Nevada § 32.320 - Executory contract

§ 32.320. Executory contract

1. Except as otherwise provided in subsection 7, with court approval, a receiver may

adopt or reject an executory contract of the owner relating to receivership property. The court may condition the receiver's adoption and continued performance of the

contract on terms appropriate under the circumstances. If the receiver does not request court approval to adopt or reject the contract

within a reasonable time after the receiver's appointment, the receiver is deemed

to have rejected the contract. 2. A receiver's performance of an executory contract before court approval under subsection

1 of its adoption or rejection is not an adoption of the contract and does not preclude

the receiver from seeking approval to reject the contract. 3. A provision in an executory contract which requires or permits a forfeiture, modification

or termination of the contract because of the appointment of a receiver or the financial

condition of the owner does not affect a receiver's power under subsection 1 to adopt

the contract. 4. A receiver's right to possess or use receivership property pursuant to an executory

contract terminates on rejection of the contract under subsection 1. Rejection is a breach of the contract effective immediately before appointment of

the receiver. A claim for damages for rejection of the contract must be submitted by the later

of: (a) The time set for submitting a claim in the receivership; or (b) Thirty days after the court approves the rejection. 5. If, at the time a receiver is appointed, the owner has the right to assign an executory

contract relating to receivership property under law of this State other than NRS 32.100 to 32.370 , inclusive, the receiver may assign the contract with court approval. 6. If a receiver rejects under subsection 1 an executory contract for the sale of

receivership property that is real property in possession of the purchaser or a real-property

timeshare interest, the purchaser may: (a) Treat the rejection as a termination of the contract, and in that case the purchaser

has a lien on the property for the recovery of any part of the purchase price the

purchaser paid; or (b) Retain the purchaser's right to possession under the contract, and in that case

the purchaser shall continue to perform all obligations arising under the contract

and may offset any damages caused by nonperformance of an obligation of the owner

after the date of the rejection, but the purchaser has no right or claim against other

receivership property or the receiver on account of the damages. 7. A receiver may not reject an unexpired lease of real property under which the owner

is the landlord if: (a) The tenant occupies the leased premises as the tenant's primary residence; (b) The receiver was appointed at the request of a person other than a mortgagee;

or (c) The receiver was appointed at the request of a mortgagee and: (1) The lease is superior to the lien of the mortgage; (2) The tenant has an enforceable agreement with the mortgagee or the holder of a

senior lien under which the tenant's occupancy will not be disturbed as long as the

tenant performs its obligations under the lease; (3) The mortgagee has consented to the lease, either in a signed record or by its

failure timely to object that the lease violated the mortgage; or (4) The terms of the lease were commercially reasonable at the time the lease was

agreed to and the tenant did not know or have reason to know that the lease violated

the mortgage. 8. As used in this section, “ timeshare interest ” means an interest having a duration of more than 3 years which grants its holder

the right to use and occupy an accommodation, facility or recreational site, whether

improved or not, for a specific period less than a full year during any given year.