Federal Government Shutdown Triggers Repossession Moratorium!

Nevada Law Requires Repossession Moratorium of Federal Employees and Families During a Government Shutdown

Back on January 1 of 2024, unnoticed by most everyone, a revision to Nevada Revised Statute 482.5165 went into effect. This law prohibits the repossession of vehicles from affected persons of a government shutdown. This protection extends for 30 days beyond the last day of the shutdown. Effective today, our Federal government is shutdown and I strongly suggest that everyone performing or assigning repossession in Nevada read the following and take immediate action.

Once again, I am not an attorney and I am not providing legal advice. If you need legal advice, I strongly suggest you consult with legal counsel.

Below is the specific statute to consider immediately!

The Law

Read the entire law here! NRS: CHAPTER 482 – MOTOR VEHICLES AND TRAILERS: LICENSING, REGISTRATION, SALES AND LEASES

NRS 482.5165 Repossession of vehicle of certain persons prohibited during governmental shutdown; penalty.

1. Notwithstanding any other provision of law and except as otherwise ordered by a court of competent jurisdiction, if a person liable on a security agreement provides proof that he or she is a federal worker, tribal worker, state worker or household member of such a worker and a shutdown is occurring or has occurred, a person shall not repossess or direct or authorize another person to repossess a vehicle of that person during the period commencing on the date on which a shutdown begins and ending on the date that is 30 days after the date on which the shutdown ends.

2. Any person who knowingly repossesses a vehicle or authorizes another person to repossess a vehicle in violation of this section:

(a) Is guilty of a misdemeanor; and

(b) May be liable for actual damages, reasonable attorney’s fees and costs incurred by the injured party.

3. In imposing liability pursuant to paragraph (b) of subsection 2, a court shall, when determining whether to reduce such liability, take into consideration any due diligence used by the person before he or she repossessed a vehicle or directed or authorized another person to repossess a vehicle.

4. As used in this section:

(a) “Federal worker” has the meaning ascribed to it in NRS 40.002.

(b) “Household member” has the meaning ascribed to it in NRS 40.0025.

(d) “State worker” has the meaning ascribed to it in NRS 40.004.

(e) “Tribal worker” has the meaning ascribed to it in NRS 40.0045.

(Added to NRS by 2019, 3195)

NEXT STEPS

Once again, I am not an attorney and am not dispensing legal advice, but if I had any repossession assignments in Nevada or on persons from Nevada, I would put a hold on everything that may be effected until appropriate review of possibly effected accounts has been conducted and legal counsel has been advised and has provided guidance.

NRS 482.5165. spells out very clearly that “if a person liable on a security agreement provides proof that he or she is a federal worker, tribal worker, state worker or household member of such a worker and a shutdown is occurring or has occurred, a person shall not repossess or direct or authorize another person to repossess a vehicle of that person during the period commencing on the date on which a shutdown begins and ending on the date that is 30 days after the date on which the shutdown ends.”

I would suggest that no one take too much stock on the caveat “provides proof that he or she is a federal worker” by assuming that the duty is on the borrower to provide this proof. It could be interpreted many ways including that if it was stated on the original loan application that duty has already been provided.

Once again, I am not an attorney and I am not providing legal advice. If you need legal advice, I strongly suggest you consult with legal counsel.

It may be advisable to further inquire with your attorney to find out what other states may be effected.

Big thanks to Jose Delgado of Location Services for bringing this to my attention!

Kevin Armstrong

Publisher