SB 231 — Revises provisions related to financial services. (BDR 55-86)

(Reprinted with amendments adopted on April 19, 2021) FIRST REPRINT S.B.

231 SSENATE ENATEBILL BNO ILLN. O.

231–SENATOR KKIECKHEFER IECKHEFER M ARCH 15, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions related to financial services.

requiring loans made exclusively through the Internet to a resident of this State and contracts related to such loans to be governed by the laws of this State;

requiring litigation proceedings arising from such loans and related contracts to be conducted in this State;

voiding and making unenforceable as against public policy certain contractual provisions relating to such loans;

(NRS 675.020, 675.090) Section 3 of this bill authorizes an “Internet consumer lender,” which is defined in section 12 of this bill to mean a person who makes consumer loanshichloans is exclusively through the Internet, to obtain a license to engage in the business of lendinglenSection for1 anof officethis orbill placerequires every loan made to a resident of businessthis locatedState outsideby such a lender and any related loan contract to be governed by the laws of this State.

Section 1 also requires any litigation proceeding arising from such a loan or loan contract to be conducted in this State.

Section 1 provides that any provision, - *SB231_R1* – 2 – covenant or clause in a loan contract that conflicts with such requirements are null, void and unenforceable as against public policy.

Chapter 675 of NRS is hereby amended by adding thereto a new section to read as follows:

1.

The laws of this State shall govern every loan made to a resident of this State by an Internet consumer lender and any related loan contract.

2.

Any litigation proceeding arising from a loan made to a resident of this State by an Internet consumer lender or from a related loan contract shall be conducted in this State.

3.

Any provision, covenant or clause in a loan contract that conflicts with the provisions of this section shall be null, void and unenforceable as against public policy.

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or (b) Pay the reasonable expenses for travel, meals and lodging of the Commissioner or a representative of the Commissioner incurred during any investigation or examination made at the office or place of Thebusiness personlocated mustoutside be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.State.

 The person must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

If an - *SB231_R1* – 4 – application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.fees.e H - *SB231_R1*

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