1.  The ownership interest and votes in the cooperative association entitling the unit‘s owner to lease a unit in a cooperative are appurtenant to the proprietary lease. Any security interest in or lien on the proprietary lease encumbers the ownership interest and votes in the cooperative association whether or not the instrument creating the interest or lien expressly includes such interests and votes.

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Terms Used In Nevada Revised Statutes 107.027

  • Cooperative: has the meaning ascribed to it in Nevada Revised Statutes 107.015
  • 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.
  • Proprietary lease: has the meaning ascribed to it in Nevada Revised Statutes 107.015
  • Unit: has the meaning ascribed to it in Nevada Revised Statutes 107.015

2.  No security interest in or lien on the ownership interest or votes in a cooperative association is effective unless the instrument which purports to create the interest or lien encumbers the proprietary lease to which the ownership interest and votes pertain.