Nevada § 445A.905 - Systems constructed after June 30, 1991: Disposition of proceeds of assessments and sureties

§ 445A.905. Systems constructed after June 30, 1991: Disposition of proceeds of assessments and sureties

1. The proceeds of any assessments upon lots or parcels and the sureties required

pursuant to NRS 445A.895 must be deposited with the treasurer of the local governing body which received them,

and they may be expended only for the: (a) Continued maintenance and operation of the water system; (b) Replacement of the water system if necessary; and (c) Payment of the costs, including, but not limited to, the direct costs of connection

and the costs of necessary new or rehabilitated facilities and any necessary water

rights, associated with connection to any water system provided by a public utility

or a municipality or other public entity that becomes reasonably available. 2. If any surplus exists in the proceeds of assessments and the sureties required

pursuant to NRS 445A.895 after all purposes of the assessments and sureties have been fully met, the surplus

must be refunded to the persons who paid the assessments and sureties, in the proportion

that their respective assessments and sureties bear to the gross proceeds of all assessments

and sureties collected by the local governing body. 3. For the purposes set forth in subsection 1, the local governing body is not obligated

to: (a) Expend money from any source other than the assessments and surety deposited pursuant

to NRS 445A.895 ; (b) Extend credit on behalf of a builder, developer or owner of land to be served

by the water system; or (c) Collect any unpaid assessment, unless the local governing body has agreed to assume

the duty for the assessments pursuant to subsection 4 of NRS 445A.895 .