45 NAC 19-005. EXCLUSION AND SCOPE OF EXCLUSION

005 EXCLUSION AND SCOPE OF EXCLUSION. 005.01 Except as provided in this Section, this Rule does not apply to any leases executed prior to May 1, 1982. 005.02 With respect to the applicability of Section 004 of this Rule, when making new extensions of credit, including leases, to a customer, a bank must consider all outstanding leases regardless of the date they were entered into. 005.03 Any lease which was entered into in good faith prior to May 1, 1982, which does not satisfy the requirements of this Rule may be renewed without violation of this Section only if: 005.03A There is a binding agreement in the expiring lease which requires the bank to renew it at the lessee's option, and the bank cannot otherwise reasonably or properly avoid its commitment to do so, or 005.03B The bank, in good faith, determines and demonstrates by full documentation that renewal of the lease is necessary to avoid significant financial loss and recover its total investment plus the cost of financing.