

27-14  conduct a hearing concerning an alleged violation pursuant to subsection 5

27-15  if the [commissioner] commission and the person alleged to have

27-16  committed the violation enter into a written consent agreement settling or

27-17  resolving the alleged violation. If such a written consent agreement is

27-18  executed, the [commissioner] commission shall provide a copy of the

27-19  written consent agreement to the person who filed the complaint.

27-20  7.  The [commissioner] commission may:

27-21  (a) Investigate and conduct a hearing concerning any alleged violation,

27-22  whether or not a complaint has been filed.

27-23  (b) Hear and consider more than one alleged violation against a person

27-24  at the same hearing.

27-25  Sec. 48.  NRS 645B.620 is hereby amended to read as follows:

27-26  645B.620  1.  Whether or not a complaint has been filed, the

27-27  [commissioner] commission shall investigate a mortgage broker or other

27-28  person if, for any reason, it appears that:

27-29  (a) The mortgage broker is conducting business in an unsafe and

27-30  injurious manner or in violation of any provision of this chapter, a

27-31  regulation adopted pursuant to this chapter or an order of the

27-32  [commissioner;] commission;

27-33  (b) The person is offering or providing any of the services of a

27-34  mortgage broker or otherwise engaging in, carrying on or holding himself

27-35  out as engaging in or carrying on the business of a mortgage broker

27-36  without being licensed or exempt from licensing pursuant to the provisions

27-37  of this chapter; or

27-38  (c) The person is violating any other provision of this chapter, a

27-39  regulation adopted pursuant to this chapter or an order of the

27-40  [commissioner.] commission.

27-41  2.  If, upon investigation, the [commissioner] commission has

27-42  reasonable cause to believe that the mortgage broker or other person has

27-43  engaged in any conduct or committed any violation described in
subsection 1:

27-44  (a) The [commissioner] commission shall notify the attorney general of

27-45  the conduct or violation and, if applicable, the [commissioner] commission

27-46  shall immediately take possession of the property of the mortgage broker

27-47  pursuant to NRS 645B.630; and

28-1    (b) The attorney general shall, if appropriate:

28-2      (1) Investigate and prosecute the mortgage broker or other person

28-3  pursuant to NRS 645B.800; and

28-4      (2) Bring a civil action to:

28-5        (I) Enjoin the mortgage broker or other person from engaging in

28-6  the conduct, operating the business or committing the violation; and

28-7        (II) Enjoin any other person who has encouraged, facilitated, aided

28-8  or participated in the conduct, the operation of the business or the

28-9  commission of the violation, or who is likely to engage in such acts, from

28-10  engaging in or continuing to engage in such acts.

28-11  3.  If the attorney general brings a civil action pursuant to subsection 2,

28-12  the district court of any county of this state is hereby vested with the

28-13  jurisdiction in equity to enjoin the conduct, the operation of the business or

28-14  the commission of the violation and may grant any injunctions that are

28-15  necessary to prevent and restrain the conduct, the operation of the business

28-16  or the commission of the violation. During the pendency of the proceedings

28-17  before the district court:

28-18  (a) The court may issue any temporary restraining orders as may appear

28-19  to be just and proper;

28-20  (b) The findings of the [commissioner] commission shall be deemed to

28-21  be prima facie evidence and sufficient grounds, in the discretion of the

28-22  court, for the ex parte issuance of a temporary restraining order; and

28-23  (c) The attorney general may apply for and on due showing is entitled to

28-24  have issued the court’s subpoena requiring forthwith the appearance of any

28-25  person to:

28-26     (1) Produce any documents, books and records as may appear

28-27  necessary for the hearing of the petition; and

28-28     (2) Testify and give evidence concerning the conduct complained of

28-29  in the petition.

28-30  Sec. 49.  NRS 645B.630 is hereby amended to read as follows:

28-31  645B.630  1.  In addition to any other action that is required or

28-32  permitted pursuant to this chapter, if the [commissioner] commission has

28-33  reasonable cause to believe that:

28-34  (a) The assets or capital of a mortgage broker are impaired; or

28-35  (b) A mortgage broker is conducting business in an unsafe and injurious

28-36  manner that may result in danger to the public,

28-37  the [commissioner] commission shall immediately take possession of all

28-38  the property, business and assets of the mortgage broker that are located in

28-39  this state and shall retain possession of them pending further proceedings

28-40  provided for in this chapter.

28-41  2.  If the licensee, the board of directors or any officer or person in

28-42  charge of the offices of the mortgage broker refuses to permit the

28-43  [commissioner] commission to take possession of the property of the

28-44  mortgage broker pursuant to subsection 1:

28-45  (a) The [commissioner] commission shall notify the attorney general;

28-46  and

28-47  (b) The attorney general shall immediately bring such proceedings as

28-48  may be necessary to place the [commissioner] commission in immediate

28-49  possession of the property of the mortgage broker.

29-1    3.  If the [commissioner] commission takes possession of the property

29-2  of the mortgage broker, the [commissioner] commission shall:

29-3    (a) Make or have made an inventory of the assets and known liabilities

29-4  of the mortgage broker;

29-5    (b) File one copy of the inventory in [his] the office of the commission

29-6  and one copy in the office of the clerk of the district court of the county in

29-7  which the principal office of the mortgage broker is located and shall mail

29-8  one copy to each stockholder, partner, officer, director or associate of the

29-9  mortgage broker at his last known address; and

29-10  (c) If the mortgage broker maintains any accounts described in
NRS 645B.175, not later than 5 business days after the date on which the

29-11  [commissioner] commission takes possession of the property of the

29-12  mortgage broker, mail notice of [his] that possession to the last known

29-13  address of each person whose money is deposited in such an account or

29-14  whose money was or should have been deposited in such an account during

29-15  the preceding 12 months.

29-16  4.  The clerk of the court with which the copy of the inventory is filed

29-17  shall file it as any other case or proceeding pending in the court and shall

29-18  give it a docket number.

29-19  Sec. 50.  NRS 645B.640 is hereby amended to read as follows:

29-20  645B.640  1.  If the [commissioner] commission takes possession of

29-21  the property of a mortgage broker pursuant to NRS 645B.630, the licensee,

29-22  officers, directors, partners, associates or stockholders of the mortgage

29-23  broker may, within 60 days after the date on which the [commissioner]

29-24  commission takes possession of the property, make good any deficit in the

29-25  assets or capital of the mortgage broker or remedy any unsafe and injurious

29-26  conditions or practices of the mortgage broker.

29-27  2.  At the expiration of the 60-day period, if the deficiency in assets or

29-28  capital has not been made good or the unsafe and injurious conditions or

29-29  practices remedied, the [commissioner] commission may apply to the court

29-30  to be appointed receiver and proceed to liquidate the assets of the mortgage

29-31  broker which are located in this state in the same manner as now provided

29-32  by law for liquidation of a private corporation in receivership.

29-33  3.  No other person may be appointed receiver by any court without

29-34  first giving the [commissioner] commission ample notice of his

29-35  application.

29-36  4.  The inventory made by the [commissioner] commission and all

29-37  claims filed by creditors are open at all reasonable times for inspection, and

29-38  any action taken by the receiver upon any of the claims is subject to the

29-39  approval of the court before which the cause is pending.

29-40  5.  The expenses of the receiver and compensation of counsel, as well

29-41  as all expenditures required in the liquidation proceedings, must be fixed

29-42  by the [commissioner] commission subject to the approval of the court and,

29-43  upon certification of the [commissioner,] commission, must be paid out of

29-44  the money in [his] the hands of the commission as the receiver.

 

 

 

 

30-1    Sec. 51.  NRS 645B.670 is hereby amended to read as follows:

30-2    645B.670  Except as otherwise provided in NRS 645B.690:

30-3    1.  For each violation committed by an applicant, whether or not he is

30-4  issued a license, the [commissioner] commission may impose upon the

30-5  applicant an administrative fine of not more than $10,000, if the applicant:

30-6    (a) Has knowingly made or caused to be made to the [commissioner]

30-7  commission any false representation of material fact;

30-8    (b) Has suppressed or withheld from the [commissioner] commission

30-9  any information which the applicant possesses and which, if submitted by

30-10  him, would have rendered the applicant ineligible to be licensed pursuant

30-11  to the provisions of this chapter; or

30-12  (c) Has violated any provision of this chapter, a regulation adopted

30-13  pursuant to this chapter or an order of the [commissioner] commission in

30-14  completing and filing his application for a license or during the course of

30-15  the investigation of his application for a license.

30-16  2.  For each violation committed by a licensee, the [commissioner]

30-17  commission may impose upon the licensee an administrative fine of not

30-18  more than $10,000, may suspend, revoke or place conditions upon his

30-19  license, or may do both, if the licensee, whether or not acting as such:

30-20  (a) Is insolvent;

30-21  (b) Is grossly negligent or incompetent in performing any act for which

30-22  he is required to be licensed pursuant to the provisions of this chapter;

30-23  (c) Does not conduct his business in accordance with law or has

30-24  violated any provision of this chapter, a regulation adopted pursuant to this

30-25  chapter or an order of the [commissioner;] commission;

30-26  (d) Is in such financial condition that he cannot continue in business

30-27  with safety to his customers;

30-28  (e) Has made a material misrepresentation in connection with any

30-29  transaction governed by this chapter;

30-30  (f) Has suppressed or withheld from a client any material facts, data or

30-31  other information relating to any transaction governed by the provisions of

30-32  this chapter which the licensee knew or, by the exercise of reasonable

30-33  diligence, should have known;

30-34  (g) Has knowingly made or caused to be made to the [commissioner]

30-35  commission any false representation of material fact or has suppressed or

30-36  withheld from the [commissioner] commission any information which the

30-37  licensee possesses and which, if submitted by him, would have rendered

30-38  the licensee ineligible to be licensed pursuant to the provisions of this

30-39  chapter;

30-40  (h) Has failed to account to persons interested for all money received

30-41  for a trust account;

30-42  (i) Has refused to permit an examination by the [commissioner]

30-43  commission of his books and affairs or has refused or failed, within a

30-44  reasonable time, to furnish any information or make any report that may be

30-45  required by the [commissioner] commission pursuant to the provisions of

30-46  this chapter or a regulation adopted pursuant to this chapter;

30-47  (j) Has been convicted of, or entered a plea of nolo contendere to, a

30-48  felony or any crime involving fraud, misrepresentation or moral turpitude;

31-1    (k) Has refused or failed to pay, within a reasonable time, any fees,

31-2  assessments, costs or expenses that the licensee is required to pay pursuant

31-3  to this chapter or a regulation adopted pursuant to this chapter;

31-4    (l) Has failed to satisfy a claim made by a client which has been reduced

31-5  to judgment;

31-6    (m) Has failed to account for or to remit any money of a client within a

31-7  reasonable time after a request for an accounting or remittal;

31-8    (n) Has commingled the money or other property of a client with his

31-9  own or has converted the money or property of others to his own use;

31-10  (o) Has engaged in any other conduct constituting a deceitful,

31-11  fraudulent or dishonest business practice;

31-12  (p) Has repeatedly violated the policies and procedures of the mortgage

31-13  broker;

31-14  (q) Has failed to [maintain adequate] exercise reasonable supervision

31-15  over the activities of a mortgage agent[;] as required by NRS 645B.460;

31-16  (r) Has instructed a mortgage agent to commit an act that would be

31-17  cause for the revocation of the license of the mortgage broker, whether or

31-18  not the mortgage agent commits the act;

31-19  (s) Has employed a person as a mortgage agent or authorized a person

31-20  to be associated with the licensee as a mortgage agent at a time when the

31-21  licensee knew or, in light of all the surrounding facts and circumstances,

31-22  reasonably should have known that the person:

31-23     (1) Had been convicted of, or entered a plea of nolo contendere to, a

31-24  felony or any crime involving fraud, misrepresentation or moral turpitude;

31-25  or

31-26     (2) Had a financial services license or registration suspended or

31-27  revoked within the immediately preceding 10 years; or

31-28  (t) Has not conducted verifiable business as a mortgage broker for 12

31-29  consecutive months, except in the case of a new applicant. The

31-30  [commissioner] commission shall determine whether a mortgage broker is

31-31  conducting business by examining the monthly reports of activity

31-32  submitted by the licensee or by conducting an examination of the licensee.

31-33  Sec. 52.  NRS 645B.680 is hereby amended to read as follows:

31-34  645B.680  1.  If the [commissioner] commission receives a copy of a

31-35  court order issued pursuant to NRS 425.540 that provides for the

31-36  suspension of all professional, occupational and recreational licenses,

31-37  certificates and permits issued to a person who is the holder of a license as

31-38  a mortgage broker, the [commissioner] commission shall deem the license

31-39  issued to that person to be suspended at the end of the 30th day after the

31-40  date on which the court order was issued unless the [commissioner]

31-41  commission receives a letter issued to the holder of the license by the

31-42  district attorney or other public agency pursuant to NRS 425.550 stating

31-43  that the holder of the license has complied with the subpoena or warrant or

31-44  has satisfied the arrearage pursuant to NRS 425.560.

31-45  2.  The [commissioner] commission shall reinstate a license as a

31-46  mortgage broker that has been suspended by a district court pursuant to

31-47  NRS 425.540 if the [commissioner] commission receives a letter issued by

31-48  the district attorney or other public agency pursuant to NRS 425.550 to the

31-49  person whose license was suspended stating that the person whose license

32-1  was suspended has complied with the subpoena or warrant or has satisfied

32-2  the arrearage pursuant to NRS 425.560.

32-3    Sec. 53.  NRS 645B.690 is hereby amended to read as follows:

32-4    645B.690  1.  If a person offers or provides any of the services of a

32-5  mortgage broker or otherwise engages in, carries on or holds himself out as

32-6  engaging in or carrying on the business of a mortgage broker and, at the

32-7  time:

32-8    (a) The person was required to have a license pursuant to this chapter

32-9  and the person did not have such a license; or

32-10  (b) The person’s license was suspended or revoked pursuant to this

32-11  chapter,

32-12  the [commissioner] commission shall impose upon the person an

32-13  administrative fine of not more than $10,000 for each violation and, if the

32-14  person has a license, the [commissioner] commission shall revoke it.

32-15  2.  If a person is exempt from the provisions of this chapter pursuant to

32-16  subsection 6 of NRS 645B.015 and the person, while exempt, maintains,

32-17  offers to maintain or holds himself out as maintaining any accounts

32-18  described in subsection 1 of NRS 645B.175 or otherwise engages in, offers

32-19  to engage in or holds himself out as engaging in any activity that would

32-20  remove the person from the exemption set forth in subsection 6 of
NRS 645B.015, the [commissioner] commission shall impose upon the

32-21  person an administrative fine of not more than $10,000 for each violation

32-22  and the [commissioner] commission shall revoke the person’s exemption.

32-23  If the [commissioner] commission revokes an exemption pursuant to this

32-24  subsection, the person may not again be granted the same or a similar

32-25  exemption from the provisions of this chapter. The person may apply for a

32-26  license pursuant to this chapter unless otherwise prohibited by specific

32-27  statute.

32-28  3.  If a mortgage broker violates any provision of subsection 1 of
NRS 645B.080 and the mortgage broker fails, without reasonable cause, to

32-29  remedy the violation within 20 business days after being ordered by the

32-30  [commissioner] commission to do so or within such later time as

32-31  prescribed by the [commissioner,] commission, or if the [commissioner]

32-32  commission orders a mortgage broker to provide information, make a

32-33  report or permit an examination of his books or affairs pursuant to this

32-34  chapter and the mortgage broker fails, without reasonable cause, to comply

32-35  with the order within 20 business days or within such later time as

32-36  prescribed by the [commissioner, the commissioner] commission, the

32-37  commission shall:

32-38  (a) Impose upon the mortgage broker an administrative fine of not more

32-39  than $10,000 for each violation;

32-40  (b) Suspend or revoke the license of the mortgage broker; and

32-41  (c) Conduct a hearing to determine whether the mortgage broker is

32-42  conducting business in an unsafe and injurious manner that may result in

32-43  danger to the public and whether it is necessary for the [commissioner]

32-44  commission to take possession of the property of the mortgage broker

32-45  pursuant to NRS 645B.630.

 

 

33-1    Sec. 54.  NRS 645B.700 is hereby amended to read as follows:

33-2    645B.700  1.  Except as otherwise provided in subsection 2, for each

33-3  violation that may be committed by a person pursuant to this chapter or the

33-4  regulations adopted pursuant to this chapter, the [commissioner shall]

33-5  commission may adopt regulations:

33-6    (a) Categorizing the violation as a major violation or a minor violation;

33-7  and

33-8    (b) Specifying the disciplinary action that will be taken by the

33-9  [commissioner] commission pursuant to this chapter against a person who

33-10  commits:

33-11     (1) A major violation. The disciplinary action taken by the

33-12  [commissioner] commission for a major violation [must] may include,

33-13  without limitation, suspension or revocation of the person’s license.

33-14     (2) More than two minor violations. The [commissioner] commission

33-15  may establish graduated sanctions for a person who commits more than

33-16  two minor violations based upon the number, the frequency and the

33-17  severity of the minor violations and whether the person previously has

33-18  committed any major violations.

33-19  2.  The provisions of this section do not apply to a violation for which

33-20  the [commissioner] commission is required to take disciplinary action in

33-21  accordance with NRS 645B.690.

33-22  Sec. 55.  NRS 645B.710 is hereby amended to read as follows:

33-23  645B.710  If a person is a partnership, corporation or unincorporated

33-24  association, the [commissioner] commission shall take any disciplinary

33-25  action required pursuant to NRS 645B.690 and may take any other

33-26  disciplinary action set forth in this chapter against the person if any

33-27  member of the partnership or any officer or director of the corporation or

33-28  unincorporated association has committed any act or omission that would

33-29  be cause for taking such disciplinary action against a natural person.

33-30  Sec. 56.  NRS 645B.720 is hereby amended to read as follows:

33-31  645B.720  Before conducting a hearing, the [commissioner]

33-32  commission may, to the fullest extent permitted by the Constitution of the

33-33  United States and the constitution of this state:

33-34  1.  Order a summary suspension of a license pursuant to subsection 3 of

33-35  NRS 233B.127; and

33-36  2.  Take any other action against a licensee or other person that is

33-37  necessary to protect the health, safety or welfare of the public.

33-38  Sec. 57.  NRS 645B.750 is hereby amended to read as follows:

33-39  645B.750  1.  If the [commissioner] commission enters an order

33-40  taking any disciplinary action against a person or denying a person’s

33-41  application for a license, the [commissioner] commission shall cause

33-42  written notice of the order to be served personally or sent by certified mail

33-43  or telegraph to the person.

33-44  2.  Unless a hearing has already been conducted concerning the matter,

33-45  the person, upon application, is entitled to a hearing. If the person does not

33-46  make such an application within 20 days after the date of the initial order,

33-47  the [commissioner] commission shall enter a final order concerning
the matter.

34-1    3.  A person may appeal a final order of the [commissioner]

34-2  commission in accordance with the provisions of chapter 233B of
NRS that apply to a contested case.

34-3    Sec. 58.  NRS 645B.760 is hereby amended to read as follows:

34-4    645B.760  If a person is alleged to have engaged in any conduct or

34-5  committed any violation that is described in NRS 645B.620, 645B.630 or

34-6  645B.670 or is alleged to have committed a violation of any other

34-7  provision of this chapter, a regulation adopted pursuant to this chapter or

34-8  an order of the [commissioner,] commission, and the person fails to appear,

34-9  without reasonable cause, at a hearing before the [commissioner]

34-10  commission concerning the alleged conduct or violation:

34-11  1.  The [commissioner] commission shall notify the attorney general

34-12  that the person failed to appear;

34-13  2.  The person is guilty of a misdemeanor and shall be punished as

34-14  provided in NRS 645B.950; and

34-15  3.  The [commissioner] commission may conduct the hearing in the

34-16  person’s absence, draw any conclusions that the [commissioner]

34-17  commission deems appropriate from his failure to appear and render a

34-18  decision concerning the alleged conduct or violation.

34-19  Sec. 59.  NRS 645B.800 is hereby amended to read as follows:

34-20  645B.800  1.  The attorney general has primary jurisdiction for the

34-21  enforcement of this chapter. The attorney general shall, if appropriate,

34-22  investigate and prosecute a person who violates:

34-23  (a) Any provision of this chapter, a regulation adopted pursuant to this

34-24  chapter or an order of the [commissioner,] commission, including, without

34-25  limitation, a violation of any provision of NRS 645B.620 or 645B.670; or

34-26  (b) Any other law or regulation if the violation is committed by the

34-27  person in the course of committing a violation described in paragraph (a).

34-28  2.  The attorney general shall, if appropriate, investigate and prosecute

34-29  a person who is alleged to have committed a violation described in

34-30  subsection 1 whether or not:

34-31  (a) The [commissioner] commission notifies the attorney general of the

34-32  alleged violation;

34-33  (b) The [commissioner] commission takes any disciplinary action

34-34  against the person alleged to have committed the violation;

34-35  (c) Any other person files a complaint against the person alleged to have

34-36  committed the violation; or

34-37  (d) A civil action is commenced against the person alleged to have

34-38  committed the violation.

34-39  3.  When acting pursuant to this section, the attorney general may

34-40  commence his investigation and file a criminal action without leave of

34-41  court, and the attorney general has exclusive charge of the conduct of the

34-42  prosecution.

34-43  4.  Except as otherwise provided by the Constitution of the United

34-44  States, the constitution of this state or a specific statute, a person shall, if

34-45  requested, provide the attorney general with information that would assist

34-46  in the prosecution of any other person who is alleged to have committed a

34-47  violation described in subsection 1. If a person fails, without reasonable

34-48  cause, to provide the attorney general with such information upon request,

35-1  the person is guilty of a misdemeanor and shall be punished as provided in

35-2  NRS 645B.950.

35-3    Sec. 60.  NRS 645B.810 is hereby amended to read as follows:

35-4    645B.810  1.  The attorney general may bring any appropriate civil

35-5  action against a person to enforce any provision of this chapter, a

35-6  regulation adopted pursuant to this chapter or an order of the

35-7  [commissioner,] commission, including, without limitation, an order of the

35-8  [commissioner:] commission:

35-9    (a) Imposing an administrative fine; or

35-10  (b) Suspending, revoking or placing conditions upon a license.

35-11  2.  If the attorney general prevails in any civil action brought pursuant

35-12  to this chapter, the court shall order the person against whom the civil

35-13  action was brought to pay:

35-14  (a) Court costs; and

35-15  (b) Reasonable costs of the investigation and prosecution of the civil

35-16  action.

35-17  3.  Whether or not the attorney general brings a civil action against a

35-18  person pursuant to this chapter, the attorney general may prosecute the

35-19  person for a criminal violation pursuant to this chapter.

35-20  Sec. 61.  NRS 645B.950 is hereby amended to read as follows:

35-21  645B.950  1.  Except as otherwise provided in NRS 645B.960, a

35-22  person, or any general partner, director, officer, agent or employee of a

35-23  person, who violates any provision of this chapter, a regulation adopted

35-24  pursuant to this chapter or an order of the [commissioner] commission is

35-25  guilty of a misdemeanor.

35-26  2.  In addition to any other penalty, if a person is convicted of or enters

35-27  a plea of nolo contendere to a violation described in subsection 1, the court

35-28  shall order the person to pay:

35-29  (a) Court costs; and

35-30  (b) Reasonable costs of the investigation and prosecution of the

35-31  violation.

35-32  Sec. 62.  Chapter 645E of NRS is hereby amended by adding thereto a

35-33  new section to read as follows:

35-34  “Loan secured by a lien on real property” includes, without limitation,

35-35  any loan associated with a mobile home, a manufactured home or other

35-36  similar home if the loan is secured, in whole or in part, by a lien on real

35-37  property.

35-38  Sec. 63.  NRS 645E.010 is hereby amended to read as follows:

35-39  645E.010  As used in this chapter, unless the context otherwise

35-40  requires, the words and terms defined in NRS 645E.020 to 645E.100,

35-41  inclusive, and section 62 of this act have the meanings ascribed to them in

35-42  those sections.

35-43  Sec. 64.  NRS 645E.050 is hereby amended to read as follows:

35-44  645E.050  [“Commissioner” means the commissioner of financial

35-45  institutions.] “Commission” means:

35-46  1.  The mortgage industry commission created pursuant to section 6

35-47  of this act; and

36-1    2.  The executive director if the mortgage industry commission has

36-2  delegated its authority to the executive director pursuant to section 10 of

36-3  this act.

36-4    Sec. 65.  NRS 645E.070 is hereby amended to read as follows:

36-5    645E.070  [“Division” means the division of financial institutions of

36-6  the department of business and industry.] “Executive director” means the

36-7  executive director of the commission.

36-8    Sec. 66.  NRS 645E.160 is hereby amended to read as follows:

36-9    645E.160  1.  A person who claims an exemption from the provisions

36-10  of this chapter pursuant to subsection 1 or 6 of NRS 645E.150 must:

36-11  (a) File a written application for a certificate of exemption with the

36-12  office of the [commissioner;] commission;

36-13  (b) Pay the fee required pursuant to NRS 645E.280; and

36-14  (c) Include with the written application satisfactory proof that the

36-15  person meets the requirements of subsection 1 or 6 of NRS 645E.150.

36-16  2.  The [commissioner] commission may require a person who claims

36-17  an exemption from the provisions of this chapter pursuant to subsections 2

36-18  to 5, inclusive, or 7 to 10, inclusive, of NRS 645E.150 to:

36-19  (a) File a written application for a certificate of exemption with the

36-20  office of the [commissioner;] commission;

36-21  (b) Pay the fee required pursuant to NRS 645E.280; and

36-22  (c) Include with the written application satisfactory proof that the

36-23  person meets the requirements of at least one of those exemptions.

36-24  3.  A certificate of exemption expires automatically if, at any time, the

36-25  person who claims the exemption no longer meets the requirements of at

36-26  least one exemption set forth in the provisions of NRS 645E.150.

36-27  4.  If a certificate of exemption expires automatically pursuant to this

36-28  section, the person shall not provide any of the services of a mortgage

36-29  company or otherwise engage in, carry on or hold himself out as engaging

36-30  in or carrying on the business of a mortgage company, unless the person

36-31  applies for and is issued:

36-32  (a) A license as a mortgage company pursuant to this chapter; or

36-33  (b) Another certificate of exemption.

36-34  5.  The [commissioner] commission may impose upon a person who is

36-35  required to apply for a certificate of exemption or who holds a certificate of

36-36  exemption an administrative fine of not more than $10,000 for each

36-37  violation that he commits, if the person:

36-38  (a) Has knowingly made or caused to be made to the [commissioner]

36-39  commission any false representation of material fact;

36-40  (b) Has suppressed or withheld from the [commissioner] commission

36-41  any information which the person possesses and which, if submitted by

36-42  him, would have rendered the person ineligible to hold a certificate of

36-43  exemption; or

36-44  (c) Has violated any provision of this chapter, a regulation adopted

36-45  pursuant to this chapter or an order of the [commissioner] commission that

36-46  applies to a person who is required to apply for a certificate of exemption

36-47  or who holds a certificate of exemption.

 

 

37-1    Sec. 67.  NRS 645E.170 is hereby amended to read as follows:

37-2    645E.170  1.  A person may apply to the [commissioner] commission

37-3  for an exemption from the provisions of this chapter governing the making

37-4  of a loan of money.

37-5    2.  The [commissioner] commission may grant the exemption if [he]

37-6  the commission finds that:

37-7    (a) The making of the loan would not be detrimental to the financial

37-8  condition of the lender or the debtor;

37-9    (b) The lender or the debtor has established a record of sound

37-10  performance, efficient management, financial responsibility and integrity;

37-11  (c) The making of the loan is likely to increase the availability of capital

37-12  for a sector of the state economy; and

37-13  (d) The making of the loan is not detrimental to the public interest.

37-14  3.  The [commissioner:] commission:

37-15  (a) May revoke an exemption unless the loan for which the exemption

37-16  was granted has been made; and

37-17  (b) Shall issue a written statement setting forth the reasons for [his] its

37-18  decision to grant, deny or revoke an exemption.

37-19  Sec. 68.  NRS 645E.200 is hereby amended to read as follows:

37-20  645E.200  1.  A person who wishes to be licensed as a mortgage

37-21  company must file a written application for a license with the office of the

37-22  [commissioner] commission and pay the fee required pursuant to
NRS 645E.280. An application for a license as a mortgage company must:

37-23  (a) Be verified.

37-24  (b) State the name, residence address and business address of the

37-25  applicant and the location of each principal office and branch office at

37-26  which the mortgage company will conduct business within this state.

37-27  (c) State the name under which the applicant will conduct business as a

37-28  mortgage company.

37-29  (d) If the applicant is not a natural person, list the name, residence

37-30  address and business address of each person who will have an interest in

37-31  the mortgage company as a principal, partner, officer, director or trustee,

37-32  specifying the capacity and title of each such person.

37-33  (e) Indicate the general plan and character of the business.

37-34  (f) State the length of time the applicant has been engaged in the

37-35  business of a mortgage company.

37-36  (g) Include a financial statement of the applicant.

37-37  (h) Include any other information required pursuant to the regulations

37-38  adopted by the [commissioner] commission or an order of the

37-39  [commissioner.] commission.

37-40  2.  If a mortgage company will conduct business at one or more branch

37-41  offices within this state, the mortgage company must apply for a license for

37-42  each such branch office.

37-43  3.  Except as otherwise provided in this chapter, the [commissioner]

37-44  commission shall issue a license to an applicant as a mortgage company if:

37-45  (a) The application complies with the requirements of this chapter; and

37-46  (b) The applicant and each general partner, officer or director of the

37-47  applicant, if the applicant is a partnership, corporation or unincorporated

37-48  association:

38-1      (1) Has a good reputation for honesty, trustworthiness and integrity

38-2  and displays competence to transact the business of a mortgage company in

38-3  a manner which safeguards the interests of the general public. The

38-4  applicant must submit satisfactory proof of these qualifications to the

38-5  [commissioner.] commission.

38-6      (2) Has not been convicted of, or entered a plea of nolo contendere

38-7  to, a felony or any crime involving fraud, misrepresentation or moral

38-8  turpitude.

38-9      (3) Has not made a false statement of material fact on his application.

38-10     (4) Has not had a license that was issued pursuant to the provisions of

38-11  this chapter or chapter 645B of NRS suspended or revoked within the 10

38-12  years immediately preceding the date of his application.

38-13     (5) Has not had a license that was issued in any other state, district or

38-14  territory of the United States or any foreign country suspended or revoked

38-15  within the 10 years immediately preceding the date of his application.

38-16     (6) Has not violated any provision of this chapter or chapter 645B of

38-17  NRS, a regulation adopted pursuant thereto or an order of the

38-18  [commissioner.] commission.

38-19  4.  If an applicant is a partnership, corporation or unincorporated

38-20  association, the [commissioner] commission may refuse to issue a license

38-21  to the applicant if any member of the partnership or any officer or director

38-22  of the corporation or unincorporated association has committed any act or

38-23  omission that would be cause for refusing to issue a license to a natural

38-24  person.

38-25  Sec. 69.  NRS 645E.210 is hereby amended to read as follows:

38-26  645E.210  1.  In addition to the requirements set forth in
NRS 645E.200 and 645E.280, a natural person who applies for the

38-27  issuance or renewal of a license as a mortgage company shall submit to the

38-28  [commissioner:] commission:

38-29  (a) In any application for issuance of a license, the social security

38-30  number of the applicant and the statement prescribed by the welfare

38-31  division of the department of human resources pursuant to NRS 425.520.

38-32  The statement must be completed and signed by the applicant.

38-33  (b) In any application for renewal of a license, the statement prescribed

38-34  by the welfare division of the department of human resources pursuant to

38-35  NRS 425.520. The statement must be completed and signed by
the applicant.

38-36  2.  The [commissioner] commission shall include the statement

38-37  required pursuant to subsection 1 in:

38-38  (a) The application or any other forms that must be submitted for the

38-39  issuance or renewal of the license; or

38-40  (b) A separate form prescribed by the [commissioner.] commission.

38-41  3.  The [commissioner] commission shall not issue or renew a license

38-42  as a mortgage company if the applicant is a natural person who:

38-43  (a) Fails to submit the statement required pursuant to subsection 1; or

38-44  (b) Indicates on the statement submitted pursuant to subsection 1 that he

38-45  is subject to a court order for the support of a child and is not in

38-46  compliance with the order or a plan approved by the district attorney or

39-1  other public agency enforcing the order for the repayment of the amount

39-2  owed pursuant to the order.

39-3    4.  If an applicant indicates on the statement submitted pursuant to

39-4  subsection 1 that he is subject to a court order for the support of a child and

39-5  is not in compliance with the order or a plan approved by the district

39-6  attorney or other public agency enforcing the order for the repayment of

39-7  the amount owed pursuant to the order, the [commissioner] commission

39-8  shall advise the applicant to contact the district attorney or other public

39-9  agency enforcing the order to determine the actions that the applicant may

39-10  take to satisfy the arrearage.

39-11  Sec. 70.  NRS 645E.220 is hereby amended to read as follows:

39-12  645E.220  1.  A mortgage company shall post each license in a

39-13  conspicuous place in the office for which the license has been issued.

39-14  2.  A mortgage company may not transfer or assign a license to another

39-15  person, unless the [commissioner gives his] commission gives its written

39-16  approval.

39-17  Sec. 71.  NRS 645E.280 is hereby amended to read as follows:

39-18  645E.280  1.  A license issued to a mortgage company pursuant to this

39-19  chapter expires each year on December 31, unless it is renewed. To renew

39-20  a license, the licensee must submit to the [commissioner] commission on

39-21  or before December 31 of each year:

39-22  (a) An application for renewal that complies with the requirements of

39-23  this chapter; and

39-24  (b) The fee required to renew the license pursuant to this section.

39-25  2.  If the licensee fails to submit any item required pursuant to

39-26  subsection 1 to the [commissioner] commission on or before December 31

39-27  of any year, the license is canceled. The [commissioner] commission may

39-28  reinstate a canceled license if the licensee submits to the [commissioner:]

39-29  commission:

39-30  (a) An application for renewal that complies with the requirements of

39-31  this chapter;

39-32  (b) The fee required to renew the license pursuant to this section; and

39-33  (c) A reinstatement fee of $200.

39-34  3.  Except as otherwise provided in NRS 645E.160, a certificate of

39-35  exemption issued pursuant to this chapter expires each year on
December 31, unless it is renewed. To renew a certificate of exemption, a

39-36  person must submit to the [commissioner] commission on or before

39-37  December 31 of each year:

39-38  (a) An application for renewal that complies with the requirements of

39-39  this chapter; and

39-40  (b) The fee required to renew the certificate of exemption.

39-41  4.  If the person fails to submit any item required pursuant to

39-42  subsection 3 to the [commissioner] commission on or before December 31

39-43  of any year, the certificate of exemption is canceled. Except as otherwise

39-44  provided in NRS 645E.160, the [commissioner] commission may reinstate

39-45  a canceled certificate of exemption if the person submits to the

39-46  [commissioner:] commission:

39-47  (a) An application for renewal that complies with the requirements of

39-48  this chapter;

40-1    (b) The fee required to renew the certificate of exemption; and

40-2    (c) A reinstatement fee of $100.

40-3    5.  A person must pay the following fees to apply for, to be issued or to

40-4  renew a license as a mortgage company pursuant to this chapter:

40-5    (a) To file an original application for a license, $1,500 for the principal

40-6  office and $40 for each branch office. The person must also pay such

40-7  additional expenses incurred in the process of investigation as the

40-8  [commissioner] commission deems necessary. All money received by the

40-9  [commissioner] commission pursuant to this paragraph must be placed in

40-10  the investigative account created by NRS 232.545.

40-11  (b) To be issued a license, $1,000 for the principal office and $60 for

40-12  each branch office.

40-13  (c) To renew a license, $500 for the principal office and $100 for each

40-14  branch office.

40-15  6.  A person must pay the following fees to apply for or to renew a

40-16  certificate of exemption pursuant to this chapter:

40-17  (a) To file an application for a certificate of exemption, $200.

40-18  (b) To renew a certificate of exemption, $100.

40-19  7.  To be issued a duplicate copy of any license or certificate of

40-20  exemption, a person must make a satisfactory showing of its loss and pay a

40-21  fee of $10.

40-22  8.  Except as otherwise provided in this chapter, all fees received

40-23  pursuant to this chapter must be deposited in the state treasury for credit to

40-24  the state general fund.

40-25  Sec. 72.  NRS 645E.300 is hereby amended to read as follows:

40-26  645E.300  1.  Subject to the administrative control of the director of

40-27  the department of business and industry, the [commissioner] commission

40-28  shall exercise general supervision and control over mortgage companies

40-29  doing business in this state.

40-30  2.  In addition to the other duties imposed upon [him] the commission

40-31  by law, the [commissioner] commission shall:

40-32  (a) Adopt any regulations that are necessary to carry out the provisions

40-33  of this chapter, except as to loan fees.

40-34  (b) Conduct such investigations as may be necessary to determine

40-35  whether any person has violated any provision of this chapter, a regulation

40-36  adopted pursuant to this chapter or an order of the [commissioner.]

40-37  commission.

40-38  (c) Conduct an annual examination of each mortgage company doing

40-39  business in this state.

40-40  (d) Conduct such other examinations, periodic or special audits,

40-41  investigations and hearings as may be necessary and proper for the

40-42  efficient administration of the laws of this state regarding mortgage

40-43  companies.

40-44  (e) Classify as confidential certain records and information obtained by

40-45  the [division] commission when those matters are obtained from a

40-46  governmental agency upon the express condition that they remain

40-47  confidential. This paragraph does not limit examination by the legislative

40-48  auditor.

41-1    (f) Conduct such examinations and investigations as are necessary to

41-2  ensure that mortgage companies meet the requirements of this chapter for

41-3  obtaining a license, both at the time of the application for a license and

41-4  thereafter on a continuing basis.

41-5    3.  For each special audit, investigation or examination, a mortgage

41-6  company shall pay a fee based on the [rate established] rates that the

41-7  commission establishes by regulation. In establishing such rates, the

41-8  commission shall consider:

41-9    (a) The complexity of the various audits, investigations and

41-10  examinations to which the rates apply;

41-11  (b) The skill required to conduct the audits, investigations and

41-12  examinations;

41-13  (c) The expenses associated with conducting the audits, investigations

41-14  and examinations and preparing reports;

41-15  (d) The rates established by the commissioner of financial institutions

41-16  pursuant to NRS 658.101[.] for supervision and examination of other

41-17  financial institutions; and

41-18  (e) Any other factors the commission deems relevant.

41-19  Sec. 73.  NRS 645E.310 is hereby amended to read as follows:

41-20  645E.310  1.  In the conduct of any examination, periodic or special

41-21  audit, investigation or hearing, the [commissioner] commission may:

41-22  (a) Compel the attendance of any person by subpoena.

41-23  (b) Administer oaths.

41-24  (c) Examine any person under oath concerning the business and conduct

41-25  of affairs of any person subject to the provisions of this chapter and in

41-26  connection therewith require the production of any books, records or

41-27  papers relevant to the inquiry.

41-28  2.  Any person subpoenaed under the provisions of this section who

41-29  willfully refuses or willfully neglects to appear at the time and place named

41-30  in the subpoena or to produce books, records or papers required by the

41-31  [commissioner,] commission, or who refuses to be sworn or answer as a

41-32  witness, is guilty of a misdemeanor.

41-33  3.  The [commissioner] commission may assess against and collect

41-34  from a person all costs, including, without limitation, reasonable attorney’s

41-35  fees, that are attributable to any examination, periodic or special audit,

41-36  investigation or hearing that is conducted to examine or investigate the

41-37  conduct, activities or business of the person pursuant to this chapter.

41-38  Sec. 74.  NRS 645E.320 is hereby amended to read as follows:

41-39  645E.320  1.  The commission shall employ a certified public

41-40  accountant to review and conduct independent audits and examinations

41-41  of mortgage companies. The commission shall levy an assessment upon

41-42  each mortgage company to cover all the costs related to the employment

41-43  of the certified public accountant and the performance of the audits and

41-44  examinations.

41-45  2.  Each mortgage company shall pay the assessment levied pursuant to

41-46  [NRS 658.055 and] this section.

41-47  3.  Each mortgage company shall cooperate fully with the audits and

41-48  examinations performed pursuant [thereto.] to this section.

42-1    4.  The assessments collected by the commission pursuant to this

42-2  section must be deposited in the state treasury for credit to the account

42-3  for auditing mortgage brokers and mortgage companies which is created

42-4  pursuant to NRS 645B.075. The commission shall use the money in the

42-5  account, and may advance money from the account, for the purposes set

42-6  forth in this section and NRS 645B.075.

42-7    Sec. 75.  NRS 645E.350 is hereby amended to read as follows:

42-8    645E.350  1.  Each mortgage company shall keep and maintain at all

42-9  times at each location where the mortgage company conducts business in

42-10  this state complete and suitable records of all mortgage transactions made

42-11  by the mortgage company at that location. Each mortgage company shall

42-12  also keep and maintain at all times at each such location all original books,

42-13  papers and data, or copies thereof, clearly reflecting the financial condition

42-14  of the business of the mortgage company.

42-15  2.  Each mortgage company shall submit to the [commissioner]

42-16  commission each month a report of the mortgage company’s activity for

42-17  the previous month. The report must:

42-18  (a) Specify the volume of loans made by the mortgage company for the

42-19  month or state that no loans were made in that month;

42-20  (b) Include any information required pursuant to the regulations adopted

42-21  by the [commissioner;] commission; and

42-22  (c) Be submitted to the [commissioner] commission by the 15th day of

42-23  the month following the month for which the report is made.

42-24  3.  The [commissioner] commission may adopt regulations prescribing

42-25  accounting procedures for mortgage companies handling trust accounts and

42-26  the requirements for keeping records relating to such accounts.

42-27  Sec. 76.  NRS 645E.360 is hereby amended to read as follows:

42-28  645E.360  1.  Except as otherwise provided in this section, not later

42-29  than 60 days after the last day of each fiscal year for a mortgage company,

42-30  the mortgage company shall submit to the [commissioner] commission a

42-31  financial statement that:

42-32  (a) Is dated not earlier than the last day of the fiscal year; and

42-33  (b) Has been prepared from the books and records of the mortgage

42-34  company by an independent public accountant who holds a permit to

42-35  engage in the practice of public accounting in this state that has not been

42-36  revoked or suspended.

42-37  2.  The [commissioner] commission may grant a reasonable extension

42-38  for the submission of a financial statement pursuant to this section if a

42-39  mortgage company requests such an extension before the date on which the

42-40  financial statement is due.

42-41  3.  If a mortgage company maintains any accounts described in
NRS 645E.430, the financial statement submitted pursuant to this section

42-42  must be audited. The public accountant who prepares the report of an audit

42-43  shall submit a copy of the report to the [commissioner] commission at the

42-44  same time that he submits the report to the mortgage company.

42-45  4.  The [commissioner] commission shall adopt regulations prescribing

42-46  the scope of an audit conducted pursuant to subsection 3.

 

 

43-1    Sec. 77.  NRS 645E.370 is hereby amended to read as follows:

43-2    645E.370  1.  Except as otherwise provided in this section or by

43-3  specific statute, all papers, documents, reports and other written

43-4  instruments filed with the [commissioner] commission pursuant to this

43-5  chapter are open to public inspection.

43-6    2.  The [commissioner] commission may withhold from public

43-7  inspection or refuse to disclose to a person, for such time as the

43-8  [commissioner] commission considers necessary, any information that, in

43-9  [his judgment,] the judgment of the commission, would:

43-10  (a) Impede or otherwise interfere with an investigation that is currently

43-11  pending against a mortgage company; or

43-12  (b) Have an undesirable effect on the welfare of the public or the

43-13  welfare of any mortgage company.

43-14  Sec. 78.  NRS 645E.390 is hereby amended to read as follows:

43-15  645E.390  1.  The [commissioner] commission must be notified of a

43-16  transfer of 5 percent or more of the outstanding voting stock of a mortgage

43-17  company and must approve a transfer of voting stock of a mortgage

43-18  company which constitutes a change of control.

43-19  2.  The person who acquires stock resulting in a change of control of

43-20  the mortgage company shall apply to the [commissioner] commission for

43-21  approval of the transfer. The application must contain information which

43-22  shows that the requirements of this chapter for obtaining a license will be

43-23  satisfied after the change of control. Except as otherwise provided in

43-24  subsection 3, the [commissioner] commission shall conduct an

43-25  investigation to determine whether those requirements will be satisfied. If,

43-26  after the investigation, the [commissioner] commission denies the

43-27  application, he may forbid the applicant from participating in the business

43-28  of the mortgage company.

43-29  3.  A mortgage company may submit a written request to the

43-30  [commissioner] commission to waive an investigation pursuant to

43-31  subsection 2. The [commissioner] commission may grant a waiver if the

43-32  applicant has undergone a similar investigation by a state or federal agency

43-33  in connection with the licensing of or his employment with a financial

43-34  institution.

43-35  4.  As used in this section, “change of control” means:

43-36  (a) A transfer of voting stock which results in giving a person, directly

43-37  or indirectly, the power to direct the management and policy of a mortgage

43-38  company; or

43-39  (b) A transfer of at least 25 percent of the outstanding voting stock of a

43-40  mortgage company.

43-41  Sec. 79.  NRS 645E.430 is hereby amended to read as follows:

43-42  645E.430  1.  All money paid to a mortgage company for payment of

43-43  taxes or insurance premiums on real property which secures any loan made

43-44  by the mortgage company must be deposited in an insured depository

43-45  financial institution and kept separate, distinct and apart from money

43-46  belonging to the mortgage company. Such money, when deposited, is to be

43-47  designated as an “impound trust account” or under some other appropriate

43-48  name indicating that the accounts are not the money of the mortgage

43-49  company.

44-1    2.  The mortgage company has a fiduciary duty to each debtor with

44-2  respect to the money in an impound trust account.

44-3    3.  The mortgage company shall, upon reasonable notice, account to

44-4  any debtor whose real property secures a loan made by the mortgage

44-5  company for any money which that person has paid to the mortgage

44-6  company for the payment of taxes or insurance premiums on the real

44-7  property.

44-8    4.  The mortgage company shall, upon reasonable notice, account to the

44-9  [commissioner] commission for all money in an impound trust account.

44-10  5.  A mortgage company shall:

44-11  (a) Require contributions to an impound trust account in an amount

44-12  reasonably necessary to pay the obligations as they become due.

44-13  (b) Within 30 days after the completion of the annual review of an

44-14  impound trust account, notify the debtor:

44-15     (1) Of the amount by which the contributions exceed the amount

44-16  reasonably necessary to pay the annual obligations due from the account;

44-17  and

44-18     (2) That the debtor may specify the disposition of the excess money

44-19  within 20 days after receipt of the notice. If the debtor fails to specify such

44-20  a disposition within that time, the mortgage company shall maintain the

44-21  excess money in the account.

44-22  This subsection does not prohibit a mortgage company from requiring

44-23  additional amounts to be paid into an impound trust account to recover a

44-24  deficiency that exists in the account.

44-25  6.  A mortgage company shall not make payments from an impound

44-26  trust account in a manner that causes a policy of insurance to be canceled

44-27  or causes property taxes or similar payments to become delinquent.

44-28  Sec. 80.  NRS 645E.620 is hereby amended to read as follows:

44-29  645E.620  1.  Whether or not a complaint has been filed, the

44-30  [commissioner] commission may investigate a mortgage company or other

44-31  person if, for any reason, it appears that:

44-32  (a) The mortgage company is conducting business in an unsafe and

44-33  injurious manner or in violation of any provision of this chapter, a

44-34  regulation adopted pursuant to this chapter or an order of the

44-35  [commissioner;] commission;

44-36  (b) The person is offering or providing any of the services of a

44-37  mortgage company or otherwise engaging in, carrying on or holding

44-38  himself out as engaging in or carrying on the business of a mortgage

44-39  company without being licensed or exempt from licensing pursuant to the

44-40  provisions of this chapter; or

44-41  (c) The person is violating any other provision of this chapter, a

44-42  regulation adopted pursuant to this chapter or an order of the

44-43  [commissioner.] commission.

44-44  2.  If, upon investigation, the [commissioner] commission has

44-45  reasonable cause to believe that the mortgage company or other person has

44-46  engaged in any conduct or committed any violation described in subsection

44-47  1, the [commissioner] commission may:

44-48  (a) Advise the district attorney of the county in which the conduct or

44-49  violation occurred, and the district attorney shall cause the appropriate

45-1  legal action to be taken against the mortgage company or other person to

45-2  enjoin the conduct or the operation of the business or prosecute the

45-3  violation; and

45-4    (b) Bring a civil action to:

45-5      (1) Enjoin the mortgage company or other person from engaging in

45-6  the conduct, operating the business or committing the violation; and

45-7      (2) Enjoin any other person who has encouraged, facilitated, aided or

45-8  participated in the conduct, the operation of the business or the commission

45-9  of the violation, or who is likely to engage in such acts, from engaging in

45-10  or continuing to engage in such acts.

45-11  3.  If the [commissioner] commission brings a civil action pursuant to

45-12  subsection 2, the district court of any county of this state is hereby vested

45-13  with the jurisdiction in equity to enjoin the conduct, the operation of the

45-14  business or the commission of the violation and may grant any injunctions

45-15  that are necessary to prevent and restrain the conduct, the operation of the

45-16  business or the commission of the violation. During the pendency of the

45-17  proceedings before the district court:

45-18  (a) The court may issue any temporary restraining orders as may appear

45-19  to be just and proper;

45-20  (b) The findings of the [commissioner] commission shall be deemed to

45-21  be prima facie evidence and sufficient grounds, in the discretion of the

45-22  court, for the ex parte issuance of a temporary restraining order; and

45-23  (c) The [commissioner] commission may apply for and on due showing

45-24  is entitled to have issued the court’s subpoena requiring forthwith the

45-25  appearance of any person to:

45-26     (1) Produce any documents, books and records as may appear

45-27  necessary for the hearing of the petition; and

45-28     (2) Testify and give evidence concerning the conduct complained of

45-29  in the petition.

45-30  Sec. 81.  NRS 645E.630 is hereby amended to read as follows:

45-31  645E.630  1.  In addition to any other action that is permitted pursuant

45-32  to this chapter, if the [commissioner] commission has reasonable cause to

45-33  believe that:

45-34  (a) The assets or capital of a mortgage company are impaired; or

45-35  (b) A mortgage company is conducting business in an unsafe and

45-36  injurious manner that may result in danger to the
public,

45-37  the [commissioner] commission may immediately take possession of all

45-38  the property, business and assets of the mortgage company that are located

45-39  in this state and retain possession of them pending further proceedings

45-40  provided for in this chapter.

45-41  2.  If the licensee, the board of directors or any officer or person in

45-42  charge of the offices of the mortgage company refuses to permit the

45-43  [commissioner] commission to take possession of the property of the

45-44  mortgage company pursuant to subsection 1:

45-45  (a) The [commissioner] commission shall notify the attorney general;

45-46  and

46-1    (b) The attorney general shall immediately bring such proceedings as

46-2  may be necessary to place the [commissioner] commission in immediate

46-3  possession of the property of the mortgage company.

46-4    3.  If the [commissioner] commission takes possession of the property

46-5  of the mortgage company, the [commissioner] commission shall:

46-6    (a) Make or have made an inventory of the assets and known liabilities

46-7  of the mortgage company; and

46-8    (b) File one copy of the inventory in [his] the office of the commission

46-9  and one copy in the office of the clerk of the district court of the county in

46-10  which the principal office of the mortgage company is located and shall

46-11  mail one copy to each stockholder, partner, officer, director or associate of

46-12  the mortgage company at his last known address.

46-13  4.  The clerk of the court with which the copy of the inventory is filed

46-14  shall file it as any other case or proceeding pending in the court and shall

46-15  give it a docket number.

46-16  Sec. 82.  NRS 645E.640 is hereby amended to read as follows:

46-17  645E.640  1.  If the [commissioner] commission takes possession of

46-18  the property of a mortgage company pursuant to NRS 645E.630, the

46-19  licensee, officers, directors, partners, associates or stockholders of the

46-20  mortgage company may, within 60 days after the date on which the

46-21  [commissioner] commission takes possession of the property, make good

46-22  any deficit in the assets or capital of the mortgage company or remedy any

46-23  unsafe and injurious conditions or practices of the mortgage company.

46-24  2.  At the expiration of the 60-day period, if the deficiency in assets or

46-25  capital has not been made good or the unsafe and injurious conditions or

46-26  practices remedied, the [commissioner] commission may apply to the court

46-27  to be appointed receiver and proceed to liquidate the assets of the mortgage

46-28  company which are located in this state in the same manner as now

46-29  provided by law for liquidation of a private corporation in receivership.

46-30  3.  No other person may be appointed receiver by any court without

46-31  first giving the [commissioner] commission ample notice of his

46-32  application.

46-33  4.  The inventory made by the [commissioner] commission and all

46-34  claims filed by creditors are open at all reasonable times for inspection, and

46-35  any action taken by the receiver upon any of the claims is subject to the

46-36  approval of the court before which the cause is pending.

46-37  5.  The expenses of the receiver and compensation of counsel, as well

46-38  as all expenditures required in the liquidation proceedings, must be fixed

46-39  by the [commissioner] commission subject to the approval of the court and,

46-40  upon certification of the [commissioner,] commission, must be paid out of

46-41  the money in [his] the hands of the commission as the receiver.

46-42  Sec. 83.  NRS 645E.670 is hereby amended to read as follows:

46-43  645E.670  1.  For each violation committed by an applicant, whether

46-44  or not he is issued a license, the [commissioner] commission may impose

46-45  upon the applicant an administrative fine of not more than $10,000, if the

46-46  applicant:

46-47  (a) Has knowingly made or caused to be made to the [commissioner]

46-48  commission any false representation of material fact;

 

47-1    (b) Has suppressed or withheld from the [commissioner] commission

47-2  any information which the applicant possesses and which, if submitted by

47-3  him, would have rendered the applicant ineligible to be licensed pursuant

47-4  to the provisions of this chapter; or

47-5    (c) Has violated any provision of this chapter, a regulation adopted

47-6  pursuant to this chapter or an order of the [commissioner] commission in

47-7  completing and filing his application for a license or during the course of

47-8  the investigation of his application for a license.

47-9    2.  For each violation committed by a licensee, the [commissioner]

47-10  commission may impose upon the licensee an administrative fine of not

47-11  more than $10,000, may suspend, revoke or place conditions upon his

47-12  license, or may do both, if the licensee, whether or not acting as such:

47-13  (a) Is insolvent;

47-14  (b) Is grossly negligent or incompetent in performing any act for which

47-15  he is required to be licensed pursuant to the provisions of this chapter;

47-16  (c) Does not conduct his business in accordance with law or has

47-17  violated any provision of this chapter, a regulation adopted pursuant to this

47-18  chapter or an order of the [commissioner;] commission;

47-19  (d) Is in such financial condition that he cannot continue in business

47-20  with safety to his customers;

47-21  (e) Has made a material misrepresentation in connection with any

47-22  transaction governed by this chapter;

47-23  (f) Has suppressed or withheld from a client any material facts, data or

47-24  other information relating to any transaction governed by the provisions of

47-25  this chapter which the licensee knew or, by the exercise of reasonable

47-26  diligence, should have known;

47-27  (g) Has knowingly made or caused to be made to the [commissioner]

47-28  commission any false representation of material fact or has suppressed or

47-29  withheld from the [commissioner] commission any information which the

47-30  licensee possesses and which, if submitted by him, would have rendered

47-31  the licensee ineligible to be licensed pursuant to the provisions of this

47-32  chapter;

47-33  (h) Has failed to account to persons interested for all money received

47-34  for a trust account;

47-35  (i) Has refused to permit an examination by the [commissioner]

47-36  commission of his books and affairs or has refused or failed, within a

47-37  reasonable time, to furnish any information or make any report that may be

47-38  required by the [commissioner] commission pursuant to the provisions of

47-39  this chapter or a regulation adopted pursuant to this chapter;

47-40  (j) Has been convicted of, or entered a plea of nolo contendere to, a

47-41  felony or any crime involving fraud, misrepresentation or moral turpitude;

47-42  (k) Has refused or failed to pay, within a reasonable time, any fees,

47-43  assessments, costs or expenses that the licensee is required to pay pursuant

47-44  to this chapter or a regulation adopted pursuant to this chapter;

47-45  (l) Has failed to satisfy a claim made by a client which has been reduced

47-46  to judgment;

47-47  (m) Has failed to account for or to remit any money of a client within a

47-48  reasonable time after a request for an accounting or remittal;

48-1    (n) Has commingled the money or other property of a client with his

48-2  own or has converted the money or property of others to his own use; or

48-3    (o) Has engaged in any other conduct constituting a deceitful,

48-4  fraudulent or dishonest business practice.

48-5    Sec. 84.  NRS 645E.680 is hereby amended to read as follows:

48-6    645E.680  1.  If the [commissioner] commission receives a copy of a

48-7  court order issued pursuant to NRS 425.540 that provides for the

48-8  suspension of all professional, occupational and recreational licenses,

48-9  certificates and permits issued to a person who is the holder of a license as

48-10  a mortgage company, the [commissioner] commission shall deem the

48-11  license issued to that person to be suspended at the end of the 30th day

48-12  after the date on which the court order was issued unless the

48-13  [commissioner] commission receives a letter issued to the holder of the

48-14  license by the district attorney or other public agency pursuant to
NRS 425.550 stating that the holder of the license has complied with the

48-15  subpoena or warrant or has satisfied the arrearage pursuant to
NRS 425.560.

48-16  2.  The [commissioner] commission shall reinstate a license as a

48-17  mortgage company that has been suspended by a district court pursuant to

48-18  NRS 425.540 if the [commissioner] commission receives a letter issued by

48-19  the district attorney or other public agency pursuant to NRS 425.550 to the

48-20  person whose license was suspended stating that the person whose license

48-21  was suspended has complied with the subpoena or warrant or has satisfied

48-22  the arrearage pursuant to NRS 425.560.

48-23  Sec. 85.  NRS 645E.710 is hereby amended to read as follows:

48-24  645E.710  If a person is a partnership, corporation or unincorporated

48-25  association, the [commissioner] commission may take any disciplinary

48-26  action set forth in this chapter against the person if any member of the

48-27  partnership or any officer or director of the corporation or unincorporated

48-28  association has committed any act or omission that would be cause for

48-29  taking such disciplinary action against a natural person.

48-30  Sec. 86.  NRS 645E.750 is hereby amended to read as follows:

48-31  645E.750  1.  If the [commissioner] commission enters an order

48-32  taking any disciplinary action against a person or denying a person’s

48-33  application for a license, the [commissioner] commission shall cause

48-34  written notice of the order to be served personally or sent by certified mail

48-35  or telegraph to the person.

48-36  2.  Unless a hearing has already been conducted concerning the matter,

48-37  the person, upon application, is entitled to a hearing. If the person does not

48-38  make such an application within 20 days after the date of the initial order,

48-39  the [commissioner] commission shall enter a final order concerning the

48-40  matter.

48-41  3.  A person may appeal a final order of the [commissioner]

48-42  commission in accordance with the provisions of chapter 233B of
NRS that apply to a contested case.

48-43  Sec. 87.  NRS 645E.950 is hereby amended to read as follows:

48-44  645E.950  Except as otherwise provided in NRS 645E.960, a person, or

48-45  any general partner, director, officer, agent or employee of a person, who

48-46  violates any provision of this chapter, a regulation adopted pursuant to this

49-1  chapter or an order of the [commissioner] commission is guilty of a

49-2  misdemeanor.

49-3    Sec. 88.  NRS 78.045 is hereby amended to read as follows:

49-4    78.045  1.  The secretary of state shall not accept for filing any articles

49-5  of incorporation or any certificate of amendment of articles of

49-6  incorporation of any corporation formed pursuant to the laws of this state

49-7  which provides that the name of the corporation contains the word “bank”

49-8  or “trust,” unless:

49-9    (a) It appears from the articles or the certificate of amendment that the

49-10  corporation proposes to carry on business as a banking or trust company,

49-11  exclusively or in connection with its business as a bank or savings and loan

49-12  association; and

49-13  (b) The articles or certificate of amendment is first approved by the

49-14  commissioner of financial institutions.

49-15  2.  The secretary of state shall not accept for filing any articles of

49-16  incorporation or any certificate of amendment of articles of incorporation

49-17  of any corporation formed pursuant to the provisions of this chapter if it

49-18  appears from the articles or the certificate of amendment that the business

49-19  to be carried on by the corporation is subject to supervision by the

49-20  commissioner of insurance , [or by] the commissioner of financial

49-21  institutions, or the mortgage industry commission, unless the articles or

49-22  certificate of amendment is approved by the commissioner or commission

49-23  who will supervise the business of the corporation.

49-24  3.  Except as otherwise provided in subsection 5, the secretary of state

49-25  shall not accept for filing any articles of incorporation or any certificate or

49-26  amendment of articles of incorporation of any corporation formed pursuant

49-27  to the laws of this state if the name of the corporation contains the words

49-28  “engineer,” “engineered,” “engineering,” “professional engineer,”

49-29  “registered engineer” or “licensed engineer” unless:

49-30  (a) The state board of professional engineers and land surveyors

49-31  certifies that the principals of the corporation are licensed to practice

49-32  engineering pursuant to the laws of this state; or

49-33  (b) The state board of professional engineers and land surveyors

49-34  certifies that the corporation is exempt from the prohibitions of
NRS 625.520.

49-35  4.  The secretary of state shall not accept for filing any articles of

49-36  incorporation or any certificate of amendment of articles of incorporation

49-37  of any corporation formed pursuant to the laws of this state which provides

49-38  that the name of the corporation contains the words “accountant,”

49-39  “accounting,” “accountancy,” “auditor” or “auditing” unless the Nevada

49-40  state board of accountancy certifies that the corporation:

49-41  (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

49-42  (b) Has filed with the state board of accountancy under penalty of

49-43  perjury a written statement that the corporation is not engaged in the

49-44  practice of accounting and is not offering to practice accounting in this

49-45  state.

49-46  5.  The provisions of subsection 3 do not apply to any corporation,

49-47  whose securities are publicly traded and regulated by the Securities

50-1  Exchange Act of 1934, which does not engage in the practice of

50-2  professional engineering.

50-3    6.  The commissioner of financial institutions , the mortgage industry

50-4  commission and the commissioner of insurance may approve or disapprove

50-5  the articles or amendments referred to them pursuant to the provisions of

50-6  this section.

50-7    Sec. 89.  NRS 80.010 is hereby amended to read as follows:

50-8    80.010  1.  Before commencing or doing any business in this state,

50-9  each corporation organized pursuant to the laws of another state, territory,

50-10  the District of Columbia, a possession of the United States or a foreign

50-11  country, that enters this state to do business must:

50-12  (a) File in the office of the secretary of state of this state:

50-13     (1) A certificate of corporate existence issued not more than 90 days

50-14  before the date of filing by an authorized officer of the jurisdiction of its

50-15  incorporation setting forth the filing of documents and instruments related

50-16  to the articles of incorporation, or the governmental acts or other

50-17  instrument or authority by which the corporation was created. If the

50-18  certificate is in a language other than English, a translation, together with

50-19  the oath of the translator and his attestation of its accuracy, must be

50-20  attached to the certificate.

50-21     (2) A certificate of acceptance of appointment executed by its

50-22  resident agent, who must be a resident or located in this state. The

50-23  certificate must set forth the name of the resident agent, his street address

50-24  for the service of process, and his mailing address if different from his

50-25  street address. The street address of the resident agent is the registered

50-26  office of the corporation in this state.

50-27     (3) A statement executed by an officer of the corporation setting

50-28  forth:

50-29       (I) A general description of the purposes of the corporation; and

50-30       (II) The authorized stock of the corporation and the number and

50-31  par value of shares having par value and the number of shares having no

50-32  par value.

50-33  (b) Lodge in the office of the secretary of state a copy of the document

50-34  most recently filed by the corporation in the jurisdiction of its

50-35  incorporation setting forth the authorized stock of the corporation, the

50-36  number of par-value shares and their par value, and the number of no-par-

50-37  value shares.

50-38  2.  The secretary of state shall not file the documents required by

50-39  subsection 1 for any foreign corporation whose name is not distinguishable

50-40  on the records of the secretary of state from the names of all other artificial

50-41  persons formed, organized, registered or qualified pursuant to the

50-42  provisions of this Title that are on file in the office of the secretary of state

50-43  and all names that are reserved in the office of the secretary of state

50-44  pursuant to the provisions of this Title, unless the written, acknowledged

50-45  consent of the holder of the name on file or reserved name to use the same

50-46  name or the requested similar name accompanies the articles of

50-47  incorporation.

50-48  3.  The secretary of state shall not accept for filing the documents

50-49  required by subsection 1 or NRS 80.110 for any foreign corporation if the

51-1  name of the corporation contains the words “engineer,” “engineered,”

51-2  “engineering,” “professional engineer,” “registered engineer” or “licensed

51-3  engineer” unless the state board of professional engineers and land

51-4  surveyors certifies that:

51-5    (a) The principals of the corporation are licensed to practice engineering

51-6  pursuant to the laws of this state; or

51-7    (b) The corporation is exempt from the prohibitions of NRS 625.520.

51-8    4.  The secretary of state shall not accept for filing the documents

51-9  required by subsection 1 or NRS 80.110 for any foreign corporation if it

51-10  appears from the documents that the business to be carried on by the

51-11  corporation is subject to supervision by the commissioner of financial

51-12  institutions[,] or the mortgage industry commission, unless the

51-13  commissioner or commission, as appropriate, certifies that:

51-14  (a) The corporation has obtained the authority required to do business in

51-15  this state; or

51-16  (b) The corporation is not subject to or is exempt from the requirements

51-17  for obtaining such authority.

51-18  5.  The secretary of state shall not accept for filing the documents

51-19  required by subsection 1 or NRS 80.110 for any foreign corporation if the

51-20  name of the corporation contains the words “accountant,” “accounting,”

51-21  “accountancy,” “auditor” or “auditing” unless the Nevada state board of

51-22  accountancy certifies that the foreign corporation:

51-23  (a) Is registered pursuant to the provisions of chapter 628 of NRS; or

51-24  (b) Has filed with the state board of accountancy under penalty of

51-25  perjury a written statement that the foreign corporation is not engaged in

51-26  the practice of accounting and is not offering to practice accounting in this

51-27  state.

51-28  6.  The secretary of state may adopt regulations that interpret the

51-29  requirements of this section.

51-30  Sec. 90.  NRS 232.510 is hereby amended to read as follows:

51-31  232.510  1.  The department of business and industry is hereby

51-32  created.

51-33  2.  The department consists of a director and the following:

51-34  (a) Consumer affairs division.

51-35  (b) Division of financial institutions.

51-36  (c) Housing division.

51-37  (d) Manufactured housing division.

51-38  (e) Real estate division.

51-39  (f) Division of unclaimed property.

51-40  (g) Division of insurance.

51-41  (h) Division of industrial relations.

51-42  (i) Office of labor commissioner.

51-43  (j) Taxicab authority.

51-44  (k) Nevada athletic commission.

51-45  (l) Office of the Nevada attorney for injured workers.

51-46  (m) Transportation services authority.

51-47  (n) Mortgage industry commission.

51-48  (o) Any other office, commission, board, agency or entity created or

51-49  placed within the department pursuant to a specific statute, the budget

52-1  approved by the legislature or an executive order, or an entity whose

52-2  budget or activities have been placed within the control of the department

52-3  by a specific statute.

52-4    Sec. 91.  NRS 232.520 is hereby amended to read as follows:

52-5    232.520  The director:

52-6    1.  Shall appoint a chief or executive director, or both of them, of each

52-7  of the divisions, offices, commissions, boards, agencies or other entities of

52-8  the department, unless the authority to appoint such a chief or executive

52-9  director, or both of them, is expressly vested in another person, board or

52-10  commission by a specific statute. In making the appointments, the director

52-11  may obtain lists of qualified persons from professional organizations,

52-12  associations or other groups recognized by the department, if any. The

52-13  chiefs within the department are as follows:

52-14  (a) The chief of the consumer affairs division is the commissioner of

52-15  consumer affairs . [, the]

52-16  (b) The chief of the division of financial institutions is the

52-17  commissioner of financial institutions . [, the]

52-18  (c) The chief of the housing division is the administrator of the housing

52-19  division . [, the]

52-20  (d) The chief of the manufactured housing division is the administrator

52-21  of the manufactured housing division . [, the]

52-22  (e) The chief of the real estate division is the real estate administrator .

52-23  [, the]

52-24  (f) The chief of the division of unclaimed property is the administrator

52-25  of unclaimed property . [, the]

52-26  (g) The chief of the division of insurance is the commissioner of

52-27  insurance . [, the]

52-28  (h) The chief of the division of industrial relations is the administrator

52-29  of the division of industrial relations . [, the]

52-30  (i) The chief of the office of labor commissioner is the labor

52-31  commissioner . [, the]

52-32  (j) The chief of the taxicab authority is the taxicab administrator . [, the]

52-33  (k) The chief of the transportation services authority is the chairman of

52-34  the authority . [and the]

52-35  (l) The chief of the mortgage industry commission is the chairman of

52-36  the commission.

52-37  (m) The chief of any other entity of the department has the title

52-38  specified by the director, unless a different title is specified by a specific

52-39  statute.

52-40  2.  Is responsible for the administration of all provisions of law relating

52-41  to the jurisdiction, duties and functions of all divisions and other entities

52-42  within the department. The director may, if he deems it necessary to carry

52-43  out his administrative responsibilities, be considered as a member of the

52-44  staff of any division or other entity of the department for the purpose of

52-45  budget administration or for carrying out any duty or exercising any power

52-46  necessary to fulfill the responsibilities of the director pursuant to this

52-47  subsection. The provisions of this subsection do not authorize the director

52-48  to preempt any authority or jurisdiction granted by statute to any division

53-1  or other entity within the department or authorize the director to act or take

53-2  on a function that would contravene a rule of court or a statute.

53-3    3.  May:

53-4    (a) Establish uniform policies for the department, consistent with the

53-5  policies and statutory responsibilities and duties of the divisions and other

53-6  entities within the department, relating to matters concerning budgeting,

53-7  accounting, planning, program development, personnel, information

53-8  services, dispute resolution, travel, workplace safety, the acceptance of

53-9  gifts or donations, the management of records and any other subject for

53-10  which a uniform departmental policy is necessary to ensure the efficient

53-11  operation of the department.

53-12  (b) Provide coordination among the divisions and other entities within

53-13  the department, in a manner which does not encroach upon their statutory

53-14  powers and duties, as they adopt and enforce regulations, execute

53-15  agreements, purchase goods, services or equipment, prepare legislative

53-16  requests and lease or use office space.

53-17  (c) Define the responsibilities of any person designated to carry out the

53-18  duties of the director relating to financing, industrial development or

53-19  business support services.

53-20  4.  May, within the limits of the financial resources made available to

53-21  him, promote, participate in the operation of, and create or cause to be

53-22  created, any nonprofit corporation, pursuant to chapter 82 of NRS, which

53-23  he determines is necessary or convenient for the exercise of the powers and

53-24  duties of the department. The purposes, powers and operation of the

53-25  corporation must be consistent with the purposes, powers and duties of the

53-26  department.

53-27  5.  For any bonds which he is otherwise authorized to issue, may issue

53-28  bonds the interest on which is not exempt from federal income tax or

53-29  excluded from gross revenue for the purposes of federal income tax.

53-30  6.  May, except as otherwise provided by specific statute, adopt by

53-31  regulation a schedule of fees and deposits to be charged in connection with

53-32  the programs administered by him pursuant to chapters 348A and 349 of

53-33  NRS. Except as otherwise provided, the amount of any such fee or deposit

53-34  must not exceed 2 percent of the principal amount of the financing.

53-35  7.  May designate any person within the department to perform any of

53-36  the duties or responsibilities, or exercise any of the authority, of the

53-37  director on his behalf.

53-38  8.  May negotiate and execute agreements with public or private

53-39  entities which are necessary to the exercise of the powers and duties of the

53-40  director or the department.

53-41  9.  May establish a trust account in the state treasury for depositing and

53-42  accounting for money that is held in escrow or is on deposit with the

53-43  department for the payment of any direct expenses incurred by the director

53-44  in connection with any bond programs administered by the director. The

53-45  interest and income earned on money in the trust account, less any amount

53-46  deducted to pay for applicable charges, must be credited to the trust

53-47  account. Any balance remaining in the account at the end of a fiscal year

53-48  may be:

54-1    (a) Carried forward to the next fiscal year for use in covering the

54-2  expense for which it was originally received; or

54-3    (b) Returned to any person entitled thereto in accordance with

54-4  agreements or regulations of the director relating to those bond programs.

54-5    Sec. 92.  NRS 686A.350 is hereby amended to read as follows:

54-6    686A.350  1.  A license to engage in the business of a company is not

54-7  required of any:

54-8    (a) State or federally chartered building association or savings and loan

54-9  association.

54-10  (b) State or federally chartered bank.

54-11  (c) State or federally chartered credit union.

54-12  (d) Thrift company licensed pursuant to chapter 677 of NRS.

54-13  (e) Insurance agent financing his own accounts.

54-14  (f) Insurer authorized to do business in this state financing its own

54-15  policies or those of an affiliated company.

54-16  (g) Business, in addition to those included in paragraphs (a) to (d),

54-17  inclusive, which is licensed and regulated by the mortgage industry

54-18  commission or the division of financial institutions of the department of

54-19  business and industry.

54-20  2.  The provisions of NRS 686A.330 to 686A.520, inclusive, other than

54-21  those which concern licensing, apply to persons exempt from licensing

54-22  pursuant to subsection 1.

54-23  Sec. 93.  Section 139 of chapter 646, Statutes of Nevada 1999, at page

54-24  3816, is hereby amended to read as follows:

54-25  Sec. 139.  1.  This section and sections 1 to 101, inclusive, 103,

54-26  105 to 117, inclusive, 119 to 138, inclusive, of this act become effective

54-27  upon passage and approval for the purpose of adopting any regulations

54-28  necessary to carry out the provisions of this act, and on October 1, 1999,

54-29  for all other purposes.

54-30  2.  Sections 102, 104 and 118 of this act become effective upon

54-31  passage and approval for the purpose of adopting any regulations

54-32  necessary to carry out the provisions of this act, and at 12:01 a.m. on

54-33  October 1, 1999, for all other purposes.

54-34  3.  Sections 15 and 33 of this act expire by limitation on the date on

54-35  which the provisions of 42 U.S.C. § 666 requiring each state to establish

54-36  procedures under which the state has authority to withhold or suspend,

54-37  or to restrict the use of professional, occupational and recreational

54-38  licenses of persons who:

54-39  (a) Have failed to comply with a subpoena or warrant relating to a

54-40  procedure to determine the paternity of a child or to establish or enforce

54-41  an obligation for the support of a child; or

54-42  (b) Are in arrears in the payment for the support of one or more

54-43  children,

54-44  are repealed by the Congress of the United States.

54-45  [4.  Section 78.5 of this act expires by limitation on October 1,

54-46  2001.]

54-47  Sec. 94.  NRS 645B.860, 645B.865 and 645B.870 are hereby repealed.

54-48  Sec. 95.  On July 1, 2001, or as soon as practicable thereafter, the

54-49  governor shall appoint five persons as members of the mortgage industry

55-1  commission, whose terms commence on July 1, 2001. For the initial terms

55-2  of the members of the mortgage industry commission, the governor shall

55-3  appoint:

55-4    1.  Two members whose terms expire on June 30, 2002;

55-5    2.  Two members whose terms expire on June 30, 2003; and

55-6    3.  One member whose term expires on June 30, 2004.

55-7    Sec. 96.  1.  Notwithstanding the provisions of this act and except as

55-8  otherwise provided in subsection 2, the commissioner of financial

55-9  institutions shall exercise all the power and perform all the duties that are

55-10  assigned to the mortgage industry commission and its executive director

55-11  pursuant to the provisions of this act, until the date on which the director of

55-12  the department of business and industry certifies to the governor that the

55-13  mortgage industry commission and its executive director are prepared to

55-14  carry out the provisions of this act, or until January 1, 2002, whichever

55-15  occurs sooner.

55-16  2.  During the period described in subsection 1, the mortgage industry

55-17  commission and its executive director may exercise any power and perform

55-18  any duty assigned to them pursuant to the provisions of this act if the

55-19  exercise of the power or the performance of the duty is necessary as an

55-20  organizational, preparatory or preliminary measure to prepare the mortgage

55-21  industry commission and its executive director to carry out the provisions

55-22  of this act.

55-23  Sec. 97.  1.  Any administrative regulations adopted by an officer or

55-24  an agency whose name has been changed or whose responsibilities have

55-25  been transferred pursuant to the provisions of this act to another officer or

55-26  agency remain in force until amended by the officer or agency to which the

55-27  responsibility for the adoption of the regulations has been transferred.

55-28  2.  Any contracts or other agreements entered into by an officer or

55-29  agency whose name has been changed or whose responsibilities have been

55-30  transferred pursuant to the provisions of this act to another officer or

55-31  agency are binding upon the officer or agency to which the responsibility

55-32  for the administration of the provisions of the contract or other agreement

55-33  has been transferred. Such contracts and other agreements may be enforced

55-34  by the officer or agency to which the responsibility for the enforcement of

55-35  the provisions of the contract or other agreement has been transferred.

55-36  3.  Any action taken by an officer or agency whose name has been

55-37  changed or whose responsibilities have been transferred pursuant to the

55-38  provisions of this act to another officer or agency remains in effect as if

55-39  taken by the officer or agency to which the responsibility for the

55-40  enforcement of such actions has been transferred.

55-41  Sec. 98.  This act becomes effective on July 1, 2001.

55-42  Sec. 99.  1.  The legislative counsel shall:

55-43  (a) In preparing the reprint and supplements to the Nevada Revised

55-44  Statutes, appropriately change any references to an officer or agency whose

55-45  name is changed or whose responsibilities have been transferred pursuant

55-46  to the provisions of this act to refer to the appropriate officer or agency.

55-47  (b) In preparing supplements to the Nevada Administrative Code,

55-48  appropriately change any references to an officer or agency whose name is

56-1  changed or whose responsibilities have been transferred pursuant to the

56-2  provisions of this act to refer to the appropriate officer or agency.

56-3    2.  Any reference in a bill or resolution passed by the 71st session of

56-4  the Nevada legislature to an officer or agency whose name is changed or

56-5  whose responsibilities have been transferred pursuant to the provisions of

56-6  this act to another officer or agency shall be deemed to refer to the officer

56-7  or agency to which the responsibility is transferred.

 

56-8  TEXT OF REPEALED SECTIONS

 

56-9    645B.860  Creation; members; appointment; terms and vacancies;

56-10   no compensation or per diem allowance; protections afforded

56-11   members who are public officers or employees.

56-12  1.  The advisory council on mortgage investments and mortgage

56-13   lending is hereby created.

56-14  2.  The advisory council consists of five members appointed by the

56-15   legislative commission from a list of persons provided by the

56-16   commissioner.

56-17  3.  The members of the advisory council:

56-18  (a) Must be persons who have experience with, an interest in or a

56-19   knowledge of issues relating to mortgage investments or mortgage

56-20   lending. Such persons may include, without limitation, investors, public

56-21   officers and employees, licensees and persons who have engaged in or

56-22   been involved with any business, profession or occupation relating to

56-23   mortgage investments or mortgage lending.

56-24  (b) Serve terms of 2 years and at the pleasure of the legislative

56-25   commission.

56-26  (c) May be reappointed.

56-27  (d) Serve without compensation and may not receive a per diem

56-28   allowance or travel expenses.

56-29  4.  Any vacancy in the membership of the advisory council must be

56-30   filled for the remainder of the unexpired term in the same manner as the

56-31   original appointment.

56-32  5.  A member of the advisory council who is an officer or employee of

56-33   this state or a political subdivision of this state must be relieved from his

56-34   duties without loss of his regular compensation so that he may prepare for

56-35   and attend meetings of the advisory council and perform any work

56-36   necessary to carry out the duties of the advisory council in the most timely

56-37   manner practicable. A state agency or political subdivision of this state

56-38   shall not require an officer or employee who is a member of the advisory

56-39   council to make up the time he is absent from work to carry out his duties

56-40   as a member of the advisory council or use annual vacation or

56-41   compensatory time for the absence.

56-42  6.  Notwithstanding any other provision of law, a member of the

56-43   advisory council:

56-44  (a) Is not disqualified from public employment or holding a public

56-45   office because of his membership on the advisory council; and

57-1    (b) Does not forfeit his public office or public employment because of

57-2  his membership on the advisory council.

57-3    645B.865  Chairman and vice chairman; meetings; quorum;

57-4   subcommittees.

57-5    1.  The members of the advisory council on mortgage investments and

57-6   mortgage lending shall elect a chairman and a vice chairman from among

57-7   their membership. The vice chairman shall perform the duties of the

57-8   chairman during any absence of the chairman.

57-9    2.  The advisory council may meet at least once each calendar quarter

57-10   and at other times on the call of the chairman or a majority of its members.

57-11  3.  The meetings of the advisory council may be held at any location

57-12   designated by the chairman or a majority of its members.

57-13  4.  A majority of the members of the advisory council constitutes a

57-14   quorum for the transaction of all business.

57-15  5.  The chairman may appoint subcommittees of the members of the

57-16   advisory council to consider specific problems relating to mortgage

57-17   investments or mortgage lending.

57-18  645B.870  Purpose.  The purpose of the advisory council on

57-19   mortgage investments and mortgage lending is to:

57-20  1.  Consult with, advise and make recommendations to the

57-21   commissioner in all matters relating to mortgage investments and

57-22   mortgage lending.

57-23  2.  Make recommendations to the legislature concerning the enactment

57-24   of any legislation relating to mortgage investments and mortgage lending.

57-25  3.  Make recommendations to the legislature and the commissioner

57-26   concerning educational requirements and other qualifications for persons

57-27   who are engaged in any business, profession or occupation relating to

57-28   mortgage investments and mortgage lending.

57-29  4.  Conduct hearings, conferences and special studies on all matters

57-30   relating to mortgage investments and mortgage lending.

57-31  5.  Provide a forum for the consideration and discussion of all matters

57-32   relating to mortgage investments and mortgage lending.

57-33  6.  Gather and disseminate information relating to mortgage

57-34   investments and mortgage lending.

57-35  7.  Engage in other activities that are designed to promote, improve and

57-36   protect the reliability and stability of mortgage investments and mortgage

57-37   lending in this state.

 

57-38  H