Nevada § 487.420 - Bond: Requirement; amount; application for compensation; deposits in lieu of bond; disbursement to person injured by action of licensee; automatic suspension of license if deposit is reduced or outstanding judgment; reinstatement of license; refund

§ 487.420. Bond: Requirement; amount; application for compensation; deposits in lieu of bond; disbursement to person injured by action of licensee; automatic suspension of license if deposit is reduced or outstanding judgment; reinstatement of license; refund

1. No applicant may be granted a license to operate a salvage pool until he or she

has procured and filed with the Department a good and sufficient bond in the amount

of $50,000, with a corporate surety thereon licensed to do business in the State of

Nevada, approved as to form by the Attorney General, and conditioned that the applicant

conducts business as an operator of a salvage pool without fraud or fraudulent representation,

and without violation of the provisions of NRS 487.400 to 487.510 , inclusive. The Department may, by agreement with any operator of a salvage pool who has been

licensed by the Department for 5 years or more, allow a reduction in the amount of

his or her bond, if his or her business has been conducted satisfactorily for the

preceding 5 years, but no bond may be in an amount less than $5,000. 2. The bond may be continuous in form and the total aggregate liability on the bond

must be limited to the payment of the total amount of the bond. 3. The bond must provide that any person injured by the action of the operator of

the salvage pool in violation of any of the provisions of NRS 487.400 to 487.510 , inclusive, may apply to the Director for compensation from the bond. The Director, for good cause shown and after notice and opportunity for hearing,

may determine the amount of compensation and the person to whom it is to be paid. The surety shall then make the payment. 4. In lieu of a bond an operator of a salvage pool may deposit with the Department,

under the terms prescribed by the Department: (a) A like amount of lawful money of the United States; or (b) A savings certificate of a bank, credit union, savings and loan association or

savings bank situated in Nevada, which must indicate an account of an amount equal

to the amount of the bond which would otherwise be required by this section and that

this amount is unavailable for withdrawal except upon order of the Department. Interest earned on the certificate accrues to the account of the applicant. 5. A deposit made pursuant to subsection 4 may be disbursed by the Director, for good

cause shown and after notice and opportunity for hearing, in an amount determined

by the Director to compensate a person injured by an action of the licensee, or released

upon receipt of: (a) A court order requiring the Director to release all or a specified portion of

the deposit; or (b) A statement signed by the person under whose name the deposit is made and acknowledged

before any person authorized to take acknowledgments in this State, requesting the

Director to release the deposit, or a specified portion thereof, and stating the purpose

for which the release is requested. 6. When a deposit is made pursuant to subsection 4, liability under the deposit is

in the amount prescribed by the Department. If the amount of the deposit is reduced or there is an outstanding judgment of a

court for which the licensee is liable under the deposit, the license is automatically

suspended. The license must be reinstated if the licensee: (a) Files an additional bond pursuant to subsection 1; (b) Restores the deposit with the Department to the original amount required under

this section; or (c) Satisfies the outstanding judgment for which the licensee is liable under the

deposit. 7. A deposit made pursuant to subsection 4 may be refunded: (a) By order of the Director, 3 years after the date the licensee ceases to be licensed

by the Department, if the Director is satisfied that there are no outstanding claims

against the deposit; or (b) By order of court, at any time within 3 years after the date the licensee ceases

to be licensed by the Department, upon evidence satisfactory to the court that there

are no outstanding claims against the deposit. 8. Any money received by the Department pursuant to subsection 4 must be deposited

with the State Treasurer for credit to the Motor Vehicle Fund.