NRS: CHAPTER 106A - MORTGAGE MODIFICATIONS (UNIFORM ACT)

NRS 106A.020 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 106A.030 to 106A.130, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2025, 614)

NRS 106A.030 “Electronic” defined. “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.

(Added to NRS by 2025, 615)

NRS 106A.040 “Financial covenant” defined. “Financial covenant” means an undertaking to demonstrate an obligor’s creditworthiness or the adequacy of security provided by an obligor.

(Added to NRS by 2025, 615)

NRS 106A.050 “Modification” defined. “Modification” includes change, amendment, revision, correction, addition, supplementation, elimination, waiver and restatement.

(Added to NRS by 2025, 615)

NRS 106A.060 “Mortgage” defined.

1. “Mortgage” means an agreement that creates a consensual interest in real property to secure payment or performance of an obligation, regardless of:

(a) How the agreement is denominated, including a mortgage, deed of trust, trust deed, security deed, indenture and deed to secure debt; and

(b) Whether the agreement also creates a security interest in personal property; and

2. The term does not include an agreement that creates a consensual interest to secure a liability owed by a unit owner to a condominium association, owners’ association or cooperative housing association for association dues, fees or assessments.

(Added to NRS by 2025, 615)

NRS 106A.070 “Mortgage modification” defined. “Mortgage modification” means modification of:

1. A mortgage;

2. An agreement that creates an obligation, including a promissory note, loan agreement or credit agreement; or

3. An agreement that creates other security or credit enhancement for an obligation, including an assignment of leases or rents or a guaranty.

(Added to NRS by 2025, 615)

NRS 106A.080 “Obligation” defined. “Obligation” means a debt, duty or other liability, secured by a mortgage.

(Added to NRS by 2025, 615)

NRS 106A.090 “Obligor” defined. “Obligor” means a person that:

1. Owes payment or performance of an obligation;

2. Signs a mortgage; or

3. Is otherwise accountable, or whose property serves as collateral, for payment or performance of an obligation.

(Added to NRS by 2025, 615)

NRS 106A.100 “Person” defined. “Person” means an individual, estate, business or nonprofit entity, government or governmental subdivision, agency or instrumentality, or other legal entity.

(Added to NRS by 2025, 615)

NRS 106A.110 “Recognized index” defined. “Recognized index” means an index to which changes in the interest rate may be linked that is:

1. Readily available to, and verifiable by, the obligor; and

2. Beyond the control of the person to whom the obligation is owed.

(Added to NRS by 2025, 615)

NRS 106A.120 “Record” defined. “Record” means, when used as a noun, information:

1. Inscribed on a tangible medium; or

2. Stored in an electronic or other medium and retrievable in perceivable form.

(Added to NRS by 2025, 615)

NRS 106A.130 “Sign” defined. “Sign” means, with present intent to authenticate or adopt a record:

1. Execute or adopt a tangible symbol; or

2. Attach to or logically associate with the record an electronic symbol, sound or process.

(Added to NRS by 2025, 615)

NRS 106A.140 Applicability.

1. Except as provided in subsection 3, this chapter applies to a mortgage modification.

2. This chapter does not affect:

(a) Law governing the required content of a mortgage;

(b) A statute of limitations or other law governing the expiration or termination of a right to enforce an obligation or a mortgage;

(d) A statute governing the priority of a tax lien or other governmental lien;

(e) A statute of frauds or the provisions of chapter 719 of NRS; or

(f) Except as provided in paragraph (h) of subsection 2 of NRS 106A.150, law governing the priority of a future advance.

3. This chapter does not apply to any of the following modifications:

(a) A release of, or addition to, property encumbered by a mortgage;

(b) A release of, addition of, or other change in an obligor; or

(Added to NRS by 2025, 615)

NRS 106A.150 Effect of mortgage modification.

1. For a mortgage modification described in subsection 2:

(a) The mortgage continues to secure the obligation as modified;

(b) The priority of the mortgage is not affected by the modification;

(c) The mortgage retains its priority regardless of whether a record of the mortgage modification is recorded in the land records of a jurisdiction in which the property is located; and

(d) The modification is not a novation.

2. Subsection 1 applies to one or more of the following mortgage modifications:

(a) An extension of the maturity date of an obligation;

(b) A decrease in the interest rate of an obligation;

(c) If the change does not result in an increase in the interest rate of an obligation as calculated on the date the modification becomes effective:

(1) A change to a different index that is a recognized index if the previous index to which changes in the interest rate were linked is no longer available;

(2) A change in the differential between the index and the interest rate;

(3) A change from a floating or adjustable rate to a fixed rate; or

(4) A change from a fixed rate to a floating or adjustable rate based on a recognized index;

(d) A capitalization of unpaid interest or other unpaid monetary obligation;

(e) A forgiveness, forbearance or other reduction of principal, accrued interest or other monetary obligation;

(f) A modification of a requirement for maintaining an escrow or reserve account for payment of an obligation, including taxes and insurance premiums;

(g) A modification of a requirement for acquiring or maintaining insurance;

(h) A modification of an existing condition to advance funds;

(i) A modification of a financial covenant; and

(j) A modification of the payment amount or schedule resulting from another modification described in this subsection.

3. The effect of a mortgage modification not described in subsection 2 is governed by other law.

(Added to NRS by 2025, 616)

NRS 106A.160 Uniformity of application and construction. In applying and construing this uniform act, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.

(Added to NRS by 2025, 617)

NRS 106A.170 Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., but does not modify, limit or supersede section 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that act, 15 U.S.C. § 7003(b).

(Added to NRS by 2025, 617)