NRS394.590. Documents of indebtedness and related agreements: Restrictions and requirements.

      1.  If the person to whom a private school or postsecondary educational institution is to provide educational services is a resident of this state when any contract, instrument or document of indebtedness relating to payment for the services is entered into, the provisions of this section govern the rights of the parties in regard to the documents of indebtedness. Any of the following agreements entered into in connection with the giving of a document of indebtedness is invalid:

      (a) That the law of another state applies;

      (b) That the maker or any person liable on such contract or other document of indebtedness consents to the jurisdiction of another state;

      (c) That another person is authorized to confess judgment on such contract or evidence of indebtedness; or

      (d) That fixes venue.

      2.  A document of indebtedness relating to payment for education or educational services is not enforceable in the courts of this state by any private school or postsecondary educational institution operating in this state or with an agent operating in this state unless:

      (a) The school or institution has received a license to operate; and

      (b) Each agent operating in this state had an agent’s permit.

      3.  Any lending institution extending credit to any person for tuition, fees or any other charges of a private school or postsecondary educational institution for educational services to be rendered by the school or institution shall conspicuously mark on the face of any document of indebtedness taken in connection with the extension of credit “loan for study.” If the lending agency fails to do so, it is liable for any damage incurred by any subsequent assignee, transferee or holder of the document on account of the absence of the notation.

      4.  Whether or not the notation “loan for study” appears on the document of indebtedness, and notwithstanding any agreement to the contrary, the lending agency extending credit and any transferee, assignee or holder of the document of indebtedness are subject to all defenses and claims which may be asserted against the private school or postsecondary educational institution which was to render the educational services, by any person that was a party to the document of indebtedness or the person to whom the educational services were to be rendered to the extent of the unpaid portion of the indebtedness.

      (Added to NRS by 1975, 1515; A 1985, 1002)