1. The Division may:
(a) Make loans to lending institutions under terms and conditions requiring the proceeds of the loans to be used by the lending institutions for the making of new mortgage loans for residential housing;
(b) Purchase securities from lending institutions under terms and conditions requiring that the securities finance mortgage loans for residential housing;
(c) Require that loans to or securities purchased from lending institutions be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts and consisting of such obligations, securities, and mortgage loans as the Administrator determines to be necessary to assure the payment of the loans or securities purchased and the interest on them as they become due.
2. The Division may require in the case of any lending institution that any required collateral be lodged with a bank or trust company, located either within or outside the State, designated by the Division as custodian therefor. In the absence of this requirement, a lending institution shall, if collateral is to be provided for the loan or securities purchased, upon receipt of the proceeds from the Division, enter into an agreement with the Division containing any provisions the Division deems necessary to identify adequately and maintain and service the collateral and providing that the lending institution shall hold the collateral as trustee for the benefit of the Division and shall be held accountable as the trustee of an express trust for the application and disposition thereof and the income therefrom solely to the uses and purposes in accordance with the provisions of the agreement. A copy of the agreement and any of its revisions or supplements, which revisions or supplements may add to, delete from, or substitute items of collateral pledged by the agreement, must be filed with the Secretary of State. The filing shall be deemed to perfect the security interest of the Division in the collateral and no filing, recording, possession or other action required under any other law of this state is necessary, and the lien and trust for the benefit of the Division so created is binding from the time made against all parties having any prior unperfected claim or claims of any kind in tort, contract or otherwise or any subsequent security interests against the lending institution. The Division may also establish any additional requirements the Administrator deems necessary with respect to the pledging, assigning, setting aside or holding of the collateral and the making of substitutions for it or additions to it and the disposition of income and receipts from it.
3. The Division may collect, enforce the collection of and foreclose on any collateral securing its loan to or purchase of securities from lending institutions and acquire or take possession of the collateral and sell the collateral at public or private sale, with or without public bidding, and otherwise deal with the collateral as may be necessary to protect the interest of the Division in it, all subject to any agreement with bondholders or noteholders.
(Added to NRS by 1975, 629; A 1977, 195; 1979, 1187)