S.B. 437
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SENATE BILL NO. 437–COMMITTEE ON COMMERCE AND LABOR
MARCH 24, 2025
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Referred to Committee on Commerce and Labor
SUMMARY—Enacts provisions relating to Internet consumer
lenders. (BDR 55-951)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to financial services; setting forth certain
requirements for a contract between an Internet consumer
lender and a resident of this State for the provision of a
loan; authorizing an Internet consumer lender to apply for
a license to engage in the business of lending for an office
or place of business located outside this State without
having a license for an office or place of business located
inside this State; exempting Internet consumer lenders
from provisions prohibiting a person from conducting the
business of making loans in the same office or place of
business as any other business; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law prohibits a person from engaging in the business of lending in this 1
State without having first obtained a license from the Commissioner of Financial 2
Institutions for each office or other place of business in which the person engages 3
in the business of lending. (NRS 675.060) Under existing law, a person who wishes 4
to obtain a license for an office or place of business located outside this State is 5
required to have a license for an office or place of business located inside this State, 6
unless the person is an Internet business lender, which existing law defines to mean 7
a person who makes business loans exclusively through the Internet. (NRS 8
675.020, 675.090) Section 3 of this bill additionally authorizes an Internet 9
consumer lender to apply for a license to engage in the business of lending for an 10
office or place of business located outside this State without having a license for an 11
office or place of business located inside this State. Section 2 of this bill defines the 12
term “Internet consumer lender” to mean a person who makes consumer loans 13
exclusively through the Internet. 14
Existing law exempts Internet business lenders from provisions of existing law 15
which prohibit persons, with certain exceptions, from conducting the business of 16
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making loans in the same office or place of business as any other business. (NRS 17
675.230) Section 4 of this bill similarly exempts Internet consumer lenders from 18
those provisions. 19
Section 1 of this bill requires any contract between an Internet consumer lender 20
and a resident of this State for the provision of a loan to: (1) provide that the 21
contract is governed by the laws of this State; and (2) require that any process for 22
the resolution of disputes arising out of the contract occur in this State. Under 23
section 1, any condition, stipulation or provision in such a contract that conflicts 24
with such requirements is contrary to public policy and is void and unenforceable. 25
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 675 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. Any contract between an Internet consumer lender and a 3
resident of this State for the provision of a loan must: 4
(a) Provide that the contract is governed by the laws of this 5
State; and 6
(b) Require that any litigation, arbitration or other process for 7
the resolution of disputes arising out the contract occur in this 8
State. 9
2. Any condition, stipulation or provision in a contract 10
between an Internet consumer lender and a resident of this State 11
for the provision of a loan that conflicts with the provisions of this 12
section is contrary to public policy and is void and unenforceable. 13
Sec. 2. NRS 675.020 is hereby amended to read as follows: 14
675.020 As used in this chapter, unless the context otherwise 15
requires: 16
1. “Amount of cash advance” means the amount of cash or its 17
equivalent actually received by a borrower or paid out at his or her 18
direction or on his or her behalf. 19
2. “Amount of loan obligation” means the amount of cash 20
advance plus the aggregate of charges added thereto pursuant to 21
authority of this chapter. 22
3. “Breach of the security of the computerized data system” or 23
“breach” means the unauthorized acquisition of computerized data 24
from the computerized data system of the licensee that compromises 25
the security, confidentiality or integrity of personal information 26
maintained by the licensee. The term does not include the good faith 27
acquisition of personal information by an employee or agent of a 28
licensee for a legitimate purpose of the licensee, so long as the 29
personal information is not used for a purpose unrelated to the 30
licensee or subject to further authorized disclosure. 31
4. “Business of lending in this State” means that a person: 32
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(a) Solicits loans in this State or makes loans to persons in this 1
State, unless these are isolated, incidental or occasional transactions; 2
or 3
(b) Is located in this State and solicits loans outside of this State 4
or makes loans to persons located outside of this State, unless these 5
are isolated, incidental or occasional transactions. 6
5. “Commissioner” means the Commissioner of Financial 7
Institutions. 8
6. “Community” means a contiguous area of the same 9
economic unit or metropolitan area as determined by the 10
Commissioner, and may include all or part of a city or several towns 11
or cities. 12
7. “Computerized data system” means a system of software, 13
hardware or firmware, including, without limitation, a system of 14
web-based applications, that: 15
(a) Is owned, leased or licensed by a licensee; 16
(b) Is located at the place of business of the licensee or hosted 17
remotely; and 18
(c) Stores or provides access to personal information, financial 19
information or other data related to borrowers or potential 20
borrowers. 21
8. “Consumer credit” has the meaning ascribed to it in 22
NRS 604A.036. 23
9. “Covered service member” has the meaning ascribed to it in 24
NRS 604A.038. 25
10. “Dependent” has the meaning ascribed to it in 26
NRS 604A.057. 27
11. “Internet business lender” means a person who makes 28
business loans exclusively through the Internet. 29
12. “Internet consumer lender” means a person who makes 30
consumer loans exclusively through the Internet. 31
13. “License” means a license, issued under the authority of 32
this chapter, to make loans in accordance with the provisions of this 33
chapter, at a single place of business. 34
[13.] 14. “Licensee” means a person to whom one or more 35
licenses have been issued. 36
[14.] 15. “Nationwide Multistate Licensing System and 37
Registry” or “Registry” has the meaning ascribed to it in 38
NRS 604A.083. 39
[15.] 16. “Personal information” has the meaning ascribed to it 40
in NRS 603A.040. 41
[16.] 17. “Remote location” means a location other than an 42
office or place of business for which a license has been issued 43
pursuant to this chapter and at which an employee of a licensee 44
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engages in the business of lending in this State pursuant to NRS 1
675.2965 to 675.299, inclusive. 2
Sec. 3. NRS 675.090 is hereby amended to read as follows: 3
675.090 1. Application for a license must be in writing, under 4
oath, and in the form prescribed by the Commissioner. 5
2. The application must: 6
(a) Provide the address of the office or other place of business 7
for which the application is submitted. 8
(b) Contain such further relevant information as the 9
Commissioner may require, including the names and addresses of 10
the partners, officers, directors or trustees, and of such of the 11
principal owners or members as will provide the basis for the 12
investigations and findings contemplated by NRS 675.110 and 13
675.120. 14
3. A person may apply for a license for an office or other place 15
of business located outside this State from which the applicant will 16
conduct business in this State if: 17
(a) The applicant is an Internet business lender or Internet 18
consumer lender; or 19
(b) The applicant or a subsidiary or affiliate of the applicant has 20
a license issued pursuant to this chapter for an office or other place 21
of business located in this State. 22
4. A person who wishes to apply for a license pursuant to 23
subsection 3 must submit with the application for a license a 24
statement signed by the applicant which states that the applicant 25
agrees to: 26
(a) Make available at a location within this State the books, 27
accounts, papers, records and files of the office or place of business 28
located outside this State to the Commissioner or a representative of 29
the Commissioner; or 30
(b) Pay the reasonable expenses for travel, meals and lodging of 31
the Commissioner or a representative of the Commissioner incurred 32
during any investigation or examination made at the office or place 33
of business located outside this State. 34
The person must be allowed to choose between paragraph (a) or 35
(b) in complying with the provisions of this subsection. 36
5. The Commissioner shall consider an application to be 37
withdrawn if the Commissioner has not received all information and 38
fees required to complete the application within 6 months after the 39
date the application is first submitted to the Commissioner or within 40
such later period as the Commissioner determines in accordance 41
with any existing policies of joint regulatory partners. If an 42
application is deemed to be withdrawn pursuant to this subsection or 43
if an applicant otherwise withdraws an application, the 44
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Commissioner may not issue a license to the applicant unless the 1
applicant submits a new application and pays any required fees. 2
Sec. 4. NRS 675.230 is hereby amended to read as follows: 3
675.230 1. Except as otherwise provided in subsections 2 and 4
3, a licensee may not conduct the business of making loans under 5
this chapter within any office, suite, room or place of business in 6
which any other business is solicited or engaged in, except an 7
insurance agency or notary public, or in association or conjunction 8
with any other business, unless authority to do so is given by the 9
Commissioner. 10
2. A licensee may conduct the business of making loans 11
pursuant to this chapter in the same office or place of business as a 12
mortgage company if: 13
(a) The licensee and the mortgage company: 14
(1) Operate as separate legal entities; 15
(2) Maintain separate accounts, books and records; 16
(3) Are subsidiaries of the same parent corporation; and 17
(4) Maintain separate licenses; and 18
(b) The mortgage company is licensed by this state pursuant to 19
chapter 645B of NRS and does not receive money to acquire or 20
repay loans or maintain trust accounts as provided by 21
NRS 645B.175. 22
3. A licensee who is an Internet business lender or Internet 23
consumer lender may conduct the business of making loans 24
pursuant to this chapter within any office, suite, room or place of 25
business in which any other business is solicited or engaged in. 26
Sec. 5. The amendatory provisions of this act do not apply to a 27
contract entered into before October 1, 2025. 28
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