1. Except as otherwise provided in subsection 2, a financial institution shall not include in any loan agreement a provision that allows the financial institution to recover, take, appropriate or otherwise apply as a setoff against any debt or liability owing to the financial institution under the loan agreement money from an account unrelated to the loan agreement to the extent the money is exempt from execution pursuant to paragraph (y) of subsection 1 of NRS 21.090.
2. The provisions of subsection 1 do not apply to a provision in a loan agreement that specifically authorizes automatic withdrawals from an account.
3. The provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived. Any provision included in an agreement that conflicts with this section is void.
4. As used in this section:
(a) “An account unrelated to the loan agreement” includes, without limitation, an account pledged as security under the loan agreement, unless the specific account pledged as security is conspicuously described in the loan agreement.
(b) “Financial institution” means an institution licensed pursuant to the provisions of this title or chapter 645B, 645E or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.
(Added to NRS by 2005, 382; A 2007, 3027; 2017, 3102)
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