Nevada Revised Statutes 662.101 – Investments in loans to finance interests in cooperative housing corporations
1. A bank may make or invest in a loan to finance a borrower’s interest in or to refinance the borrower’s existing interest in a cooperative housing corporation if the loan is secured by:
Terms Used In Nevada Revised Statutes 662.101
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) A first security interest in stock or a certificate of membership in the cooperative housing corporation; and
(b) An assignment of or lien on the borrower’s interest in the lease or other right of tenancy to a dwelling unit of the cooperative housing corporation.
2. For purposes of this chapter, the interest in a cooperative housing corporation which is encumbered by a security interest shall be deemed to be real property, and any loan made pursuant to subsection 1 shall be deemed to be a loan secured by a mortgage on real property.
3. As used in subsection 1, ‘cooperative housing corporation’ means a corporation organized under the laws of this state for the purpose of the cooperative ownership of real estate whereby each of the stockholders or members is entitled, through ownership of stock or a certificate of membership in the corporation, to occupy a house, apartment or other dwelling unit on real estate owned by the corporation.