USA Statutes : nevada
Title : Title 09 - SECURITY INSTRUMENTS OF PUBLIC UTILITIES; MORTGAGES; DEEDS OF TRUST; OTHER LIENS
Chapter : CHAPTER 106 - REAL MORTGAGES
In any
mortgage of real or personal, or real and personal property, made prior
to March 1, 1967, the parties may adopt by reference all or any of the
following covenants, agreements, obligations, rights and remedies:
1. Covenant No. 1. That the mortgagor will perform each and all of
the promises and obligations of the mortgage and all covenants thereof,
adopted by reference as provided herein, and will pay the indebtedness
therein described with interest as therein provided.
2. Covenant No. 2. That the mortgagor will pay a reasonable
attorney fee in case suit is started for the collection of the mortgage
debt or any part thereof, and will pay all costs and expenses of the
suit, whether the suit be prosecuted to judgment or not, and will also
pay all costs of any sale made thereunder without court proceedings,
including in case of such sale an attorney fee equal to ........ percent
of the amount due at the date of the sale upon the principal and interest
of the mortgage debt.
3. Covenant No. 3. That the mortgagor will pay, in lawful money of
the United States, all sums expended or advanced by the mortgagee for
taxes or assessments levied or assessed against the mortgaged property,
fire insurance upon the same, or advanced for any other purpose provided
for by the terms of the mortgage or the covenants thereof adopted by
reference, together with interest upon any such sums from the date of the
payment by the mortgagee until repaid, at the rate of ........ percent
per annum.
4. Covenant No. 4. That this mortgage will be security for the
payment in lawful money of the United States of any and all moneys that
may hereafter become due or payable from the mortgagor to the mortgagee,
from any cause whatsoever.
5. Covenant No. 5. That this mortgage shall be security for any
and all renewals of the mortgage debt or of the promissory note or notes
evidencing the same, which may be executed and delivered by the mortgagor
to the mortgagee, and any and all additional or future advances or loans
which may be made by the mortgagee to the mortgagor.
6. Covenant No. 6. That the mortgagor agrees to pay and discharge
at maturity all taxes and assessments and all other charges and
encumbrances which are, or shall hereafter be, or appear to be, a lien
upon the mortgaged property, or any part thereof, and he will pay all
interest or installments due on any prior encumbrance. And in default
thereof, the mortgagee may, without demand or notice, pay the same and
the mortgagee shall be the sole judge of the legality or validity of such
taxes, assessments, charges or encumbrances and the amount necessary to
be paid in the satisfaction or discharge thereof.
7. Covenant No. 7. That the mortgagor will at all times keep the
buildings and improvements, which are now or which shall hereafter be
erected upon the mortgaged premises, insured against loss or damage by
fire to the amount of at least $........ in some reliable insurance
company or companies, approved by the mortgagee, and will deliver the
policies therefor to the mortgagee to be held by the mortgagee as further
security. In default of the mortgagor to obtain such insurance, the
mortgagee may procure the same, not exceeding the amount aforesaid, and
may pay and expend for premiums for such insurance such sums of money as
the mortgagee shall deem necessary.
8. Covenant No. 8. That if there be more than one mortgagor in a
mortgage, all covenants, terms, promises and obligations set forth in the
mortgage or adopted by reference are agreed to be joint and several
covenants, terms, conditions, promises and obligations of each of the
mortgagors thereto.
9. Covenant No. 9. That this mortgage is made upon the express
condition that if all sums secured hereby shall be paid at the time,
place and manner mentioned in the mortgage, or in any of the covenants
provided by this section which shall be adopted by reference, the
mortgage and the estate therein mentioned and described shall cease,
determine and be void, and the mortgagor, for himself, his heirs,
executors, administrators, successors and assigns, covenants and agrees
to pay in lawful money of the United States to the mortgagee all sums
secured by the mortgage, or by the terms of the covenants adopted by
reference at the time and in the manner therein provided, and if default
be made in the payment of the principal or interest or any part thereof
described in the mortgage, or of any promissory note or other instrument
or obligation for which such mortgage is given as security, the whole of
the principal sum for which the mortgage is given, which shall be then
unpaid, shall become forthwith payable, although the time expressed in
the promissory note or notes or other obligation or obligations shall not
have arrived.
10. Covenant No. 10. That it is understood and agreed that all the
natural increase, during the existence of this mortgage, of any livestock
which shall at any time be subject to the lien hereof, and all other
livestock of the same kind as that described in the mortgage which in any
manner is acquired by the mortgagor during the life of the mortgage, and
all wool grown upon or produced by any sheep which shall at any time be
subject to the lien of the mortgage, is property mortgaged hereunder and
subject to the lien of the mortgage.
11. Covenant No. 11. That the mortgagor covenants and agrees to
keep all livestock mortgaged or subject to the lien of the mortgage in
good condition, and care for, inspect and protect the same, and provide
and maintain sufficient blooded, graded breeding stock to properly serve
any female livestock at any time subject to the lien of the mortgage, and
in general to exercise such care in rearing, branding, ranging and
feeding all livestock subject to the lien of the mortgage as is
consistent and in accord with good business, and with the customary
manner of handling that kind of livestock which is subject to the lien
hereof. Should the livestock or any part thereof at any time, in the
opinion of the mortgagee, require care, attention or protection other
than that provided by the mortgagor, then the mortgagee may enter or
cause entry to be made upon any property where the mortgaged livestock or
any part thereof may be found, and assume control, custody and possession
of the same, and at the expense of the mortgagor care for, protect, and
attend to the same in such manner as it may deem necessary.
12. Covenant No. 12. That it is further understood and agreed that
the mortgagee, its agents or attorneys, shall have the right at all times
to inspect and examine any property which may at any time be subject to
the lien of the mortgage, for the purpose of ascertaining whether or not
the security given is being lessened, diminished, depleted or impaired,
and if such inspection or examination shall disclose, in the judgment of
the mortgagee, that the security given or the property mortgaged is being
lessened or impaired, such condition shall be deemed a breach of the
covenants of the mortgage on the part of the mortgagor.
13. Covenant No. 13. That upon default of any of the terms,
conditions, covenants or agreements of any chattel mortgage whereby
livestock is mortgaged, it is agreed that the mortgagee may, without
foreclosure and without legal proceedings and without any previous demand
therefor, with the aid or assistance of any person or persons, enter upon
the premises and ranges of the mortgagor or such place or places as any
of the property subject to the lien of the mortgage is or may be found,
and take, lead, drive or carry away the mortgaged property or any part
thereof, and with or without notice to the mortgagor, at either public or
private sale, sell and dispose of the same or so much thereof as may be
necessary to pay the amount and sums secured by the mortgage, for the
best price it can obtain, and out of the moneys arising therefrom it
shall retain and pay the sum or sums then due or payable under the lien
of the mortgage, and interest thereon, and all charges and expenses
incurred in gathering, feeding, caring for, and selling the property or
any part thereof, and any other expenses and charges incurred by the
mortgagee, and all other sums secured by any of the terms of the
mortgage, and any overplus shall be paid to the mortgagor. The mortgagee
is expressly authorized and empowered, upon any such sale, to make and
execute such bills of sale or other conveyances necessary to convey to
the purchaser or purchasers thereof an absolute title in the property so
sold. It shall not be necessary for the purchaser or purchasers at any
such sale or sales purported to be made under the powers granted
hereunder to inquire into or in any way be or become responsible for the
actual existence of the contingency or contingencies upon which such sale
or sales shall be made by the mortgagee, and title to the purchaser or
purchasers of the property so sold shall be good and sufficient; and the
mortgagor agrees that the decision of the mortgagee as to the actual
existence of the contingency or contingencies upon which the sale or
sales as aforesaid is or may be predicated shall be conclusive and
binding upon the mortgagor.
14. Covenant No. 14. That it is expressly agreed by and between
the mortgagor and mortgagee that, in the event suit shall be instituted
for the foreclosure of the mortgage, the mortgagee may, at its option and
without notice, apply for the appointment of a receiver for the purpose
of taking possession of the mortgaged property pending foreclosure, and
with the approval of the court wherein such suit is instituted, such
receiver as may be designated by the mortgagee shall be appointed. All
costs in connection with the appointment of a receiver or in connection
with the discharge of the duties of the receiver shall be taxed as costs
in the suit.
15. Covenant No. 15. That it is expressly agreed and understood
that in any sale of any of the property at any time subject to the lien
of the mortgage, under the terms of the mortgage or any of the covenants
adopted by reference, the property may, at the option of the mortgagee,
be sold in one lot or parcel or in such other lots or parcels as may be
designated by the mortgagee; and it is further covenanted and agreed that
the mortgagee may become the purchaser of the property or any part
thereof at any sale made under any of the terms of the mortgage, or upon
foreclosure.
[1:109:1927; NCL § 4330]—(NRS A 1967, 120)
In
any mortgage of real property, made on or after March 1, 1967, the
parties may adopt by reference all or any of the following covenants,
agreements, obligations, rights and remedies:
1. Covenant No. 1. That the mortgagor will perform each and all of
the promises and obligations of the mortgage and all covenants thereof,
adopted by reference as provided herein, and will pay the indebtedness
therein described with interest as therein provided.
2. Covenant No. 2. That the mortgagor will pay a reasonable
attorney fee in case suit is started for the collection of the mortgage
debt or any part thereof, and will pay all costs and expenses of the
suit, whether the suit be prosecuted to judgment or not, and will also
pay all costs of any sale made thereunder without court proceedings,
including in case of such sale an attorney fee equal to ........ percent
of the amount due at the date of the sale upon the principal and interest
of the mortgage debt.
3. Covenant No. 3. That the mortgagor will pay, in lawful money of
the United States, all sums expended or advanced by the mortgagee for
taxes or assessments levied or assessed against the mortgaged property,
fire insurance upon the same, or advanced for any other purpose provided
for by the terms of the mortgage or the covenants thereof adopted by
reference, together with interest upon any such sums from the date of the
payment by the mortgagee until repaid, at the rate of ........ percent
per annum.
4. Covenant No. 4. That this mortgage will be security for the
payment in lawful money of the United States of any and all moneys that
may hereafter become due or payable from the mortgagor to the mortgagee,
from any cause whatsoever.
5. Covenant No. 5. That this mortgage shall be security for any
and all renewals of the mortgage debt or of the promissory note or notes
evidencing the same, which may be executed and delivered by the mortgagor
to the mortgagee, and any and all additional or future advances or loans
which may be made by the mortgagee to the mortgagor.
6. Covenant No. 6. That the mortgagor agrees to pay and discharge
at maturity all taxes and assessments and all other charges and
encumbrances which are, or shall hereafter be, or appear to be, a lien
upon the mortgaged property, or any part thereof, and he will pay all
interest or installments due on any prior encumbrance. And in default
thereof, the mortgagee may, without demand or notice, pay the same and
the mortgagee shall be the sole judge of the legality or validity of such
taxes, assessments, charges or encumbrances and the amount necessary to
be paid in the satisfaction or discharge thereof.
7. Covenant No. 7. That the mortgagor will at times keep the
buildings and improvements, which are now or which shall hereafter be
erected upon the mortgaged premises, insured against loss or damage by
fire to the amount of at least $........ in some reliable insurance
company or companies, approved by the mortgagee, and will deliver the
policies therefor to the mortgagee to be held by the mortgagee as further
security. In default of the mortgagor to obtain such insurance, the
mortgagee may procure the same, not exceeding the amount aforesaid, and
may pay and expend for premiums for such insurance such sums of money as
the mortgagee shall deem necessary.
8. Covenant No. 8. That if there be more than one mortgagor in a
mortgage, all covenants, terms, promises and obligations set forth in the
mortgage or adopted by reference are agreed to be joint and several
covenants, terms, conditions, promises and obligations of each of the
mortgagors thereto.
9. Covenant No. 9. That this mortgage is made upon the express
condition that if all sums secured hereby shall be paid at the time,
place and manner mentioned in the mortgage, or in any of the covenants
provided by this section which shall be adopted by reference, the
mortgage and the estate therein mentioned and described shall cease,
determine and be void, and the mortgagor, for himself, his heirs,
executors, administrators, successors and assigns, covenants and agrees
to pay in lawful money of the United States to the mortgagee all sums
secured by the mortgage, or by the terms of the covenants adopted by
reference at the time and in the manner therein provided, and if default
be made in the payment of the principal or interest or any part thereof
described in the mortgage, or of any promissory note or other instrument
or obligation for which such mortgage is given as security, the whole of
the principal sum for which the mortgage is given, which shall be then
unpaid, shall become forthwith payable, although the time expressed in
the promissory note or notes or other obligation or obligations shall not
have arrived.
10. Covenant No. 10. That it is further understood and agreed that
the mortgagee, its agents or attorneys, shall have the right at all times
to inspect and examine any property which may at any time be subject to
the lien of the mortgage, for the purpose of ascertaining whether or not
the security given is being lessened, diminished, depleted or impaired,
and if such inspection or examination shall disclose, in the judgment of
the mortgagee, that the security given or the property mortgaged is being
lessened or impaired, such condition shall be deemed a breach of the
covenants of the mortgage on the part of the mortgagor.
11. Covenant No. 11. That it is expressly agreed by and between
the mortgagor and mortgagee that, in the event suit shall be instituted
for the foreclosure of the mortgage, the mortgagee, may, at its option
and without notice, apply for the appointment of a receiver for the
purpose of taking possession of the mortgaged property pending
foreclosure, and with the approval of the court wherein such suit is
instituted, such receiver as may be designated by the mortgagee shall be
appointed. All costs in connection with the appointment of a receiver or
in connection with the discharge of the duties of the receiver shall be
taxed as costs in the suit.
12. Covenant No. 12. That it is expressly agreed and understood
that in any sale of any of the property at any time subject to the lien
of the mortgage, under the terms of the mortgage or any of the covenants
adopted by reference, the property may, at the option of the mortgagee,
be sold in one lot or parcel or in such other lots or parcels as may be
designated by the mortgagee; and it is further covenanted and agreed that
the mortgagee may become the purchaser of the property or any part
thereof at any sale made under any of the terms of the mortgage, or upon
foreclosure.
(Added to NRS by 1967, 123)
Whenever, by the terms of any mortgage, any of the covenants
in NRS 106.020 or 106.025 are adopted as a part thereof by reference, as
provided in NRS 106.020 to 106.050
, inclusive, the mortgage is intended to
secure and does secure the performance of the terms and conditions of the
mortgage and all of the covenants so adopted by reference.
[2:109:1927; NCL § 4331]—(NRS A 1967, 125; 1985, 237)
1. In order to adopt by reference any of the covenants,
agreements, obligations, rights and remedies in NRS 106.020 or 106.025 ,
it shall only be necessary to state in the mortgage whichever of the
following is appropriate:
(a) “The following covenants, Nos. ....., ..... and .....
(inserting the respective numbers) of NRS 106.020 , are hereby adopted and made a part of this
mortgage.”
(b) “The following covenants, Nos. ....., ..... and .....
(inserting the respective numbers) of NRS 106.025 , are hereby adopted and made a part of this
mortgage.”
2. In order to fix the amount of counsel fees under Covenant No. 2
of NRS 106.020 or 106.025 , it shall only be necessary to state in the
mortgage: “Covenant No. 2,” and set out thereafter the percentage to be
allowed.
3. In order to fix the rate of interest under Covenant No. 3 of
NRS 106.020 or 106.025 , it shall only be necessary to state in the
mortgage: “Covenant No. 3,” and set out thereafter the rate of interest
to be charged thereunder.
4. A mortgage, in order to fix the amount of insurance to be
carried, need not reincorporate the provisions of Covenant No. 7 of NRS
106.020 or 106.025 , but may merely state the following: “Covenant
No. 7,” and set out thereafter the amount of insurance to be carried.
[3:109:1927; NCL § 4332] + [4:109:1927; NCL § 4333]—(NRS A 1967,
126)
Nothing in NRS 106.020 to
106.040 , inclusive, prevents the
parties to any mortgage from entering into any other, different or
additional covenants or agreements than those set out in NRS 106.020
or 106.025 .
[5:109:1927; NCL § 4334]—(NRS A 1967, 126; 1985, 237)
IMPOUND TRUST ACCOUNTS
1. Except as otherwise provided in subsection 2, a lender who
requires a borrower to make advance contributions to an impound trust
account, or an account of similar name, for the payment of taxes,
insurance premiums or other obligations related to the encumbered
property 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) Within 30 days after the completion of its annual review of the
account, notify the borrower:
(1) Of the amount by which the contributions exceed the
amount reasonably necessary to pay the annual obligations due from the
account; and
(2) That he may specify the disposition of the excess money
within 20 days after receipt of the notice. If the borrower fails to
specify such a disposition within that time, the lender shall maintain
the excess money in the account.
Ê A lender who violates any provision of this subsection is liable to the
borrower for a civil penalty of not more than $1,000.
2. A lender, to recover previous deficiencies in contributions to
an impound trust account, may require contributions to the account in an
amount greater than that reasonably necessary to pay the obligations as
they become due. The borrower is otherwise entitled to the amount by
which his 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
.
3. As used in this section:
(a) “Borrower” means a mortgagor, grantor of a deed of trust or
other obligor on a loan secured by a lien upon real property.
(b) “Lender” means a mortgagee, beneficiary of a deed of trust or
other obligee on a loan secured by a lien upon real property, and his
successor in interest.
(Added to NRS by 1989, 1766)
MORTGAGES OF ESTATES FOR YEARS; POSSESSORY CLAIMS TO PUBLIC LANDS OR
MINING CLAIMS
Mortgages may be made
upon an estate for years, however created, unless prohibited by the
instrument which created such estate.
(Added to NRS by 1967, 954)
A mortgage for a good and valuable
consideration upon possessory claims to public lands, all buildings and
improvements upon such lands, and all quartz and mining claims,
acknowledged in manner and form as mortgages upon real property are
required by law to be acknowledged, and recorded in the office of the
recorder in the county in which the property is situated, shall have the
same effect against third persons as mortgages upon real property.
[76:9:1861; A 1935, 253; 1931 NCL § 1547]—(NRS A 1965, 924)
ASSIGNMENTS; SUBORDINATION AND WAIVERS AS TO PRIORITY; DISCHARGE AND
EXTINGUISHMENT
1. Any assignment of a mortgage of real property, or of a mortgage
of personal property or crops recorded prior to March 27, 1935, and any
assignment of the beneficial interest under a deed of trust may be
recorded, and from the time any of the same are so filed for record shall
operate as constructive notice of the contents thereof to all persons.
2. Each such filing or recording shall be properly indexed by the
recorder.
[Part 1:120:1935; 1931 NCL § 2122.31]—(NRS A 1965, 924)
1. Any instrument by which any mortgage or deed of trust of, lien
upon or interest in real property is subordinated or waived as to
priority, may, in case it concerns only one or more mortgages or deeds of
trust of, liens upon or interests in real property, together with, or in
the alternative, one or more mortgages of, liens upon or interests in
personal property or crops, the instruments or documents evidencing or
creating which have been recorded prior to March 27, 1935, be recorded,
and from the time any of the same are so filed for record shall operate
as constructive notice of the contents thereof to all persons.
2. Each such filing or recording shall be properly indexed by the
recorder.
[Part 1:120:1935; 1931 NCL § 2122.31]—(NRS A 1965, 925)
The lien heretofore or hereafter created of
any mortgage or deed of trust upon any real property, appearing of
record, and not otherwise satisfied and discharged of record, shall at
the expiration of 10 years after the debt secured by the mortgage or deed
of trust according to the terms thereof or any recorded written extension
thereof become wholly due, terminate, and it shall be conclusively
presumed that the debt has been regularly satisfied and the lien
discharged.
[2:37:1917; 1919 RL p. 3352; NCL § 9410]—(NRS A 1965, 1229)
1. Any mortgage or lien, that has been or may hereafter be
recorded, may be discharged or assigned by an entry on the margin of the
record thereof, signed by the mortgagee or his personal representative or
assignee, acknowledging the satisfaction of or value received for the
mortgage or lien and the debt secured thereby, in the presence of the
recorder or his deputy, who shall subscribe the same as a witness, and
such entry shall have the same effect as a deed of release or assignment
duly acknowledged and recorded. Such marginal discharge or assignment
shall in each case be properly indexed by the recorder.
2. In the event that the mortgage or lien has been recorded by a
microfilm or other photographic process, a marginal release may not be
used and a duly acknowledged discharge or release of such mortgage or
lien must be recorded.
[35:9:1861; A 1881, 23; 1935, 253; 1953, 79]—(NRS A 1965, 925)
Any recorded mortgage shall also be
discharged upon the record thereof by the recorder in whose custody it
shall be, whenever there shall be presented to him a certificate executed
by the mortgagee, his personal representative or assignee, acknowledged,
or proved and certified, as prescribed in NRS, to entitle conveyances to
be recorded, specifying that such mortgage has been paid or otherwise
satisfied or discharged.
[36:9:1861; A 1935, 253; 1931 NCL § 1508]—(NRS A 1965, 926)
Every
certificate of discharge of a recorded mortgage, and the proof or
acknowledgment thereof, shall be recorded at full length, and a reference
shall be made to the book containing such record in the minutes of the
discharge of such mortgage made by the recorder upon the record thereof.
[37:9:1861; A 1935, 253; 1931 NCL § 1509]—(NRS A 1965, 926)
1. Within 21 calendar days after receiving written notice that a
debt secured by a mortgage has been paid or otherwise satisfied or
discharged, the mortgagee shall cause a discharge of the mortgage to be
recorded pursuant to NRS 106.260 or
106.270 if the mortgagor, his heirs or
assigns have fully performed the conditions of the mortgage.
2. If a mortgagee fails to comply with the provisions of this
section, the mortgagee is liable in a civil action to the mortgagor, his
heirs or assigns for:
(a) The sum of $500;
(b) Any actual damages caused by the failure of the mortgagee to
comply with the provisions of this section; and
(c) A reasonable attorney’s fee and the costs of bringing the
action.
3. Except as otherwise provided in this subsection, if a mortgagee
fails to cause a discharge of the mortgage to be recorded pursuant to
subsection 1 within 75 calendar days, a title insurer may prepare and
cause to be recorded a release of the mortgage. At least 30 calendar days
before the recording of a release pursuant to this subsection, the title
insurer shall mail, by first-class mail, postage prepaid, notice of the
intention to record the release of the mortgage to the mortgagor and
mortgagee, or their successors in interest, at the last known address of
each such person. A release prepared and recorded pursuant to this
subsection shall be deemed a discharge of the mortgage. The title insurer
shall not cause a release to be recorded pursuant to this subsection if
the title insurer receives written instructions to the contrary from the
mortgagor, the mortgagee or a successor in interest.
4. The release prepared pursuant to subsection 3 must set forth:
(a) The name of the mortgagor;
(b) The name of the mortgagee;
(c) The recording reference to the mortgage;
(d) A statement that the debt secured by the mortgage has been paid
in full or otherwise satisfied or discharged;
(e) The date and amount of payment or other satisfaction or
discharge; and
(f) The name and address of the title insurer issuing the release.
5. A release prepared and recorded pursuant to subsection 3 does
not relieve a mortgagee of the requirements imposed by subsections 1 and
2.
6. In addition to any other remedy provided by law, a title
insurer who improperly causes to be recorded a release of a mortgage
pursuant to this section is liable in a civil action for actual damages
and for a reasonable attorney’s fee and the costs of bringing the action
to any person who is injured because of the improper recordation of the
release.
7. Any person who willfully violates this section is guilty of a
misdemeanor.
8. As used in this section, “title insurer” has the meaning
ascribed to it in NRS 692A.070 .
[38:9:1861; A 1935, 253; 1931 NCL § 1510]—(NRS A 1999, 56 )
ENCUMBRANCE TO SECURE FUTURE ADVANCES
As used in NRS 106.300 to 106.400 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 106.310 to 106.345
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1985, 725; A 1989, 492)
“Borrower” means a mortgagor,
grantor of a deed of trust or other debtor.
(Added to NRS by 1985, 725)
“Future advance” means a
loan of money to a borrower pursuant to an agreement but made after the
agreement is executed.
(Added to NRS by 1985, 725)
“Instrument” means a mortgage,
deed of trust or other instrument encumbering real property as security
for the repayment of a debt.
(Added to NRS by 1985, 725)
“Lender” means a mortgagee,
beneficiary of a deed of trust or other creditor holding an instrument.
(Added to NRS by 1985, 725)
“Principal” means the money a
lender advances to a borrower as a loan which, separately or together
with other advances, is intended to be evidenced by the face amount of a
note, bond or other similar document. The term does not include any
interest, advances made to protect security or advances which would not
have been made if the borrower and all other parties to the agreement
relating to the loan or future advances had complied with its terms even
if the obligations contained in the agreement were secured by an
instrument.
(Added to NRS by 1989, 492)
The provisions of NRS 106.300 to 106.400 ,
inclusive, apply only to an instrument or supplement or amendment to an
instrument that states clearly that it is to be governed by those
provisions.
(Added to NRS by 1985, 726; A 1989, 492)
1. A borrower may execute an instrument encumbering his real
property to secure future advances from a lender within a mutually agreed
maximum amount of principal.
2. The instrument must state clearly:
(a) That it secures future advances; and
(b) The maximum amount of principal to be secured.
3. The maximum amount of advances of principal to be secured by
the instrument may increase or decrease from time to time by amendment of
the instrument.
(Added to NRS by 1985, 725; A 1989, 492)
1. The priority of a lien for future advances dates from the time
that the instrument is recorded in the office of the county recorder of
the county in which the property is located, whether or not the:
(a) Future advances are obligatory or at the option of the lender;
or
(b) Lender has notice of an intervening lien.
2. If an amendment to an instrument is recorded which increases
the maximum amount of indebtedness secured by the instrument, the
priority of any lien for future advances of principal thereafter which
exceed the maximum amount of principal of the original indebtedness dates
from the time the amendment is recorded in the office of the county
recorder of the county in which the property is located.
(Added to NRS by 1985, 725; A 1989, 493)
1. The borrower may at any time personally deliver or send by
certified mail, return receipt requested, a written notice to the lender
stating that the borrower elects to terminate the operation of the
instrument as security for future advances of principal made after the
date of receipt of the notice by the lender.
2. Within 4 working days after receipt of the notice, the lender
must record in the office of the county recorder of the county where the
original instrument was recorded a statement which:
(a) Refers to the original instrument;
(b) Contains the legal description of the encumbered real property;
(c) States that the notice given pursuant to subsection 1 was
received by the lender, with the date of that receipt;
(d) States the total amount of principal owed on the date of
receipt of the notice on account of all outstanding debts and obligations
secured by the instrument; and
(e) States the total amount of interest accrued on the outstanding
debts and obligations as of the date the statement is recorded.
3. If the lender does not record the statement pursuant to
subsection 2 within 4 working days, the borrower may record a similar
statement and that statement has the same effect.
(Added to NRS by 1985, 726; A 1989, 493)
Receipt of notice of
termination by the lender does not affect the priority of any lien for
any future advances previously made, obligations previously incurred or
interest accrued thereon.
(Added to NRS by 1985, 726)
Future
advances of principal made to a borrower after the receipt of the notice
of termination by the lender are not secured by the instrument. The
principal amount of indebtedness secured by the instrument is limited to
the amount stated by the lender in his recorded statement.
(Added to NRS by 1985, 726; A 1989, 493)
