[Rev. 11/21/2013 9:26:27 AM--2013]

CHAPTER 100 - SPECIAL RELATIONS OF DEBTOR AND CREDITOR; SURETYSHIP

PREFERRED LABOR CLAIMS

NRS 100.010           Assignment for creditors.

NRS 100.020           Levy of attachment or execution: Written notice; service; payment of claim; disputed claims; 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           Requiring resort to different funds.

NRS 100.050           Order of resort to different funds.

SURETYSHIP

NRS 100.060           Agreements between principals and sureties for joint control of assets.

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

TRANSFER OF CREDITOR’S RIGHTS

NRS 100.075           Creditor’s rights transferable without consent of debtor.

DEPOSITS

NRS 100.085           Deposits in names of two or more persons.

NRS 100.091           Impound account required under loan secured by real property: Contributions; payment of obligations; annual analysis; statements; increase in contributions; disposition of excess money; civil penalty; applicability.

LEASING OF VEHICLES

NRS 100.095           Definitions.

NRS 100.105           Disclosures required before commercial vehicle lease consummated.

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

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

NRS 100.135           Appraisal of vehicle when commercial vehicle lease terminates or expires.

NRS 100.145           Obtaining bids to establish residual value of vehicle when value or method of establishing value not agreed upon.

NRS 100.155           Notice of lessor’s intention to establish residual value of vehicle.

NRS 100.165           Lessee’s right to submit bid for purchase of vehicle; effect of lessee’s bid.

NRS 100.175           Penalty on lessor for failure to comply with NRS 100.145 to 100.165, inclusive.

ASSET-BACKED SECURITIES FACILITATION ACT

NRS 100.200           Short title.

NRS 100.210           Definitions.

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

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

_________

PREFERRED LABOR CLAIMS

      NRS 100.010  Assignment for creditors.

      1.  Subject to the provisions of subsection 2, in all assignments of property, whether real or personal, which shall hereafter be made by any person or chartered company or corporation, or by any person or persons, owning or leasing real or personal property, to trustees or assignees on account of inability at the time of the assignment to pay his, her or their debts, the wages of the miners, mechanics, salespersons, servants, clerks or laborers, employed by such person or persons, chartered company or corporation shall be held and deemed preferred claims, and paid by such trustees or assignees before any other creditor or creditors of the assignor, including the State as a creditor for amounts due under the provisions of chapter 372 of NRS.

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

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

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

      1.  In all cases of execution, attachment and writs of a similar nature against the property of any person or persons, chartered company or corporation, at any time before the actual sale of property levied upon, it shall be lawful for a miner, mechanic, salesperson, servant, clerk and laborer to give notice of his or her claim or claims and the amount thereof, duly certified and sworn to by the creditor or creditors making the claim to the officer executing either of such writs.

      2.  The creditor or creditors making the claim shall at the same time give notice in writing to the creditor or creditors at whose instance the property has been levied upon, or his, her or their attorney, of their claim or claims, and the amount thereof duly certified and sworn to by such claimant or claimants. A copy of the notice shall also be served upon the debtor if the debtor be found within the county where the property levied upon is situated. If the debtor cannot be found within the county where the property levied upon is situated, then the notice may be served upon the officer executing either of such writs in lieu of the debtor.

      3.  Upon the filing in the court where the action or actions against the debtor is or are pending of an affidavit of the claimant or claimants, showing his, her or their compliance with the foregoing provisions of this section, the officer executing either of the writs shall pay to such miners, mechanics, salespersons, servants, clerks or laborers, out of the proceeds of the sale, the amount each is justly and legally entitled to receive for services 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 the claim of any person seeking and claiming preference under this section, and in such case the party or parties disputing such claim shall serve a written notice that they dispute such claim upon the claimant or claimants, and upon the officer executing such writs, within 5 days from the time of service upon such creditor or debtor of the notice of the claim by the claimant seeking preference, as hereinbefore provided for.

      5.  Within 10 days from the time of the service provided for in subsection 4, the claimant or claimants shall commence an action in any court of competent jurisdiction against the debtor, and the person or persons disputing his, her or their claim or claims, for the recovery thereof, and shall prosecute such action with due diligence, or be forever barred from any claim of priority payment thereof. In case action is rendered necessary by the act aforesaid, by either debtor or creditor, and judgment shall be had for the claim or any part thereof, carrying costs, the costs attending the prosecution of the action, and legally taxable therein, shall likewise be a preferred claim with the same rank as the original claim.

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

      [Part 1911 CPA § 552; RL § 5494; NCL § 9041]—(NRS A 1959, 136)

      NRS 100.030  NRS 100.010 and 100.020 not to affect prior liens.  Nothing contained in NRS 100.010 and 100.020 shall be construed to affect any homestead claims, mortgage or lien of any description, created and existing before the claim of such laborer accrued.

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

MARSHALING OF ASSETS

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

      [1:32:1923; NCL § 4080]

      NRS 100.050  Order of resort to different funds.  Where one has a lien upon several things, and other persons have subordinate liens upon, or interests in, some but not all of the same things, the person having the prior lien, if he or she can do so without risk of loss to himself or herself, or of injustice to other persons, must resort to the property in the following order, on the demand of any party interested:

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

      2.  To the things which are subject to the fewest subordinate liens;

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

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

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

      (b) To the things which have been so transferred without a valuable consideration; and

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

      [2:32:1923; NCL § 4081]

SURETYSHIP

      NRS 100.060  Agreements between principals and sureties for joint control of assets.  It is lawful for any party of whom a bond, undertaking or other obligation is required, to agree with the party’s surety or sureties for the deposit of any money and assets for which the party and the party’s surety or sureties are or may be held responsible, with a bank, credit union, savings bank, safe-deposit or trust company, authorized by law to do business as such, or with another depository approved by the court or a judge thereof, if the deposit is otherwise proper, for the safekeeping thereof, and in such manner as to prevent the withdrawal of the money or assets or any part thereof, without the written consent 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 liability of 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  Deposits authorized 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 required as protection for the State of Nevada, the person required to provide the cash payment or surety bond may deposit with the State Treasurer, unless a different custodian is named by specific statute:

      (a) Bonds of the United States or of the State of Nevada of an actual market value of not less than the amount of the required cash 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 meets the requirements set for that purpose by the State Treasurer; or

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

      2.  Whenever a savings certificate, certificate of deposit 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 the State of Nevada, the bond must be issued by an insurer who is authorized or otherwise allowed under title 57 of NRS to issue such a bond pursuant to title 57 of NRS.

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

TRANSFER OF CREDITOR’S RIGHTS

      NRS 100.075  Creditor’s rights transferable without consent of debtor.  Any creditor may, without the consent of the debtor, transfer all or any part of his or her rights against the debtor to any third party. The assignee is entitled by virtue of an assignment or transfer to sue in his or her own name as a real party in interest. This section does not preclude a contract between the parties prohibiting the assignment or transfer of the creditor’s rights against the debtor to a third party.

      (Added to NRS by 1975, 1343)

DEPOSITS

      NRS 100.085  Deposits in names of two or more persons.

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

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

      3.  When a deposit has been made in the name of the depositor and one or more other persons, and in a form to be paid or delivered to the survivor or survivors of them, but one or more of the other persons is not authorized to withdraw from the deposit during the life of the depositor or depositors, the person or persons so restricted have no present interest in the deposit, but upon the death of the last depositor entitled to withdraw, the deposit is presumed to belong to the survivor or survivors. Unless written notice of a claim against the deposit has been given by a survivor or a third person before payment or delivery, payment or delivery to a survivor is a valid and sufficient release and discharge of the depository.

      4.  For the purposes of this section, unless a depositor specifically provides otherwise, the use by the depositor of any of the following words or terms in designating the ownership of an account indicates the intent of the depositor that the account be held in joint tenancy:

      (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  Impound account required under loan secured by real property: Contributions; payment of obligations; annual analysis; statements; increase in contributions; disposition of excess money; civil penalty; applicability.

      1.  For each loan requiring the deposit of money to an escrow account, loan trust account or other impound account for the payment of taxes, assessments, rental or leasehold payments, insurance premiums or other obligations related to the encumbered property, the lender shall:

      (a) Require contributions in an amount reasonably necessary to pay the obligations as they become due.

      (b) Unless money in the account is insufficient, pay in a timely manner the obligations as they become due.

      (c) At least annually, analyze the account. The analysis of each account must be performed to determine whether sufficient money is contributed to the account on a monthly basis to pay for the projected disbursements from the account. At least 30 days before the effective date of any increased contribution to the account based on the analysis, a statement must be sent to the borrower showing the method of determining the amount of money held in the account, the amount of projected disbursements from the account and the amount of the reserves which may be held in accordance with federal guidelines.

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

      3.  Except for payments made by a borrower for a lender to recover previous deficiencies in contributions to the account pursuant to subsection 2, the borrower is entitled pursuant to subsection 4 to the amount by which the borrower’s contributions to the account exceed the amount reasonably necessary to pay the annual obligations due from the account, together with interest thereon at the rate established pursuant to NRS 99.040.

      4.  If, upon completion of the analysis, it is determined that the amount of money held by the lender in the account, together with anticipated future monthly contributions to the account to be credited to the account before the dates items are due on the account, exceed the amount of money required to pay the items when due, the lender shall, not later than 30 days after completion of its annual review of the account, notify the borrower:

      (a) Of the amount by which the contributions and interest earned pursuant to subsection 3 exceed the amount reasonably necessary to pay the annual obligations due from the account; and

      (b) That the borrower may, not later than 20 days after receipt of the notice, specify that the lender:

             (1) Repay the excess money and interest promptly to the borrower;

             (2) Apply the excess money and interest to the outstanding principal balance; or

             (3) Retain the excess money and interest in the account.

      5.  If the borrower fails to specify the disposition of the excess money and interest as provided in paragraph (b) of subsection 4, the lender shall maintain the excess money and interest in the account.

      6.  If any payment on the loan is delinquent at the time of the analysis, the lender shall retain any excess money and interest in the account and apply the excess money and interest in the account toward payment of the delinquency.

      7.  A lender who violates any provision of subsections 4, 5 and 6 is liable to the borrower for a civil penalty of not more than $1,000.

      8.  The provisions of this section apply exclusively to:

      (a) A loan secured by a single family residence, as that term is defined in NRS 107.080; and

      (b) A unit in a common-interest community that is used exclusively for residential use, as those terms are defined in chapter 116 of NRS.

      9.  As used in this section:

      (a) “Borrower” means any person who receives a loan secured by real property and who is required to make advance contributions for the payment of taxes, insurance premiums or other expenses related to the property.

      (b) “Lender” means any person who makes loans secured by real property and who requires advance contributions for the payment of taxes, insurance premiums or other expenses related to the property.

      (Added to NRS by 1989, 1068; A 2013, 1016)

LEASING OF VEHICLES

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

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

      2.  “Person” includes any governmental entity.

      3.  “Vehicle” means every device in, upon or by which any person or property is or may be transported upon a public highway, except devices:

      (a) Moved by human power;

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

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

Ê The term does not include electric personal assistive mobility devices as defined in NRS 482.029.

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

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

      NRS 100.105  Disclosures required 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 lessor and lessee are identified and the following information with respect to the lease is set out accurately in a clear and conspicuous manner:

      (a) A brief description or identification of the leased vehicle.

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

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

      (d) The amount of other charges payable by the lessee not included in the periodic payments and a description of those charges.

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

             (1) If at the expiration of the lease, at what price.

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

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

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

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

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

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

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

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

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

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

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

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

      2.  A lessee is not liable for the differential between the unamortized capitalized cost of the leased vehicle (where that amount differs from the estimated residual value) and the actual residual value at the expiration of the lease unless the lessor discloses the estimated residual value of the vehicle and the limitation of the expiration liability exclusively associated with its use and the lessee specifically agrees to the use of an amount other than the estimated residual value. Such disclosure and agreement must be set forth in 10-point typeface and be acknowledged by the lessee’s initials.

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

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

      (Added to NRS by 1979, 1260)

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

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

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

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

      (c) In the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.

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

      3.  A lessor may not be held in any action brought under this section for a violation of NRS 100.105 if the lessor shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

      4.  No provision of this section imposing any liability applies 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 Reserve System or in conformity with any interpretation or approval by an official or employee of the Federal Reserve System duly authorized by the Board to issue such interpretation or approvals under such procedures as the Board may prescribe therefor, even if after the act or omission has occurred, the rule, regulation, interpretation or approval is amended, rescinded or determined by judicial or other authority to be invalid for any reason.

      5.  The multiple failure to disclose to any lessee any information required to be disclosed in connection with a single commercial vehicle lease entitles the lessee to a single recovery under this section but continued failure to disclose after a recovery has been granted gives rise to rights to additional recoveries.

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

      (Added to NRS by 1979, 1261)

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

      1.  Where the commercial vehicle lease contains an amount identified as the lessee’s liability upon expiration of the lease based on the estimated residual value of the vehicle, the estimated residual value must be a reasonable approximation of the actual residual value of the vehicle upon expiration of the lease.

      2.  There is a rebuttable presumption that the estimated residual value is unreasonable to the extent that it exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease. The lessor shall not collect from the lessee the amount of that excess liability on expiration of a commercial vehicle lease unless the lessor brings a successful action with respect to that excess liability, and if the lessor’s action is unsuccessful the lessor must pay the lessee’s costs and reasonable attorney’s fees. This presumption does not apply to the extent the excess of estimated residual value over actual residual value is due to physical damage to the vehicle beyond reasonable wear and use, or to excessive use. The lease must set reasonable standards for wear and use if the lessor establishes such standards.

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

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

      (Added to NRS by 1979, 1262)

      NRS 100.145  Obtaining bids to establish residual value of vehicle when value or method of establishing value not agreed upon.

      1.  Where the lessee’s liability on the date any vehicle lease or commercial vehicle lease terminates or expires is based on the residual value of the vehicle at that time and the lessor and lessee do not agree in writing on that value or on another method of establishing it, the lessor may, subject to the provisions of NRS 100.165, for the purpose of establishing residual value and thereby providing the basis for determining the lessee’s liability, obtain written bids from third persons.

      2.  The lessor shall act in good faith and in a commercially reasonable manner in obtaining bids for the vehicle. The fact that a better price could have been obtained at a different time or in a different method from that selected by the lessor is not of itself sufficient to establish that the lessor did not act in a commercially reasonable manner. If the lessor obtains bids at the price current in any recognized market for such a vehicle at the time of the bidding, the lessor has acted in a commercially reasonable manner.

      3.  The highest effective bid obtained pursuant to this section or NRS 100.165, where applicable, or the actual sale price, whichever is higher, establishes the residual value of the vehicle.

      (Added to NRS by 1979, 1262)

      NRS 100.155  Notice of lessor’s intention to establish residual value of vehicle.

      1.  The lessor shall give the lessee written notice of his or her intention to establish the residual value of the vehicle under the vehicle lease 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 address of the lessee shown on the lease, or to the lessee’s last known address, unless the lessee has notified the lessor in writing of a different address.

      2.  The notice must:

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

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

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

      3.  If the lease is not in default and has not been terminated before its scheduled expiration, the notice must also inform the lessee that his or her maximum total liability under the vehicle lease or commercial vehicle lease is limited to three times the average payment allocable to a monthly period under the lease if the estimated residual value exceeds the actual residual value and the difference is not the result of physical damage to the vehicle beyond reasonable wear and use or to excessive use.

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

      NRS 100.165  Lessee’s right to submit bid for purchase of vehicle; effect of lessee’s bid.

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

      2.  If the lessor accepts the lessee’s bid as the highest bid, the lessee has 5 days from the date of such acceptance within which to tender the full amount of the purchase price, and:

      (a) If the lessee tenders the full amount within the prescribed time and the lessor nevertheless elects not to sell the vehicle to the lessee, the bid establishes the residual value of the vehicle and the lessor must credit the amount of the bid against the lessee’s liability under the lease.

      (b) If the lessee fails to tender the full amount of the purchase price within the prescribed time, the lessee’s bid does not establish the residual value of the vehicle and the lessor must credit against the lessee’s liability the amount of the next highest bid.

      (Added to NRS by 1979, 1263)

      NRS 100.175  Penalty on lessor for failure to comply with NRS 100.145 to 100.165, inclusive.  If the lessor under a vehicle lease or a commercial vehicle lease fails to comply with NRS 100.145 to 100.165, inclusive, the lessor may not recover any deficiency from the lessee.

      (Added to NRS by 1979, 1264)

ASSET-BACKED SECURITIES FACILITATION ACT

      NRS 100.200  Short title.  NRS 100.200 to 100.230, inclusive, may be known and cited as the Asset-Backed Securities Facilitation Act.

      (Added to NRS by 2005, 2207)

      NRS 100.210  Definitions.

      1.  As used in NRS 100.200 to 100.230, inclusive, unless the context otherwise requires, the terms “securitization” and “securitization transaction” include, without limitation, the pooling and repackaging by a special purpose entity of assets or other credit exposures that may be sold to investors.

      2.  The terms include transactions that create stratified credit risk positions whose performance is dependent upon an underlying pool of credit exposures, including, without limitation, loans and commitments.

      3.  The terms must be construed broadly.

      (Added to NRS by 2005, 2207)

      NRS 100.220  Effect of securitization transaction on property, assets and rights of transferor.  Notwithstanding any other provision of law, including, without limitation, NRS 104.9623, to the extent set forth in the transaction documents relating to a securitization transaction:

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

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

      3.  In the event of a bankruptcy, receivership or other insolvency proceeding with respect to the transferor or property of the transferor, 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 the property, assets, rights or estate of the transferor.

      (Added to NRS by 2005, 2207)

      NRS 100.230  Restrictions on construction and interpretation of Asset-Backed Securities Facilitation Act.  The provisions of NRS 100.200 to 100.230, inclusive, must not be construed or interpreted to:

      1.  Require any securitization transaction to be treated as a sale for federal or state tax purposes or to preclude the treatment of any securitization transaction as debt for federal or state tax purposes;

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

      3.  Alter or amend the tax treatment of securitization transactions that take place pursuant to NRS 100.200 to 100.230, inclusive.

      (Added to NRS by 2005, 2208)