599B.100 - Registration of seller: Form and amount of security; release of security. [Effective July 1, 2011.]
599B.100 Registration of seller: Form and amount of security; release of security. [Effective July 1, 2011.]
1. An application filed pursuant to NRS 599B.090 must be accompanied by:
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit issued for the benefit of the applicant by a bank whose deposits are insured by an agency of the Federal Government; or
(c) A certificate of deposit in a financial institution insured by an agency of the Federal Government or by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the applicant.
2. The amount of the bond, letter of credit or certificate of deposit must be $50,000, and the bond, letter of credit or certificate of deposit must be conditioned upon compliance by the applicant with the provisions of this chapter.
3. The amount of the security required to be filed by the seller may be increased to not more than $250,000 as part of an assurance of discontinuance accepted by the Attorney General pursuant to NRS 599B.235.
4. If, after a registration certificate is issued, the amount of the bond, letter of credit or certificate of deposit which secures the registration falls below the amount that is required by subsection 2 or the amount determined by the Commissioner pursuant to subsection 3, the seller shall be deemed not to be registered pursuant to this chapter for the purposes of NRS 599B.080.
5. The term of any bond, letter of credit or certificate of deposit, or any renewal thereof, must not be less than 1 year.
6. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this section.
7. A seller may change the form of the security. If a seller changes the form of the security, the Commissioner may retain for not more than 1 year all or a portion of the security previously filed by the seller as security for claims arising at the time the security was in effect.
8. If no claims have been filed against the bond, letter of credit or certificate of deposit within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the bond, letter of credit or certificate of deposit to the registrant and shall not audit any claims filed thereafter by consumers. If one or more claims have been filed against the bond, letter of credit or certificate of deposit within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later. The Division shall not audit any claims which are filed pursuant to NRS 599B.105 more than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later. For the purposes of this subsection, the Commissioner shall determine the date on which a registrant ceases to operate.
(Added to NRS by 1989, 1383; A 1993, 2105; 1995, 937; 1999, 1519; R temp. 2009, 2732, expires by limitation on June 30, 2011)