2005 Nevada Revised Statutes - Chapter 100 — Special Relations of Debtor and Creditor; Suretyship

CHAPTER 100 - SPECIAL RELATIONS OF DEBTORAND CREDITOR; SURETYSHIP

PREFERRED LABOR CLAIMS

NRS 100.010 Assignmentfor creditors.

NRS 100.020 Levyof attachment or execution: Written notice; service; payment of claim; disputedclaims; hearing; costs and pro rata payments.

NRS 100.030 NRS 100.010 and 100.020 not to affect prior liens.

MARSHALING OF ASSETS

NRS 100.040 Requiringresort to different funds.

NRS 100.050 Orderof resort to different funds.

SURETYSHIP

NRS 100.060 Agreementsbetween principals and sureties for joint control of assets.

NRS 100.065 Depositsauthorized in lieu of cash payment or surety bond for protection of State;surety bond must be issued by authorized insurer.

TRANSFER OF CREDITORS RIGHTS

NRS 100.075 Creditorsrights transferable without consent of debtor.

DEPOSITS

NRS 100.085 Depositsin names of two or more persons.

NRS 100.091 Impoundaccount required under loan secured by real property: Annual analysis;statements; increase in contributions; disposition of excess money.

LEASING OF VEHICLES

NRS 100.095 Definitions.

NRS 100.105 Disclosuresrequired before commercial vehicle lease consummated.

NRS 100.115 Liabilityof lessor under commercial vehicle lease for failure to disclose.

NRS 100.125 Reasonablenessof estimated residual value of vehicle under commercial vehicle lease.

NRS 100.135 Appraisalof vehicle when commercial vehicle lease terminates or expires.

NRS 100.145 Obtainingbids to establish residual value of vehicle when value or method ofestablishing value not agreed upon.

NRS 100.155 Noticeof lessors intention to establish residual value of vehicle.

NRS 100.165 Lesseesright to submit bid for purchase of vehicle; effect of lessees bid.

NRS 100.175 Penaltyon lessor for failure to comply with NRS100.145 to 100.165, inclusive.

ASSET-BACKED SECURITIES FACILITATION ACT

NRS 100.200 Shorttitle.

NRS 100.210 Definitions.

NRS 100.220 Effectof securitization transaction on property, assets and rights of transferor.

NRS 100.230 Restrictionson construction and interpretation of Asset-Backed Securities Facilitation Act.

_________

PREFERRED LABOR CLAIMS

NRS 100.010 Assignmentfor creditors.

1. Subject to the provisions of subsection 2, in allassignments of property, whether real or personal, which shall hereafter bemade by any person or chartered company or corporation, or by any person orpersons, owning or leasing real or personal property, to trustees or assigneeson account of inability at the time of the assignment to pay his, her or theirdebts, the wages of the miners, mechanics, salesmen, servants, clerks orlaborers, employed by such person or persons, chartered company or corporationshall be held and deemed preferred claims, and paid by such trustees orassignees before any other creditor or creditors of the assignor, including theState as a creditor for amounts due under the provisions of chapter 372 of NRS.

2. The claims of each miner, mechanic, salesman,servant, clerk or laborer thus preferred, shall not exceed in value $600, andthe services shall have been rendered or labor performed within 90 days nextpreceding the assignment.

[1911 CPA 551; A 1953, 48](NRS A 1960, 153)

NRS 100.020 Levyof attachment or execution: Written notice; service; payment of claim; disputedclaims; hearing; costs and pro rata payments.

1. In all cases of execution, attachment and writs ofa similar nature against the property of any person or persons, charteredcompany or corporation, at any time before the actual sale of property leviedupon, it shall be lawful for a miner, mechanic, salesman, servant, clerk andlaborer to give notice of his claim or claims and the amount thereof, dulycertified and sworn to by the creditor or creditors making the claim to theofficer executing either of such writs.

2. The creditor or creditors making the claim shall atthe same time give notice in writing to the creditor or creditors at whoseinstance the property has been levied upon, or his or their attorney, of theirclaim or claims, and the amount thereof duly certified and sworn to by suchclaimant or claimants. A copy of the notice shall also be served upon thedebtor if he be found within the county where the property levied upon issituated. If the debtor cannot be found within the county where the property leviedupon is situated, then the notice may be served upon the officer executingeither of such writs in lieu of the debtor.

3. Upon the filing in the court where the action oractions against the debtor is or are pending of an affidavit of the claimant orclaimants, showing his or their compliance with the foregoing provisions ofthis section, the officer executing either of the writs shall pay to suchminers, mechanics, salesmen, servants, clerks or laborers, out of the proceedsof the sale, the amount each is justly and legally entitled to receive forservices rendered, within 90 days next preceding the levy of the writ of execution,attachment, or other writ, not exceeding $600.

4. Either the creditor or the debtor may dispute theclaim of any person seeking and claiming preference under this section, and insuch case the party or parties disputing such claim shall serve a writtennotice that they dispute such claim upon the claimant or claimants, and uponthe officer executing such writs, within 5 days from the time of service uponsuch creditor or debtor of the notice of the claim by the claimant seekingpreference, as hereinbefore provided for.

5. Within 10 days from the time of the serviceprovided for in subsection 4, the claimant or claimants shall commence anaction in any court of competent jurisdiction against the debtor, and theperson or persons disputing his or their claim or claims, for the recoverythereof, and shall prosecute such action with due diligence, or be foreverbarred from any claim of priority payment thereof. In case action is renderednecessary by the act aforesaid, by either debtor or creditor, and judgmentshall be had for the claim or any part thereof, carrying costs, the costsattending the prosecution of the action, and legally taxable therein, shalllikewise be a preferred claim with the same rank as the original claim.

6. If the amount of assets, after deducting costs oflevy and sale, shall not be adequate to the payment of all the preferred claimsof this class, they shall be paid pro rata out of the money hereby madeapplicable thereto.

[Part 1911 CPA 552; RL 5494; NCL 9041](NRS A1959, 136)

NRS 100.030 NRS 100.010and 100.020not to affect prior liens. Nothing containedin NRS 100.010 and 100.020 shall be construed to affect anyhomestead claims, mortgage or lien of any description, created and existingbefore the claim of such laborer accrued.

[Part 1911 CPA 552; RL 5494; NCL 9041]

MARSHALING OF ASSETS

NRS 100.040 Requiringresort to different funds. Where a creditor isentitled to resort to each of several funds for the satisfaction of his claim,and another person has an interest in, or is entitled as a creditor to resortto some, but not all, of them, the latter may require the former to seeksatisfaction from those funds to which the latter has no such claim, so far asit can be done without impairing the right of the former to completesatisfaction, and without doing injustice to third persons.

[1:32:1923; NCL 4080]

NRS 100.050 Orderof resort to different funds. Where one has alien upon several things, and other persons have subordinate liens upon, orinterests in, some but not all of the same things, the person having the priorlien, if he can do so without risk of loss to himself, or of injustice to otherpersons, must resort to the property in the following order, on the demand ofany party interested:

1. To the things upon which he has an exclusive lien;

2. To the things which are subject to the fewestsubordinate liens;

3. In like manner inversely to the number ofsubordinate liens upon the same thing; and

4. When several things are within one of the foregoingclasses, and subject to the same number of liens, resort must be had:

(a) To the things which have not been transferred sincethe prior lien was created;

(b) To the things which have been so transferredwithout a valuable consideration; and

(c) To the things which have been so transferred for avaluable consideration in the inverse order of the transfer.

[2:32:1923; NCL 4081]

SURETYSHIP

NRS 100.060 Agreementsbetween principals and sureties for joint control of assets. It is lawful for any party of whom a bond, undertaking orother obligation is required, to agree with his surety or sureties for thedeposit of any money and assets for which he and his surety or sureties are ormay be held responsible, with a bank, credit union, savings bank, safe-depositor trust company, authorized by law to do business as such, or with anotherdepository approved by the court or a judge thereof, if the deposit isotherwise proper, for the safekeeping thereof, and in such manner as to preventthe withdrawal of the money or assets or any part thereof, without the writtenconsent of the surety or sureties, or an order of court or a judge thereof,made on such notice to the surety or sureties as the court or judge may direct;but the agreement does not in any manner release from or change the liabilityof the principal or sureties as established by the terms of the bond.

[1:236:1949; 1943 NCL 7633.01](NRS A 1999, 1456)

NRS 100.065 Depositsauthorized in lieu of cash payment or surety bond for protection of State;surety bond must be issued by authorized insurer.

1. In lieu of any cash payment or surety bond requiredas protection for the State of Nevada, the person required to provide the cashpayment or surety bond may deposit with the State Treasurer, unless a differentcustodian is named by specific statute:

(a) Bonds of the United States or of the State ofNevada of an actual market value of not less than the amount of the requiredcash payment or surety bond;

(b) A letter of credit from a bank, savings bank,credit union or savings and loan association situated in Nevada, which meetsthe requirements set for that purpose by the State Treasurer; or

(c) A savings certificate, certificate of deposit orinvestment certificate of a bank, savings bank, credit union or savings andloan association situated in Nevada, which must indicate an account of anamount not less than the amount of the required cash payment or surety bondand, except as otherwise provided by specific statute, that the amount is notavailable for withdrawal except by direct order of the State Treasurer.

2. Whenever a savings certificate, certificate ofdeposit or investment certificate is deposited as provided in this section,interest earned on the certificate accrues to the account of the depositor.

3. If a surety bond is provided as protection for theState of Nevada, the bond must be issued by an insurer who is authorized orotherwise allowed under title 57 of NRS to issue such a bond pursuant to title57 of NRS.

(Added to NRS by 1967, 853; A 1989, 1072; 1993, 2403;1999, 1456)

TRANSFER OF CREDITORS RIGHTS

NRS 100.075 Creditorsrights transferable without consent of debtor. Anycreditor may, without the consent of the debtor, transfer all or any part ofhis rights against the debtor to any third party. The assignee is entitled byvirtue of an assignment or transfer to sue in his own name as a real party ininterest. This section does not preclude a contract between the partiesprohibiting the assignment or transfer of the creditors rights against thedebtor to a third party.

(Added to NRS by 1975, 1343)

DEPOSITS

NRS 100.085 Depositsin names of two or more persons.

1. When a deposit has been made in the name of thedepositor and one or more other persons, and in a form intended to be paid ordelivered to any one of them, or the survivor or survivors of them, the depositis the property of the persons as joint tenants. If an account is intended tobe held in joint tenancy, the account or proceeds from the account are owned bythe persons named, and may be paid or delivered to any of them during thelifetime of all, or to the survivor or survivors of them after the death ofless than all of the tenants, or the last of them to survive, and payment ordelivery is a valid and sufficient release and discharge of the depository.

2. The making of a deposit in the form of a jointtenancy vests title to the deposit in the survivor or survivors.

3. When a deposit has been made in the name of thedepositor and one or more other persons, and in a form to be paid or deliveredto the survivor or survivors of them, but one or more of the other persons isnot authorized to withdraw from the deposit during the life of the depositor ordepositors, the person or persons so restricted have no present interest in thedeposit, but upon the death of the last depositor entitled to withdraw, thedeposit is presumed to belong to the survivor or survivors. Unless writtennotice of a claim against the deposit has been given by a survivor or a thirdperson before payment or delivery, payment or delivery to a survivor is a validand sufficient release and discharge of the depository.

4. For the purposes of this section, unless adepositor specifically provides otherwise, the use by the depositor of any ofthe following words or terms in designating the ownership of an accountindicates the intent of the depositor that the account be held in jointtenancy:

(a) Joint;

(b) Joint account;

(c) Jointly held;

(d) Joint tenants;

(e) Joint tenancy; or

(f) Joint tenants with right of survivorship.

(Added to NRS by 1977, 805; A 1995, 1054)

NRS 100.091 Impoundaccount required under loan secured by real property: Annual analysis;statements; increase in contributions; disposition of excess money.

1. For each loan requiring the deposit of money to anescrow account, loan trust account or other impound account for the payment oftaxes, assessments, rental or leasehold payments or fire, hazard or otherinsurance premiums, the lender shall, at least annually, analyze the account.The analysis of each account must be performed to determine whether sufficientmoney is contributed to the account on a monthly basis to pay for the projecteddisbursements from the account. At least 30 days before the effective date ofany increased contribution to the account based on the analysis, a statementmust be sent to the borrower showing the method of determining the amount ofmoney held in the account, the amount of projected disbursements from theaccount and the amount of the reserves which may be held in accordance with federalguidelines.

2. If, upon completion of the analysis, it isdetermined that an account is not sufficiently funded to pay from the normalpayment the items when due on the account, the lender shall offer the borrowerthe opportunity to correct the deficiency by making one lump-sum payment or bymaking increased monthly contributions, in an amount required by the lender.The lender shall not declare a default on the account solely because theborrower is unable to pay the amount of the deficiency in one lump sum.

3. If, upon completion of the analysis, it isdetermined that the amount of money held by the lender in the account, togetherwith anticipated future monthly contributions to the account to be credited tothe account before the dates items are due on the account, exceed the amount ofmoney required to pay the items when due, the lender shall, at the option ofthe borrower, either repay the excess promptly to the borrower, apply theexcess to the outstanding principal balance or retain the excess in theaccount. If any payment on the loan is delinquent at the time of the analysis,the lender shall retain any excess money in the account and apply the money inthe account toward payment of the delinquency.

4. As used in this section:

(a) Borrower means any person who receives a loansecured by real property and who is required to make advance contributions forthe payment of taxes, insurance premiums or other expenses related to theproperty.

(b) Lender means any person who makes loans securedby real property and who requires advance contributions for the payment oftaxes, insurance premiums or other expenses related to the property.

(Added to NRS by 1989, 1068)

LEASING OF VEHICLES

NRS 100.095 Definitions. As used in NRS 100.095to 100.175, inclusive:

1. Commercial vehicle lease means a bailment orlease of a single vehicle by a person for a period of more than 4 months for atotal contractual obligation not exceeding $25,000, primarily for business orcommercial purposes, whether or not the lessee has the option to purchase orotherwise become the owner of the vehicle at the termination or expiration ofthe lease. The term includes a bailment or lease where the lessee becomes ormay become owner of the vehicle by payment to the lessor of an amount which issubstantially equal to the residual value or the unamortized capitalized cost,if the payment is not nominal. The term does not include a bailment or leasewhere the lessee contracts to pay as compensation for use of the vehicle a sumsubstantially equivalent to or in excess of the capitalized cost of the vehicleand it is agreed that the lessee may become the owner for no other considerationor for a nominal consideration.

2. Person includes any governmental entity.

3. Vehicle means every device in, upon or by whichany person or property is or may be transported upon a public highway, exceptdevices:

(a) Moved by human power;

(b) Used exclusively upon stationary rails or tracks;or

(c) Having a gross vehicle weight of more than 10,000pounds, exclusive of the weight of any slide-in camper as defined in NRS 482.113 which may be on it.

The termdoes not include electric personal assistive mobility devices as defined in NRS 482.029.

4. Vehicle lease means a bailment or lease of asingle vehicle by a person for a period of more than 4 months where thelessees obligation upon termination or expiration of the lease is based on theexcess of the unamortized capitalized cost of the vehicle over its residualvalue as established pursuant to the provisions of NRS 100.145. The term includes a bailmentor lease where the lessee becomes or may become owner of the vehicle by paymentto the lessor of an amount which is substantially equal to the residual valueor the unamortized capitalized cost, if the payment is not nominal.

(Added to NRS by 1979, 1259; A 2003, 1206)

NRS 100.105 Disclosuresrequired before commercial vehicle lease consummated.

1. Before a commercial vehicle lease is consummated,the lessor must give the lessee a dated written statement on which the lessorand lessee are identified and the following information with respect to thelease is set out accurately in a clear and conspicuous manner:

(a) A brief description or identification of the leasedvehicle.

(b) The amount of any payment by the lessee required atthe inception of the lease.

(c) The amount paid or payable by the lessee for anyofficial fees, registration, certificate of title, license fees and taxes.

(d) The amount of other charges payable by the lesseenot included in the periodic payments and a description of those charges.

(e) A statement of the amount or the method ofdetermining the amount of any liabilities the lease imposes upon the lessee atthe end of the term and whether or not the lessee has the option to purchasethe leased vehicle and:

(1) If at the expiration of the lease, at whatprice.

(2) If before the end of the lease term, at whattime and the price or the method of determining the price.

(f) A statement identifying all express warranties andguarantees made by the manufacturer or lessor with respect to the leasedvehicle, and identifying the party responsible for maintaining or servicing theleased vehicle, together with a description of the responsibility.

(g) A brief identification of insurance required inconnection with the lease, including:

(1) If provided or paid by the lessor, the typesand amounts of coverages and costs to the lessee.

(2) If not provided or paid by the lessor, thetypes and amounts of coverages required of the lessee.

(h) A description of any security interest held or tobe retained by the lessor in connection with the lease and a clearidentification of the property to which the security interest relates.

(i) The number, amount and due dates or periods ofpayments under the lease and the total amount of the periodic payments.

(j) Where the lease provides that the lessee is liablefor either the estimated residual value of the vehicle or its unamortizedcapitalized cost on expiration of the lease, the fair market value of thevehicle at the inception of the lease, the aggregate cost of the lease onexpiration and the differential between them.

(k) A statement of the conditions under which thelessee or lessor may terminate the lease before the end of the term and theamount or the method of determining the amount of any penalty or other chargefor delinquency, default, late payments or early termination.

(l) That the lessee is liable for the differential, ifany, between:

(1) The estimated residual value of the leasedvehicle and its actual residual value at the expiration of the lease, if thelessee has such liability; or

(2) The unamortized capitalized cost of thevehicle and its actual residual value at the expiration of the lease, if thelessee has such liability.

2. A lessee is not liable for the differential betweenthe unamortized capitalized cost of the leased vehicle (where that amountdiffers from the estimated residual value) and the actual residual value at theexpiration of the lease unless the lessor discloses the estimated residualvalue of the vehicle and the limitation of the expiration liability exclusivelyassociated with its use and the lessee specifically agrees to the use of anamount other than the estimated residual value. Such disclosure and agreementmust be set forth in 10-point typeface and be acknowledged by the lesseesinitials.

3. The disclosures required by subsections 1 and 2 maybe made in the lease contract to be signed by the lessee.

4. The lessor shall provide accurate information inthe disclosure statement, but if he is not in a position to know exactinformation for a particular portion of the statement, he may give that portionin the form of an estimate if he identifies the information as an estimate.

(Added to NRS by 1979, 1260)

NRS 100.115 Liabilityof lessor under commercial vehicle lease for failure to disclose.

1. Except as otherwise provided in this section, anylessor under a commercial vehicle lease who fails to comply with therequirements of NRS 100.105 with respectto any lessee is liable to the lessee for the sum of:

(a) Any actual damage sustained by such person as aresult of the failure;

(b) Twenty-five percent of the total amount of monthlypayments under the lease, but not less than $100 nor more than $1,000; and

(c) In the case of any successful action to enforce theforegoing liability, the costs of the action, together with a reasonableattorneys fee as determined by the court.

2. A lessor has no liability under this section forany failure to comply with any requirement imposed under NRS 100.105 if within 15 days afterdiscovering an error, and prior to the institution of an action under thissection or the receipt of written notice of the error, the lessor notifies thelessee of the error and makes whatever adjustments in the appropriate accountare necessary to insure that the lessee will not be required to pay a charge inexcess of the amount actually disclosed or correctly determined.

3. A lessor may not be held in any action broughtunder this section for a violation of NRS100.105 if the lessor shows by a preponderance of evidence that theviolation was not intentional and resulted from a bona fide errornotwithstanding the maintenance of procedures reasonably adapted to avoid anysuch error.

4. No provision of this section imposing any liabilityapplies to any act done or omitted in good faith in conformity with any rule,regulation or interpretation by the Board of Governors of the Federal ReserveSystem or in conformity with any interpretation or approval by an official oremployee of the Federal Reserve System duly authorized by the Board to issuesuch interpretation or approvals under such procedures as the Board mayprescribe therefor, even if after the act or omission has occurred, the rule,regulation, interpretation or approval is amended, rescinded or determined byjudicial or other authority to be invalid for any reason.

5. The multiple failure to disclose to any lessee anyinformation required to be disclosed in connection with a single commercialvehicle lease entitles the lessee to a single recovery under this section butcontinued failure to disclose after a recovery has been granted gives rise torights to additional recoveries.

6. A lessee may not take any action to offset anyamount for which a lessor is potentially liable against any amount owing to thelessor by the lessee unless the amount of the lessors liability to the lesseehas been determined by judgment of a court of competent jurisdiction.

(Added to NRS by 1979, 1261)

NRS 100.125 Reasonablenessof estimated residual value of vehicle under commercial vehicle lease.

1. Where the commercial vehicle lease contains anamount identified as the lessees liability upon expiration of the lease basedon the estimated residual value of the vehicle, the estimated residual valuemust be a reasonable approximation of the actual residual value of the vehicleupon expiration of the lease.

2. There is a rebuttable presumption that theestimated residual value is unreasonable to the extent that it exceeds theactual residual value by more than three times the average payment allocable toa monthly period under the lease. The lessor shall not collect from the lesseethe amount of that excess liability on expiration of a commercial vehicle leaseunless the lessor brings a successful action with respect to that excessliability, and if the lessors action is unsuccessful he must pay the lesseescosts and reasonable attorneys fees. This presumption does not apply to theextent the excess of estimated residual value over actual residual value is dueto physical damage to the vehicle beyond reasonable wear and use, or toexcessive use. The lease must set reasonable standards for wear and use if thelessor establishes such standards.

(Added to NRS by 1979, 1262; A 1987, 1105)

NRS 100.135 Appraisalof vehicle when commercial vehicle lease terminates or expires. If the commercial vehicle lease provides that the lesseeis liable for an amount based on the residual value of the vehicle at thetermination or expiration of the lease, the lessee may obtain, at his expense,a professional appraisal of the vehicle by an independent third party agreed toby both parties. An appraisal obtained pursuant to this section is final andbinding on the parties.

(Added to NRS by 1979, 1262)

NRS 100.145 Obtainingbids to establish residual value of vehicle when value or method ofestablishing value not agreed upon.

1. Where the lessees liability on the date anyvehicle lease or commercial vehicle lease terminates or expires is based on theresidual value of the vehicle at that time and the lessor and lessee do notagree in writing on that value or on another method of establishing it, thelessor may, subject to the provisions of NRS100.165, for the purpose of establishing residual value and therebyproviding the basis for determining the lessees liability, obtain written bidsfrom third persons.

2. The lessor shall act in good faith and in acommercially reasonable manner in obtaining bids for the vehicle. The fact thata better price could have been obtained at a different time or in a differentmethod from that selected by the lessor is not of itself sufficient toestablish that the lessor did not act in a commercially reasonable manner. Ifthe lessor obtains bids at the price current in any recognized market for sucha vehicle at the time of the bidding, he has acted in a commercially reasonablemanner.

3. The highest effective bid obtained pursuant to thissection or NRS 100.165, whereapplicable, or the actual sale price, whichever is higher, establishes the residualvalue of the vehicle.

(Added to NRS by 1979, 1262)

NRS 100.155 Noticeof lessors intention to establish residual value of vehicle.

1. The lessor shall give the lessee written notice ofhis intention to establish the residual value of the vehicle under the vehiclelease or commercial vehicle lease at least 15 days before that action is taken.The notice must be given in person to the lessee or sent by mail to the addressof the lessee shown on the lease, or to his last known address, unless thelessee has notified the lessor in writing of a different address.

2. The notice must:

(a) List separately any actual or estimated charges dueunder the vehicle lease or commercial vehicle lease as of the date of thenotice, notwithstanding any possible limitations on the liability of the lesseeprovided by the Consumer Leasing Act of 1976 (15 U.S.C. 1667b);

(b) Inform the lessee that he has the right to submit awritten bid for the purchase of the vehicle before its value is established;and

(c) Inform the lessee of the probable residual value ofcomparable vehicles on the date of the notice as estimated in the then currentversion of the Kelley Blue Book or its equivalent.

3. If the lease is not in default and has not beenterminated before its scheduled expiration, the notice must also inform thelessee that his maximum total liability under the vehicle lease or commercialvehicle lease is limited to three times the average payment allocable to a monthlyperiod under the lease if the estimated residual value exceeds the actualresidual value and the difference is not the result of physical damage to thevehicle beyond reasonable wear and use or to excessive use.

(Added to NRS by 1979, 1263; A 1987, 1105; 1989, 719)

NRS 100.165 Lesseesright to submit bid for purchase of vehicle; effect of lessees bid.

1. The lessee has the right at any time before thelessor establishes the value of the vehicle to submit a written bid for itspurchase.

2. If the lessor accepts the lessees bid as thehighest bid, the lessee has 5 days from the date of such acceptance withinwhich to tender the full amount of the purchase price, and:

(a) If the lessee tenders the full amount within theprescribed time and the lessor nevertheless elects not to sell the vehicle tohim, the bid establishes the residual value of the vehicle and the lessor mustcredit the amount of the bid against the lessees liability under the lease.

(b) If the lessee fails to tender the full amount ofthe purchase price within the prescribed time, the lessees bid does notestablish the residual value of the vehicle and the lessor must credit againstthe lessees liability the amount of the next highest bid.

(Added to NRS by 1979, 1263)

NRS 100.175 Penaltyon lessor for failure to comply with NRS 100.145 to 100.165,inclusive. If the lessor under a vehicle leaseor a commercial vehicle lease fails to comply with NRS 100.145 to 100.165, inclusive, he may not recover anydeficiency from the lessee.

(Added to NRS by 1979, 1264)

ASSET-BACKED SECURITIES FACILITATION ACT

NRS 100.200 Shorttitle. NRS100.200 to 100.230, inclusive, maybe known and cited as the Asset-Backed Securities Facilitation Act.

(Added to NRS by 2005, 2207)

NRS 100.210 Definitions.

1. As used in NRS100.200 to 100.230, inclusive,unless the context otherwise requires, the terms securitization andsecuritization transaction include, without limitation, the pooling andrepackaging by a special purpose entity of assets or other credit exposuresthat may be sold to investors.

2. The terms include transactions that createstratified credit risk positions whose performance is dependent upon anunderlying pool of credit exposures, including, without limitation, loans andcommitments.

3. The terms must be construed broadly.

(Added to NRS by 2005, 2207)

NRS 100.220 Effectof securitization transaction on property, assets and rights of transferor. Notwithstanding any other provision of law, including, withoutlimitation, NRS 104.9623, to the extentset forth in the transaction documents relating to a securitizationtransaction:

1. Any property, assets or rights purported to betransferred, in whole or in part, in the securitization transaction shall bedeemed to be no longer the property, assets or rights of the transferor;

2. A transferor in the securitization transaction, itscreditors or, in any insolvency proceeding with respect to the transferor orproperty of the transferor, a bankruptcy trustee, receiver, debtor, debtor inpossession or similar person, to the extent that the issue is governed by thelaws of this State, has no rights, legal or equitable, to reacquire, reclaim,recover, repudiate, disaffirm, redeem or recharacterize as property of thetransferor any property, assets or rights purported to be transferred, in wholeor in part, by the transferor; and

3. In the event of a bankruptcy, receivership or otherinsolvency proceeding with respect to the transferor or property of thetransferor, to the extent that the issue is governed by the laws of this State,such property, assets and rights shall be deemed not to be part of theproperty, assets, rights or estate of the transferor.

(Added to NRS by 2005, 2207)

NRS 100.230 Restrictionson construction and interpretation of Asset-Backed Securities Facilitation Act. The provisions of NRS100.200 to 100.230, inclusive, mustnot be construed or interpreted to:

1. Require any securitization transaction to betreated as a sale for federal or state tax purposes or to preclude thetreatment of any securitization transaction as debt for federal or state taxpurposes;

2. Alter or amend any applicable laws relating to theperfection and priority of security ownership interests of persons other thanthe transferor, hypothetical lien creditor or, in the event of a bankruptcy,receivership or other insolvency proceeding with respect to the transferor orproperty of the transferor, a bankruptcy trustee, receiver, debtor, debtor in possessionor similar person; or

3. Alter or amend the tax treatment of securitizationtransactions that take place pursuant to NRS100.200 to 100.230, inclusive.

(Added to NRS by 2005, 2208)

 

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