Nevada Revised Statutes 604A.5987 – Prohibited terms of consumer credit to covered service member
A licensee shall not make a loan that constitutes consumer credit to a covered service member or a dependent of a covered service member with respect to which:
Terms Used In Nevada Revised Statutes 604A.5987
- Dependent: A person dependent for support upon another.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
1. The licensee extends, rolls over, renews, repays, refinances or consolidates any consumer credit extended to the customer by the same licensee with the proceeds of the other consumer credit extended to the same covered service member or dependent;
2. The customer is required to waive the customer’s right to legal recourse under any otherwise applicable provision of state or federal law, including, without limitation, any provision of the Servicemembers Civil Relief Act, 50 U.S.C. § 3901 et seq.;
3. The licensee imposes onerous legal notice provisions in the case of a dispute or demands unreasonable notice from the customer as a condition for legal action;
4. The licensee uses a check or other method of access to a deposit, savings or other financial account maintained by the customer, or the title of a vehicle as security for the obligation;
5. The licensee requires as a condition for the extension of consumer credit that the customer establish an allotment to repay an obligation; or
6. The customer is prohibited from prepaying the loan or is charged a penalty or fee for prepaying all or part of the loan.