Legal Alert - The Nevada U.S. District Court Narrowly Interprets Sandpointe Apartments when Ruling in Favor of Entity that Acquired Loan Before Effective Date of AB 273
by Bob L. Olson and Nathan G. Kanute
On June 10, 2011, Nevada enacted Assembly Bill 273 (AB 273). As codified at NRS 40.459(1)(c), AB 273 limits the ability of a loan purchaser to collect a deficiency on the note and guarantees by basing the deficiency calculation on what the loan purchaser paid for the loan rather than the amount owed on the loan. On November 14, 2013, the Nevada Supreme Court held in Sandpointe Apartments v. Eighth Judicial District Court, 129 Nev. Adv. Op. 87 that NRS 40.459(1)(c) did not apply retroactively if the foreclosure sale on the property securing the loan occurred before June 10, 2011, even if the deficiency action was not brought until after that date.