NRS 645B.187: Prohibition on making certain guarantees in advertisements and solicitations; limitations on payment of premium interest; penalty.

1. If a mortgage company or mortgage loan originator solicits or receives money from an investor, the mortgage company or mortgage loan originator shall not:

(a) In any advertisement; or

(b) Before, during or after solicitation or receipt of money from the investor,

Ê make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the investor will be repaid the principal amount of money he or she invests or will earn a specific rate of return or a specific rate of interest on the principal amount of money he or she invests.

2. If a mortgage company offers to pay or pays premium interest on money that the mortgage company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:

(a) The premium interest must be paid from the assets or income of the mortgage company; and

(b) The mortgage company or a mortgage loan originator shall not:

(1) In any advertisement; or

(2) Before, during or after receipt of money from such a person,

Ê make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the mortgage company will pay the premium interest.

3. A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.

4. As used in this section, “premium interest” means that amount of interest a mortgage company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.