Senate Bill No. 348–Senator Rawson

 

March 17, 2003

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Referred to Committee on Commerce and Labor

 

SUMMARY—Requires certain lenders to meet with borrowers to execute loan documents before transmitting documents to title insurer. (BDR 57‑1178)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to property transactions; requiring certain lenders to meet with borrowers to execute loan documents before transmitting the executed documents to a title insurer, title agent or escrow officer; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 692A of NRS is hereby amended by

1-2  adding thereto a new section to read as follows:

1-3  1.  A financial institution which:

1-4  (a) Makes a loan secured by a lien on real property or serves

1-5  as an agent for a lender who makes a loan secured by a lien on

1-6  real property; and

1-7  (b) Obtains a policy of title insurance in connection with the

1-8  loan,

1-9  shall meet with the borrower before executing the loan documents

1-10  to discuss and fully disclose the terms of the loan. The financial

1-11  institution shall not deliver the loan documents to a title insurer,

1-12  title agent or escrow officer for execution until the meeting

1-13  required by this subsection has been held and the documents have

1-14  been signed by all parties to the loan.

1-15      2.  As used in this section, “financial institution” means an

1-16  institution licensed pursuant to the provisions of title 55 or 56 of

2-1  NRS or chapter 645B or 645E of NRS, or a similar institution

2-2  chartered or licensed pursuant to federal law, which is authorized

2-3  to lend money secured by a lien on real property or to serve as an

2-4  agent for a lender who makes such a loan.

 

2-5  H