Nevada § 116.21183 - Rights of creditors following termination

§ 116.21183. Rights of creditors following termination

1. Following termination of a condominium or planned community, creditors of the association

holding liens on the units, which were recorded before termination, may enforce those

liens in the same manner as any lienholder. All other creditors of the association are to be treated as if they had perfected

liens on the units immediately before termination. 2. In a cooperative, the declaration may provide that all creditors of the association

have priority over any interests of units' owners and creditors of units' owners.

In that event, following termination, creditors of the association holding liens on

the cooperative which were recorded before termination may enforce their liens in

the same manner as any lienholder, and any other creditor of the association is to

be treated as if the creditor had perfected a lien against the cooperative immediately

before termination. Unless the declaration provides that all creditors of the association have that priority: (a) The lien of each creditor of the association which was perfected against the association

before termination becomes, upon termination, a lien against each unit's owner's interest

in the unit as of the date the lien was perfected; (b) Any other creditor of the association is to be treated upon termination as if

the creditor had perfected a lien against each unit's owner's interest immediately

before termination; (c) The amount of the lien of an association's creditor described in paragraphs (a)

and (b) against each of the units' owners' interest must be proportionate to the ratio

which each unit's liability for common expenses bears to the liability for common

expenses of all of the units; (d) The lien of each creditor of each unit's owner which was perfected before termination

continues as a lien against that owner's unit as of the date the lien was perfected;

and (e) The assets of the association must be distributed to all units' owners and all

lienholders as their interests may appear in the order described in this section. Creditors of the association are not entitled to payment from any unit's owner in

excess of the amount of the creditor's lien against that owner's interest.