Nevada § 599B.100 - Registration of seller: Form and amount of security; release of security

§ 599B.100. Registration of seller: Form and amount of security; release of security

1. An application filed pursuant to NRS 599B.090 must be accompanied by: (a) A bond executed by a corporate surety approved by the Commissioner and licensed

to do business in this state; (b) An irrevocable letter of credit issued for the benefit of the applicant by a bank

whose deposits are insured by an agency of the Federal Government; or (c) A certificate of deposit in a financial institution insured by an agency of the

Federal Government or by a private insurer approved pursuant to NRS 672.755 . The certificate of deposit may be withdrawn only on the order of the Commissioner,

except that the interest may accrue to the applicant. 2. The amount of the bond, letter of credit or certificate of deposit must be $50,000,

and the bond, letter of credit or certificate of deposit must be conditioned upon

compliance by the applicant with the provisions of this chapter. 3. The amount of the security required to be filed by the seller may be increased

to not more than $250,000 as part of an assurance of discontinuance accepted by the

Attorney General pursuant to NRS 599B.235 . 4. If, after a registration certificate is issued, the amount of the bond, letter

of credit or certificate of deposit which secures the registration falls below the

amount that is required by subsection 2 or the amount determined by the Commissioner

pursuant to subsection 3, the seller shall be deemed not to be registered pursuant

to this chapter for the purposes of NRS 599B.080 . 5. The term of any bond, letter of credit or certificate of deposit, or any renewal

thereof, must not be less than 1 year. 6. The Commissioner may reject any bond, letter of credit or certificate of deposit

which fails to conform to the requirements of this section. 7. A seller may change the form of the security. If a seller changes the form of the security, the Commissioner may retain for not

more than 1 year all or a portion of the security previously filed by the seller as

security for claims arising at the time the security was in effect. 8. If no claims have been filed against the bond, letter of credit or certificate

of deposit within 6 months after the registrant ceases to operate or his or her registration

expires, whichever occurs later, the Commissioner shall release the bond, letter of

credit or certificate of deposit to the registrant and shall not audit any claims

filed thereafter by consumers. If one or more claims have been filed against the bond, letter of credit or certificate

of deposit within 6 months after the registrant ceases to operate or his or her registration

expires, whichever occurs later, the proceeds must not be released to the registrant

or distributed to any consumer earlier than 1 year after the registrant ceases to

operate or his or her registration expires, whichever occurs later. The Unit shall not audit any claims which are filed pursuant to NRS 599B.105 more than 1 year after the registrant ceases to operate or his or her registration

expires, whichever occurs later. For the purposes of this subsection, the Commissioner shall determine the date on

which a registrant ceases to operate.