Nevada § 89.254 - Defaulting associations: Duties of Secretary of State; forfeiture of right to transact business; assets held in trust; distribution of assets

§ 89.254. Defaulting associations: Duties of Secretary of State; forfeiture of right to transact business; assets held in trust; distribution of assets

1. The Secretary of State shall provide written notice to each professional association

which is in default pursuant to the provisions of NRS 89.252 . The written notice: (a) Must include a statement indicating the amount of the filing fee, penalties incurred

and costs remaining unpaid. (b) At the request of the professional association, may be provided electronically. 2. On the first day of the first anniversary of the month following the month in which

the filing was required, the articles of association of the professional association

are revoked and its right to transact business is forfeited. 3. The Secretary of State shall compile a complete list containing the names of all

professional associations whose right to transact business has been forfeited. 4. The Secretary of State shall forthwith notify each professional association specified

in subsection 3 by providing written notice of the forfeiture of its right to transact

business. The written notice: (a) Must include a statement indicating the amount of the filing fee, penalties incurred

and costs remaining unpaid. (b) At the request of the professional association, may be provided electronically. 5. If the articles of association of a professional association are revoked and the

right to transact business is forfeited, all the property and assets of the defaulting

professional association must be held in trust by its members, as for insolvent corporations,

and the same proceedings may be had with respect to its property and assets as apply

to insolvent corporations. Any interested person may institute proceedings at any time after a forfeiture has

been declared, but, if the Secretary of State reinstates the articles of association,

the proceedings must be dismissed and all property restored to the members of the

professional association. 6. If the assets of the professional association are distributed, they must be applied

to: (a) The payment of the filing fee, penalties and costs due to the State; and (b) The payment of the creditors of the professional association. Any balance remaining must be distributed as set forth in the articles of association

or, if no such provisions exist, among the members of the professional association.