Nevada Interest Rate & Usury Laws

Nevada Revised Statute

From Nevada Revised Statute 99.040: INTEREST RATES

 NRS 99.040 Interest rate when not fixed by express contract for certain types of transactions.

 1.  When there is no express contract in writing fixing a different rate of interest, interest must be allowed at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the transaction, plus 2 percent, upon all money from the time it becomes due, in the following cases:

      (a) Upon contracts, express or implied, other than book accounts.

      (b) Upon the settlement of book or store accounts from the day on which the balance is ascertained.

      (c) Upon money received to the use and benefit of another and detained without his or her consent.

      (d) Upon wages or salary, if it is unpaid when due, after demand therefor has been made.

The rate must be adjusted accordingly on each January 1 and July 1 thereafter until the judgment is satisfied.

      2.  The provisions of this section do not apply to money owed pursuant to chapter 624 of NRS which is governed by the provisions of NRS 624.630.

      3.  As used in this section, “book account” means a detailed statement which:

      (a) Constitutes the principal record of one or more transactions between a debtor and a creditor arising out of a contract or some fiduciary relationship;

      (b) Shows the debits and credits in connection with that contract or fiduciary relationship and shows against whom and in favor of whom entries are made;

      (c) Is entered in the regular course of business as conducted by such creditor or fiduciary; and

      (d) Is kept in a reasonably permanent form and manner:

             (1) In a bound book;

             (2) On a sheet or sheets fastened in a book or to backing but detachable therefrom;

             (3) On a card or cards of a permanent character; or

             (4) In any other reasonably permanent form and manner.

From Nevada Revised Statute 99.050: AGREED INTEREST RATES

NRS 99.050  Agreed interest rates; compounding; charges or fees; maximum annual percentage rate for certain consumer credit extended to certain members of military or dependents.

      1.  Except as otherwise provided in subsection 2, parties may agree for the payment of any rate of interest on money due or to become due on any contract, for the compounding of interest if they choose, and for any other charges or fees. The parties shall specify in writing the rate upon which they agree, that interest is to be compounded if so agreed, and any other charges or fees to which they have agreed.

      2.  A creditor shall not charge an annual percentage rate that is greater than the lesser of 36 percent or the maximum annual percentage rate authorized under any federal law or regulation with respect to the consumer credit extended to a covered service member or a dependent of a covered service member. Any contract or agreement in violation of this subsection is void and unenforceable.

      3.  As used in this section:

      (a) “Annual percentage rate” has the meaning ascribed to it in the federal Truth in Lending Act, as amended, 15 U.S.C. §§ 1601 et seq., and the federal regulations adopted pursuant thereto.

      (b) “Consumer credit”:

             (1) Except as otherwise provided in subparagraph (2), means credit offered or extended to a covered service member or dependent of a covered service member primarily for personal, family or household purposes, and that is:

                   (I) Subject to a finance charge; or

                   (II) Payable by a written agreement in more than four installments.

             (2) Does not include:

                   (I) A residential mortgage, which is any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit or reverse mortgage;

                   (II) Any credit transaction that is expressly intended to finance the purchase of a motor vehicle when the credit is secured by the vehicle being purchased;

                   (III) Any credit transaction that is expressly intended to finance the purchase of personal property when the credit is secured by the property being purchased;

                   (IV) Any credit transaction that is an exempt transaction for the purposes of 12 C.F.R. Part 1026, commonly known as Regulation Z, other than a transaction exempt under 12 C.F.R. § 1026.29, or otherwise is not subject to disclosure requirements under 12 C.F.R. Part 1026, commonly known as Regulation Z; and

                   (V) Any credit transaction or account for credit for which a creditor determines that a natural person is not a covered borrower by using a method and by complying with the recordkeeping requirement set forth in 32 C.F.R. § 232.5(b).

      (c) “Covered service member”:

             (1) Except as otherwise provided in subparagraph (2), means a member of the armed forces who is serving on:

                   (I) Active duty pursuant to title 10, title 14 or title 32 of the United States Code, under a call or order that does not specify a period of 30 days or fewer; or

                   (II) Active Guard and Reserve duty, as that term is defined in 10 U.S.C. § 101(d)(6).

             (2) Does not include a consumer who was a covered service member pursuant to subparagraph (1) at the time he or she became obligated on a consumer credit transaction or established an account for consumer credit but is no longer a covered service member pursuant to subparagraph (1) or a dependent of a person who is a covered service member pursuant to subparagraph (1).

      (d) “Credit” means the right granted to a natural person by a person engaged in the business of extending consumer credit, or an assignee of such a person with respect to any consumer credit extended, to defer payment or to incur debt and defer its payment.

      (e) “Dependent” with respect to a covered service member means:

             (1) The spouse;

             (2) A child who:

                   (I) Has not attained the age of 21;

                   (II) Has not attained the age of 23, is enrolled in a full-time course of study at an institution of higher learning approved by the administering Secretary, as defined in 10 U.S.C. § 1072(3), and is, or was at the time of the covered service member’s or former covered service member’s death, in fact dependent on the covered service member or former covered service member for over one-half of the child’s support; or

                   (III) Is incapable of self-support because of a mental or physical incapacity that occurs while a dependent of a covered service member or former covered service member under sub-subparagraph (I) or (II) and is, or was at the time of the covered service member’s or former covered service member’s death, in fact dependent on the member or former member for over one-half of the child’s support;

             (3) A parent or parent-in-law who is, or was at the time of the covered service member’s or former covered service member’s death, in fact dependent on him or her for over one-half of his or her support and residing in his or her household;

             (4) An unmarried person who:

                   (I) Is placed in the legal custody of the covered service member or former covered service member as a result of an order of a court of competent jurisdiction in the United States, or possession of the United States, for a period of at least 12 consecutive months;

                   (II) Has not attained the age of 21, has not attained the age of 23 and is enrolled in a full-time course of study at an institution of higher learning approved by the administering Secretary, as defined in 10 U.S.C. § 1072(3), or is incapable of self-support because of a mental or physical incapacity that occurred while the person was considered a dependent of the covered service member or former covered service member pursuant to this paragraph;

                   (III) Is dependent on the covered service member or former covered service member for over one-half of the person’s support;

                   (IV) Resides with the covered service member or former covered service member unless separated by the necessity of military service or to receive institutional care as a result of disability or incapacitation or under such other circumstances as the administering Secretary, as defined in 10 U.S.C. § 1072(3), may by regulation prescribe; and

                   (V) Is not a dependent of a covered service member or a former covered service member pursuant to subparagraph (1), (2) or (3).

      (f) “Dwelling” means a residential structure that contains one to four units, whether or not the structure is attached to real property. The term includes, without limitation, an individual condominium unit, cooperative unit, mobile home and manufactured home.