673.281 - Restrictions on transfer or encumbrance of note and other obligations held by association. - Nevada Statutes

673.281  Restrictions on transfer or encumbrance of note and other obligations held by association.

      1.  No association may sell, exchange, transfer, pledge, hypothecate or otherwise dispose of or encumber any notes or other obligations held by it, evidencing any loan made or purchased by it, or the mortgages, trust deeds or other security therefor, that has been on the books of the association for 3 years or longer, without the approval of the commissioner. All loans sold must be sold without recourse and, if under a contract to service them, then on a basis to provide sufficient compensation to the association to reimburse it for expenses incurred under its service contract.

      2.  This section does not apply to loans sold in which the association retains a participating interest, nor to loans pledged as security for borrowing as provided in NRS 673.300 and 673.302.

      (Added to NRS by 1967, 1022; A 1983, 1785; 1987, 1969)