Nevada § 319.230 - Loans to or purchase of securities from lending institutions; collateral

§ 319.230. Loans to or purchase of securities from lending institutions; collateral

1. The Division may: (a) Make loans to lending institutions under terms and conditions requiring the proceeds

of the loans to be used by the lending institutions for the making of new mortgage

loans for residential housing; (b) Purchase securities from lending institutions under terms and conditions requiring

that the securities finance mortgage loans for residential housing; (c) Require that loans to or securities purchased from lending institutions be additionally

secured as to payment of both principal and interest by a pledge of and lien upon

collateral security in such amounts and consisting of such obligations, securities,

and mortgage loans as the Administrator determines to be necessary to assure the payment

of the loans or securities purchased and the interest on them as they become due. 2. The Division may require in the case of any lending institution that any required

collateral be lodged with a bank or trust company, located either within or outside

the State, designated by the Division as custodian therefor. In the absence of this requirement, a lending institution shall, if collateral is

to be provided for the loan or securities purchased, upon receipt of the proceeds

from the Division, enter into an agreement with the Division containing any provisions

the Division deems necessary to identify adequately and maintain and service the collateral

and providing that the lending institution shall hold the collateral as trustee for

the benefit of the Division and shall be held accountable as the trustee of an express

trust for the application and disposition thereof and the income therefrom solely

to the uses and purposes in accordance with the provisions of the agreement. A copy of the agreement and any of its revisions or supplements, which revisions or

supplements may add to, delete from, or substitute items of collateral pledged by

the agreement, must be filed with the Secretary of State. The filing shall be deemed to perfect the security interest of the Division in the

collateral and no filing, recording, possession or other action required under any

other law of this state is necessary, and the lien and trust for the benefit of the

Division so created is binding from the time made against all parties having any prior

unperfected claim or claims of any kind in tort, contract or otherwise or any subsequent

security interests against the lending institution. The Division may also establish any additional requirements the Administrator deems

necessary with respect to the pledging, assigning, setting aside or holding of the

collateral and the making of substitutions for it or additions to it and the disposition

of income and receipts from it. 3. The Division may collect, enforce the collection of and foreclose on any collateral

securing its loan to or purchase of securities from lending institutions and acquire

or take possession of the collateral and sell the collateral at public or private

sale, with or without public bidding, and otherwise deal with the collateral as may

be necessary to protect the interest of the Division in it, all subject to any agreement

with bondholders or noteholders.