ReQUIRES TWO-THIRDS MAJORITY VOTE (§§ 12, 15, 16, 27, 28, 79)   exempt

   (Reprinted with amendments adopted on May 30, 2003)

 

Assembly Bill No. 490–Committee on
Commerce and Labor

 

March 24, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to escrow agencies, mortgage brokers, mortgage agents and mortgage bankers. (BDR 54‑998)

 

FISCAL NOTE:                   Effect on Local Government: Yes.

                   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 mortgage investments; creating the Commissioner of Mortgage Lending and providing his duties; creating the Division of Mortgage Lending of
the Department of Business and Industry; establishing the Fund for Mortgage Lending to be administered by the Commissioner; providing for the licensure of mortgage agents; providing that advertising spokespersons for mortgage brokers are jointly and severally liable for damages caused by the mortgage brokers under certain circumstances; revising the provisions relating to renewal of a license as a mortgage broker or mortgage agent; revising the provisions relating to exemptions to the licensure requirements of mortgage brokers and mortgage agents; increasing the amount of continuing education annually required of mortgage brokers and mortgage agents; revising provisions governing continuing education of mortgage brokers and mortgage agents; redesignating mortgage companies as mortgage bankers; providing that a division, office, authority, commission, board or other entity of the Department may provide for the conduct of business electronically; 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. Title 54 of NRS is hereby amended by adding

1-2  thereto a new chapter to consist of the provisions set forth as

1-3  sections 2 to 17, inclusive, of this act.

1-4  Sec. 2. As used in this chapter, unless the context otherwise

1-5  requires, the words and terms defined in sections 3 to 7, inclusive,

1-6  of this act have the meanings ascribed to them in those sections.

1-7  Sec. 3. “Commissioner” means the Commissioner of

1-8  Mortgage Lending.

1-9  Sec. 4. “Division” means the Division of Mortgage Lending

1-10  of the Department of Business and Industry.

1-11      Sec. 5. “Escrow agency” has the meaning ascribed to it in

1-12  NRS 645A.010.

1-13      Sec. 6. “Mortgage banker” has the meaning ascribed to it in

1-14  NRS 645E.100.

1-15      Sec. 7. “Mortgage broker” has the meaning ascribed to it in

1-16  NRS 645B.0127.

1-17      Sec. 8. The Commissioner and the Division shall administer

1-18  the provisions of this chapter and chapters 645A, 645B and 645E

1-19  of NRS, subject to administrative supervision by the Director of

1-20  the Department of Business and Industry.

1-21      Sec. 9. The Commissioner:

1-22      1.  Must be a person who has had practical experience in the

1-23  financial services industry or the business of making loans

1-24  secured by an interest in real property.

1-25      2.  Except as otherwise provided in NRS 284.143, shall devote

1-26  his entire time and attention to the business of his office and shall

1-27  not pursue any other business or occupation or hold any other

1-28  office of profit.

1-29      Sec. 10. The Commissioner shall not, either directly or

1-30  indirectly, be interested in any escrow agency, mortgage broker or

1-31  mortgage banker to which chapters 645A, 645B and 645E of NRS

1-32  apply, nor engage in business as a personal loan broker.

1-33      Sec. 11. After appointment and before entering upon the

1-34  discharge of the duties of his office, the Commissioner shall take

1-35  and subscribe to an official oath.

1-36      Sec. 12. 1.  The Commissioner may appoint deputy

1-37  commissioners of mortgage lending, examiners, assistants, clerks,

1-38  stenographers and other employees necessary to assist him in the

1-39  performance of his duties pursuant to this chapter, chapters 645A,

1-40  645B and 645E of NRS or any other law. These employees shall

1-41  perform such duties as are assigned to them by the Commissioner.

2-1  2.  The Commissioner may employ or contract with a certified

2-2  public accountant to review and conduct independent audits and

2-3  examinations of escrow agencies, mortgage brokers and mortgage

2-4  bankers. The Commissioner shall levy an assessment upon each

2-5  licensed escrow agency, mortgage broker and mortgage banker to

2-6  cover all the costs related to the employment of or the contract

2-7  with the certified public accountant and the performance of the

2-8  audits and examinations.

2-9  3.  Assessments collected by the Commissioner pursuant to

2-10  subsection 2 must be deposited in the State Treasury for deposit to

2-11  the Fund for Mortgage Lending created by section 17 of this act

2-12  and accounted for separately. The Commissioner shall use the

2-13  money for the purposes specified in subsection 2.

2-14      Sec. 13. Each deputy commissioner of mortgage lending

2-15  shall, before entering upon the discharge of his duties, take and

2-16  subscribe to the constitutional oath of office.

2-17      Sec. 14. The State Board of Finance shall act in an advisory

2-18  capacity to the Division in the administration of this chapter and

2-19  chapters 645A, 645B and 645E of NRS.

2-20      Sec. 15. 1.  The Commissioner shall establish by regulation

2-21  rates to be paid by escrow companies, mortgage agents, mortgage

2-22  brokers and mortgage bankers for supervision and examinations

2-23  by the Commissioner or the Division.

2-24      2.  In establishing a rate pursuant to subsection 1, the

2-25  Commissioner shall consider:

2-26      (a) The complexity of the various examinations to which the

2-27  rate applies;

2-28      (b) The skill required to conduct the examinations;

2-29      (c) The expenses associated with conducting the examination

2-30  and preparing a report; and

2-31      (d) Any other factors the Commissioner deems relevant.

2-32      Sec. 16. 1.  The Commissioner shall collect an assessment

2-33  pursuant to this section from each:

2-34      (a) Escrow agent that is supervised pursuant to chapter 645A

2-35  of NRS;

2-36      (b) Mortgage broker that is supervised pursuant to chapter

2-37  645B of NRS; and

2-38      (c) Mortgage banker that is supervised pursuant to chapter

2-39  645E of NRS.

2-40      2.  The Commissioner shall determine the total amount of all

2-41  assessments to be collected from the entities identified in

2-42  subsection 1, but that amount must not exceed the amount

2-43  necessary to recover the cost of legal services provided by the

2-44  Attorney General to the Commissioner and to the Division. The

2-45  total amount of all assessments collected must be reduced by any

3-1  amounts collected by the Commissioner from an entity for the

3-2  recovery of the costs of legal services provided by the Attorney

3-3  General in a specific case.

3-4  3.  The Commissioner shall collect from each entity identified

3-5  in subsection 1 an assessment that is based on:

3-6  (a) An equal basis; or

3-7  (b) Any other reasonable basis adopted by the Commissioner.

3-8  4.  The assessment required by this section is in addition to

3-9  any other assessment, fee or cost required by law to be paid by an

3-10  entity identified in subsection 1.

3-11      5.  Money collected by the Commissioner pursuant to this

3-12  section must be deposited in the Fund for Mortgage Lending

3-13  created by section 17 of this act.

3-14      Sec. 17. 1.  The Fund for Mortgage Lending is hereby

3-15  created in the State Treasury as a special revenue fund.

3-16      2.  Except as otherwise provided by law, any money collected

3-17  by the Commissioner or Division pursuant to law:

3-18      (a) Must be deposited in the Fund for Mortgage Lending; and

3-19      (b) May only be used to:

3-20          (1) Carry out the programs and laws administered by the

3-21  Commissioner and the Division; and

3-22          (2) Pay the expenses related to the operations of the

3-23  Commissioner and the Division.

3-24      3.  Except as otherwise provided by law, any money that

3-25  remains in the Fund for Mortgage Lending at the end of the fiscal

3-26  year does not revert to the State General Fund, and the balance of

3-27  the Fund for Mortgage Lending must be carried forward to the

3-28  next fiscal year.

3-29      4.  The Commissioner shall administer the Fund for

3-30  Mortgage Lending. Any interest or income earned on the money

3-31  in the Fund must be credited to the Fund after deducting any

3-32  applicable charges. Any claims against the Fund must be paid as

3-33  other claims against the State are paid.

3-34      Sec. 18. NRS 645A.010 is hereby amended to read as follows:

3-35      645A.010  As used in this chapter, unless the context otherwise

3-36  requires:

3-37      1.  “Commissioner” means the Commissioner of [Financial

3-38  Institutions.] Mortgage Lending.

3-39      2.  “Division” means the Division of [Financial Institutions]

3-40  Mortgage Lending of the Department of Business and Industry.

3-41      3.  “Escrow” means any transaction wherein one person, for the

3-42  purpose of effecting the sale, transfer, encumbering or leasing of

3-43  real or personal property to another person, delivers any written

3-44  instrument, money, evidence of title to real or personal property, or

3-45  other thing of value to a third person until the happening of a

4-1  specified event or the performance of a prescribed condition, when

4-2  it is then to be delivered by such third person to a grantee, grantor,

4-3  promisee, promisor, obligee, obligor, bailee, bailor or any agent or

4-4  employee of any of the latter. The term includes the collection of

4-5  payments and the performance of related services by a third person

4-6  in connection with a loan secured by a lien on real property.

4-7  4.  “Escrow agency” means:

4-8  (a) Any person who employs one or more escrow agents; or

4-9  (b) An escrow agent who administers escrows on his own

4-10  behalf.

4-11      5.  “Escrow agent” means any person engaged in the business

4-12  of administering escrows for compensation.

4-13      Sec. 19. NRS 645A.037 is hereby amended to read as follows:

4-14      645A.037  1.  Except as otherwise provided in subsection 2, a

4-15  licensee may not conduct the business of administering escrows for

4-16  compensation within any office, suite, room or place of business in

4-17  which any other business is solicited or engaged in, except a notary

4-18  public, or in association or conjunction with any other business,

4-19  unless authority to do so is given by the Commissioner.

4-20      2.  A licensee may conduct the business of administering

4-21  escrows pursuant to this chapter in the same office or place of

4-22  business as:

4-23      (a) A firm or corporation that is exempt from licensing as a

4-24  mortgage [company] banker pursuant to subsection 6 of

4-25  NRS 645E.150.

4-26      (b) A mortgage [company] banker if:

4-27          (1) The licensee and the mortgage [company:] banker:

4-28              (I) Operate as separate legal entities;

4-29              (II) Maintain separate accounts, books and records;

4-30              (III) Are subsidiaries of the same parent corporation; and

4-31              (IV) Maintain separate licenses; and

4-32          (2) The mortgage [company] banker is licensed by this state

4-33  pursuant to chapter 645E of NRS and does not conduct any business

4-34  as a mortgage broker licensed pursuant to chapter 645B of NRS in

4-35  the office or place of business.

4-36      Sec. 20. NRS 645A.040 is hereby amended to read as follows:

4-37      645A.040  1.  Every license issued pursuant to the provisions

4-38  of this chapter expires on July 1 of each year if it is not renewed. A

4-39  license may be renewed by filing an application for renewal,paying

4-40  the annual fee for the succeeding year and, if the licensee is a

4-41  natural person, submitting the statement required pursuant to

4-42  NRS 645A.025.

4-43      2.  The fees for the issuance or renewal of a license for an

4-44  escrow agency are:

5-1  (a) For filing an application for an initial license, $500 for the

5-2  principal office and $100 for each branch office. [All money

5-3  received by the Commissioner pursuant to this paragraph must be

5-4  placed in the Investigative Account created by NRS 232.545.]

5-5  (b) If the license is approved for issuance, $200 for the principal

5-6  office and $100 for each branch office. The fee must be paid before

5-7  issuance of the license.

5-8  (c) For filing an application for renewal, $200 for the principal

5-9  office and $100 for each branch office.

5-10      3.  The fees for the issuance or renewal of a license for an

5-11  escrow agent are:

5-12      (a) For filing an application for an initial license or for the

5-13  renewal of a license, $100.

5-14      (b) If a license is approved for issuance or renewal, $25. The fee

5-15  must be paid before the issuance or renewal of the license.

5-16      4.  If a licensee fails to submit the statement required pursuant

5-17  to NRS 645A.025 or pay the fee for the annual renewal of his

5-18  license before its expiration, his license may be renewed only upon

5-19  the payment of a fee one and one-half times the amount otherwise

5-20  required for renewal. A license may be renewed pursuant to this

5-21  subsection only if the required statement is submitted and all the

5-22  fees are paid within 1 year after the date on which the license

5-23  expired.

5-24      5.  In addition to the other fees set forth in this section, each

5-25  applicant or licensee shall pay:

5-26      (a) For filing an application for a duplicate copy of any license,

5-27  upon satisfactory showing of its loss, $10.

5-28      (b) For filing any change of information contained in the

5-29  application, $10.

5-30      (c) For each change of association with an escrow agency, $25.

5-31      6.  Except as otherwise provided in this chapter, all fees

5-32  received pursuant to this chapter must be deposited in the [State

5-33  Treasury for credit to the State General Fund.] Fund for Mortgage

5-34  Lending created by section 17 of this act.

5-35      Sec. 21. NRS 645A.040 is hereby amended to read as follows:

5-36      645A.040  1.  Every license issued pursuant to the provisions

5-37  of this chapter expires on July 1 of each year if it is not renewed. A

5-38  license may be renewed by filing an application for renewal and

5-39  paying the annual fee for the succeeding year.

5-40      2.  The fees for the issuance or renewal of a license for an

5-41  escrow agency are:

5-42      (a) For filing an application for an initial license, $500 for the

5-43  principal office and $100 for each branch office. [All money

5-44  received by the Commissioner pursuant to this paragraph must be

5-45  placed in the Investigative Account created by NRS 232.545.]

6-1  (b) If the license is approved for issuance, $200 for the principal

6-2  office and $100 for each branch office. The fee must be paid before

6-3  issuance of the license.

6-4  (c) For filing an application for renewal, $200 for the principal

6-5  office and $100 for each branch office.

6-6  3.  The fees for the issuance or renewal of a license for an

6-7  escrow agent are:

6-8  (a) For filing an application for an initial license or for the

6-9  renewal of a license, $100.

6-10      (b) If a license is approved for issuance or renewal, $25. The fee

6-11  must be paid before the issuance or renewal of the license.

6-12      4.  If a licensee fails to pay the fee for the annual renewal of his

6-13  license before its expiration, his license may be renewed only upon

6-14  the payment of a fee one and one-half times the amount otherwise

6-15  required for renewal. A license may be renewed pursuant to this

6-16  subsection only if all the fees are paid within 1 year after the date on

6-17  which the license expired.

6-18      5.  In addition to the other fees set forth in this section, each

6-19  applicant or licensee shall pay:

6-20      (a) For filing an application for a duplicate copy of any license,

6-21  upon satisfactory showing of its loss, $10.

6-22      (b) For filing any change of information contained in the

6-23  application, $10.

6-24      (c) For each change of association with an escrow agency, $25.

6-25      6.  Except as otherwise provided in this chapter, all fees

6-26  received pursuant to this chapter must be deposited in the [State

6-27  Treasury for credit to the State General Fund.] Fund for Mortgage

6-28  Lending created by section 17 of this act.

6-29      Sec. 21.5.  NRS 645A.067 is hereby amended to read as

6-30  follows:

6-31      645A.067  Each escrow agency shall pay the assessment levied

6-32  by the Commissioner and cooperate fully with the audits and

6-33  examinations performed pursuant to [NRS 658.055.] section 12 of

6-34  this act.

6-35      Sec. 22. NRS 645A.085 is hereby amended to read as follows:

6-36      645A.085  1.  An escrow agency shall immediately notify the

6-37  Commissioner of any change in the ownership of 5 percent or more

6-38  of its outstanding voting stock.

6-39      2.  An application must be submitted to the Commissioner,

6-40  pursuant to NRS 645A.020, by a person who acquires:

6-41      (a) At least 25 percent of the outstanding voting stock of an

6-42  escrow agency; or

6-43      (b) Any outstanding voting stock of an escrow agency if the

6-44  change will result in a change in the control of the escrow agency.

7-1  3.  Except as otherwise provided in subsection 5, the

7-2  Commissioner shall conduct an investigation to determine whether

7-3  the applicant has the experience, character, financial condition,

7-4  business reputation and general fitness to command the confidence

7-5  of the public and to warrant the belief that the business conducted

7-6  will protect and safeguard the public. If the Commissioner denies

7-7  the application, he may forbid the applicant from participating in the

7-8  business of the escrow agency.

7-9  4.  The escrow agency with which the applicant is affiliated

7-10  shall pay a portion of the cost of the investigation as the

7-11  Commissioner requires. All money received by the Commissioner

7-12  pursuant to this section must be [placed in the Investigative Account

7-13  created pursuant to NRS 232.545.] deposited in the Fund for

7-14  Mortgage Lending created by section 17 of this act.

7-15      5.  An escrow agency may submit a written request to the

7-16  Commissioner to waive an investigation pursuant to subsection 3.

7-17  The Commissioner may grant a waiver if the applicant has

7-18  undergone a similar investigation by a state or federal agency in

7-19  connection with the licensing of or his employment with a financial

7-20  institution.

7-21      Sec. 23. NRS 645A.173 is hereby amended to read as follows:

7-22      645A.173  1.  If an escrow for the sale of real property is

7-23  established, the holder of the escrow shall, on the date of

7-24  establishment of the escrow, record in writing the number and the

7-25  date of expiration of the:

7-26      (a) License issued pursuant to chapter 645 of NRS; or

7-27      (b) Certificate of cooperation issued pursuant to

7-28  NRS 645.605,

7-29  of any real estate broker, broker-salesman or salesman who will be

7-30  paid compensation from money held in the escrow for performing

7-31  the services of a real estate broker, broker-salesman or salesman in

7-32  the transaction that is the subject of the escrow. The holder of the

7-33  escrow is not required to verify independently the validity of the

7-34  number of the license or certificate.

7-35      2.  If an escrow for the sale of real property is established and

7-36  the real property is or will be secured by a mortgage or deed of trust,

7-37  the holder of the escrow shall, on the date of establishment of the

7-38  escrow, record in writing the number and the date of expiration of

7-39  the license issued pursuant to chapter 645B or 645E of NRS of any

7-40  mortgage broker or mortgage [company] banker associated with the

7-41  mortgage or deed of trust. The holder of the escrow is not required

7-42  to verify independently the validity of the number of the license.

 

 

8-1  Sec. 24. Chapter 645B of NRS is hereby amended by adding

8-2  thereto the provisions set forth as sections 25 to 30, inclusive, of this

8-3  act.

8-4  Sec. 25.  1.  An advertising spokesperson for a mortgage

8-5  broker is jointly and severally liable with the mortgage broker for

8-6  damages caused by the mortgage broker by fraud, embezzlement,

8-7  misappropriation of property, a violation of the provisions of this

8-8  chapter or the regulations adopted pursuant thereto, or an action

8-9  of the mortgage broker that is grounds for disciplinary action, if:

8-10      (a) The advertising spokesperson knew or should have known

8-11  of the fraud, embezzlement, misappropriation of property,

8-12  violation of the provisions of this chapter or the regulations

8-13  adopted pursuant thereto, or action of the mortgage broker that is

8-14  grounds for disciplinary action; or

8-15      (b) In advertising for the mortgage broker, the advertising

8-16  spokesperson knew or should have known that:

8-17          (1) The conduct of the advertising spokesperson was likely

8-18  to deceive, defraud or harm the public or any person who engaged

8-19  in business with the mortgage broker; or

8-20          (2) The advertising spokesperson was disseminating

8-21  material information concerning the mortgage broker or the

8-22  business, products or services of the mortgage broker which was

8-23  false or misleading.

8-24      2.  As used in this section:

8-25      (a) “Advertising for a mortgage broker” means advertising or

8-26  otherwise promoting a mortgage broker or the business, products

8-27  or services of the mortgage broker using any medium of

8-28  communication.

8-29      (b) “Advertising spokesperson for a mortgage broker” or

8-30  “advertising spokesperson” means a person who consents to and

8-31  receives compensation for using his name or likeness in

8-32  advertising for a mortgage broker.

8-33      Sec. 26.  A person shall not act as or provide any of the

8-34  services of a mortgage agent or otherwise engage in, carry on or

8-35  hold himself out as engaging in or carrying on the activities of a

8-36  mortgage agent unless the person has a license as a mortgage

8-37  agent issued pursuant to section 27 of this act.

8-38      Sec. 27.  1.  To obtain a license as a mortgage agent, a

8-39  person must:

8-40      (a) Be a natural person;

8-41      (b) File a written application for a license as a mortgage agent

8-42  with the office of the Commissioner;

8-43      (c) Comply with the applicable requirements of this chapter;

8-44  and

9-1  (d) Pay an application fee set by the Commissioner of not more

9-2  than $185.

9-3  2.  An application for a license as a mortgage agent must:

9-4  (a) Be verified;

9-5  (b) State the name and residence address of the applicant;

9-6  (c) Include a provision by which the applicant gives his written

9-7  consent to an investigation of his credit history, criminal history

9-8  and background;

9-9  (d) Include a verified statement from the mortgage broker with

9-10  whom the applicant will be associated that expresses the intent of

9-11  that mortgage broker to associate the applicant with the mortgage

9-12  broker and to be responsible for the activities of the applicant as a

9-13  mortgage agent; and

9-14      (e) Include any other information or supporting materials

9-15  required pursuant to the regulations adopted by the Commissioner

9-16  or by an order of the Commissioner. Such information or

9-17  supporting materials may include, without limitation, a complete

9-18  set of fingerprints from the person and other forms of

9-19  identification of the person.

9-20      3.  Except as otherwise provided in this chapter, the

9-21  Commissioner shall issue a license as a mortgage agent to an

9-22  applicant if:

9-23      (a) The application complies with the applicable requirements

9-24  of this chapter; and

9-25      (b) The applicant:

9-26          (1) Has not been convicted of, or entered a plea of nolo

9-27  contendere to, a felony or any crime involving fraud,

9-28  misrepresentation or moral turpitude;

9-29          (2) Has not had a financial services license suspended or

9-30  revoked within the immediately preceding 10 years;

9-31          (3) Has not made a false statement of material fact on his

9-32  application;

9-33          (4) Has not violated any provision of this chapter or

9-34  chapter 645E of NRS, a regulation adopted pursuant thereto or an

9-35  order of the Commissioner; and

9-36          (5) Has a good reputation for honesty, trustworthiness and

9-37  integrity and displays competence to transact the business of a

9-38  mortgage agent in a manner which safeguards the interests of the

9-39  general public. The applicant must submit satisfactory proof of

9-40  these qualifications to the Commissioner.

9-41      4.  Money received by the Commissioner pursuant to this

9-42  section must be deposited in the Fund for Mortgage Lending

9-43  created by section 17 of this act.

9-44      Sec. 28.  1.  A license as a mortgage agent issued pursuant

9-45  to section 27 of this act expires 1 year after the date the license is

10-1  issued, unless it is renewed. To renew a license as a mortgage

10-2  agent, the holder of the license must submit to the Commissioner

10-3  each year, on or before the date the license expires:

10-4      (a) An application for renewal;

10-5      (b) Except as otherwise provided in this section, satisfactory

10-6  proof that the holder of the license as a mortgage agent attended

10-7  at least 10 hours of certified courses of continuing education

10-8  during the 12 months immediately preceding the date on which the

10-9  license expires; and

10-10     (c) A renewal fee set by the Commissioner of not more than

10-11  $170.

10-12     2.  If the holder of the license as a mortgage agent fails to

10-13  submit any item required pursuant to subsection 1 to the

10-14  Commissioner each year on or before the date the license expires,

10-15  the license is cancelled. The Commissioner may reinstate a

10-16  cancelled license if the holder of the license submits to the

10-17  Commissioner:

10-18     (a) An application for renewal;

10-19     (b) The fee required to renew the license pursuant to this

10-20  section; and

10-21     (c) A reinstatement fee of $75.

10-22     3.  To be issued a duplicate copy of a license as a mortgage

10-23  agent, a person must make a satisfactory showing of its loss and

10-24  pay a fee of $10.

10-25     4.  To change the mortgage broker with whom the mortgage

10-26  agent is associated, a person must pay a fee of $10.

10-27     5.  Money received by the Commissioner pursuant to this

10-28  section must be deposited in the Fund for Mortgage Lending

10-29  created by section 17 of this act.

10-30     6.  The Commissioner may provide by regulation that any

10-31  hours of a certified course of continuing education attended

10-32  during a 12-month period, but not needed to satisfy a requirement

10-33  set forth in this section for the 12-month period in which the hours

10-34  were taken, may be used to satisfy a requirement set forth in this

10-35  section for a later 12-month period.

10-36     7.  As used in this section, “certified course of continuing

10-37  education” has the meaning ascribed to it in NRS 645B.051.

10-38     Sec. 29.  1.  In addition to any other requirement for the

10-39  issuance of a license as a mortgage agent pursuant to section 27 of

10-40  this act, an applicant for the issuance of the license must include

10-41  his social security number in his application.

10-42     2.  In addition to any other requirement for the issuance or

10-43  renewal of a license as a mortgage agent pursuant to section 27 or

10-44  28 of this act, an applicant for the issuance or renewal of the

10-45  license shall submit to the Commissioner the statement prescribed

11-1  by the Welfare Division of the Department of Human Resources

11-2  pursuant to NRS 425.520. The statement must be completed and

11-3  signed by the applicant.

11-4      3.  The Commissioner shall include the statement required

11-5  pursuant to subsection 2 in:

11-6      (a) The application or any other forms that must be submitted

11-7  for the issuance or renewal of a license as a mortgage agent; or

11-8      (b) A separate form prescribed by the Commissioner.

11-9      4.  The license as a mortgage agent may not be issued or

11-10  renewed by the Commissioner if the applicant:

11-11     (a) Fails to submit the statement required pursuant to

11-12  subsection 2; or

11-13     (b) Indicates on the statement submitted pursuant to

11-14  subsection 2 that he is subject to a court order for the support of a

11-15  child and is not in compliance with the order or a plan approved

11-16  by the district attorney or other public agency enforcing the order

11-17  for the repayment of the amount owed pursuant to the order.

11-18     5.  If an applicant indicates on the statement submitted

11-19  pursuant to subsection 2 that he is subject to a court order for the

11-20  support of a child and is not in compliance with the order or a

11-21  plan approved by the district attorney or other public agency

11-22  enforcing the order for the repayment of the amount owed

11-23  pursuant to the order, the Commissioner shall advise the applicant

11-24  to contact the district attorney or other public agency enforcing

11-25  the order to determine the actions that the applicant may take to

11-26  satisfy the arrearage.

11-27     Sec. 30. 1.  Any mortgage broker or mortgage agent

11-28  licensed under the provisions of this chapter who is called into the

11-29  military service of the United States shall, at his request, be

11-30  relieved from compliance with the provisions of this chapter and

11-31  placed on inactive status for the period of such military service

11-32  and for a period of 6 months after discharge therefrom.

11-33     2.  At any time within 6 months after termination of such

11-34  service, if the mortgage broker or mortgage agent complies with

11-35  the provisions of subsection 1, the mortgage broker or mortgage

11-36  agent may be reinstated, without having to meet any qualification

11-37  or requirement other than the payment of the reinstatement fee, as

11-38  provided in NRS 645B.050 or section 28 of this act, and the

11-39  mortgage broker or mortgage agent is not required to make

11-40  payment of the renewal fee for the current year.

11-41     3.  Any mortgage broker or mortgage agent seeking to qualify

11-42  for reinstatement, as provided in subsections 1 and 2, must present

11-43  a certified copy of his honorable discharge or certificate of

11-44  satisfactory service to the Commissioner.

 

12-1      Sec. 31.  NRS 645B.010 is hereby amended to read as follows:

12-2      645B.010  As used in this chapter, unless the context otherwise

12-3  requires, the words and terms defined in NRS [645B.0103]

12-4  645B.0105 to 645B.0135, inclusive,have the meanings ascribed to

12-5  them in those sections.

12-6      Sec. 32. NRS 645B.0105 is hereby amended to read as

12-7  follows:

12-8      645B.0105  “Commissioner” means the Commissioner of

12-9  [Financial Institutions.] Mortgage Lending.

12-10     Sec. 33. NRS 645B.0111 is hereby amended to read as

12-11  follows:

12-12      645B.0111  “Division” means the Division of [Financial

12-13  Institutions] Mortgage Lending of the Department of Business and

12-14  Industry.

12-15     Sec. 34.  NRS 645B.0123 is hereby amended to read as

12-16  follows:

12-17      645B.0123  “Licensee” means a person who is licensed as a

12-18  mortgage broker pursuant to this chapter. The term does not include

12-19  a person issued a license as a mortgage agent pursuant to section

12-20  27 of this act.

12-21     Sec. 35. NRS 645B.0127 is hereby amended to read as

12-22  follows:

12-23      645B.0127  1.  “Mortgage broker” means a person who,

12-24  directly or indirectly:

12-25     (a) Holds himself out for hire to serve as an agent for any person

12-26  in an attempt to obtain a loan which will be secured by a lien on real

12-27  property;

12-28     (b) Holds himself out for hire to serve as an agent for any person

12-29  who has money to lend, if the loan is or will be secured by a lien on

12-30  real property;

12-31     (c) Holds himself out as being able to make loans secured by

12-32  liens on real property;

12-33     (d) Holds himself out as being able to buy or sell notes secured

12-34  by liens on real property; or

12-35     (e) Offers for sale in this state any security which is exempt

12-36  from registration under state or federal law and purports to make

12-37  investments in promissory notes secured by liens on real property.

12-38     2.  The term does not include a person who is licensed as a

12-39  mortgage [company,] banker, as defined in NRS 645E.100, unless

12-40  the person is also licensed as a mortgage broker pursuant to this

12-41  chapter.

12-42     Sec. 36. NRS 645B.015 is hereby amended to read as follows:

12-43      645B.015  Except as otherwise provided in NRS 645B.016, the

12-44  provisions of this chapter do not apply to:

13-1      1.  Any person doing business under the laws of this state, any

13-2  other state or the United States relating to banks, savings banks,

13-3  trust companies, savings and loan associations, consumer finance

13-4  companies, industrial loan companies, credit unions, thrift

13-5  companies or insurance companies, unless the business conducted in

13-6  this state is not subject to supervision by the regulatory authority of

13-7  the other jurisdiction, in which case licensing pursuant to this

13-8  chapter is required.

13-9      2.  A real estate investment trust, as defined in 26 U.S.C. § 856,

13-10  unless the business conducted in this state is not subject to

13-11  supervision by the regulatory authority of the other jurisdiction, in

13-12  which case licensing pursuant to this chapter is required.

13-13     3.  An employee benefit plan, as defined in 29 U.S.C. §

13-14  1002(3), if the loan is made directly from money in the plan by the

13-15  plan’s trustee.

13-16     4.  An attorney at law rendering services in the performance of

13-17  his duties as an attorney at law.

13-18     5.  A real estate broker rendering services in the performance of

13-19  his duties as a real estate broker.

13-20     6.  Except as otherwise provided in this subsection and NRS

13-21  645B.690, any firm or corporation [:] , or wholly owned subsidiary

13-22  thereof:

13-23     (a) Whose principal purpose or activity is lending money on real

13-24  property which is secured by a mortgage;

13-25     (b) Approved by the Federal National Mortgage Association as

13-26  a seller and servicer; and

13-27     (c) Approved by the Department of Housing and Urban

13-28  Development and the Department of Veterans Affairs. A firm or

13-29  corporation is not exempt from the provisions of this chapter

13-30  pursuant to this subsection if it maintains any accounts described in

13-31  subsection 1 of NRS 645B.175 or if it offers for sale in this state any

13-32  unregistered security under state or federal law and purports to make

13-33  investments in promissory notes secured by liens on real property. A

13-34  firm or corporation which is exempted pursuant to this subsection

13-35  must submit annually as a condition of its continued exemption a

13-36  certified statement by an independent certified public accountant

13-37  that the firm or corporation does not maintain any such accounts.

13-38  This subsection does not prohibit an exempt firm or corporation

13-39  from maintaining accounts described in NRS 645B.170 and

13-40  subsection 4 of NRS 645B.175.

13-41     7.  Any person doing any act under an order of any court.

13-42     8.  Any one natural person, or husband and wife, who provides

13-43  money for investment in loans secured by a lien on real property, on

13-44  his own account, unless such a person makes a loan secured by a

13-45  lien on real property using his own money and assigns all or a part

14-1  of his interest in the loan to another person, other than his spouse or

14-2  child, within 5 years after the date on which the loan is made or the

14-3  deed of trust is recorded, whichever occurs later.

14-4      9.  Agencies of the United States and of this state and its

14-5  political subdivisions, including the Public Employees’ Retirement

14-6  System.

14-7      10.  A seller of real property who offers credit secured by a

14-8  mortgage of the property sold.

14-9      Sec. 37.  NRS 645B.016 is hereby amended to read as follows:

14-10      645B.016  Except as otherwise provided in NRS 645B.690:

14-11     1.  A person who claims an exemption from the provisions of

14-12  this chapter pursuant to subsection 1 or 6 of NRS 645B.015 must:

14-13     (a) File a written application for a certificate of exemption with

14-14  the office of the Commissioner;

14-15     (b) Pay the fee required pursuant to NRS 645B.050; and

14-16     (c) Include with the written application satisfactory proof that

14-17  the person meets the requirements of subsection 1 or 6 of

14-18  NRS 645B.015.

14-19     2.  The Commissioner may require a person who claims an

14-20  exemption from the provisions of this chapter pursuant to

14-21  subsections 2 to 5, inclusive, or 7 to 10, inclusive, of NRS 645B.015

14-22  to:

14-23     (a) File a written application for a certificate of exemption with

14-24  the office of the Commissioner;

14-25     (b) Pay the fee required pursuant to NRS 645B.050; and

14-26     (c) Include with the written application satisfactory proof that

14-27  the person meets the requirements of at least one of those

14-28  exemptions.

14-29     3.  A certificate of exemption expires automatically if, at any

14-30  time, the person who claims the exemption no longer meets the

14-31  requirements of at least one exemption set forth in the provisions of

14-32  NRS 645B.015.

14-33     4.  If a certificate of exemption expires automatically pursuant

14-34  to this section, the person shall not provide any of the services of a

14-35  mortgage broker or mortgage agent or otherwise engage in, carry

14-36  on or hold himself out as engaging in or carrying on the business of

14-37  a mortgage broker[,] or mortgage agent unless the person applies

14-38  for and is issued:

14-39     (a) A license as a mortgage broker or mortgage agent, as

14-40  applicable, pursuant to this chapter; or

14-41     (b) Another certificate of exemption.

14-42     5.  The Commissioner may impose upon a person who is

14-43  required to apply for a certificate of exemption or who holds a

14-44  certificate of exemption an administrative fine of not more than

14-45  $10,000 for each violation that he commits, if the person:

15-1      (a) Has knowingly made or caused to be made to the

15-2  Commissioner any false representation of material fact;

15-3      (b) Has suppressed or withheld from the Commissioner any

15-4  information which the person possesses and which, if submitted by

15-5  him, would have rendered the person ineligible to hold a certificate

15-6  of exemption; or

15-7      (c) Has violated any provision of this chapter, a regulation

15-8  adopted pursuant to this chapter or an order of the Commissioner

15-9  that applies to a person who is required to apply for a certificate of

15-10  exemption or who holds a certificate of exemption.

15-11     Sec. 38.  NRS 645B.035 is hereby amended to read as follows:

15-12      645B.035  1.  A license as a mortgage broker entitles a

15-13  licensee to engage only in the activities authorized by this chapter.

15-14     2.  The provisions of this chapter do not prohibit a licensee

15-15  from:

15-16     (a) Holding a license as a mortgage [company] banker pursuant

15-17  to chapter 645E of NRS; or

15-18     (b) Conducting the business of a mortgage [company] banker

15-19  and the business of a mortgage broker in the same office or place of

15-20  business.

15-21     Sec. 39.  NRS 645B.050 is hereby amended to read as follows:

15-22      645B.050  1.  A license as a mortgage broker issued pursuant

15-23  to this chapter expires each year on June 30, unless it is renewed. To

15-24  renew such a license, the licensee must submit to the Commissioner

15-25  on or before [June 30] May 31 of each year:

15-26     (a) An application for renewal;

15-27     (b) The fee required to renew the license pursuant to this

15-28  section;

15-29     (c) If the licensee is a natural person, the statement required

15-30  pursuant to NRS 645B.023; and

15-31     (d) The information required pursuant to NRS 645B.051.

15-32     2.  If the licensee fails to submit any item required pursuant to

15-33  subsection 1 to the Commissioner on or before [June 30] May 31 of

15-34  any year, the license is cancelled [.] as of June 30 of that year. The

15-35  Commissioner may reinstate a cancelled license if the licensee

15-36  submits to the Commissioner:

15-37     (a) An application for renewal;

15-38     (b) The fee required to renew the license pursuant to this

15-39  section;

15-40     (c) If the licensee is a natural person, the statement required

15-41  pursuant to NRS 645B.023;

15-42     (d) The information required pursuant to NRS 645B.051; and

15-43     (e) Except as otherwise provided in this section, a reinstatement

15-44  fee of $200.

16-1      3.  Except as otherwise provided in NRS 645B.016, a certificate

16-2  of exemption issued pursuant to this chapter expires each year on

16-3  December 31, unless it is renewed. To renew a certificate of

16-4  exemption, a person must submit to the Commissioner on or before

16-5  [December 31] November 30 of each year:

16-6      (a) An application for renewal that includes satisfactory proof

16-7  that the person meets the requirements for an exemption from the

16-8  provisions of this chapter; and

16-9      (b) The fee required to renew the certificate of exemption.

16-10     4.  If the person fails to submit any item required pursuant to

16-11  subsection 3 to the Commissioner on or before [December 31]

16-12  November 30 of any year, the certificate of exemption is cancelled

16-13  [.] as of December 31 of that year. Except as otherwise provided in

16-14  NRS 645B.016, the Commissioner may reinstate a cancelled

16-15  certificate of exemption if the person submits to the Commissioner:

16-16     (a) An application for renewal that includes satisfactory proof

16-17  that the person meets the requirements for an exemption from the

16-18  provisions of this chapter;

16-19     (b) The fee required to renew the certificate of exemption; and

16-20     (c) Except as otherwise provided in this section, a reinstatement

16-21  fee of $100.

16-22     5.  Except as otherwise provided in this section, a person must

16-23  pay the following fees to apply for, to be issued or to renew a

16-24  license as a mortgage broker pursuant to this chapter:

16-25     (a) To file an original application or a license, $1,500 for the

16-26  principal office and $40 for each branch office. The person must

16-27  also pay such additional expenses incurred in the process of

16-28  investigation as the Commissioner deems necessary. [All money

16-29  received by the Commissioner pursuant to this paragraph must be

16-30  placed in the Investigative Account created by NRS 232.545.]

16-31     (b) To be issued a license, $1,000 for the principal office and

16-32  $60 for each branch office.

16-33     (c) To renew a license, $500 for the principal office and $100

16-34  for each branch office.

16-35     6.  Except as otherwise provided in this section, a person must

16-36  pay the following fees to apply for or to renew a certificate of

16-37  exemption pursuant to this chapter:

16-38     (a) To file an application for a certificate of exemption, $200.

16-39     (b) To renew a certificate of exemption, $100.

16-40     7.  To be issued a duplicate copy of any license or certificate of

16-41  exemption, a person must make a satisfactory showing of its loss

16-42  and pay a fee of $10.

16-43     8.  Except as otherwise provided in this chapter, all fees

16-44  received pursuant to this chapter must be deposited in the [State

17-1  Treasury for credit to the State General Fund.] Fund for Mortgage

17-2  Lending created by section 17 of this act.

17-3      9.  The Commissioner may, by regulation, increase any fee set

17-4  forth in this section if the Commissioner determines that such an

17-5  increase is necessary for the Commissioner to carry out his duties

17-6  pursuant to this chapter. The amount of any increase in a fee

17-7  pursuant to this subsection must not exceed the amount determined

17-8  to be necessary for the Commissioner to carry out his duties

17-9  pursuant to this chapter.

17-10     Sec. 40.  NRS 645B.050 is hereby amended to read as follows:

17-11      645B.050  1.  A license as a mortgage broker issued pursuant

17-12  to this chapter expires each year on June 30, unless it is renewed. To

17-13  renew such a license, the licensee must submit to the Commissioner

17-14  on or before [June 30] May 31 of each year:

17-15     (a) An application for renewal;

17-16     (b) The fee required to renew the license pursuant to this

17-17  section; and

17-18     (c) The information required pursuant to NRS 645B.051.

17-19     2.  If the licensee fails to submit any item required pursuant to

17-20  subsection 1 to the Commissioner on or before [June 30] May 31 of

17-21  any year, the license is cancelled [.] as of June 30 of that year. The

17-22  Commissioner may reinstate a cancelled license if the licensee

17-23  submits to the Commissioner:

17-24     (a) An application for renewal;

17-25     (b) The fee required to renew the license pursuant to this

17-26  section;

17-27     (c) The information required pursuant to NRS 645B.051; and

17-28     (d) Except as otherwise provided in this section, a reinstatement

17-29  fee of $200.

17-30     3.  Except as otherwise provided in NRS 645B.016, a certificate

17-31  of exemption issued pursuant to this chapter expires each year on

17-32  December 31, unless it is renewed. To renew a certificate of

17-33  exemption, a person must submit to the Commissioner on or before

17-34  [December 31] November 30 of each year:

17-35     (a) An application for renewal that includes satisfactory proof

17-36  that the person meets the requirements for an exemption from the

17-37  provisions of this chapter; and

17-38     (b) The fee required to renew the certificate of exemption.

17-39     4.  If the person fails to submit any item required pursuant to

17-40  subsection 3 to the Commissioner on or before [December 31]

17-41  November 30 of any year, the certificate of exemption is cancelled

17-42  [.] as of December 31 of that year. Except as otherwise provided in

17-43  NRS 645B.016, the Commissioner may reinstate a cancelled

17-44  certificate of exemption if the person submits to the Commissioner:

18-1      (a) An application for renewal that includes satisfactory proof

18-2  that the person meets the requirements for an exemption from the

18-3  provisions of this chapter;

18-4      (b) The fee required to renew the certificate of exemption; and

18-5      (c) Except as otherwise provided in this section, a reinstatement

18-6  fee of $100.

18-7      5.  Except as otherwise provided in this section, a person must

18-8  pay the following fees to apply for, to be issued or to renew a

18-9  license as a mortgage broker pursuant to this chapter:

18-10     (a) To file an original application for a license, $1,500 for the

18-11  principal office and $40 for each branch office. The person must

18-12  also pay such additional expenses incurred in the process of

18-13  investigation as the Commissioner deems necessary. [All money

18-14  received by the Commissioner pursuant to this paragraph must be

18-15  placed in the Investigative Account created by NRS 232.545.]

18-16     (b) To be issued a license, $1,000 for the principal office and

18-17  $60 for each branch office.

18-18     (c) To renew a license, $500 for the principal office and $100

18-19  for each branch office.

18-20     6.  Except as otherwise provided in this section, a person must

18-21  pay the following fees to apply for or to renew a certificate of

18-22  exemption pursuant to this chapter:

18-23     (a) To file an application for a certificate of exemption, $200.

18-24     (b) To renew a certificate of exemption, $100.

18-25     7.  To be issued a duplicate copy of any license or certificate of

18-26  exemption, a person must make a satisfactory showing of its loss

18-27  and pay a fee of $10.

18-28     8.  Except as otherwise provided in this chapter, all fees

18-29  received pursuant to this chapter must be deposited in the [State

18-30  Treasury for credit to the State General Fund.] Fund for Mortgage

18-31  Lending created by section 17 of this act.

18-32     9.  The Commissioner may, by regulation, increase any fee set

18-33  forth in this section if the Commissioner determines that such an

18-34  increase is necessary for the Commissioner to carry out his duties

18-35  pursuant to this chapter. The amount of any increase in a fee

18-36  pursuant to this subsection must not exceed the amount determined

18-37  to be necessary for the Commissioner to carry out his duties

18-38  pursuant to this chapter.

18-39     Sec. 41.  NRS 645B.051 is hereby amended to read as follows:

18-40      645B.051  1.  [In] Except as otherwise provided in this

18-41  section, in addition to the requirements set forth in NRS 645B.050,

18-42  to renew a license[:] as a mortgage broker:

18-43     (a) If the licensee is a natural person, the licensee must submit to

18-44  the Commissioner satisfactory proof that the licensee attended at

18-45  least [5] 10 hours of certified courses of continuing education during

19-1  the 12 months immediately preceding the date on which the license

19-2  expires.

19-3      (b) If the licensee is not a natural person, the licensee must

19-4  submit to the Commissioner satisfactory proof that each natural

19-5  person who supervises the daily business of the licensee attended at

19-6  least [5] 10 hours of certified courses of continuing education during

19-7  the 12 months immediately preceding the date on which the license

19-8  expires.

19-9      2.  The Commissioner may provide by regulation that any

19-10  hours of a certified course of continuing education attended

19-11  during a 12-month period, but not needed to satisfy a requirement

19-12  set forth in this section for the 12-month period in which the

19-13  course was taken, may be used to satisfy a requirement set forth in

19-14  this section for a later 12-month period.

19-15     3.  As used in this section, “certified course of continuing

19-16  education” means a course of continuing education which relates to

19-17  the mortgage industry or mortgage transactions and which is [:

19-18     (a) Certified by the] certified by:

19-19     (a) The National Association of Mortgage Brokers or any

19-20  successor in interest to that organization; or

19-21     (b) [Certified in a manner established by the Commissioner, if

19-22  the National Association of Mortgage Brokers or any successor in

19-23  interest to that organization ceases to exist.] Any organization

19-24  designated for this purpose by the Commissioner by regulation.

19-25     Sec. 42.  NRS 645B.060 is hereby amended to read as follows:

19-26      645B.060  1.  Subjectto the administrative control of the

19-27  Director of the Department of Business and Industry, the

19-28  Commissioner shall exercise general supervision and control over

19-29  mortgage brokers and mortgage agents doing business in this state.

19-30     2.  In addition to the other duties imposed upon him by law, the

19-31  Commissioner shall:

19-32     (a) Adopt any regulations that are necessary to carry out the

19-33  provisions of this chapter, except as to loan brokerage fees.

19-34     (b) Conduct such investigations as may be necessary to

19-35  determine whether any person has violated any provision of this

19-36  chapter, a regulation adopted pursuant to this chapter or an order of

19-37  the Commissioner.

19-38     (c) Conduct an annual examination of each mortgage broker

19-39  doing business in this state. The annual examination must include,

19-40  without limitation, a formal exit review with the mortgage broker.

19-41  The Commissioner shall adopt regulations prescribing:

19-42         (1) Standards for determining the rating of each mortgage

19-43  broker based upon the results of the annual examination; and

19-44         (2) Procedures for resolving any objections made by the

19-45  mortgage broker to the results of the annual examination. The

20-1  results of the annual examination may not be opened to public

20-2  inspection pursuant to NRS 645B.090 until any objections made by

20-3  the mortgage broker have been decided by the Commissioner.

20-4      (d) Conduct such other examinations, periodic or special audits,

20-5  investigations and hearings as may be necessary and proper for the

20-6  efficient administration of the laws of this state regarding mortgage

20-7  brokers and mortgage agents. The Commissioner shall adopt

20-8  regulations specifying the general guidelines that will be followed

20-9  when a periodic or special audit of a mortgage broker is conducted

20-10  pursuant to this chapter.

20-11     (e) Classify as confidential certain records and information

20-12  obtained by the Division when those matters are obtained from a

20-13  governmental agency upon the express condition that they remain

20-14  confidential. This paragraph does not limit examination by the

20-15  Legislative Auditor.

20-16     (f) Conduct such examinations and investigations as are

20-17  necessary to ensure that mortgage brokers and mortgage agents

20-18  meet the requirements of this chapter for obtaining a license, both at

20-19  the time of the application for a license and thereafter on a

20-20  continuing basis.

20-21     3.  For each special audit, investigation or examination, a

20-22  mortgage broker or mortgage agent shall pay a fee based on the rate

20-23  established pursuant to [NRS 658.101.] section 15 of this act.

20-24     Sec. 42.5.  NRS 645B.075 is hereby amended to read as

20-25  follows:

20-26      645B.075  Each mortgage broker shall pay the assessment

20-27  levied pursuant to [NRS 658.055.] section 12 of this act. Each

20-28  mortgage broker and mortgage agent shall cooperate fully with the

20-29  audits and examinations performed pursuant thereto.

20-30     Sec. 43.  NRS 645B.450 is hereby amended to read as follows:

20-31      645B.450  1.  [A person shall not act as or provide any of the

20-32  services of a mortgage agent or otherwise engage in, carry on or

20-33  hold himself out as engaging in or carrying on the activities of a

20-34  mortgage agent if the person:

20-35     (a) Has been convicted of, or entered a plea of nolo contendere

20-36  to, a felony or any crime involving fraud, misrepresentation or

20-37  moral turpitude; or

20-38     (b) Has had a financial services license or registration suspended

20-39  or revoked within the immediately preceding 10 years.

20-40     2.] A person licensed as a mortgage agent pursuant to the

20-41  provisions of section 27 of this act may not be associated with or

20-42  employed by more than one mortgage broker at the same time.

20-43     [3.  A mortgage broker shall register with the Division each

20-44  person who will be associated with or employed by the mortgage

20-45  broker as a mortgage agent. A mortgage broker shall register each

21-1  such person with the Division when the person begins his

21-2  association or employment with the mortgage broker and annually

21-3  thereafter. A registration expires 12 months after its effective date.

21-4      4.  To register a person as a mortgage agent, a mortgage broker

21-5  must :

21-6      (a) Submit to the Division a registration form which is provided

21-7  by the Division and which:

21-8          (1) States the name, residence address and business address of

21-9  the person;

21-10         (2) Is signed by the person;

21-11         (3) Includes a provision by which the person gives his

21-12  written consent to an investigation of his credit history, criminal

21-13  history and background; and

21-14         (4) Includes any other information or supporting materials

21-15  required by the regulations adopted by the Commissioner. Such

21-16  information or supporting materials may include, without limitation,

21-17  a complete set of fingerprints from the person, the social security

21-18  number of the person and other forms of identification of the person.

21-19     (b) For each initial registration, pay the actual costs and

21-20  expenses incurred by the Division to investigate the credit history,

21-21  criminal history and background of the person. All money received

21-22  pursuant to this paragraph must be placed in the Investigative

21-23  Account created by NRS 232.545.

21-24     (c) For each annual registration, submit to the Division

21-25  satisfactory proof that the person attended at least 5 hours of

21-26  certified courses of continuing education during the 12 months

21-27  immediately preceding the date on which the registration expires.

21-28     5.  Not later than the date on which the mortgage broker

21-29  submits the information for annual registration required by

21-30  subsection 4, the person being registered shall pay an annual

21-31  registration fee of $125. If the person does not pay the annual

21-32  registration fee, the person shall be deemed to be unregistered for

21-33  the purposes of this chapter.

21-34     6.] 2.  A mortgage broker shall not associate with or employ a

21-35  person as a mortgage agent or authorize a person to be associated

21-36  with the mortgage broker as a mortgage agent if the mortgage

21-37  [broker has not registered the person] agent is not licensed with the

21-38  Division pursuant to [this section or if the person:

21-39     (a) Has been convicted of, or entered a plea of nolo contendere

21-40  to, a felony or any crime involving fraud, misrepresentation or

21-41  moral turpitude; or

21-42     (b) Has had a financial services license or registration suspended

21-43  or revoked within the immediately preceding 10 years.

21-44     7.] section 27 of this act.

22-1      3. If a mortgage agent terminates his association or

22-2  employment with a mortgage broker for any reason, the mortgage

22-3  broker shall, not later than the third business day following the date

22-4  of termination:

22-5      (a) Deliver to the mortgage agent or send by certified mail to the

22-6  last known residence address of the mortgage agent a written

22-7  statement which advises him that his termination is being reported

22-8  to the Division; and

22-9      (b) Deliver or send by certified mail to the Division:

22-10         (1) The license or license number of the mortgage agent;

22-11         (2) A written statement of the circumstances surrounding the

22-12  termination; and

22-13         [(2)] (3) A copy of the written statement that the mortgage

22-14  broker delivers or mails to the mortgage agent pursuant to

22-15  paragraph (a).

22-16     [8.  As used in this section, “certified course of continuing

22-17  education” has the meaning ascribed to it in NRS 645B.051.]

22-18     Sec. 44.  NRS 645B.620 is hereby amended to read as follows:

22-19      645B.620  1.  Whether or not a complaint has been filed, the

22-20  Commissioner shall investigate a mortgage broker , mortgage agent

22-21  or other person if, for any reason, it appears that:

22-22     (a) The mortgage broker or mortgage agent is conducting

22-23  business in an unsafe and injurious manner or in violation of any

22-24  provision of this chapter, a regulation adopted pursuant to this

22-25  chapter or an order of the Commissioner;

22-26     (b) The person is offering or providing any of the services of a

22-27  mortgage broker or mortgage agent or otherwise engaging in,

22-28  carrying on or holding himself out as engaging in or carrying on the

22-29  business of a mortgage broker or mortgage agent without being

22-30  appropriately licensed or exempt from licensing pursuant to the

22-31  provisions of this chapter; or

22-32     (c) The person is violating any other provision of this chapter, a

22-33  regulation adopted pursuant to this chapter or an order of the

22-34  Commissioner.

22-35     2.  If, upon investigation, the Commissioner has reasonable

22-36  cause to believe that the mortgage broker , mortgage agent or other

22-37  person has engaged in any conduct or committed any violation

22-38  described in subsection 1:

22-39     (a) The Commissioner shall notify the Attorney General of the

22-40  conduct or violation and, if applicable, the Commissioner shall

22-41  immediately take possession of the property of the mortgage broker

22-42  pursuant to NRS 645B.630; and

22-43     (b) The Attorney General shall, if appropriate:

22-44         (1) Investigate and prosecute the mortgage broker , mortgage

22-45  agent or other person pursuant to NRS 645B.800; and

23-1          (2) Bring a civil action to:

23-2              (I) Enjoin the mortgage broker , mortgage agent or other

23-3  person from engaging in the conduct, operating the business or

23-4  committing the violation; and

23-5              (II) Enjoin any other person who has encouraged,

23-6  facilitated, aided or participated in the conduct, the operation of the

23-7  business or the commission of the violation, or who is likely to

23-8  engage in such acts, from engaging in or continuing to engage in

23-9  such acts.

23-10     3.  If the Attorney General brings a civil action pursuant to

23-11  subsection 2, the district court of any county of this state is hereby

23-12  vested with the jurisdiction in equity to enjoin the conduct, the

23-13  operation of the business or the commission of the violation and

23-14  may grant any injunctions that are necessary to prevent and restrain

23-15  the conduct, the operation of the business or the commission of the

23-16  violation. During the pendency of the proceedings before the district

23-17  court:

23-18     (a) The court may issue any temporary restraining orders as may

23-19  appear to be just and proper;

23-20     (b) The findings of the Commissioner shall be deemed to be

23-21  prima facie evidence and sufficient grounds, in the discretion of the

23-22  court, for the ex parte issuance of a temporary restraining order; and

23-23     (c) The Attorney General may apply for and on due showing is

23-24  entitled to have issued the court’s subpoena requiring forthwith the

23-25  appearance of any person to:

23-26         (1) Produce any documents, books and records as may

23-27  appear necessary for the hearing of the petition; and

23-28         (2) Testify and give evidence concerning the conduct

23-29  complained of in the petition.

23-30     Sec. 45.  NRS 645B.670 is hereby amended to read as follows:

23-31      645B.670  Except as otherwise provided in NRS 645B.690:

23-32     1.  For each violation committed by an applicant[,] for a

23-33  license issued pursuant to this chapter, whether or not he is issued

23-34  a license, the Commissioner may impose upon the applicant an

23-35  administrative fine of not more than $10,000, if the applicant:

23-36     (a) Has knowingly made or caused to be made to the

23-37  Commissioner any false representation of material fact;

23-38     (b) Has suppressed or withheld from the Commissioner any

23-39  information which the applicant possesses and which, if submitted

23-40  by him, would have rendered the applicant ineligible to be licensed

23-41  pursuant to the provisions of this chapter; or

23-42     (c) Has violated any provision of this chapter, a regulation

23-43  adopted pursuant to this chapter or an order of the Commissioner in

23-44  completing and filing his application for a license or during the

23-45  course of the investigation of his application for a license.

24-1      2.  For each violation committed by a licensee, the

24-2  Commissioner may impose upon the licensee an administrative fine

24-3  of not more than $10,000, may suspend, revoke or place conditions

24-4  upon his license, or may do both, if the licensee, whether or not

24-5  acting as such:

24-6      (a) Is insolvent;

24-7      (b) Is grossly negligent or incompetent in performing any act for

24-8  which he is required to be licensed pursuant to the provisions of this

24-9  chapter;

24-10     (c) Does not conduct his business in accordance with law or has

24-11  violated any provision of this chapter, a regulation adopted pursuant

24-12  to this chapter or an order of the Commissioner;

24-13     (d) Is in such financial condition that he cannot continue in

24-14  business with safety to his customers;

24-15     (e) Has made a material misrepresentation in connection with

24-16  any transaction governed by this chapter;

24-17     (f) Has suppressed or withheld from a client any material facts,

24-18  data or other information relating to any transaction governed by the

24-19  provisions of this chapter which the licensee knew or, by the

24-20  exercise of reasonable diligence, should have known;

24-21     (g) Has knowingly made or caused to be made to the

24-22  Commissioner any false representation of material fact or has

24-23  suppressed or withheld from the Commissioner any information

24-24  which the licensee possesses and which, if submitted by him, would

24-25  have rendered the licensee ineligible to be licensed pursuant to the

24-26  provisions of this chapter;

24-27     (h) Has failed to account to persons interested for all money

24-28  received for a trust account;

24-29     (i) Has refused to permit an examination by the Commissioner

24-30  of his books and affairs or has refused or failed, within a reasonable

24-31  time, to furnish any information or make any report that may be

24-32  required by the Commissioner pursuant to the provisions of this

24-33  chapter or a regulation adopted pursuant to this chapter;

24-34     (j) Has been convicted of, or entered a plea of nolo contendere

24-35  to, a felony or any crime involving fraud, misrepresentation or

24-36  moral turpitude;

24-37     (k) Has refused or failed to pay, within a reasonable time, any

24-38  fees, assessments, costs or expenses that the licensee is required to

24-39  pay pursuant to this chapter or a regulation adopted pursuant to this

24-40  chapter;

24-41     (l) Has failed to satisfy a claim made by a client which has been

24-42  reduced to judgment;

24-43     (m) Has failed to account for or to remit any money of a client

24-44  within a reasonable time after a request for an accounting or

24-45  remittal;

25-1      (n) Has commingled the money or other property of a client

25-2  with his own or has converted the money or property of others to his

25-3  own use;

25-4      (o) Has engaged in any other conduct constituting a deceitful,

25-5  fraudulent or dishonest business practice;

25-6      (p) Has repeatedly violated the policies and procedures of the

25-7  mortgage broker;

25-8      (q) Has failed to exercise reasonable supervision over the

25-9  activities of a mortgage agent as required by NRS 645B.460;

25-10     (r) Has instructed a mortgage agent to commit an act that would

25-11  be cause for the revocation of the license of the mortgage broker,

25-12  whether or not the mortgage agent commits the act;

25-13     (s) Has employed a person as a mortgage agent or authorized a

25-14  person to be associated with the licensee as a mortgage agent at a

25-15  time when the licensee knew or, in light of all the surrounding facts

25-16  and circumstances, reasonably should have known that the person:

25-17         (1) Had been convicted of, or entered a plea of nolo

25-18  contendere to, a felony or any crime involving fraud,

25-19  misrepresentation or moral turpitude; or

25-20         (2) Had a financial services license or registration suspended

25-21  or revoked within the immediately preceding 10 years; or

25-22     (t) Has not conducted verifiable business as a mortgage broker

25-23  for 12 consecutive months, except in the case of a new applicant.

25-24  The Commissioner shall determine whether a mortgage broker is

25-25  conducting business by examining the monthly reports of activity

25-26  submitted by the licensee or by conducting an examination of the

25-27  licensee.

25-28     Sec. 46.  NRS 645B.680 is hereby amended to read as follows:

25-29      645B.680  1.  If the Commissioner receives a copy of a court

25-30  order issued pursuant to NRS 425.540 that provides for the

25-31  suspension of all professional, occupational and recreational

25-32  licenses, certificates and permits issued to a person who is the

25-33  holder of a license as a mortgage broker[,] or mortgage agent, the

25-34  Commissioner shall deem the license issued to that person to be

25-35  suspended at the end of the 30th day after the date on which the

25-36  court order was issued unless the Commissioner receives a letter

25-37  issued to the holder of the license by the district attorney or other

25-38  public agency pursuant to NRS 425.550 stating that the holder of the

25-39  license has complied with the subpoena or warrant or has satisfied

25-40  the arrearage pursuant to NRS 425.560.

25-41     2.  The Commissioner shall reinstate a license as a mortgage

25-42  broker or mortgage agent that has been suspended by a district

25-43  court pursuant to NRS 425.540 if the Commissioner receives a letter

25-44  issued by the district attorney or other public agency pursuant to

25-45  NRS 425.550 to the person whose license was suspended stating

26-1  that the person whose license was suspended has complied with the

26-2  subpoena or warrant or has satisfied the arrearage pursuant to

26-3  NRS 425.560.

26-4      Sec. 47.  NRS 645B.690 is hereby amended to read as follows:

26-5      645B.690  1.  If a person offers or provides any of the services

26-6  of a mortgage broker or mortgage agent or otherwise engages in,

26-7  carries on or holds himself out as engaging in or carrying on the

26-8  business of a mortgage broker or mortgage agent and, at the time:

26-9      (a) The person was required to have a license pursuant to this

26-10  chapter and the person did not have such a license; or

26-11     (b) The person’s license was suspended or revoked pursuant to

26-12  this chapter,

26-13  the Commissioner shall impose upon the person an administrative

26-14  fine of not more than $10,000 for each violation and, if the person

26-15  has a license, the Commissioner shall revoke it.

26-16     2.  If a person is exempt from the provisions of this chapter

26-17  pursuant to subsection 6 of NRS 645B.015 and the person, while

26-18  exempt, maintains, offers to maintain or holds himself out as

26-19  maintaining any accounts described in subsection 1 of NRS

26-20  645B.175 or otherwise engages in, offers to engage in or holds

26-21  himself out as engaging in any activity that would remove the

26-22  person from the exemption set forth in subsection 6 of NRS

26-23  645B.015, the Commissioner shall impose upon the person an

26-24  administrative fine of not more than $10,000 for each violation and

26-25  the Commissioner shall revoke the person’s exemption. If the

26-26  Commissioner revokes an exemption pursuant to this subsection, the

26-27  person may not again be granted the same or a similar exemption

26-28  from the provisions of this chapter. The person may apply for a

26-29  license pursuant to this chapter unless otherwise prohibited by

26-30  specific statute.

26-31     3.  If a mortgage broker violates any provision of subsection 1

26-32  of NRS 645B.080 and the mortgage broker fails, without reasonable

26-33  cause, to remedy the violation within 20 business days after being

26-34  ordered by the Commissioner to do so or within such later time as

26-35  prescribed by the Commissioner, or if the Commissioner orders a

26-36  mortgage broker to provide information, make a report or permit an

26-37  examination of his books or affairs pursuant to this chapter and the

26-38  mortgage broker fails, without reasonable cause, to comply with the

26-39  order within 20 business days or within such later time as prescribed

26-40  by the Commissioner, the Commissioner shall:

26-41     (a) Impose upon the mortgage broker an administrative fine of

26-42  not more than $10,000 for each violation;

26-43     (b) Suspend or revoke the license of the mortgage broker; and

26-44     (c) Conduct a hearing to determine whether the mortgage broker

26-45  is conducting business in an unsafe and injurious manner that may

27-1  result in danger to the public and whether it is necessary for the

27-2  Commissioner to take possession of the property of the mortgage

27-3  broker pursuant to NRS 645B.630.

27-4      Sec. 48.  NRS 645B.900 is hereby amended to read as follows:

27-5      645B.900  It is unlawful for any person to offer or provide any

27-6  of the services of a mortgage broker or mortgage agent or otherwise

27-7  to engage in, carry on or hold himself out as engaging in or carrying

27-8  on the business of a mortgage broker or mortgage agent without

27-9  first obtaining [a license as a mortgage broker] the applicable

27-10  license issued pursuant to this chapter, unless the person:

27-11     1.  Is exempt from the provisions of this chapter; and

27-12     2.  Complies with the requirements for that exemption.

27-13     Sec. 48.5. NRS 645E.020 is hereby amended to read as

27-14  follows:

27-15      645E.020  “Applicant” means a person who applies for

27-16  licensure as a mortgage [company] banker pursuant to this chapter.

27-17     Sec. 49. NRS 645E.050 is hereby amended to read as follows:

27-18      645E.050  “Commissioner” means the Commissioner of

27-19  [Financial Institutions.] Mortgage Lending.

27-20     Sec. 50. NRS 645E.070 is hereby amended to read as follows:

27-21      645E.070  “Division” means the Division of [Financial

27-22  Institutions] Mortgage Lending of the Department of Business and

27-23  Industry.

27-24     Sec. 51. NRS 645E.090 is hereby amended to read as follows:

27-25      645E.090  “Licensee” means a person who is licensed as a

27-26  mortgage [company] banker pursuant to this chapter.

27-27     Sec. 52. NRS 645E.100 is hereby amended to read as follows:

27-28      645E.100  1.  “Mortgage [company”] banker” means any of

27-29  the following:

27-30     (a) A person who, directly or indirectly:

27-31         (1) Holds himself out as being able to:

27-32             (I) Buy or sell notes secured by liens on real property; or

27-33             (II) Make loans secured by liens on real property using

27-34  his own money; and

27-35         (2) Does not engage in any other act or transaction described

27-36  in the definition of “mortgage broker,” as set forth in NRS

27-37  645B.0127, unless the person is also licensed as a mortgage broker

27-38  pursuant to chapter 645B of NRS.

27-39     (b) A person who, directly or indirectly:

27-40         (1) Negotiates, originates or makes or offers to negotiate,

27-41  originate or make commercial mortgage loans as an agent for or on

27-42  behalf of an institutional investor; and

27-43         (2) Does not engage in any other act or transaction described

27-44  in the definition of “mortgage broker,” as set forth in NRS

28-1  645B.0127, unless the person is also licensed as a mortgage broker

28-2  pursuant to chapter 645B of NRS.

28-3      2.  For the purposes of this section, a person does not make a

28-4  loan secured by a lien on real property using his own money if any

28-5  portion of the money that is used to make the loan is provided by

28-6  another person who acquires ownership of or a beneficial interest in

28-7  the loan.

28-8      Sec. 53. NRS 645E.130 is hereby amended to read as follows:

28-9      645E.130  The provisions of this chapter do not:

28-10     1.  Limit any statutory or common-law right of a person to

28-11  bring a civil action against a mortgage [company] banker for any

28-12  act or omission involved in the transaction of business by or on

28-13  behalf of the mortgage [company;] banker;

28-14     2.  Limit the right of the State to punish a person for the

28-15  violation of any law, ordinance or regulation; or

28-16     3.  Establish a basis for a person to bring a civil action against

28-17  the State or its officers or employees for any act or omission in

28-18  carrying out the provisions of this chapter, including, without

28-19  limitation, any act or omission relating to the disclosure of

28-20  information or the failure to disclose information pursuant to the

28-21  provisions of this chapter.

28-22     Sec. 54. NRS 645E.150 is hereby amended to read as follows:

28-23      645E.150  Except as otherwise provided in NRS 645E.160, the

28-24  provisions of this chapter do not apply to:

28-25     1.  Any person doing business under the laws of this state, any

28-26  other state or the United States relating to banks, savings banks,

28-27  trust companies, savings and loan associations, consumer finance

28-28  companies, industrial loan companies, credit unions, thrift

28-29  companies or insurance companies, unless the business conducted in

28-30  this state is not subject to supervision by the regulatory authority of

28-31  the other jurisdiction, in which case licensing pursuant to this

28-32  chapter is required.

28-33     2.  A real estate investment trust, as defined in 26 U.S.C. § 856,

28-34  unless the business conducted in this state is not subject to

28-35  supervision by the regulatory authority of the other jurisdiction, in

28-36  which case licensing pursuant to this chapter is required.

28-37     3.  An employee benefit plan, as defined in 29 U.S.C. §

28-38  1002(3), if the loan is made directly from money in the plan by the

28-39  plan’s trustee.

28-40     4.  An attorney at law rendering services in the performance of

28-41  his duties as an attorney at law.

28-42     5.  A real estate broker rendering services in the performance of

28-43  his duties as a real estate broker.

28-44     6.  Any firm or corporation [:] , or wholly owned subsidiary

28-45  thereof:

29-1      (a) Whose principal purpose or activity is lending money on real

29-2  property which is secured by a mortgage;

29-3      (b) Approved by the Federal National Mortgage Association as

29-4  a seller and servicer; and

29-5      (c) Approved by the Department of Housing and Urban

29-6  Development and the Department of Veterans Affairs.

29-7      7.  Any person doing any act under an order of any court.

29-8      8.  Any one natural person, or husband and wife, who provides

29-9  money for investment in loans secured by a lien on real property, on

29-10  his own account, unless such a person makes a loan secured by a

29-11  lien on real property using his own money and assigns all or a part

29-12  of his interest in the loan to another person, other than his spouse or

29-13  child, within 5 years after the date on which the loan is made or the

29-14  deed of trust is recorded, whichever occurs later.

29-15     9.  Agencies of the United States and of this state and its

29-16  political subdivisions, including the public employees’ retirement

29-17  system.

29-18     10.  A seller of real property who offers credit secured by a

29-19  mortgage of the property sold.

29-20     Sec. 55. NRS 645E.160 is hereby amended to read as follows:

29-21      645E.160  1.  A person who claims an exemption from the

29-22  provisions of this chapter pursuant to subsection 1 or 6 of NRS

29-23  645E.150 must:

29-24     (a) File a written application for a certificate of exemption with

29-25  the Office of the Commissioner;

29-26     (b) Pay the fee required pursuant to NRS 645E.280; and

29-27     (c) Include with the written application satisfactory proof that

29-28  the person meets the requirements of subsection 1 or 6 of

29-29  NRS 645E.150.

29-30     2.  The Commissioner may require a person who claims an

29-31  exemption from the provisions of this chapter pursuant to

29-32  subsections 2 to 5, inclusive, or 7 to 10, inclusive, of NRS 645E.150

29-33  to:

29-34     (a) File a written application for a certificate of exemption with

29-35  the Office of the Commissioner;

29-36     (b) Pay the fee required pursuant to NRS 645E.280; and

29-37     (c) Include with the written application satisfactory proof that

29-38  the person meets the requirements of at least one of those

29-39  exemptions.

29-40     3.  A certificate of exemption expires automatically if, at any

29-41  time, the person who claims the exemption no longer meets the

29-42  requirements of at least one exemption set forth in the provisions of

29-43  NRS 645E.150.

29-44     4.  If a certificate of exemption expires automatically pursuant

29-45  to this section, the person shall not provide any of the services of a

30-1  mortgage [company] banker or otherwise engage in, carry on or

30-2  hold himself out as engaging in or carrying on the business of a

30-3  mortgage [company,] banker, unless the person applies for and is

30-4  issued:

30-5      (a) A license as a mortgage [company] banker pursuant to this

30-6  chapter; or

30-7      (b) Another certificate of exemption.

30-8      5.  The Commissioner may impose upon a person who is

30-9  required to apply for a certificate of exemption or who holds a

30-10  certificate of exemption an administrative fine of not more than

30-11  $10,000 for each violation that he commits, if the person:

30-12     (a) Has knowingly made or caused to be made to the

30-13  Commissioner any false representation of material fact;

30-14     (b) Has suppressed or withheld from the Commissioner any

30-15  information which the person possesses and which, if submitted by

30-16  him, would have rendered the person ineligible to hold a certificate

30-17  of exemption; or

30-18     (c) Has violated any provision of this chapter, a regulation

30-19  adopted pursuant to this chapter or an order of the Commissioner

30-20  that applies to a person who is required to apply for a certificate of

30-21  exemption or who holds a certificate of exemption.

30-22     Sec. 56. NRS 645E.200 is hereby amended to read as follows:

30-23      645E.200  1.  A person who wishes to be licensed as a

30-24  mortgage [company] banker must file a written application for a

30-25  license with the Office of the Commissioner and pay the fee

30-26  required pursuant to NRS 645E.280. An application for a license as

30-27  a mortgage [company] banker must:

30-28     (a) Be verified.

30-29     (b) State the name, residence address and business address of

30-30  the applicant and the location of each principal office and branch

30-31  office at which the mortgage [company] banker will conduct

30-32  business in this state, including, without limitation, any office or

30-33  other place of business located outside this state from which the

30-34  mortgage [company] banker will conduct business in this state.

30-35     (c) State the name under which the applicant will conduct

30-36  business as a mortgage [company.] banker.

30-37     (d) If the applicant is not a natural person, list the name,

30-38  residence address and business address of each person who will

30-39  have an interest in the mortgage [company] banker as a principal,

30-40  partner, officer, director or trustee, specifying the capacity and title

30-41  of each such person.

30-42     (e) Indicate the general plan and character of the business.

30-43     (f) State the length of time the applicant has been engaged in the

30-44  business of a mortgage [company.] banker.

30-45     (g) Include a financial statement of the applicant.

31-1      (h) Include any other information required pursuant to the

31-2  regulations adopted by the Commissioner or an order of the

31-3  Commissioner.

31-4      2.  If a mortgage [company] banker will conduct business in

31-5  this state at one or more branch offices, the mortgage [company]

31-6  banker must apply for a license for each such branch office.

31-7      3.  Except as otherwise provided in this chapter, the

31-8  Commissioner shall issue a license to an applicant as a mortgage

31-9  [company] banker if:

31-10     (a) The application complies with the requirements of this

31-11  chapter; and

31-12     (b) The applicant and each general partner, officer or director of

31-13  the applicant, if the applicant is a partnership, corporation or

31-14  unincorporated association:

31-15         (1) Has a good reputation for honesty, trustworthiness and

31-16  integrity and displays competence to transact the business of a

31-17  mortgage [company] banker in a manner which safeguards the

31-18  interests of the general public. The applicant must submit

31-19  satisfactory proof of these qualifications to the Commissioner.

31-20         (2) Has not been convicted of, or entered a plea of nolo

31-21  contendere to, a felony or any crime involving fraud,

31-22  misrepresentation or moral turpitude.

31-23         (3) Has not made a false statement of material fact on his

31-24  application.

31-25         (4) Has not had a license that was issued pursuant to the

31-26  provisions of this chapter or chapter 645B of NRS suspended or

31-27  revoked within the 10 years immediately preceding the date of his

31-28  application.

31-29         (5) Has not had a license that was issued in any other state,

31-30  district or territory of the United States or any foreign country

31-31  suspended or revoked within the 10 years immediately preceding the

31-32  date of his application.

31-33         (6) Has not violated any provision of this chapter or chapter

31-34  645B of NRS, a regulation adopted pursuant thereto or an order of

31-35  the Commissioner.

31-36     4.  If an applicant is a partnership, corporation or

31-37  unincorporated association, the Commissioner may refuse to issue a

31-38  license to the applicant if any member of the partnership or any

31-39  officer or director of the corporation or unincorporated association

31-40  has committed any act or omission that would be cause for refusing

31-41  to issue a license to a natural person.

31-42     5.  A person may apply for a license for an office or other place

31-43  of business located outside this state from which the applicant will

31-44  conduct business in this state if the applicant or a subsidiary or

31-45  affiliate of the applicant has a license issued pursuant to this chapter

32-1  for an office or other place of business located in this state and if the

32-2  applicant submits with the application for a license a statement

32-3  signed by the applicant which states that the applicant agrees to:

32-4      (a) Make available at a location within this state the books,

32-5  accounts, papers, records and files of the office or place of business

32-6  located outside this state to the Commissioner or a representative of

32-7  the Commissioner; or

32-8      (b) Pay the reasonable expenses for travel, meals and lodging of

32-9  the Commissioner or a representative of the Commissioner incurred

32-10  during any investigation or examination made at the office or place

32-11  of business located outside this state.

32-12  The applicant must be allowed to choose between paragraph (a) or

32-13  (b) in complying with the provisions of this subsection.

32-14     Sec. 57. NRS 645E.210 is hereby amended to read as follows:

32-15      645E.210  1.  In addition to the requirements set forth in NRS

32-16  645E.200 and 645E.280, a natural person who applies for the

32-17  issuance or renewal of a license as a mortgage [company] banker

32-18  shall submit to the Commissioner:

32-19     (a) In any application for issuance of a license, the social

32-20  security number of the applicant and the statement prescribed by the

32-21  Welfare Division of the Department of Human Resources pursuant

32-22  to NRS 425.520. The statement must be completed and signed by

32-23  the applicant.

32-24     (b) In any application for renewal of a license, the statement

32-25  prescribed by the Welfare Division of the Department of Human

32-26  Resources pursuant to NRS 425.520. The statement must be

32-27  completed and signed by the applicant.

32-28     2.  The Commissioner shall include the statement required

32-29  pursuant to subsection 1 in:

32-30     (a) The application or any other forms that must be submitted

32-31  for the issuance or renewal of the license; or

32-32     (b) A separate form prescribed by the Commissioner.

32-33     3.  The Commissioner shall not issue or renew a license as a

32-34  mortgage [company] banker if the applicant is a natural person

32-35  who:

32-36     (a) Fails to submit the statement required pursuant to

32-37  subsection 1; or

32-38     (b) Indicates on the statement submitted pursuant to subsection

32-39  1 that he is subject to a court order for the support of a child and is

32-40  not in compliance with the order or a plan approved by the district

32-41  attorney or other public agency enforcing the order for the

32-42  repayment of the amount owed pursuant to the order.

32-43     4.  If an applicant indicates on the statement submitted pursuant

32-44  to subsection 1 that he is subject to a court order for the support of a

32-45  child and is not in compliance with the order or a plan approved by

33-1  the district attorney or other public agency enforcing the order for

33-2  the repayment of the amount owed pursuant to the order, the

33-3  Commissioner shall advise the applicant to contact the district

33-4  attorney or other public agency enforcing the order to determine the

33-5  actions that the applicant may take to satisfy the arrearage.

33-6      Sec. 58. NRS 645E.220 is hereby amended to read as follows:

33-7      645E.220  1.  A mortgage [company] banker shall post each

33-8  license in a conspicuous place in the office for which the license has

33-9  been issued.

33-10     2.  A mortgage [company] banker may not transfer or assign a

33-11  license to another person, unless the Commissioner gives his written

33-12  approval.

33-13     Sec. 59. NRS 645E.230 is hereby amended to read as follows:

33-14      645E.230  1.  A license entitles a licensee to engage only in

33-15  the activities authorized by this chapter.

33-16     2.  The provisions of this chapter do not prohibit a licensee

33-17  from:

33-18     (a) Holding a license as a mortgage broker pursuant to chapter

33-19  645B of NRS; or

33-20     (b) Conducting the business of a mortgage [company] banker

33-21  and the business of a mortgage broker in the same office or place of

33-22  business.

33-23     Sec. 60. NRS 645E.280 is hereby amended to read as follows:

33-24      645E.280  1.  A license issued to a mortgage [company]

33-25  banker pursuant to this chapter expires each year on December 31,

33-26  unless it is renewed. To renew a license, the licensee must submit to

33-27  the Commissioner on or before December 31 of each year:

33-28     (a) An application for renewal that complies with the

33-29  requirements of this chapter; and

33-30     (b) The fee required to renew the license pursuant to this

33-31  section.

33-32     2.  If the licensee fails to submit any item required pursuant to

33-33  subsection 1 to the Commissioner on or before December 31 of any

33-34  year, the license is cancelled. The Commissioner may reinstate a

33-35  cancelled license if the licensee submits to the Commissioner:

33-36     (a) An application for renewal that complies with the

33-37  requirements of this chapter;

33-38     (b) The fee required to renew the license pursuant to this

33-39  section; and

33-40     (c) A reinstatement fee of $200.

33-41     3.  Except as otherwise provided in NRS 645E.160, a certificate

33-42  of exemption issued pursuant to this chapter expires each year on

33-43  December 31, unless it is renewed. To renew a certificate of

33-44  exemption, a person must submit to the Commissioner on or before

33-45  December 31 of each year:

34-1      (a) An application for renewal that complies with the

34-2  requirements of this chapter; and

34-3      (b) The fee required to renew the certificate of exemption.

34-4      4.  If the person fails to submit any item required pursuant to

34-5  subsection 3 to the Commissioner on or before December 31 of any

34-6  year, the certificate of exemption is cancelled. Except as otherwise

34-7  provided in NRS 645E.160, the Commissioner may reinstate a

34-8  cancelled certificate of exemption if the person submits to the

34-9  Commissioner:

34-10     (a) An application for renewal that complies with the

34-11  requirements of this chapter;

34-12     (b) The fee required to renew the certificate of exemption; and

34-13     (c) A reinstatement fee of $100.

34-14     5.  A person must pay the following fees to apply for, to be

34-15  issued or to renew a license as a mortgage [company] banker

34-16  pursuant to this chapter:

34-17     (a) To file an original application for a license, $1,500 for the

34-18  principal office and $40 for each branch office. The person must

34-19  also pay such additional expenses incurred in the process of

34-20  investigation as the Commissioner deems necessary. [All money

34-21  received by the Commissioner pursuant to this paragraph must be

34-22  placed in the Investigative Account created by NRS 232.545.]

34-23     (b) To be issued a license, $1,000 for the principal office and

34-24  $60 for each branch office.

34-25     (c) To renew a license, $500 for the principal office and $100

34-26  for each branch office.

34-27     6.  A person must pay the following fees to apply for or to

34-28  renew a certificate of exemption pursuant to this chapter:

34-29     (a) To file an application for a certificate of exemption, $200.

34-30     (b) To renew a certificate of exemption, $100.

34-31     7.  To be issued a duplicate copy of any license or certificate of

34-32  exemption, a person must make a satisfactory showing of its loss

34-33  and pay a fee of $10.

34-34     8.  Except as otherwise provided in this chapter, all fees

34-35  received pursuant to this chapter must be deposited in the [State

34-36  Treasury for credit to the State General Fund.] Fund for Mortgage

34-37  Lending created by section 17 of this act.

34-38     Sec. 61. NRS 645E.300 is hereby amended to read as follows:

34-39      645E.300  1.  Subject to the administrative control of the

34-40  Director of the Department of Business and Industry, the

34-41  Commissioner shall exercise general supervision and control over

34-42  mortgage [companies] bankers doing business in this state.

34-43     2.  In addition to the other duties imposed upon him by law, the

34-44  Commissioner shall:

35-1      (a) Adopt any regulations that are necessary to carry out the

35-2  provisions of this chapter, except as to loan fees.

35-3      (b) Conduct such investigations as may be necessary to

35-4  determine whether any person has violated any provision of this

35-5  chapter, a regulation adopted pursuant to this chapter or an order of

35-6  the Commissioner.

35-7      (c) Conduct an annual examination of each mortgage [company]

35-8  banker doing business in this state.

35-9      (d) Conduct such other examinations, periodic or special audits,

35-10  investigations and hearings as may be necessary and proper for the

35-11  efficient administration of the laws of this state regarding mortgage

35-12  [companies.] bankers.

35-13     (e) Classify as confidential certain records and information

35-14  obtained by the Division when those matters are obtained from a

35-15  governmental agency upon the express condition that they remain

35-16  confidential. This paragraph does not limit examination by the

35-17  Legislative Auditor.

35-18     (f) Conduct such examinations and investigations as are

35-19  necessary to ensure that mortgage [companies] bankers meet the

35-20  requirements of this chapter for obtaining a license, both at the time

35-21  of the application for a license and thereafter on a continuing basis.

35-22     3.  For each special audit, investigation or examination, a

35-23  mortgage [company] banker shall pay a fee based on the rate

35-24  established pursuant to [NRS 658.101.] section 15 of this act.

35-25     Sec. 62. NRS 645E.320 is hereby amended to read as follows:

35-26      645E.320  Each mortgage [company] banker shall pay the

35-27  assessment levied pursuant to [NRS 658.055] section 12 of this act

35-28  and cooperate fully with the audits and examinations performed

35-29  pursuant thereto.

35-30     Sec. 63. NRS 645E.350 is hereby amended to read as follows:

35-31      645E.350  1.  Each mortgage [company] banker shall keep

35-32  and maintain at all times at each location where the mortgage

35-33  [company] banker conducts business in this state complete and

35-34  suitable records of all mortgage transactions made by the mortgage

35-35  [company] banker at that location. Each mortgage [company]

35-36  banker shall also keep and maintain at all times at each such

35-37  location all original books, papers and data, or copies thereof,

35-38  clearly reflecting the financial condition of the business of the

35-39  mortgage [company.] banker.

35-40     2.  Each mortgage [company] banker shall submit to the

35-41  Commissioner each month a report of the mortgage [company’s]

35-42  banker’s activity for the previous month. The report must:

35-43     (a) Specify the volume of loans made by the mortgage

35-44  [company] banker for the month or state that no loans were made in

35-45  that month;

36-1      (b) Include any information required pursuant to the regulations

36-2  adopted by the Commissioner; and

36-3      (c) Be submitted to the Commissioner by the 15th day of the

36-4  month following the month for which the report is made.

36-5      3.  The Commissioner may adopt regulations prescribing

36-6  accounting procedures for mortgage [companies] bankers handling

36-7  trust accounts and the requirements for keeping records relating to

36-8  such accounts.

36-9      4.  A licensee who operates outside this state an office or other

36-10  place of business which is licensed pursuant to this chapter shall:

36-11     (a) Make available at a location within this state the books,

36-12  accounts, papers, records and files of the office or place of business

36-13  located outside this state to the Commissioner or a representative of

36-14  the Commissioner; or

36-15     (b) Pay the reasonable expenses for travel, meals and lodging of

36-16  the Commissioner or a representative of the Commissioner incurred

36-17  during any investigation or examination made at the office or place

36-18  of business located outside this state.

36-19  The licensee must be allowed to choose between paragraph (a) or

36-20  (b) in complying with the provisions of this subsection.

36-21     Sec. 64. NRS 645E.360 is hereby amended to read as follows:

36-22      645E.360  1.  Except as otherwise provided in this section, not

36-23  later than 60 days after the last day of each fiscal year for a

36-24  mortgage [company,] banker, the mortgage [company] banker shall

36-25  submit to the Commissioner a financial statement that:

36-26     (a) Is dated not earlier than the last day of the fiscal year; and

36-27     (b) Has been prepared from the books and records of the

36-28  mortgage [company] banker by an independent public accountant

36-29  who holds a permit to engage in the practice of public accounting in

36-30  this state that has not been revoked or suspended.

36-31     2.  The Commissioner may grant a reasonable extension for the

36-32  submission of a financial statement pursuant to this section if a

36-33  mortgage [company] banker requests such an extension before the

36-34  date on which the financial statement is due.

36-35     3.  If a mortgage [company] banker maintains any accounts

36-36  described in NRS 645E.430, the financial statement submitted

36-37  pursuant to this section must be audited. The public accountant who

36-38  prepares the report of an audit shall submit a copy of the report to

36-39  the Commissioner at the same time that he submits the report to the

36-40  mortgage [company.] banker.

36-41     4.  The Commissioner shall adopt regulations prescribing the

36-42  scope of an audit conducted pursuant to subsection 3.

36-43     Sec. 65. NRS 645E.370 is hereby amended to read as follows:

36-44      645E.370  1.  Except as otherwise provided in this section or

36-45  by specific statute, all papers, documents, reports and other written

37-1  instruments filed with the Commissioner pursuant to this chapter are

37-2  open to public inspection.

37-3      2.  The Commissioner may withhold from public inspection or

37-4  refuse to disclose to a person, for such time as the Commissioner

37-5  considers necessary, any information that, in his judgment, would:

37-6      (a) Impede or otherwise interfere with an investigation that is

37-7  currently pending against a mortgage [company;] banker; or

37-8      (b) Have an undesirable effect on the welfare of the public or the

37-9  welfare of any mortgage [company.] banker.

37-10     Sec. 66. NRS 645E.390 is hereby amended to read as follows:

37-11      645E.390  1.  The Commissioner must be notified of a transfer

37-12  of 5 percent or more of the outstanding voting stock of a mortgage

37-13  [company] banker and must approve a transfer of voting stock of a

37-14  mortgage [company] banker which constitutes a change of control.

37-15     2.  The person who acquires stock resulting in a change of

37-16  control of the mortgage [company] banker shall apply to the

37-17  Commissioner for approval of the transfer. The application must

37-18  contain information which shows that the requirements of this

37-19  chapter for obtaining a license will be satisfied after the change of

37-20  control. Except as otherwise provided in subsection 3, the

37-21  Commissioner shall conduct an investigation to determine whether

37-22  those requirements will be satisfied. If, after the investigation, the

37-23  Commissioner denies the application, he may forbid the applicant

37-24  from participating in the business of the mortgage [company.]

37-25  banker.

37-26     3.  A mortgage [company] banker may submit a written request

37-27  to the Commissioner to waive an investigation pursuant to

37-28  subsection 2. The Commissioner may grant a waiver if the applicant

37-29  has undergone a similar investigation by a state or federal agency in

37-30  connection with the licensing of or his employment with a financial

37-31  institution.

37-32     4.  As used in this section, “change of control” means:

37-33     (a) A transfer of voting stock which results in giving a person,

37-34  directly or indirectly, the power to direct the management and policy

37-35  of a mortgage [company;] banker; or

37-36     (b) A transfer of at least 25 percent of the outstanding voting

37-37  stock of a mortgage [company.] banker.

37-38     Sec. 67. NRS 645E.420 is hereby amended to read as follows:

37-39      645E.420  1.  Except as otherwise provided in subsection 3,

37-40  the amount of any advance fee, salary, deposit or money paid to any

37-41  mortgage [company] banker or other person to obtain a loan

37-42  secured by a lien on real property must be placed in escrow pending

37-43  completion of the loan or a commitment for the loan.

37-44     2.  The amount held in escrow pursuant to subsection 1 must be

37-45  released:

38-1      (a) Upon completion of the loan or commitment for the loan, to

38-2  the mortgage [company] banker or other person to whom the

38-3  advance fee, salary, deposit or money was paid.

38-4      (b) If the loan or commitment for the loan fails, to the person

38-5  who made the payment.

38-6      3.  Advance payments to cover reasonably estimated costs paid

38-7  to third persons are excluded from the provisions of subsections 1

38-8  and 2 if the person making them first signs a written agreement

38-9  which specifies the estimated costs by item and the estimated

38-10  aggregate cost, and which recites that money advanced for costs will

38-11  not be refunded. If an itemized service is not performed and the

38-12  estimated cost thereof is not refunded, the recipient of the advance

38-13  payment is subject to the penalties provided in NRS 645E.960.

38-14     Sec. 68. NRS 645E.430 is hereby amended to read as follows:

38-15      645E.430  1.  All money paid to a mortgage [company]

38-16  banker for payment of taxes or insurance premiums on real property

38-17  which secures any loan made by the mortgage [company] banker

38-18  must be deposited in an insured depository financial institution and

38-19  kept separate, distinct and apart from money belonging to the

38-20  mortgage [company.] banker. Such money, when deposited, is to be

38-21  designated as an “impound trust account” or under some other

38-22  appropriate name indicating that the accounts are not the money of

38-23  the mortgage [company.] banker.

38-24     2.  The mortgage [company] banker has a fiduciary duty to

38-25  each debtor with respect to the money in an impound trust account.

38-26     3.  The mortgage [company] banker shall, upon reasonable

38-27  notice, account to any debtor whose real property secures a loan

38-28  made by the mortgage [company] banker for any money which that

38-29  person has paid to the mortgage [company] banker for the payment

38-30  of taxes or insurance premiums on the real property.

38-31     4.  The mortgage [company] banker shall, upon reasonable

38-32  notice, account to the Commissioner for all money in an impound

38-33  trust account.

38-34     5.  A mortgage [company] banker shall:

38-35     (a) Require contributions to an impound trust account in an

38-36  amount reasonably necessary to pay the obligations as they become

38-37  due.

38-38     (b) Within 30 days after the completion of the annual review of

38-39  an impound trust account, notify the debtor:

38-40         (1) Of the amount by which the contributions exceed the

38-41  amount reasonably necessary to pay the annual obligations due from

38-42  the account; and

38-43         (2) That the debtor may specify the disposition of the excess

38-44  money within 20 days after receipt of the notice. If the debtor fails

38-45  to specify such a disposition within that time, the mortgage

39-1  [company] banker shall maintain the excess money in the

39-2  account.

39-3  This subsection does not prohibit a mortgage [company] banker

39-4  from requiring additional amounts to be paid into an impound trust

39-5  account to recover a deficiency that exists in the account.

39-6      6.  A mortgage [company] banker shall not make payments

39-7  from an impound trust account in a manner that causes a policy of

39-8  insurance to be cancelled or causes property taxes or similar

39-9  payments to become delinquent.

39-10     Sec. 69. NRS 645E.440 is hereby amended to read as follows:

39-11      645E.440  1.  Money in an impound trust account is not

39-12  subject to execution or attachment on any claim against the

39-13  mortgage [company.] banker.

39-14     2.  It is unlawful for a mortgage [company] banker knowingly

39-15  to keep or cause to be kept any money in a depository financial

39-16  institution under the heading of “impound trust account” or any

39-17  other name designating such money as belonging to the debtors of

39-18  the mortgage [company,] banker, unless the money has been paid to

39-19  the mortgage [company] banker by a debtor pursuant to NRS

39-20  645E.430 and is being held in trust by the mortgage [company]

39-21  banker pursuant to the provisions of that section.

39-22     Sec. 70. NRS 645E.470 is hereby amended to read as follows:

39-23      645E.470  1.  If a person is required to make a payment to a

39-24  mortgage [company] banker pursuant to the terms of a loan secured

39-25  by a lien on real property, the mortgage [company] banker may not

39-26  charge the person a late fee, an additional amount of interest or any

39-27  other penalty in connection with that payment if the payment is

39-28  delivered to the mortgage [company] banker before 5 p.m. on:

39-29     (a) The day that the payment is due pursuant to the terms of the

39-30  loan, if an office of the mortgage [company] banker is open to

39-31  customers until 5 p.m. on that day; or

39-32     (b) The next day that an office of the mortgage [company]

39-33  banker is open to customers until 5 p.m., if the provisions of

39-34  paragraph (a) do not otherwise apply.

39-35     2.  A person and a mortgage [company] banker may not agree

39-36  to alter or waive the provisions of this section by contract or other

39-37  agreement, and any such contract or agreement is void and must not

39-38  be given effect to the extent that it violates the provisions of this

39-39  section.

39-40     Sec. 71. NRS 645E.620 is hereby amended to read as follows:

39-41      645E.620  1.  Whether or not a complaint has been filed, the

39-42  Commissioner may investigate a mortgage [company] banker or

39-43  other person if, for any reason, it appears that:

39-44     (a) The mortgage [company] banker is conducting business in

39-45  an unsafe and injurious manner or in violation of any provision of

40-1  this chapter, a regulation adopted pursuant to this chapter or an

40-2  order of the Commissioner;

40-3      (b) The person is offering or providing any of the services of a

40-4  mortgage [company] banker or otherwise engaging in, carrying on

40-5  or holding himself out as engaging in or carrying on the business of

40-6  a mortgage [company] banker without being licensed or exempt

40-7  from licensing pursuant to the provisions of this chapter; or

40-8      (c) The person is violating any other provision of this chapter, a

40-9  regulation adopted pursuant to this chapter or an order of the

40-10  Commissioner.

40-11     2.  If, upon investigation, the Commissioner has reasonable

40-12  cause to believe that the mortgage [company] banker or other

40-13  person has engaged in any conduct or committed any violation

40-14  described in subsection 1, the Commissioner may:

40-15     (a) Advise the district attorney of the county in which the

40-16  conduct or violation occurred, and the district attorney shall cause

40-17  the appropriate legal action to be taken against the mortgage

40-18  [company] banker or other person to enjoin the conduct or the

40-19  operation of the business or prosecute the violation; and

40-20     (b) Bring a civil action to:

40-21         (1) Enjoin the mortgage [company] banker or other person

40-22  from engaging in the conduct, operating the business or committing

40-23  the violation; and

40-24         (2) Enjoin any other person who has encouraged, facilitated,

40-25  aided or participated in the conduct, the operation of the business or

40-26  the commission of the violation, or who is likely to engage in such

40-27  acts, from engaging in or continuing to engage in such acts.

40-28     3.  If the Commissioner brings a civil action pursuant to

40-29  subsection 2, the district court of any county of this state is hereby

40-30  vested with the jurisdiction in equity to enjoin the conduct, the

40-31  operation of the business or the commission of the violation and

40-32  may grant any injunctions that are necessary to prevent and restrain

40-33  the conduct, the operation of the business or the commission of the

40-34  violation. During the pendency of the proceedings before the district

40-35  court:

40-36     (a) The court may issue any temporary restraining orders as may

40-37  appear to be just and proper;

40-38     (b) The findings of the Commissioner shall be deemed to be

40-39  prima facie evidence and sufficient grounds, in the discretion of the

40-40  court, for the ex parte issuance of a temporary restraining order; and

40-41     (c) The Commissioner may apply for and on due showing is

40-42  entitled to have issued the court’s subpoena requiring forthwith the

40-43  appearance of any person to:

40-44         (1) Produce any documents, books and records as may

40-45  appear necessary for the hearing of the petition; and

41-1          (2) Testify and give evidence concerning the conduct

41-2  complained of in the petition.

41-3      Sec. 72. NRS 645E.630 is hereby amended to read as follows:

41-4      645E.630  1.  In addition to any other action that is permitted

41-5  pursuant to this chapter, if the Commissioner has reasonable cause

41-6  to believe that:

41-7      (a) The assets or capital of a mortgage [company] banker are

41-8  impaired; or

41-9      (b) A mortgage [company] banker is conducting business in an

41-10  unsafe and injurious manner that may result in danger to the

41-11  public,

41-12  the Commissioner may immediately take possession of all the

41-13  property, business and assets of the mortgage [company] banker

41-14  that are located in this state and retain possession of them pending

41-15  further proceedings provided for in this chapter.

41-16     2.  If the licensee, the board of directors or any officer or person

41-17  in charge of the offices of the mortgage [company] banker refuses

41-18  to permit the Commissioner to take possession of the property of the

41-19  mortgage [company] banker pursuant to subsection 1:

41-20     (a) The Commissioner shall notify the Attorney General; and

41-21     (b) The Attorney General shall immediately bring such

41-22  proceedings as may be necessary to place the Commissioner in

41-23  immediate possession of the property of the mortgage [company.]

41-24  banker.

41-25     3.  If the Commissioner takes possession of the property of the

41-26  mortgage [company,] banker, the Commissioner shall:

41-27     (a) Make or have made an inventory of the assets and known

41-28  liabilities of the mortgage [company;] banker; and

41-29     (b) File one copy of the inventory in his office and one copy in

41-30  the office of the clerk of the district court of the county in which the

41-31  principal office of the mortgage [company] banker is located and

41-32  shall mail one copy to each stockholder, partner, officer, director or

41-33  associate of the mortgage [company] banker at his last known

41-34  address.

41-35     4.  The clerk of the court with which the copy of the inventory

41-36  is filed shall file it as any other case or proceeding pending in the

41-37  court and shall give it a docket number.

41-38     Sec. 73. NRS 645E.640 is hereby amended to read as follows:

41-39      645E.640  1.  If the Commissioner takes possession of the

41-40  property of a mortgage [company] banker pursuant to NRS

41-41  645E.630, the licensee, officers, directors, partners, associates or

41-42  stockholders of the mortgage [company] banker may, within 60

41-43  days after the date on which the Commissioner takes possession of

41-44  the property, make good any deficit in the assets or capital of the

42-1  mortgage [company] banker or remedy any unsafe and injurious

42-2  conditions or practices of the mortgage [company.] banker.

42-3      2.  At the expiration of the 60-day period, if the deficiency in

42-4  assets or capital has not been made good or the unsafe and injurious

42-5  conditions or practices remedied, the Commissioner may apply to

42-6  the court to be appointed receiver and proceed to liquidate the assets

42-7  of the mortgage [company] banker which are located in this state in

42-8  the same manner as now provided by law for liquidation of a private

42-9  corporation in receivership.

42-10     3.  No other person may be appointed receiver by any court

42-11  without first giving the Commissioner ample notice of his

42-12  application.

42-13     4.  The inventory made by the Commissioner and all claims

42-14  filed by creditors are open at all reasonable times for inspection, and

42-15  any action taken by the receiver upon any of the claims is subject to

42-16  the approval of the court before which the cause is pending.

42-17     5.  The expenses of the receiver and compensation of counsel,

42-18  as well as all expenditures required in the liquidation proceedings,

42-19  must be fixed by the Commissioner subject to the approval of the

42-20  court and, upon certification of the Commissioner, must be paid out

42-21  of the money in his hands as the receiver.

42-22     Sec. 74. NRS 645E.680 is hereby amended to read as follows:

42-23      645E.680  1.  If the Commissioner receives a copy of a court

42-24  order issued pursuant to NRS 425.540 that provides for the

42-25  suspension of all professional, occupational and recreational

42-26  licenses, certificates and permits issued to a person who is the

42-27  holder of a license as a mortgage [company,] banker, the

42-28  Commissioner shall deem the license issued to that person to be

42-29  suspended at the end of the 30th day after the date on which the

42-30  court order was issued unless the Commissioner receives a letter

42-31  issued to the holder of the license by the district attorney or other

42-32  public agency pursuant to NRS 425.550 stating that the holder of the

42-33  license has complied with the subpoena or warrant or has satisfied

42-34  the arrearage pursuant to NRS 425.560.

42-35     2.  The Commissioner shall reinstate a license as a mortgage

42-36  [company] banker that has been suspended by a district court

42-37  pursuant to NRS 425.540 if the Commissioner receives a letter

42-38  issued by the district attorney or other public agency pursuant to

42-39  NRS 425.550 to the person whose license was suspended stating

42-40  that the person whose license was suspended has complied with the

42-41  subpoena or warrant or has satisfied the arrearage pursuant to

42-42  NRS 425.560.

42-43     Sec. 75. NRS 645E.900 is hereby amended to read as follows:

42-44      645E.900  It is unlawful for any person to offer or provide any

42-45  of the services of a mortgage [company] banker or otherwise to

43-1  engage in, carry on or hold himself out as engaging in or carrying on

43-2  the business of a mortgage [company] banker without first

43-3  obtaining a license as a mortgage [company] banker pursuant to this

43-4  chapter, unless the person:

43-5      1.  Is exempt from the provisions of this chapter; and

43-6      2.  Complies with the requirements for that exemption.

43-7      Sec. 76. NRS 645E.910 is hereby amended to read as follows:

43-8      645E.910  It is unlawful for any foreign corporation,

43-9  association or business trust to conduct any business as a mortgage

43-10  [company] banker within this state, unless it:

43-11     1.  Qualifies under chapter 80 of NRS; and

43-12     2.  Complies with the provisions of this chapter or, if it claims

43-13  an exemption from the provisions of this chapter, complies with the

43-14  requirements for that exemption.

43-15     Sec. 77. NRS 40.750 is hereby amended to read as follows:

43-16      40.750  1.  As used in this section, “financial institution”

43-17  means a bank, mortgage broker, mortgage [company,] banker,

43-18  credit union, thrift company or savings and loan association, or any

43-19  subsidiary or affiliate of a bank, mortgage broker, mortgage

43-20  [company,] banker, credit union, thrift company or savings and loan

43-21  association, which is authorized to transact business in this state and

43-22  which makes or acquires, in whole or in part, any loan of the kind

43-23  described in subsection 2.

43-24     2.  Except as otherwise provided in subsection 5, a person who,

43-25  for the purpose of obtaining a loan secured by a lien on real

43-26  property, knowingly conceals a material fact, or makes a false

43-27  statement concerning a material fact knowing that the statement is

43-28  false, is liable to any financial institution which relied upon the

43-29  absence of that concealed fact or on that false statement for any

43-30  damages it sustains because of the fraud.

43-31     3.  In addition to its actual damages, a financial institution may

43-32  recover exemplary or punitive damages in an amount not to exceed

43-33  50 percent of the actual damages awarded.

43-34     4.  The cause of action provided by this section:

43-35     (a) Is not, for the purposes of NRS 40.430, an action for the

43-36  recovery of any debt or an action for the enforcement of any right

43-37  secured by mortgage or lien upon real estate.

43-38     (b) Is in addition to and not in substitution for any right of

43-39  foreclosure existing in favor of the financial institution. Any

43-40  recovery pursuant to this section does not limit the amount of a

43-41  judgment awarded pursuant to NRS 40.459, but the financial

43-42  institution is not entitled to recover actual damages more than once

43-43  for the same loss.

44-1      5.  The provisions of this section do not apply to any loan

44-2  which is secured by a lien on real property used for residential

44-3  purposes if:

44-4      (a) The residence is a single-family dwelling occupied by the

44-5  person obtaining the loan, as represented by him in connection with

44-6  his application for the loan; and

44-7      (b) The loan is for the principal amount of $150,000 or less.

44-8      Sec. 78. NRS 90.530 is hereby amended to read as follows:

44-9      90.530  The following transactions are exempt from NRS

44-10  90.460 and 90.560:

44-11     1.  An isolated nonissuer transaction, whether or not effected

44-12  through a broker-dealer.

44-13     2.  A nonissuer transaction in an outstanding security if the

44-14  issuer of the security has a class of securities subject to registration

44-15  under section 12 of the Securities Exchange Act of 1934, 15 U.S.C.

44-16  § 78l, and has been subject to the reporting requirements of section

44-17  13 or 15(c) of the Securities Exchange Act of 1934, 15 U.S.C. §§

44-18  78m and 78o(d), for not less than 90 days next preceding the

44-19  transaction, or has filed and maintained with the Administrator for

44-20  not less than 90 days preceding the transaction information, in such

44-21  form as the Administrator, by regulation, specifies, substantially

44-22  comparable to the information the issuer would be required to file

44-23  under section 12(b) or 12(g) of the Securities Exchange Act of 1934,

44-24  15 U.S.C. §§ 78l(b) and 78l(g), were the issuer to have a class of its

44-25  securities registered under section 12 of the Securities Exchange Act

44-26  of 1934, 15 U.S.C. § 78l, and paid a fee with the filing of $150.

44-27     3.  A nonissuer transaction by a sales representative licensed in

44-28  this state, in an outstanding security if:

44-29     (a) The security is sold at a price reasonably related to the

44-30  current market price of the security at the time of the transaction;

44-31     (b) The security does not constitute all or part of an unsold

44-32  allotment to, or subscription or participation by, a broker-dealer as

44-33  an underwriter of the security;

44-34     (c) At the time of the transaction, a recognized securities manual

44-35  designated by the Administrator by regulation or order contains the

44-36  names of the issuer’s officers and directors, a statement of the

44-37  financial condition of the issuer as of a date within the preceding 18

44-38  months, and a statement of income or operations for each of the last

44-39  2 years next preceding the date of the statement of financial

44-40  condition, or for the period as of the date of the statement of

44-41  financial condition if the period of existence is less than 2 years;

44-42     (d) The issuer of the security has not undergone a major

44-43  reorganization, merger or acquisition within the preceding 30 days

44-44  which is not reflected in the information contained in the manual;

44-45  and

45-1      (e) At the time of the transaction, the issuer of the security has a

45-2  class of equity security listed on the New York Stock Exchange,

45-3  American Stock Exchange or other exchange designated by the

45-4  Administrator, or on the National Market System of the National

45-5  Association of Securities Dealers Automated Quotation System. The

45-6  requirements of this paragraph do not apply if:

45-7          (1) The security has been outstanding for at least 180 days;

45-8          (2) The issuer of the security is actually engaged in business

45-9  and is not developing his business, in bankruptcy or in receivership;

45-10  and

45-11         (3) The issuer of the security has been in continuous

45-12  operation for at least 5 years.

45-13     4.  A nonissuer transaction in a security that has a fixed

45-14  maturity or a fixed interest or dividend provision if there has been

45-15  no default during the current fiscal year or within the 3 preceding

45-16  years, or during the existence of the issuer, and any predecessors if

45-17  less than 3 years, in the payment of principal, interest or dividends

45-18  on the security.

45-19     5.  A nonissuer transaction effected by or through a registered

45-20  broker-dealer pursuant to an unsolicited order or offer to purchase.

45-21     6.  A transaction between the issuer or other person on whose

45-22  behalf the offering of a security is made and an underwriter, or a

45-23  transaction among underwriters.

45-24     7.  A transaction in a bond or other evidence of indebtedness

45-25  secured by a real estate mortgage, deed of trust, personal property

45-26  security agreement, or by an agreement for the sale of real estate or

45-27  personal property, if the entire mortgage, deed of trust or agreement,

45-28  together with all the bonds or other evidences of indebtedness

45-29  secured thereby, is offered and sold as a unit.

45-30     8.  A transaction by an executor, administrator, sheriff, marshal,

45-31  receiver, trustee in bankruptcy, guardian or conservator.

45-32     9.  A transaction executed by a bona fide secured party without

45-33  the purpose of evading this chapter.

45-34     10.  An offer to sell or sale of a security to a financial or

45-35  institutional investor or to a broker-dealer.

45-36     11.  Except as otherwise provided in this subsection, a

45-37  transaction pursuant to an offer to sell securities of an issuer if:

45-38     (a) The transaction is part of an issue in which there are not

45-39  more than 25 purchasers in this state, other than those designated in

45-40  subsection 10, during any 12 consecutive months;

45-41     (b) No general solicitation or general advertising is used in

45-42  connection with the offer to sell or sale of the securities;

45-43     (c) No commission or other similar compensation is paid or

45-44  given, directly or indirectly, to a person, other than a broker-dealer

46-1  licensed or not required to be licensed under this chapter, for

46-2  soliciting a prospective purchaser in this state; and

46-3      (d) One of the following conditions is satisfied:

46-4          (1) The seller reasonably believes that all the purchasers in

46-5  this state, other than those designated in subsection 10, are

46-6  purchasing for investment; or

46-7          (2) Immediately before and immediately after the

46-8  transaction, the issuer reasonably believes that the securities of the

46-9  issuer are held by 50 or fewer beneficial owners, other than those

46-10  designated in subsection 10, and the transaction is part of an

46-11  aggregate offering that does not exceed $500,000 during any 12

46-12  consecutive months.

46-13  The Administrator by rule or order as to a security or transaction or

46-14  a type of security or transaction, may withdraw or further condition

46-15  the exemption set forth in this subsection or waive one or more of

46-16  the conditions of the exemption.

46-17     12.  An offer to sell or sale of a preorganization certificate or

46-18  subscription if:

46-19     (a) No commission or other similar compensation is paid or

46-20  given, directly or indirectly, for soliciting a prospective subscriber;

46-21     (b) No public advertising or general solicitation is used in

46-22  connection with the offer to sell or sale;

46-23     (c) The number of offers does not exceed 50;

46-24     (d) The number of subscribers does not exceed 10; and

46-25     (e) No payment is made by a subscriber.

46-26     13.  An offer to sell or sale of a preorganization certificate or

46-27  subscription issued in connection with the organization of a

46-28  depository institution if that organization is under the supervision of

46-29  an official or agency of a state or of the United States which has and

46-30  exercises the authority to regulate and supervise the organization of

46-31  the depository institution. For the purpose of this subsection, “under

46-32  the supervision of an official or agency” means that the official or

46-33  agency by law has authority to require disclosures to prospective

46-34  investors similar to those required under NRS 90.490, impound

46-35  proceeds from the sale of a preorganization certificate or

46-36  subscription until organization of the depository institution is

46-37  completed, and require refund to investors if the depository

46-38  institution does not obtain a grant of authority from the appropriate

46-39  official or agency.

46-40     14.  A transaction pursuant to an offer to sell to existing

46-41  security holders of the issuer, including persons who at the time of

46-42  the transaction are holders of transferable warrants exercisable

46-43  within not more than 90 days after their issuance, convertible

46-44  securities or nontransferable warrants, if:

47-1      (a) No commission or other similar compensation other than a

47-2  standby commission, is paid or given, directly or indirectly, for

47-3  soliciting a security holder in this state; or

47-4      (b) The issuer first files a notice specifying the terms of the offer

47-5  to sell, together with a nonrefundable fee of $150, and the

47-6  Administrator does not by order disallow the exemption within the

47-7  next 5 full business days.

47-8      15.  A transaction involving an offer to sell, but not a sale, of a

47-9  security not exempt from registration under the Securities Act of

47-10  1933, 15 U.S.C. §§ 77a et seq., if:

47-11     (a) A registration or offering statement or similar document as

47-12  required under the Securities Act of 1933, 15 U.S.C. §§ 77a et seq.,

47-13  has been filed, but is not effective;

47-14     (b) A registration statement, if required, has been filed under

47-15  this chapter, but is not effective; and

47-16     (c) No order denying, suspending or revoking the effectiveness

47-17  of registration, of which the offeror is aware, has been entered by

47-18  the Administrator or the Securities and Exchange Commission, and

47-19  no examination or public proceeding that may culminate in that kind

47-20  of order is known by the offeror to be pending.

47-21     16.  A transaction involving an offer to sell, but not a sale, of a

47-22  security exempt from registration under the Securities Act of 1933,

47-23  15 U.S.C. §§ 77a et seq., if:

47-24     (a) A registration statement has been filed under this chapter, but

47-25  is not effective; and

47-26     (b) No order denying, suspending or revoking the effectiveness

47-27  of registration, of which the offeror is aware, has been entered by

47-28  the Administrator and no examination or public proceeding that may

47-29  culminate in that kind of order is known by the offeror to be

47-30  pending.

47-31     17.  A transaction involving the distribution of the securities of

47-32  an issuer to the security holders of another person in connection

47-33  with a merger, consolidation, exchange of securities, sale of assets

47-34  or other reorganization to which the issuer, or its parent or

47-35  subsidiary, and the other person, or its parent or subsidiary, are

47-36  parties, if:

47-37     (a) The securities to be distributed are registered under the

47-38  Securities Act of 1933, 15 U.S.C. §§ 77a et seq., before the

47-39  consummation of the transaction; or

47-40     (b) The securities to be distributed are not required to be

47-41  registered under the Securities Act of 1933, 15 U.S.C. §§ 77a et

47-42  seq., written notice of the transaction and a copy of the materials, if

47-43  any, by which approval of the transaction will be solicited, together

47-44  with a nonrefundable fee of $150, are given to the Administrator at

47-45  least 10 days before the consummation of the transaction and the

48-1  Administrator does not, by order, disallow the exemption within the

48-2  next 10 days.

48-3      18.  A transaction involving the offer to sell or sale of one or

48-4  more promissory notes each of which is directly secured by a first

48-5  lien on a single parcel of real estate, or a transaction involving the

48-6  offer to sell or sale of participation interests in the notes if the notes

48-7  and participation interests are originated by a depository institution

48-8  and are offered and sold subject to the following conditions:

48-9      (a) The minimum aggregate sales price paid by each purchaser

48-10  may not be less than $250,000;

48-11     (b) Each purchaser must pay cash either at the time of the sale or

48-12  within 60 days after the sale; and

48-13     (c) Each purchaser may buy for his own account only.

48-14     19.  A transaction involving the offer to sell or sale of one or

48-15  more promissory notes directly secured by a first lien on a single

48-16  parcel of real estate or participating interests in the notes, if the

48-17  notes and interests are originated by a mortgagee approved by the

48-18  Secretary of Housing and Urban Development under sections 203

48-19  and 211 of the National Housing Act, 12 U.S.C. §§ 1709 and 1715b,

48-20  and are offered or sold, subject to the conditions specified in

48-21  subsection 18, to a depository institution or insurance company, the

48-22  Federal Home Loan Mortgage Corporation, the Federal National

48-23  Mortgage Association or the Government National Mortgage

48-24  Association.

48-25     20.  A transaction between any of the persons described in

48-26  subsection 19 involving a nonassignable contract to buy or sell the

48-27  securities described in subsection 18 if the contract is to be

48-28  completed within 2 years and if:

48-29     (a) The seller of the securities pursuant to the contract is one of

48-30  the parties described in subsection 18 or 19 who may originate

48-31  securities;

48-32     (b) The purchaser of securities pursuant to a contract is any

48-33  other person described in subsection 19; and

48-34     (c) The conditions described in subsection 18 are fulfilled.

48-35     21.  A transaction involving one or more promissory notes

48-36  secured by a lien on real estate, or participating interests in those

48-37  notes, by:

48-38     (a) A mortgage [company] banker licensed pursuant to chapter

48-39  645E of NRS to engage in those transactions; or

48-40     (b) A mortgage broker licensed pursuant to chapter 645B of

48-41  NRS to engage in those transactions.

48-42     Sec. 79. Chapter 232 of NRS is hereby amended by adding

48-43  thereto a new section to read as follows:

48-44     1.  A division, office, authority, commission, board or other

48-45  entity set forth in NRS 232.510 may adopt regulations to establish

49-1  procedures to conduct business electronically with persons who

49-2  have business with that division, office, authority, commission,

49-3  board or other entity. The regulations may include, without

49-4  limitation, the establishment of fees to cover the costs to the

49-5  division, office, authority, commission, board or other entity of

49-6  conducting business electronically.

49-7      2.  Notwithstanding any other provision, if a division, office,

49-8  authority, commission, board or other entity adopts regulations to

49-9  conduct business electronically pursuant to subsection 1, the

49-10  division, office, authority, commission, board or other entity may

49-11  provide that a declaration made pursuant to NRS 53.045 may

49-12  satisfy the requirement that a signature or statement be notarized,

49-13  acknowledged, verified or made under oath.

49-14     3.  The division, office, authority, commission, board or other

49-15  entity may refuse to conduct business electronically with a person

49-16  who has failed to pay money owed to the division, office, authority,

49-17  commission, board or other entity.

49-18     Sec. 80. NRS 232.510 is hereby amended to read as follows:

49-19      232.510  1.  The Department of Business and Industry is

49-20  hereby created.

49-21     2.  The Department consists of a Director and the following:

49-22     (a) Consumer Affairs Division.

49-23     (b) Division of Financial Institutions.

49-24     (c) Housing Division.

49-25     (d) Manufactured Housing Division.

49-26     (e) Real Estate Division.

49-27     (f ) Division of Insurance.

49-28     (g) Division of Industrial Relations.

49-29     (h) Office of Labor Commissioner.

49-30     (i) Taxicab Authority.

49-31     (j) Nevada Athletic Commission.

49-32     (k) Office of the Nevada Attorney for Injured Workers.

49-33     (l) Transportation Services Authority.

49-34     (m) Division of Mortgage Lending.

49-35     (n) Any other office, commission, board, agency or entity

49-36  created or placed within the Department pursuant to a specific

49-37  statute, the budget approved by the Legislature or an executive

49-38  order, or an entity whose budget or activities have been placed

49-39  within the control of the Department by a specific statute.

49-40     Sec. 81. NRS 232.520 is hereby amended to read as follows:

49-41      232.520  The Director:

49-42     1.  Shall appoint a chief or executive director, or both of them,

49-43  of each of the divisions, offices, commissions, boards, agencies or

49-44  other entities of the Department, unless the authority to appoint such

49-45  a chief or executive director, or both of them, is expressly vested in

50-1  another person, board or commission by a specific statute. In

50-2  making the appointments, the Director may obtain lists of qualified

50-3  persons from professional organizations, associations or other

50-4  groups recognized by the Department, if any. The Chief of the

50-5  Consumer Affairs Division is the Commissioner of Consumer

50-6  Affairs, the Chief of the Division of Financial Institutions is the

50-7  Commissioner of Financial Institutions, the Chief of the Housing

50-8  Division is the Administrator of the Housing Division, the Chief of

50-9  the Manufactured Housing Division is the Administrator of the

50-10  Manufactured Housing Division, the Chief of the Real Estate

50-11  Division is the Real Estate Administrator, the Chief of the Division

50-12  of Insurance is the Commissioner of Insurance, the Chief of the

50-13  Division of Industrial Relations is the Administrator of the Division

50-14  of Industrial Relations, the Chief of the Office of Labor

50-15  Commissioner is the Labor Commissioner, the Chief of the Taxicab

50-16  Authority is the Taxicab Administrator, the Chief of the

50-17  Transportation Services Authority is the Chairman of the Authority,

50-18  the Chief of the Division of Mortgage Lending is the

50-19  Commissioner of Mortgage Lending and the chief of any other

50-20  entity of the Department has the title specified by the Director,

50-21  unless a different title is specified by a specific statute.

50-22     2.  Is responsible for the administration of all provisions of law

50-23  relating to the jurisdiction, duties and functions of all divisions and

50-24  other entities within the Department. The Director may, if he deems

50-25  it necessary to carry out his administrative responsibilities, be

50-26  considered as a member of the staff of any division or other entity of

50-27  the Department for the purpose of budget administration or for

50-28  carrying out any duty or exercising any power necessary to fulfill

50-29  the responsibilities of the Director pursuant to this subsection. This

50-30  subsection does not allow the Director to preempt any authority or

50-31  jurisdiction granted by statute to any division or other entity within

50-32  the Department or to act or take on a function that would contravene

50-33  a rule of court or a statute.

50-34     3.  May:

50-35     (a) Establish uniform policies for the department, consistent

50-36  with the policies and statutory responsibilities and duties of the

50-37  divisions and other entities within the Department, relating to

50-38  matters concerning budgeting, accounting, planning, program

50-39  development, personnel, information services, dispute resolution,

50-40  travel, workplace safety, the acceptance of gifts or donations, the

50-41  management of records and any other subject for which a uniform

50-42  departmental policy is necessary to ensure the efficient operation of

50-43  the Department.

50-44     (b) Provide coordination among the divisions and other entities

50-45  within the Department, in a manner which does not encroach upon

51-1  their statutory powers and duties, as they adopt and enforce

51-2  regulations, execute agreements, purchase goods, services or

51-3  equipment, prepare legislative requests and lease or use office space.

51-4      (c) Define the responsibilities of any person designated to carry

51-5  out the duties of the director relating to financing, industrial

51-6  development or business support services.

51-7      4.  May, within the limits of the financial resources made

51-8  available to him, promote, participate in the operation of, and create

51-9  or cause to be created, any nonprofit corporation, pursuant to

51-10  chapter 82 of NRS, which he determines is necessary or convenient

51-11  for the exercise of the powers and duties of the department. The

51-12  purposes, powers and operation of the corporation must be

51-13  consistent with the purposes, powers and duties of the Department.

51-14     5.  For any bonds which he is otherwise authorized to issue,

51-15  may issue bonds the interest on which is not exempt from federal

51-16  income tax or excluded from gross revenue for the purposes of

51-17  federal income tax.

51-18     6.  May, except as otherwise provided by specific statute, adopt

51-19  by regulation a schedule of fees and deposits to be charged in

51-20  connection with the programs administered by him pursuant to

51-21  chapters 348A and 349 of NRS. Except as otherwise provided by

51-22  specific statute, the amount of any such fee or deposit must not

51-23  exceed 2 percent of the principal amount of the financing.

51-24     7.  May designate any person within the Department to perform

51-25  any of the duties or responsibilities, or exercise any of the authority,

51-26  of the Director on his behalf.

51-27     8.  May negotiate and execute agreements with public or private

51-28  entities which are necessary to the exercise of the powers and duties

51-29  of the Director or the Department.

51-30     9.  May establish a trust account in the State Treasury for

51-31  depositing and accounting for money that is held in escrow or is on

51-32  deposit with the Department for the payment of any direct expenses

51-33  incurred by the Director in connection with any bond programs

51-34  administered by the Director. The interest and income earned on

51-35  money in the trust account, less any amount deducted to pay for

51-36  applicable charges, must be credited to the trust account. Any

51-37  balance remaining in the account at the end of a fiscal year may be:

51-38     (a) Carried forward to the next fiscal year for use in covering the

51-39  expense for which it was originally received; or

51-40     (b) Returned to any person entitled thereto in accordance with

51-41  agreements or regulations of the Director relating to those bond

51-42  programs.

 

 

 

52-1      Sec. 82. NRS 232.545 is hereby amended to read as follows:

52-2      232.545  1.  An Investigative Account for Financial

52-3  Institutions is hereby created in the State General Fund. The

52-4  Account consists of money which is:

52-5      (a) Received by the Department of Business and Industry in

52-6  connection with the licensing of financial institutions and the

52-7  investigation of persons associated with those institutions; and

52-8      (b) Required by law to be placed therein.

52-9      2.  The Director of the Department of Business and Industry or

52-10  his designee may authorize expenditures from the Investigative

52-11  Account to pay the expenses incurred:

52-12     (a) In investigating applications for licensing of financial

52-13  institutions and in investigating persons associated with those

52-14  institutions;

52-15     (b) In conducting special investigations relating to financial

52-16  institutions and persons associated with those institutions; and

52-17     (c) In connection with mergers, consolidations, conversions,

52-18  receiverships and liquidations of financial institutions.

52-19     3.  As used in this section, “financial institution” means an

52-20  institution for which licensing or registration is required by the

52-21  provisions of titles 55 and 56 and chapters 604 [, 645B, 645E] and

52-22  649 of NRS.

52-23     Sec. 83. NRS 604.090 is hereby amended to read as follows:

52-24      604.090  1.  Except as otherwise provided in subsection 2, it is

52-25  unlawful to operate a check-cashing or deferred deposit service

52-26  without being registered with the Commissioner.

52-27     2.  The provisions of this chapter do not apply to:

52-28     (a) A person doing business pursuant to the authority of any law

52-29  of this state or of the United States relating to banks, savings banks,

52-30  trust companies, savings and loan associations, credit unions,

52-31  development corporations, mortgage brokers, mortgage

52-32  [companies,] bankers, thrift companies, pawnbrokers or insurance

52-33  companies.

52-34     (b) A person licensed to make installment loans pursuant to

52-35  chapter 675 of NRS.

52-36     (c) A person who is primarily engaged in the retail sale of goods

52-37  or services who:

52-38         (1) As an incident to or independently of a retail sale or

52-39  service from time to time cashes checks for a fee or other

52-40  consideration of not more than $2; and

52-41         (2) Does not hold himself out as a check-cashing service.

52-42     (d) A person while performing any act authorized by a license

52-43  issued pursuant to chapter 671 of NRS.

53-1      (e) A person who holds a nonrestricted gaming license issued

53-2  pursuant to chapter 463 of NRS while performing any act in the

53-3  course of that licensed operation.

53-4      (f) A person who is exclusively engaged in a check-cashing

53-5  service relating to out-of-state checks.

53-6      (g) A corporation organized pursuant to the laws of this state

53-7  that has been continuously and exclusively engaged in a check-

53-8  cashing service in this state since July 1, 1973.

53-9      Sec. 84. NRS 675.040 is hereby amended to read as follows:

53-10      675.040  This chapter does not apply to:

53-11     1.  A person doing business under the authority of any law of

53-12  this state or of the United States relating to banks, savings banks,

53-13  trust companies, savings and loan associations, credit unions,

53-14  development corporations, mortgage brokers, mortgage

53-15  [companies,] bankers, thrift companies, pawnbrokers or insurance

53-16  companies.

53-17     2.  A real estate investment trust, as defined in 26 U.S.C. § 856.

53-18     3.  An employee benefit plan, as defined in 29 U.S.C. §

53-19  1002(3), if the loan is made directly from money in the plan by the

53-20  plan’s trustee.

53-21     4.  An attorney at law rendering services in the performance of

53-22  his duties as an attorney at law if the loan is secured by real

53-23  property.

53-24     5.  A real estate broker rendering services in the performance of

53-25  his duties as a real estate broker if the loan is secured by real

53-26  property.

53-27     6.  Except as otherwise provided in this subsection, any firm or

53-28  corporation:

53-29     (a) Whose principal purpose or activity is lending money on real

53-30  property which is secured by a mortgage;

53-31     (b) Approved by the Federal National Mortgage Association as

53-32  a seller or servicer; and

53-33     (c) Approved by the Department of Housing and Urban

53-34  Development and the Department of Veterans Affairs.

53-35     7.  A person who provides money for investment in loans

53-36  secured by a lien on real property, on his own account.

53-37     8.  A seller of real property who offers credit secured by a

53-38  mortgage of the property sold.

53-39     9.  A person holding a nonrestricted state gaming license issued

53-40  pursuant to the provisions of chapter 463 of NRS.

53-41     Sec. 85. NRS 675.230 is hereby amended to read as follows:

53-42      675.230  1.  Except as otherwise provided in subsection 2, a

53-43  licensee may not conduct the business of making loans under this

53-44  chapter within any office, suite, room or place of business in which

53-45  any other business is solicited or engaged in, except an insurance

54-1  agency or notary public, or in association or conjunction with any

54-2  other business, unless authority to do so is given by the

54-3  Commissioner.

54-4      2.  A licensee may conduct the business of making loans

54-5  pursuant to this chapter in the same office or place of business as:

54-6      (a) A mortgage broker if:

54-7          (1) The licensee and the mortgage broker:

54-8              (I) Operate as separate legal entities;

54-9              (II) Maintain separate accounts, books and records;

54-10             (III) Are subsidiaries of the same parent corporation; and

54-11             (IV) Maintain separate licenses; and

54-12         (2) The mortgage broker is licensed by this state pursuant to

54-13  chapter 645B of NRS and does not receive money to acquire or

54-14  repay loans or maintain trust accounts as provided by

54-15  NRS 645B.175.

54-16     (b) A mortgage [company] banker if:

54-17         (1) The licensee and the mortgage [company:] banker:

54-18             (I) Operate as separate legal entities;

54-19             (II) Maintain separate accounts, books and records;

54-20             (III) Are subsidiaries of the same parent corporation; and

54-21             (IV) Maintain separate licenses; and

54-22         (2) The mortgage [company] banker is licensed by this state

54-23  pursuant to chapter 645E of NRS and, if the mortgage [company]

54-24  banker is also licensed as a mortgage broker pursuant to chapter

54-25  645B of NRS, does not receive money to acquire or repay loans or

54-26  maintain trust accounts as provided by NRS 645B.175.

54-27     Sec. 86.  NRS 645B.0103 is hereby repealed.

54-28     Sec. 87.  1.  On October 1, 2003, the Commissioner of

54-29  Mortgage Lending may begin accepting applications for, and

54-30  issuing, licenses as mortgage agents pursuant to section 27 of this

54-31  act. Any such license issued on or before July 1, 2004:

54-32     (a) Becomes effective on July 1, 2004; and

54-33     (b) Notwithstanding the provisions of section 28 of this act to

54-34  the contrary, expires on a date between July 1, 2004, and June 30,

54-35  2005, as specified in a written notice provided with the license to the

54-36  mortgage agent. The Commissioner of Mortgage Lending shall

54-37  provide various expiration dates for the licenses issued on or before

54-38  July 1, 2004, as needed to allow for the efficient administration of

54-39  the requirements of this act. The fee required for such a license that

54-40  is effective for less than 1 year must be prorated in an appropriate

54-41  manner as determined by the Commissioner of Mortgage Lending.

54-42     2.  On July 1, 2004, the registration of a mortgage agent who is

54-43  registered pursuant to NRS 645B.450 expires.

54-44     3.  As used in this section, “mortgage agent” has the meaning

54-45  ascribed to it in NRS 645B.0125.

55-1      Sec. 88.  The Legislative Counsel shall:

55-2      1.  In preparing the reprint and supplements to the Nevada

55-3  Revised Statutes, appropriately change any references to “mortgage

55-4  company” to “mortgage banker.”

55-5      2.  In preparing supplements to the Nevada Administrative

55-6  Code, appropriately change any references to “mortgage company”

55-7  to “mortgage banker.”

55-8      Sec. 89.  1.  This section becomes effective upon passage and

55-9  approval.

55-10     2.  Sections 1 to 20, inclusive, 21.5 to 39, inclusive, and 41 to

55-11  88, inclusive, of this act become effective upon passage and

55-12  approval for the purposes of adopting regulations and performing

55-13  any other preparatory administrative tasks that are necessary to carry

55-14  out the provisions of this act, and:

55-15     (a) Sections 1 to 20, inclusive, 21.5 to 25, inclusive, 31, 32, 33,

55-16  35, 36, 38, 39, 41, 42, 42.5, 45 and 48.5 to 88, inclusive, of this act

55-17  become effective on July 1, 2003, for all other purposes.

55-18     (b) Sections 26 to 30, inclusive, 34, 37, 43, 44, 46, 47 and 48 of

55-19  this act become effective on July 1, 2004, for all other purposes.

55-20     3.  Sections 20, 29, 39, 46 and 74 of this act expire by limitation

55-21  on the date on which the provisions of 42 U.S.C. § 666 requiring

55-22  each state to establish procedures under which the State has

55-23  authority to withhold or suspend, or to restrict the use of

55-24  professional, occupational and recreational licenses of persons who:

55-25     (a) Have failed to comply with a subpoena or warrant relating to

55-26  a proceeding to determine the paternity of a child or to establish or

55-27  enforce an obligation for the support of a child; or

55-28     (b) Are in arrears in the payment for the support of one or more

55-29  children,

55-30  are repealed by the Congress of the United States.

55-31     4.  Sections 21 and 40 of this act become effective on the date

55-32  on which the provisions of 42 U.S.C. § 666 requiring each state to

55-33  establish procedures under which the State has authority to withhold

55-34  or suspend, or to restrict the use of professional, occupational and

55-35  recreational licenses of persons who:

55-36     (a) Have failed to comply with a subpoena or warrant relating to

55-37  a proceeding to determine the paternity of a child or to establish or

55-38  enforce an obligation for the support of a child; or

55-39     (b) Are in arrears in the payment for the support of one or more

55-40  children,

55-41  are repealed by the Congress of the United States.

 

56-1  TEXT OF REPEALED SECTION

 

56-2      645B.0103  “Applicant” defined.  “Applicant” means a

56-3  person who applies for licensure as a mortgage broker pursuant to

56-4  this chapter.

 

56-5  H