8. Assignment of Award
1. Mortgage/Assignment of Award: "Despite a clause...
purporting to assign an entire condemnation award to a mortgagee or beneficiary
of a deed of trust, the effectiveness of such a contract term is limited by the
legal and equitable interest of the mortgagee or beneficiary in the award." "The
effectiveness of such a clause is limited to the extent to which a mortgagee or
beneficiary can demonstrate that its security has actually been impaired." First
Western v. Vegas Continental, 100 Nev. 710, 712, 692 P.2d 1279 (1984) (#69)
2. Where a taking in eminent domain reduces the value of the
property, the holder of a trust deed (securing a debt) is entitled to a part of
the compensation award that will maintain the same ratio or margin (value of property
to the amount of the secured debt). (#69)