692B.150 - Bond; deposit in lieu of bond; waiver or release.
692B.150 Bond; deposit in lieu of bond; waiver or release.
1. Except as otherwise provided in this section, the Commissioner shall not issue a solicitation permit until the applicant has filed with the Commissioner a bond in favor of the State of Nevada, in the penal sum of $50,000 and issued by a surety insurer authorized to transact such insurance in this state.
2. The bond shall be conditioned upon:
(a) The payment of costs incurred by the State of Nevada in the event of any proceeding for liquidation or dissolution of the proposed organization before completion or organization, or, if to be an insurer, a certificate of authority is not granted;
(b) Compliance with terms of the permit and with applicable laws of this state; and
(c) A full accounting for all funds received in transactions under the permit until the proposed insurer has been granted its certificate of authority or until the corporation, syndicate, association, firm or organization or financing has been completed within the terms of the permit.
3. In lieu of filing such a bond the applicant may deposit with the Commissioner cash in the amount of $50,000 or securities of the United States Government or of the State of Nevada in market value of at least $50,000, and the Commissioner shall hold such deposit in trust for the same purposes as apply to a bond under subsection 2. The amount so deposited may, in the Commissioner’s discretion, be credited toward payment of subscriptions to securities by founders, promoters and incorporators if required under subparagraph (1) of paragraph (e) of subsection 2 of NRS 692B.110, (terms of permit) but subject to such diminution of such credit as may result from actual application of the deposit to the purposes for which made.
4. The Commissioner may, in the discretion of the Commissioner, waive the requirement for a bond or deposit in lieu thereof if the securities are to be issued in connection with subsequent financing as provided for in NRS 692B.260.
5. The Commissioner shall release and discharge the bond or deposit or remaining portion thereof held under this section upon settlement of all liabilities, if any, against it.
6. This section does not apply to solicitation of initial qualifying applications for insurance in a proposed domestic mutual insurer pursuant to NRS 692B.200 except as provided in NRS 692B.210.
(Added to NRS by 1971, 1790)