1. 1. Except as otherwise provided in this section, a covered institution shall maintain sufficient allowable assets for liquidity, in addition to the amounts required for servicing liquidity, to cover normal business operations, including, without limitation, payment of rent, salaries, interest expense and other typical expenses associated with operating the institution. Allowable assets for liquidity include those assets that may be used to satisfy the requirements of this subsection, including, without limitation:

   1. (a) Unrestricted cash and cash equivalents; and

   2. (b) Unencumbered investment grade assets held for sale or trade, including, without limitation:

      1. (1) Mortgage-backed securities of an agency. As used in this subparagraph, “mortgage-backed securities” means financial instruments, including, without limitation, debt securities, collateralized by residential mortgages.
      2. (2) Obligations of government-sponsored enterprises.
      3. (3) Obligations of the United States Treasury.

2. 2. A covered institution shall have in place sound cash management and business operating plans that match the size and sophistication of the institution to ensure normal business operations. The management of the covered institution must develop, establish and implement plans, policies and procedures for maintaining operating liquidity sufficient for the ongoing needs of the institution. Such plans, policies and procedures must:

   1. (a) Contain sustainable, written methodologies for maintaining sufficient operating liquidity; and
   2. (b) Be made available to the Commissioner upon request.
3. 3. For the purposes of complying with the requirements of this section, a covered institution must determine all financial data in accordance with generally accepted accounting principles.
4. 4. A covered institution that satisfies the “Eligibility Requirements for Enterprise Single-Family Seller/Servicers” of the Federal Housing Finance Agency for capital, net worth ratio and liquidity, whether or not the covered institution is approved to service loans by a government-sponsored enterprise, shall be deemed to satisfy the requirements of this section.

5. 5. The provisions of this section do not apply to:

   1. (a) A mortgage servicer which only owns or conducts servicing of one or more reverse mortgages; or
   2. (b) The portfolio of reverse mortgages administered by a covered institution.

(Added to NRS by 2025, 241)