Nevada § 42.340 - Requirement to register as structured settlement purchase company; application; fees; certification of surety bond or letter of credit that meets certain requirements

§ 42.340. Requirement to register as structured settlement purchase company; application; fees; certification of surety bond or letter of credit that meets certain requirements

1. A person shall not act as a transferee, attempt to acquire structured settlement

payment rights through a transfer from a payee who resides in this State or file a

structured settlement transfer proceeding in this State unless the person is registered

with the Unit to do business in this State as a structured settlement purchase company. 2. A person may apply pursuant to this section with the Unit for a registration to

do business in this State as a structured settlement purchase company. Except as otherwise provided in this subsection, an application for an initial or

renewed registration must be accompanied by a nonrefundable fee of $250 and must be

submitted on a form prescribed by the Unit. An initial or renewed registration expires 1 year after it is issued and may be

renewed by the registrant on or before the renewal date for additional 1-year periods. If a registrant fails to pay the required fee or submit all required information

for a renewed registration before the expiration of its registration, the registrant

may: (a) Renew its registration if, within 60 days after the expiration of its registration,

the registrant submits its application for a renewed registration accompanied by all

required information and a nonrefundable renewal fee of $375. (b) Reinstate its registration if, more than 60 days after the expiration of its registration,

the registrant submits its application for reinstatement of its registration accompanied

by all required information and a nonrefundable reinstatement fee of $500. 3. The application must contain a sworn certification by an owner, officer, director

or manager of the applicant, if the applicant is not a natural person, or by the applicant

if the applicant is a natural person, certifying that: (a) The applicant has secured a surety bond or has been issued a letter of credit

in the amount of $50,000 which relates to its business as a structured settlement

purchase company in this State; (b) The surety bond or letter of credit: (1) Is intended to protect payees who do business with the applicant when the applicant

is acting as a structured settlement purchase company; and (2) Complies with all applicable provisions of NRS 42.200 to 42.400 , inclusive; and (c) The applicant will comply with all of the provisions of NRS 42.200 to 42.400 , inclusive, when acting as a structured settlement purchase company and filing structured

settlement transfer proceedings in this State. 4. The applicant must submit to the Unit with each initial and renewal application

a copy of the surety bond or letter of credit obtained by the applicant for the purposes

of subsection 3. 5. A surety bond obtained for the purposes of subsection 3 must be payable to the

State of Nevada. 6. A surety bond or letter of credit obtained for the purposes of subsection 3 must

be effective concurrently with the registration of the applicant and must remain in

effect for not less than 3 years after the expiration or termination of the registration. The surety bond or letter of credit must be renewed each year as needed to keep

it continuously in effect when the registration of the applicant is renewed unless

the applicant obtains alternative security described in paragraph (a) of subsection

3 which complies with all applicable provisions of NRS 42.200 to 42.400 , inclusive. 7. A surety bond or letter of credit obtained for the purposes of subsection 3 must: (a) Ensure that the structured settlement purchase company: (1) Complies with the provisions of NRS 42.200 to 42.400 , inclusive, which relate to a payee; and (2) Performs its obligations to a payee pursuant to NRS 42.200 to 42.400 , inclusive; and (b) Provide a source for recovery for a payee if the payee obtains a judgment against

the structured settlement purchase company for a violation of NRS 42.200 to 42.400 , inclusive. 8. All fees received by the Unit pursuant to this section must be deposited in the

Department of Business and Industry budget account and used only to acquire technology

for, or improve technology used by, the Unit to carry out its duties pursuant to NRS 42.200 to 42.400 , inclusive.