SB 437 — Enacts provisions relating to Internet consumer lenders. (BDR 55-951)

(ReprintedSenate withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT S.B.

437437–Committee Son ENATECommerce Band ILLNLabor O.CHAPTER..........

437–C OMMITTEE ON C OMMERCE AND L ABOR M ARCH 24, 2025 ____________ 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.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

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 wisheseswishes 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 meanmeanate, 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, arrangesarraExisting orlaw facilitatesexempts consumerInternet loansbusiness exclusivelylenders throughfrom provisions of existing law which prohibit persons, with certain exceptions, from conducting the Internet.business of making loans in the same office or place of business as any other business.

Existing(NRS law675.230) exemptsSection Internet4 business lenders from provisions of existingthis lawbill whichsimilarly prohibitexempts persons,Internet withconsumer certainlenders exceptions, from conductingthose theprovisions. business of - *SB437_R1* – 2 – 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 thoSection 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 contractthe isresolution governedof bydisputes thearising lawsout of the contract occur in this State;State.

andUnderfor (2)section require1, that any processcondition, forstipulation theor resolutionprovision ofin disputessuch arisinga outcontract ofthat theconflicts contractwith occursuch inrequirements thisis State.contrary to public policy and is void and unenforceable.

Under- section83rd 1,Session any(2025) condition,– stipulation2 or– provisionEXPLANATION in– suchMatter ain contractbolded thatitalics conflicts with such requirements is contrarynew; to public policy and is void and unenforceable.

matter between brackets [omitted material] is material to be omitted.

Any condition, stipulation or provision in a contract between an Internet consumer lender and a resident of this State for the provision of a loan that conflicts with the provisions of this section is contrary to public policy and is void and unenforceable.

- *SB437_R1* – 3 – (a) Solicits loans in this State or makes loans to persons in this State,orate, unless these are isolated, incidental or occasional transactions;

or- 83rd Session (2025) – 3 – (b) Is located in this State and solicits loans outside of this State or makes loans to persons located outside of this State, unless these are isolated, incidental or occasional transactions.

“Commissioner” means the Commissioner of Financial Institutions.Ins6.tut“Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.

6.

“Community” means a contiguous area of the same economic unit or metropolitan area as determined by the Commissioner, and may include all or part of a city or several towns or cities.

“Internet consumer lender” means a person who makes, solicits,exclusively brokers,through arrangesthe orInternet.or facilitates consumer loans exclusively13. through the Internet.

13.

“Remote location” means a location other than an office or place of business for which a license has been issued pursuant to this chapter and at which an employee of a licensee - *SB437_R1*83rd Session (2025) – 4 – engages in the business of lending in this State pursuant to NRS 675.2965 to 675.299, inclusive.

Application for a license must be in writing, under oath,oat2. and in the form prescribed by the Commissioner.

2.The application must:ribed by the Commissioner.

The application must:

(a) Make available at a location within this State the books, accounts, papers, records and files of the office or place of business located outside this State to the Commissioner or a representative ofofs the Commissioner;

If an application is deemed to be withdrawn pursuant to this subsection or - 83rd Session (2025) – 5 – if an applicant otherwise withdraws an application, the - *SB437_R1* – 5 – Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

2.pursuant to this chapter in the same office or place of business as a mortgage company if:

A licensee may conduct the business of making loans mortgage company if:pter in the same office or place of business as a (a) The licensee and the mortgage company:

H~~~~~ 25 - *SB437_R1*83rd Session (2025)