Nevada Revised Statutes Title 52. Trade Regulations and Practices § 598.855. Trust account required for payments on contracts

1. Before the organization receives any money from any buyer pursuant to a contract for membership in the organization, it shall establish a trust account for payments on contracts at a financial institution that is federally insured or insured by a private insurer approved pursuant to NRS 672.755.  Each payment from a buyer for his or her contract for membership, except for $50 of the first payment, must be deposited in the trust account.

2. Except as otherwise provided in subsection 3, during each quarter of the term of a buyer's contract or each 6 months, whichever period is shorter, the trustee shall withdraw one-quarter of the buyer's payments under the contract from the trust account and pay the amount to the organization.

3. If an affiliate organization obtains the express consent of its parent and the parent posts the security required by subsection 4, the affiliate organization may:

4. Before a trustee may withdraw money from a trust account pursuant to subsection 3, the parent must post security in the amount of $250,000 with the Consumer Affairs Division pursuant to NRS 598.726.  The security posted by the parent:

5. If the organization sells, transfers or assigns the contract with the buyer to a third party, and the third party gives reasonable consideration for the contract, the organization shall deposit the consideration in the trust account.  If the third party does not give reasonable consideration for the contract, the organization shall deposit all payments on the contract from the buyer in the organization's trust account for payments on the contract.