Nevada § 394.271 - Surety bond or certificate of deposit

§ 394.271. Surety bond or certificate of deposit

1. Except as otherwise provided in this section, at the time application is made for

an agent's permit, a license to operate or a license renewal, the Superintendent shall

require the elementary or secondary educational institution making the application

to file a good and sufficient surety bond in the sum of not less than $5,000. The bond must be executed by the applicant as principal and by a surety company qualified

and authorized to do business in this state. The bond must be made payable to the State of Nevada and be conditioned to provide

indemnification to any pupil, enrollee or his or her parent or guardian determined

to have suffered damage as a result of any act by any elementary or secondary educational

institution or its agent which is a violation of any provision of NRS 394.201 to 394.351 , inclusive, and the bonding company shall pay any final, nonappealable judgment of

any court of this state that has jurisdiction, upon receipt of written notice of final

judgment. The bond may be continuous but, regardless of the duration of the bond, the aggregate

liability of the surety does not exceed the penal sum of the bond. 2. The surety bond must cover the period of the license or the agent's permit, as

appropriate, except when a surety is released. 3. A surety on any bond filed pursuant to this section may be released after the surety

gives 30 days' written notice to the Superintendent, but the release does not discharge

or otherwise affect any claim filed by a pupil, enrollee or his or her parent or guardian

for damage resulting from any act of the elementary or secondary educational institution

or agent which is alleged to have occurred while the bond was in effect, nor for an

institution's closing operations during the term for which tuition had been paid while

the bond was in force. 4. In lieu of the bond otherwise required by this section, an institution may purchase

a certificate of deposit in an amount of not less than $5,000 from a financial institution

insured by an agency of the Federal Government or by a private insurer approved pursuant

to NRS 672.755 . The deposit may be withdrawn only on the order of the Superintendent, except that

the interest may accrue to the institution. Any pupil, enrollee or his or her parent or guardian who suffers damage as the result

of an act described in subsection 1 may bring and maintain an action to recover against

the certificate of deposit. 5. A license or an agent's permit is suspended by operation of law when the institution

or agent is no longer covered by a surety bond as required by this section and no

deposit has been made pursuant to subsection 4 or the deposit has been withdrawn.

If a bond has been filed, the Superintendent shall give the institution or agent,

or both, at least 30 days' written notice before the release of the surety that the

license or permit will be suspended by operation of law until another surety bond

is filed in the same manner and amount as the bond being terminated.