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| Security Interest In New Vehicle When a new vehicle is sold in Nevada for first time, seller must complete and execute a manufacturer’s certificate of origin or a statement of origin and, unless sold to a licensed dealer, a dealer’s report of sale. The dealer’s report of sale must be on approved form, and must include description of vehicle, name and address of seller; and name and address of buyer. If a security interest is taken or retained by seller to secure all or part of purchase price, or a security interest is taken by a person who gives value to enable buyer to acquire vehicle, the name and address of secured party or assignee must be entered on dealer’s report of sale and on manufacturer’s certificate or statement of origin. See Nevada Revised Statutes 482.423 | ||
To Department Within 20 Days, Copies To Buyer Unless extension is granted by department, seller must collect proper fees and submit original dealer’s report of sale, certificate or statement of origin and fees collected to department within 20 days after execution of dealer’s report of sale, with copy of report to buyer. One copy must be affixed to the right front windshield of the vehicle, which permits the vehicle to be operated for a period not to exceed 10 days. See Nevada Revised Statutes 482.423 |
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Used Or Rebuilt When a used or rebuilt vehicle is sold in Nevada to anyone except a licensed dealer, by a dealer, rebuilder, long-term lessor or short-term lessor, seller must complete and execute a dealer’s or rebuilder’s report of sale on approved form prescribed which includes a description of vehicle, including whether rebuilt, name and address of seller and buyer. If a security interest exists at time of sale, or if security interest is taken or retained by seller to secure all or part of purchase price, or a security interest is taken by person who gives value to enable buyer to acquire vehicle, name and address of secured party must be entered on dealer’s or rebuilder’s report of sale. See Nevada Revised Statutes 482.424 |
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| To Department Within 30 Days, Copies To Buyer Unless extension granted by department, seller must collect fee for a certificate of title for vehicle, submit original dealer’s or rebuilder’s report of sale and remit fee collected to department within 30 days after execution of dealer’s or rebuilder’s report of sale, properly endorsed certificate of title or certificate of ownership previously issued for vehicle, and furnish copy of report to buyer. One copy must be affixed to front right windshield of vehicle, which permits vehicle to be operated for not more than 10 days. See Nevada Revised Statutes 482.424 | ||
Sale of Vehicle By Person Who Is Not Dealer When a used or rebuilt vehicle is sold in Nevada by a person who is not a dealer or rebuilder, the seller or buyer or both must, within 10 days after sale, submit to the department the properly endorsed Nevada certificate of ownership if one has been issued. If a certificate or other document of title has been issued by another state, territory or country, the certificate or document properly endorsed must be submitted, along with a statement containing, if not included in out of state document, description of vehicle, including whether vehicle is rebuilt, names and addresses of buyer and seller, and name and address of any person who takes or retains a purchase money security interest. This statement must be signed and acknowledged by seller and buyer. See Nevada Revised Statutes 482.426 |
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Certificate Issued To Buyer or Secured Party Upon receipt of required documents and payment of required fees, the department issues a certificate of ownership. If no security interest is created or exists with the sale, the certificate of ownership must be issued to buyer. If a security interest is created by sale, certificate of ownership must be issued to secured party or assignee. See Nevada Revised Statutes 482.427 |
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Security Interest Without Sale Whenever a security interest is created in a motor vehicle, other than a security interest required to be entered pursuant to NRS 482.423, 482.424 or 482.426, the certificate of ownership of the vehicle shall be delivered to the department with a statement signed by the debtor showing the date of the security agreement, the name and address of the debtor and the name and address of the secured party. The department issues and delivers to secured party a certificate of ownership with name and address of secured party noted. thereon. See Nevada Revised Statutes 482.428 |
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| Reinstatement of Lease Agreement A customer who fails to make a timely payment may reinstate the lease agreement with an option to purchase without losing rights or options of agreement if he pays to lessor all payments that past due, reasonable costs of returning property to lessor, and redelivering it to customer, if leased property has been returned, and applicable late fees. Payments must be made within five days after date for renewing agreement if customer´s payments are required to be made monthly. or two days after date for renewing agreement if payments are made more frequently. See specific rules in Nevada Revised Statutes 597.070 | ||
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| Repeatedly Accepting Late Payments In a Nevada case for damages for wrongful repossession of a truck leased by plaintiff from the defendant bank, the creditor's course of conduct of repeatedly accepting late payments from debtor imposed upon creditor the duty to give notice to plaintiff that strict compliance with terms of lease agreement would thereafter be required to avoid repossession of truck under agreement. In this case, the creditor failed to give such a notice before it repossessed truck when payments were in arrears, and a jury concluded that the repossession was wrongful. Nevada National Bank v. Huff, 94 Nev. 506, 582 P.2d 364 (1978). Since repossession of collateral is a matter which can have serious consequences, always discuss actual cases with Nevada counsel before any action is taken. | ||
Repossessors Must Be Licensed No one may engage in business of private investigator, private patrolman, process server, repossessor, ... or advertise a business of this type, regardless of name used, unless a licensed is obtained. All employees, but not licensee, must obtain a work card issued by sheriff of county in which work is to be performed. A licensee pursuant to chapter may employ only another licensee, or a nonlicensed U.S. citizen or resident alien with work card at least 18 years of age, who is of good moral character and temperate habits, and has not been convicted of felony or crime involving moral turpitude, or illegal use or possession of dangerous weapon. See Nevada Revised Statutes 648.060 |
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| At Minimum, Ten Days Written Notice of Intent To Sell Regardless of contrary provision in a security agreement for sale of a vehicle, at least 10 days´ written notice of intent to sell a repossessed vehicle must be given to all persons liable on security agreement. The notice must be given in person or sent by mail directed to address of persons shown on security agreement, unless lienholder has been advised in writing of different address. See Nevada Revised Statutes 482.516 | ||
| Right To Redeem The notice must advise that there is a right to redeem the vehicle. It must also include total amount required, as of date of notice, to redeem. It may also inform of any privilege of reinstatement of security agreement, if this privilege is extended. See Nevada Revised Statutes 482.516 | ||
| Intention To Resell The notice must give notice of lienholder´s intention to resell vehicle at the end of 10 days from date of giving or mailing the notice, designate name and address of person to whom payment must be made, disclose place at which vehicle will be returned to buyer if redeemed or reinstated. See Nevada Revised Statutes 482.516 | ||
| Accounting,Credits, and Deficiency During period of notice, liable persons on security agreement may pay in full the debt evidenced by security agreement. Such persons are liable for any deficiency after sale of repossessed vehicle only if a separate notice is given within 60 days after repossession which includes an itemization of balance, and costs or fees for delinquency, collection or repossession. In addition, notice must either set forth computation or estimate of amount of any credit for unearned finance charges or canceled insurance as of notice or state that credit may be available against balance. See Nevada Revised Statutes 482.516 | ||
| Repossession Must Be Reported To Peace Officer Any person, firm or corporation who repossesses a vehicle without knowledge of registered owner must immediately report repossession by oral communication to police of the city, or to sheriff´s office of county where such repossession is made. The officer to whom report is made then reports to the department. See Nevada Revised Statutes 482.518 | ||
| Repossessed Vehicles Must Be Sold In Commercially Reasonable Manner If secured party sells vehicle in usual manner in any recognized market for such a vehicle, or sells at the price current in such market at time of sale, or has otherwise sold in conformity with reasonable commercial practices among dealers of type of vehicle sold, he has sold in a commercially reasonable manner. A disposition approved by any court is conclusively deemed commercially reasonable, but section does not require such approval be obtained in any case. See Nevada Revised Statutes 482.5163 | ||
| Application of Proceeds The proceeds of must be applied in the following order to reasonable expenses of retaking, holding, preparing for sale and selling, and, to extent provided for in agreement, reasonable attorneys´ fees and legal expenses incurred by secured party. Proceeds are next applied to satisfaction of debt secured by security interest under which this sale is made. | ||
| Subordinate Liens and Surplus If proceeds remain, they next apply to satisfaction of debt secured by any subordinate security interest in collateral, if written notice of demand is received before distribution of proceeds is completed. If requested by secured party, holder of a subordinate security interest must seasonably furnish reasonable proof of interest, and unless he does so, secured party need not comply with demand. Any surplus must be paid to debtor. See Nevada Revised Statutes 482.5163 | ||
| Damages and Double Damages If it is established that the secured party is not proceeding in accordance with provisions of sections, sale may be ordered or restrained on appropriate terms and conditions. If sale has occurred, debtor or any person entitled to notice, or whose security interest has been made known to secured party prior to disposition, has right to recover from secured party any loss caused by failure to comply. If sale was not commercially reasonable, debtor has right to double actual damages. See Nevada Revised Statutes 482.5163 | ||
| Construction Equipment Repossession provisions of NRS 482.516 concerning vehicles also apply to construction equipment such as earth-moving, erecting, excavating and rigging machinery pursuant to security agreement. See Nevada Revised Statutes 482.5161 | ||
| Possession After Default Unless otherwise agreed, secured party has on default the right to take possession of the collateral. In taking possession a secured party may proceed without judicial process only if this can be done without breach of the peace. If not, a legal action may proceed. See Nevada Revised Statutes 104.9503 | ||
| Right to Redeem At any time before the secured party has disposed of collateral or entered into a contract for disposition under NRS 104.9504 or before discharge under NRS 104.9505, debtor or any other secured party may, unless otherwise agreed in writing after default, redeem the collateral by tendering fulfillment of all obligations secured by the collateral, expenses reasonably incurred by secured party in retaking, holding and preparing collateral for disposition, arranging for sale, and to extent provided in agreement and not prohibited by law, reasonable attorneys’ fees and legal expenses. See Nevada Revised Statutes 104.9506 | ||
| Compulsory Sale If debtor has paid 60 percent of cash price in case of a purchase money security interest in consumer goods or 60 percent of the loan in case of another security interest in consumer goods, and has not signed after default a statement renouncing or modifying rights under this part, secured party who has taken possession of collateral must dispose of it under NRS 104.9504, and if he fails to do so within 90 days after possession, debtor may recover certain damages. See Nevada Revised Statutes 104.9505 | ||
| Acceptance As Satisfaction In any other case involving consumer goods or any other collateral a secured party in possession may, after default, propose to retain the collateral in satisfaction of obligation. Written notice of the proposal must be sent to debtor, if he has not signed after default a statement renouncing or modifying rights under this subsection. In the case of consumer goods no other notice need be given. In other cases notice must be sent to any other secured party from whom secured party has received, before notice to debtor or before renunciation of rights, written notice of claim of interest in the collateral. If secured party receives objection in writing from a person entitled to receive notice within 21 days after notice sent, secured party must dispose of collateral under NRS 104.9504. In the absence of such written objection, secured party may retain collateral in satisfaction of the obligation. See Nevada Revised Statutes 104.9505 | ||
Sale and Application of Proceeds A secured party after default may sell, lease or otherwise dispose of any or all of the collateral in its then condition or following any commercially reasonable preparation or processing. Any sale of goods is subject to the UCC article 2 on sales. The proceeds of disposition must be applied in the order following to reasonable expenses of retaking, holding, preparing for sale or lease, selling, leasing and the like and, to the extent provided for in agreement and not prohibited by law, reasonable attorneys’ fees and legal expenses incurred by the secured party. Proceeds are then applied to satisfaction of debt secured by the security interest under which the sale is made. See Nevada Revised Statutes 104.9504 |
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| Subordinate Interests If any proceeds remain, they would next apply to satisfaction of debt secured by any subordinate security interest in the collateral if written notice of demand is received before distribution of proceeds is completed. If requested by secured party, holder of a subordinate security interest must seasonably furnish reasonable proof of interest, and unless he does so, secured party need not comply with demand. See Nevada Revised Statutes 104.9504 | ||
| Accounting and Deficiency If the security interest secures an debt, secured party must account to debtor for any surplus, and, unless otherwise agreed, debtor is liable for any deficiency. See Nevada Revised Statutes 104.9504 | ||
| Public or Private Sale After Notice Disposition of the collateral may be by public or private proceedings and may be at any time and place and on any terms, but every aspect of disposition including method, manner, time, place and terms must be commercially reasonable. Unless collateral is perishable or threatens to decline speedily in value, reasonable notice of time and place of any public sale or of the time after which any private sale is to be made must be sent by secured party to debtor, if he has not signed after default a statement renouncing or modifying right to notice of sale. In the case of consumer goods no other notification need be sent. In other cases notice must be sent to any other secured party from whom secured party has received, before sending notice to debtor or before renunciation of rights, written notice of a claim of an interest in the collateral. See Nevada Revised Statutes 104.9504 | ||
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Involuntary Transfer With limited removal exception described below, in event of transfer by operation of law of title or interest of owner in and to vehicle, as upon order in bankruptcy or insolvency, execution sale, repossession upon default in performing terms of lease or executory sales contract, or otherwise, the registration expires and vehicle may not be operated upon highways until and unless the person entitled to vehicle applies for and obtains registration. See Nevada Revised Statutes 482.420 |
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| Temporary Removal An administrator, executor, trustee or other representative of owner, or a sheriff or other officer, or any person repossessing vehicle under terms of a conditional sales contract, lease, or other security agreement, or assignee or legal representative of any such person, may operate or cause to be operated any vehicle upon the highways for distance not exceeding 75 miles from place of repossession or where formerly kept by owner to garage, warehouse or storage, either using license number plate issued to former owner or without number plate but with written permission first obtained from department or local police authorities having jurisdiction over such highways, and displaying in plain view a sign bearing name and address of person authorizing and directing the movement and plainly readable from a distance of 100 feet during daylight. See Nevada Revised Statutes 482.420 | ||
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