NRS 226.805 Obligation to third person by Bank: Limitations; requirements.

260 words·~1 min read·/nv/chapter-226-state-treasurer/226-805

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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 :

(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.