Nevada Revised Statutes 691A.030 – Loans secured by real property: Lender prohibited from requiring borrower to insure improvements to property for more than their replacement value
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1. A lender shall not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide property insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.
Terms Used In Nevada Revised Statutes 691A.030
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Grantor: The person who establishes a trust and places property into it.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
2. As used in this section:
(a) ’Borrower’ means a mortgagor, grantor of a deed of trust or other debtor.
(b) ’Improvement to real property’ means a fixture, building or other structure attached to real property and intended as a permanent addition to the property.
(c) ’Lender’ means a mortgagee, beneficiary of a deed of trust or other creditor who holds a mortgage, deed of trust or other instrument that encumbers real property as security for the repayment of a debt.