Keaunui Harris

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Case Synopsis

NRS 104.3104 provides that certain documents may constitute “negotiable instruments” for the purpose of enforcing a promise to pay. Under NRS 104.3104(1), a home equity line of credit agreement (HELOC) may be classified as a negotiable instrument if it has a defined maturity date and closed draw period. The same HELOC may also be classified as a “promissory note” under NRS 104.3104(5). When the borrowers fail to repay funds provided to them under the terms of an HELOC, the loan servicer and trustee are entitled to foreclose upon the borrowers’ home. Finally, even if a borrower’s property is held in the name of a trust, the property is considered “owner-occupied” when the borrower-trustee is the owner of the home and occupies the home as their primary residence.