Nevada Revised Statutes 226.805 – Obligation to third person by Bank: Limitations; requirements
1. Any obligation to a third person made by the Bank, including, without limitation, a bond or other security issued by the Bank pursuant to NRS 226.781 and any insurance, reinsurance or reserve provided by the Bank pursuant to NRS 226.799:
Terms Used In Nevada Revised Statutes 226.805
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
(a) Does not constitute a debt, liability or obligation of this State or any political subdivision thereof, or a pledge of the faith and credit of this State or any political subdivision thereof, but is payable solely from the revenues or assets of the Bank; and
(b) Must contain on the face thereof a statement to the effect that the Bank is not obligated to pay the obligation or any interest thereon except from the revenues or assets, if any, pledged therefor and that neither the faith and credit nor the taxing power of this State or any political subdivision thereof is pledged to the payment of the principal of or the interest on the obligation.
2. Except as otherwise provided in subsection 3, this section does not prohibit the Bank from:
(a) Pledging the full faith and credit of the Bank for the satisfaction of any obligation to a third person made by the Bank; or
(b) Issuing a bond guarantee or credit enhancement for bonds issued by a qualified borrower.
3. Notwithstanding any provision in NRS 226.700 to 226.832, inclusive, to the contrary, the Bank shall not act as a surety or guarantor for a private utility or any other private company, association or corporation.