673.3272 - Payment of charges by association for protection of its investments; required advance monthly payments. - Nevada Statutes

673.3272  Payment of charges by association for protection of its investments; required advance monthly payments.

      1.  An association may pay:

      (a) Current or past-due taxes or assessments levied upon secured property;

      (b) Insurance premiums;

      (c) Life insurance premiums on policies that an association may require to be assigned as additional collateral; or

      (d) Other similar charges required for the protection of its investments.

Ê Such payments shall be added to the unpaid loan balance and shall have the same secured status under the deed of trust provisions as the loan itself. No association may require, as a condition of loan approval or in the extension of any other service, that any kind of insurance coverage be purchased from or through the association or from any agency in which a director or officer of the corporation has any interest.

      2.  An association may require advance monthly payments on:

      (a) Principal.

      (b) Interest.

      (c) Taxes.

      (d) Assessments.

      (e) Insurance premiums.

      (f) Other statutory charges accruing upon the secured property.

Ê Each such payment may be equivalent to one-twelfth of the estimated annual amount due. Monthly charges may be adjusted to provide a reasonable method for the payment of estimated taxes, assessments, insurance premiums and other charges. Upon receipt thereof such payments may be carried in a separate trust account or they may be applied to the loan account as a credit upon receipt and debit when disbursed.

      (Added to NRS by 1969, 962)