NAC645B.250. Prohibition against acting as trustee or substitute trustee under certain circumstances; exception.

     1. Except as otherwise provided in subsection 3, a mortgage broker and any partnership, corporation or limited-liability company in which the mortgage broker or any officer, director, employee or relative of the mortgage broker has a controlling interest shall not act as a trustee or substitute trustee for any deed of trust for which the mortgage broker acted at any time as an investor, mortgage broker or holder of a beneficial interest if the loan for which the deed of trust was executed was funded in whole or in part by a person other than the mortgage broker or has been assigned in whole or in part to one or more natural persons.

     2. Except as otherwise provided in subsection 3, an officer, director or employee of a mortgage broker, a relative of any officer, director or employee of a mortgage broker, or an officer, director or employee of any corporation, partnership or limited-liability company that has a controlling interest in a mortgage broker shall not act as a trustee or substitute trustee for any deed of trust for which the mortgage broker acted at any time as an investor, mortgage broker or holder of a beneficial interest if the loan for which the deed of trust was executed was funded in whole or in part by a person other than the mortgage broker or has been assigned in whole or in part to one or more natural persons.

     3. A mortgage broker may act as substitute trustee in a deed of trust for the purpose of reconveying title to the trustor upon payment in full of the note if the mortgage broker receives a signed and notarized statement from each person holding a beneficial interest in the note, or the agent of that person, authorizing the mortgage broker to so act and directing the disposition of the share of the money received for that person to pay the loan in full. The statement must be executed within 45 days before the execution of the deed of reconveyance. The mortgage broker and his or her officers, directors and employees shall not act as the agent for that person for the purpose of executing the statement required by this section.

     (Added to NAC by Comm’r of Financial Institutions, eff. 6-20-97; A by R045-00, 9-5-2000)—(Substituted in revision for NAC 645B.145)