Existing law provides for the licensure and regulation of persons who make deferred deposit loans, high-interest loans and title loans and other persons engaged in the business of lending. (Chapters 604A and 675 of NRS) Existing law exempts from those provisions a person who exclusively extends credit to any person who is not a resident of this State for any business, commercial or agricultural purpose that is located outside of this State. (NRS 604A.250, 675.040) Sections 1 and 4 of this bill revise those exemptions to apply to a person who exclusively extends credit to any person for any business, commercial or agricultural purpose, regardless of whether the debtor is a resident of this State or the purpose is located in this State and regardless of any personal guaranty or collateral involved in such an extension of credit. Section 2 of this bill sets forth certain legislative declarations concerning extensions of credit for business, commercial or agricultural purposes by persons in this State and agreements for such an extension of credit. Existing law defines “Internet business lender” for the purposes of provisions of existing law governing persons engaged in the business of lending to mean a person who makes business loans exclusively through the Internet. (NRS 675.020) Existing law exempts an Internet business lender from certain requirements and prohibitions applicable to persons engaged in the business of lending. (NRS 675.090, 675.230) Sections 3, 5 and 6 of this bill remove provisions providing those specific exemptions for Internet business lenders in conformance with the provisions of section 4, which exempt any person who exclusively extends credit to a person for any business purpose from the provisions of existing law governing the licensure and regulation of persons engaged in the business of lending.

Statutes affected:
As Introduced: 604A.250, 675.020, 675.040, 675.090, 675.230
BDR: 604A.250, 675.020, 675.040, 675.090, 675.230