[Rev. 11/21/2013 1:03:57 PM--2013]

CHAPTER 671 - ISSUERS OF INSTRUMENTS FOR TRANSMISSION OR PAYMENT OF MONEY

NRS 671.010           Definitions.

NRS 671.020           Applicability of chapter.

NRS 671.030           Regulations.

NRS 671.040           License required.

NRS 671.050           Application for license: Contents; bond or securities; financial statement; fees; regulations; withdrawal of application.

NRS 671.055           Application for license: Additional requirements.

NRS 671.060           Investigation of applicant; issuance of license.

NRS 671.070           Expiration and renewal of license; fees; regulations.

NRS 671.080           License not transferable or assignable; business must be conducted at specified location by agent of licensee; changes in location, name or operation of business.

NRS 671.090           Agents of licensees: When license required; application; fees; regulations; withdrawal of application.

NRS 671.100           Bond: Amounts; form; notice to Commissioner; replenishment; liability of surety; increase in amount; cancellation or alteration.

NRS 671.110           Deposits in lieu of bond.

NRS 671.120           Examination of licensee by Commissioner; entry upon premises and access to documents; fee; audit in lieu of examination.

NRS 671.140           Schedule of rates: Posting; excess fees prohibited.

NRS 671.150           Deposit of receipts; commingling prohibited; deposit if license suspended or terminated; assets must cover liabilities.

NRS 671.160           Discontinuance of licensee’s business: Notice; surrender of license; order of Commissioner; possession of business and property by Commissioner; appointment of receiver.

NRS 671.170           Investigations and hearings; confidential communications.

NRS 671.180           Suspension, revocation or denial of renewal of license: Notice; hearing; order; grounds; judicial review.

NRS 671.183           Failure to submit required report; fees; regulations.

NRS 671.185           Administrative fines.

NRS 671.190           Unlawful acts; penalty; other remedies.

_________

 

      NRS 671.010  Definitions.  As used in this chapter, unless the context otherwise requires:

      1.  “Check” means any check, draft, money order or other instrument used for the transmission or payment of money. “Check” does not include a traveler’s check.

      2.  “Licensee” means any person licensed under this chapter.

      (Added to NRS by 1977, 1083; A 1985, 536)

      NRS 671.020  Applicability of chapter.

      1.  This chapter does not apply to any:

      (a) Bank, its parent or holding company or any subsidiary thereof, trust company, savings bank, savings and loan association, credit union, industrial bank or industrial loan and investment company, organized and regulated under the laws of this state or of the United States;

      (b) Foreign banking corporation licensed to do banking business in this state; or

      (c) Telegraph company providing a public message service.

      2.  Subsection 1 does not reduce or alter any liability otherwise attaching to the sale, issuance, receipt for transmission or transmission of checks or money in any form.

      (Added to NRS by 1977, 1083; A 1983, 153)

      NRS 671.030  Regulations.  The Commissioner may adopt such reasonable regulations as may be necessary or appropriate for the administration of this chapter.

      (Added to NRS by 1977, 1083; A 1983, 1764; 1987, 1950)

      NRS 671.040  License required.

      1.  A person shall not engage in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits unless the person is licensed pursuant to this chapter.

      2.  A person shall not engage in such business as an agent except as an agent of a licensee or a payee.

      (Added to NRS by 1977, 1083)

      NRS 671.050  Application for license: Contents; bond or securities; financial statement; fees; regulations; withdrawal of application.

      1.  Every application for a license required pursuant to this chapter must be in writing, signed by the applicant, and in the form prescribed by the Commissioner.

      2.  The application must contain:

      (a) The name and principal business address of the applicant and, if incorporated, the date and place of its incorporation;

      (b) The name and address of each of the applicant’s branch offices, subsidiaries or affiliates, if any, which will be operated under the license;

      (c) The name and addresses, business and residential, of the proprietor or partners of the applicant or, if the applicant is a corporation or association, of each of the directors, trustees and principal officers, and of any stockholder who owns 20 percent or more of the applicant’s stock; and

      (d) Such other pertinent information as the Commissioner requires.

      3.  The application must be accompanied by:

      (a) A surety bond or securities as required by this chapter.

      (b) A certified financial statement, satisfactory to the Commissioner, showing that the applicant’s net worth exceeds $100,000, unless the applicant’s surety bond or the securities deposited pursuant to NRS 671.110 are in at least twice the minimum principal sum required by NRS 671.100.

      (c) A nonrefundable fee of not more than $500 for the application and survey. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary.

      (d) A fee of not less than $200 or more than $400, prorated on the basis of the licensing year as provided by the Commissioner.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account created by NRS 232.545.

      5.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an 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.

      (Added to NRS by 1977, 1084; A 1981, 755; 1983, 1319, 1764; 1987, 1950; 1991, 1810; 2005, 1854)

      NRS 671.055  Application for license: Additional requirements.  In addition to any other requirements set forth by specific statute, each person who applies for a license to engage in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits must submit proof satisfactory to the Commissioner that the person:

      1.  Is at least 21 years of age; and

      2.  Is a citizen of the United States or lawfully entitled to remain and work in the United States.

      (Added to NRS by 2005, 1854)

      NRS 671.060  Investigation of applicant; issuance of license.

      1.  Upon the filing of the application, payment of the fees and approval of the surety bond or securities, the Commissioner shall investigate the financial condition and responsibility, the financial and business experience, and the character and general fitness of the applicant and may investigate any partners, directors, trustees or principal officers of the applicant.

      2.  If the Commissioner determines that the business of the applicant will be conducted lawfully, honestly, fairly and efficiently, the Commissioner shall issue a license to the applicant to engage in the business of selling and issuing checks, receiving for transmission or transmitting money or credits, or both.

      (Added to NRS by 1977, 1084; A 1983, 1319, 1765; 1987, 1951)

      NRS 671.070  Expiration and renewal of license; fees; regulations.

      1.  A license issued pursuant to this chapter expires on June 30 of the year following its issuance and thereafter expires on June 30 of each year, unless it is earlier surrendered, suspended or revoked.

      2.  The license may be renewed from year to year upon the approval of the Commissioner if the licensee files an application conforming to the requirements for an initial application at least 60 days before the expiration of his or her current license.

      3.  An application for the renewal of the license must be accompanied by a fee of not more than $400. No investigation fee may be charged for the renewal of the license. If the application or fee for renewal is not filed within the required time, the Commissioner may renew the expired license upon receipt of the application and fee for renewal, and a fee of not more than $400 for late renewal.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All fees collected pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      (Added to NRS by 1977, 1084; A 1981, 755, 991; 1983, 1765; 1987, 1951; 1989, 920; 2003, 3228; 2005, 1855)

      NRS 671.080  License not transferable or assignable; business must be conducted at specified location by agent of licensee; changes in location, name or operation of business.

      1.  A license issued under this chapter is not transferable or assignable.

      2.  The license entitles the holder to engage in business only at the location or locations specified in the application or at a location or locations operated by a duly appointed agent of the licensee.

      3.  A change must not be made in:

      (a) The location of any place of business covered by the license;

      (b) The name of the licensed business; or

      (c) The licensee’s operation or services if the nature of the change affects the qualification for the license,

Ę without prior notice to and approval of the Commissioner.

      (Added to NRS by 1977, 1084; A 1983, 1766; 1987, 1951)

      NRS 671.090  Agents of licensees: When license required; application; fees; regulations; withdrawal of application.

      1.  A separate license is not required for an agent of a licensee unless the agent directly sells or delivers the licensee’s checks over the counter to the public and, in the ordinary course of such business, receives or has access to:

      (a) The licensee’s checks which, after payment, are returned through banking channels or otherwise for verification, reconciliation or accounting with respect thereto; or

      (b) Bank statements relating to checks so returned.

      2.  Each agent of a licensee who must be licensed pursuant to subsection 1 must:

      (a) Submit an application to the Commissioner which is in writing, signed by the applicant and on a form prescribed by the Commissioner;

      (b) Pay an application fee of not less than $200 and not more than $500; and

      (c) Pay a license fee of not less than $200 and not more than $500.

      3.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.

      4.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 6 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an 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.

      (Added to NRS by 1977, 1085; A 2005, 1855)

      NRS 671.100  Bond: Amounts; form; notice to Commissioner; replenishment; liability of surety; increase in amount; cancellation or alteration.

      1.  Except as provided in NRS 671.110, each licensee shall have in force a surety bond payable to the State of Nevada for the use and benefit of any holder of any outstanding check sold or issued by a licensee in the normal course of business and for value in the following minimum principal sums:

      (a) For the first location granted in the license, $10,000; and

      (b) For each additional location in this State where its business is conducted directly or through an agent, $5,000.

Ę The maximum amount of any surety bond required under this subsection is $250,000.

      2.  The bond must be in a form satisfactory to the Commissioner, issued by a bonding company authorized to do business in this State, and must secure the faithful performance of the obligations of the licensee respecting the sale or issuance of checks and receipt for transmission or transmission of money or credits.

      3.  A licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against the licensee by any creditor or claimant arising out of business regulated by this chapter, give notice thereof to the Commissioner by registered or certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by registered or certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.

      4.  Whenever the principal sum of the bond is reduced by recoveries or payments thereon, the licensee shall furnish:

      (a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required under subsection 1; or

      (b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum.

      5.  The liability of the surety on the bond to a creditor or claimant is not affected by any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.

      6.  The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the licensee’s agents within 30 days after:

      (a) The licensee’s death or the dissolution or liquidation of the licensee’s business; or

      (b) The termination of the bond,

Ę whichever event occurs first.

      7.  Whenever the Commissioner determines that the protection of the public so requires, the Commissioner may order that an increase be made in the principal sum of the bond of any licensee, except that the Commissioner may not order an increase of more than $10,000 if the licensee has submitted a current financial statement, or more than $15,000 otherwise.

      8.  Neither a licensee nor the licensee’s surety may cancel or alter a bond except after notice to the Commissioner by registered or certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 6.

      (Added to NRS by 1977, 1085; A 1983, 1766; 1987, 1951)

      NRS 671.110  Deposits in lieu of bond.

      1.  In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a licensee may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this state as the licensee may select, with the approval of the Commissioner:

      (a) Interest-bearing stocks;

      (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or

      (c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state,

Ę in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof.

      2.  The securities must be held to secure the same obligation as would the surety bond, but the depositor may receive any interest or dividends and, with the approval of the Commissioner, substitute other suitable securities for those deposited.

      (Added to NRS by 1977, 1086; A 1983, 1767; 1987, 1953; 1999, 1545)

      NRS 671.120  Examination of licensee by Commissioner; entry upon premises and access to documents; fee; audit in lieu of examination.

      1.  Except as provided in subsection 4, once each year the Commissioner shall examine the financial accounts of each licensee and any other documents relevant to the conduct of the licensee’s business, and the Commissioner may conduct examinations at additional times.

      2.  For the purpose of the examinations, the Commissioner may enter upon any of the business premises of a licensee or the licensee’s agents and obtain access to the relevant documents. Any obstruction or denial of such an entry or access is a violation of this chapter.

      3.  For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and in preparing and typing the report at the rate established pursuant to NRS 658.101.

      4.  The Commissioner may accept a report of an audit of the licensee which covers the most recent fiscal year in lieu of conducting an examination.

      (Added to NRS by 1977, 1086; A 1979, 956; 1983, 267, 1767; 1987, 1953, 2224)

      NRS 671.140  Schedule of rates: Posting; excess fees prohibited.  In every place of business licensed or covered by a license under this chapter, there shall be conspicuously posted at all times a schedule of the rates charged for the sale or issuance of checks and the receipt for transmission or transmission of money or credits. No fees may be charged or collected in excess of the posted rates.

      (Added to NRS by 1977, 1087)

      NRS 671.150  Deposit of receipts; commingling prohibited; deposit if license suspended or terminated; assets must cover liabilities.

      1.  All money or credits received by an agent of a licensee from the sale and issuance of checks or for the purpose of transmission must be remitted to the licensee or deposited with a bank or credit union authorized to do business in this state for credit to an account of the licensee not later than the third business day following its receipt.

      2.  Money received from the sale or issuance of checks or for the purpose of transmission must not be commingled with the other assets of the licensee or his or her agents.

      3.  If a license is suspended or terminated, the licensee shall immediately deposit in an account in the name of the Commissioner, an amount which is sufficient to make the total money in the account equal to all outstanding checks in the State of Nevada sold or issued and money or credits received but not transmitted.

      4.  Each licensee shall at all times maintain liquid assets, government or municipal securities or other marketable securities having a value, computed in accordance with generally accepted accounting principles, equal to or more than the aggregate liability of the licensee with respect to checks sold and issued and money or credits received for transmission.

      (Added to NRS by 1977, 1087; A 1983, 1768; 1987, 1953; 1999, 1545)

      NRS 671.160  Discontinuance of licensee’s business: Notice; surrender of license; order of Commissioner; possession of business and property by Commissioner; appointment of receiver.

      1.  Within 5 days after a discontinuance of a licensee’s business, the licensee shall inform the Commissioner of the discontinuance and shall surrender his or her license for cancellation.

      2.  If, as a result of any investigation, hearing, report or examination, the Commissioner finds that a licensee is insolvent or is conducting his or her business in such a manner as to render the licensee’s further operations hazardous to the public, the Commissioner may, through an order served by registered or certified mail upon the licensee and any person possessing money of the licensee or the licensee’s customers, require the immediate discontinuance of the disbursement of the money and the cessation of the licensee’s business. The order remains in effect until:

      (a) It is set aside, in whole or in part, by the Commissioner;

      (b) The licensee has been adjudged a bankrupt; or

      (c) A receiver for the licensee has been appointed by a court of competent jurisdiction.

      3.  If a court does not have jurisdiction over the licensee, the Commissioner may take possession of the licensee’s business and property until the licensee complies with the requirements of the Commissioner for resumption of business or the licensee’s affairs are finally liquidated.

      4.  Whenever the Commissioner takes possession of a licensee’s business and property, the Commissioner may petition the court for appointment of a receiver to liquidate the affairs of the licensee.

      (Added to NRS by 1977, 1087; A 1983, 1768; 1987, 1954)

      NRS 671.170  Investigations and hearings; confidential communications.

      1.  The Commissioner may conduct any necessary investigations and hearings to determine whether any licensee or other person has violated any of the provisions of this chapter or whether any licensee has conducted himself or herself in a manner which requires the suspension, revocation or denial of renewal of his or her license.

      2.  In conducting any investigation or hearing pursuant to this chapter, the Commissioner, or any person designated by the Commissioner, may require the attendance and testimony of any person and compel the production of all relevant books, records, accounts and other documents. The cost of any examination or investigation, not to exceed $10 an hour, must be borne by the licensee.

      3.  The Commissioner may require any licensee to submit such reports concerning the licensee’s business as the Commissioner deems necessary for the enforcement of this chapter.

      4.  Except as otherwise provided in NRS 239.0115, all reports of investigations and examinations and other reports rendered pursuant to this section, and all correspondence and memoranda relating to or arising therefrom, including any authenticated copies thereof in the possession of any licensee or the Commissioner, are confidential communications, are not subject to any subpoena, and must not be made public unless the Commissioner determines that justice and the public advantage will be served by their publication. This subsection does not preclude any party to an administrative or judicial proceeding from introducing into evidence any information or document otherwise available or admissible.

      (Added to NRS by 1977, 1087; A 1983, 1769; 1987, 1954; 2007, 2151)

      NRS 671.180  Suspension, revocation or denial of renewal of license: Notice; hearing; order; grounds; judicial review.

      1.  If the Commissioner has reason to believe that grounds exist for the suspension, revocation or denial of renewal of a license, the Commissioner shall give 10 days’ written notice to the licensee, stating the grounds therefor, and shall set a date for a hearing, if a hearing is requested by the licensee. If the protection of the public so requires, the Commissioner may suspend the license at any time before the hearing.

      2.  At the conclusion of the hearing, the Commissioner shall enter a written order either dismissing the charges or suspending, revoking or denying the renewal of the license. The order must include a statement of the grounds for the action taken by the Commissioner and becomes effective 10 days after receipt of a copy of the order by the licensee at the licensee’s principal place of business. The Commissioner may immediately suspend, revoke or deny the renewal of the license in a case where the licensee has failed to maintain in effect the required surety bond or insurance policy.

      3.  The grounds for suspension, revocation or denial of renewal of a license are:

      (a) Failure to pay the annual fee for renewal or the fee for late renewal;

      (b) Failure to maintain in effect the required bond or securities;

      (c) Fraud, misrepresentation or omission of any material fact in any application, statement or report;

      (d) Failure to pay any judgment arising from the licensee’s business within 30 days after the judgment becomes final or within 30 days after the expiration of a stay of execution on the judgment; or

      (e) Violation of any provision of this chapter or any regulation adopted or order issued by the Commissioner pursuant to this chapter.

      4.  Any action taken by the Commissioner pursuant to this section is subject to judicial review in the first judicial district court.

      (Added to NRS by 1977, 1088; A 1983, 1769; 1987, 1955; 1989, 920)

      NRS 671.183  Failure to submit required report; fees; regulations.

      1.  If a licensee fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue.

      2.  The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.

      (Added to NRS by 2005, 1854)

      NRS 671.185  Administrative fines.  In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 upon a person who:

      1.  Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or

      2.  Violates any provision of this chapter or any regulation adopted pursuant thereto.

      (Added to NRS by 2005, 1854)

      NRS 671.190  Unlawful acts; penalty; other remedies.

      1.  Any person who:

      (a) Violates any provision of this chapter, or any regulation adopted or order issued by the Commissioner pursuant to this chapter;

      (b) Knowingly makes any false or misleading statement of a material fact in any application, statement or report filed pursuant to this chapter;

      (c) Knowingly omits to state any material fact necessary to provide the Commissioner with information lawfully required by the Commissioner; or

      (d) Refuses to permit or obstructs any lawful investigation, examination, entry or access by the Commissioner,

Ę is guilty of a misdemeanor.

      2.  Each day during which a violation continues constitutes a separate offense.

      3.  The imposition of any fine or term of imprisonment pursuant to subsection 1:

      (a) Is in addition to any suspension, revocation or denial of renewal of a license which may result from the violation.

      (b) Is not a bar to enforcement of this chapter by an injunction or other appropriate civil remedy.

      (Added to NRS by 1977, 1088; A 1983, 1770; 1987, 1955)