Failure of qualified borrower to remit full amount due: Notice; withholding of money allotted or appropriated to borrower; exceptions

1. Except as otherwise provided in this section, if a qualified borrower that has obtained a loan or other financial assistance from the Bank fails to remit in full any amount due to the Bank on the date on which the amount is due under the terms of any note or other loan obligation given to the Bank by the qualified borrower, the Bank shall notify the appropriate state agencies or officers, including, without limitation, the State Controller, who shall withhold all or a portion of any state money or other money administered by the State and its agencies, boards and instrumentalities that is allotted or appropriated to the qualified borrower and apply an amount necessary to the payment of the amount due. 2. This section does not authorize the State or an agency, board or instrumentality thereof, or the State Controller, to withhold any money allocated or appropriated to a qualified borrower if to do so would violate the terms of: (a) An appropriation by the Legislature; (b) Any federal law; (c) A contract to which the State is a party; (d) A contract to which a governmental unit or qualified borrower is a party; (e) A judgment of a court that is binding upon the State; or (f) The provisions of NRS 387.121 to 387.12468, inclusive, governing apportionments and allowances from the State Education Fund.