Existing law prohibits a person from engaging in the business of lending in this State without having first obtained a license from the Commissioner of Financial Institutions for each office or other place of business in which the person engages in the business of lending. (NRS 675.060) Under existing law, a person who wishes to obtain a license for an office or place of business located outside this State is required to have a license for an office or place of business located inside this State, unless the person is an Internet business lender, which existing law defines to mean a person who makes business loans exclusively through the Internet. (NRS 675.020, 675.090) Section 3 of this bill additionally authorizes 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. Section 2 of this bill defines the term “Internet consumer lender” to mean a person who makes, solicits, brokers, arranges or facilitates consumer loans exclusively through the Internet. Existing law exempts Internet business lenders from provisions of existing law which prohibit persons, with certain exceptions, from conducting the business of making loans in the same office or place of business as any other business. (NRS 675.230) Section 4 of this bill similarly exempts Internet consumer lenders from those provisions. Section 1 of this bill requires any contract between an Internet consumer lender and a resident of this State for the provision of a loan to: (1) provide that the contract is governed by the laws of this State; and (2) require that any process for the resolution of disputes arising out of the contract occur in this State. Under section 1, any condition, stipulation or provision in such a contract that conflicts with such requirements is contrary to public policy and is void and unenforceable.

Statutes affected:
As Introduced: 675.020, 675.090, 675.230
Reprint 1: 675.020, 675.090, 675.230
As Enrolled: 675.020, 675.090, 675.230
BDR: 675.020, 675.090, 675.230