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Nevada Revised Statutes Title 55. Banks and Related Organizations § 676A.390. Surety bond required

Current as of January 01, 2025 | Updated by Findlaw Staff

1. Except as otherwise provided in NRS 676A.400, a provider that is required to be registered under this chapter shall file a surety bond with the Commissioner, which must:

(a) Be continuously in effect during the period of registration and for 2 years after the provider ceases providing debt-management services to individuals in this State; and

(b) Run to this State for the benefit of this State and of individuals who reside in this State when they agree to receive debt-management services from the provider, as their interests may appear.

2. Subject to adjustment of the dollar amount pursuant to subsection 6 of NRS 676A.730, a surety bond filed pursuant to subsection 1 must:

(a) Be in the amount of $50,000 or other larger amount that the Commissioner determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals and any other factor the Commissioner considers appropriate;

(b) Be issued by a bonding, surety or insurance company authorized to do business in this State and rated at least A by a nationally recognized rating organization; and

(c) Have payment conditioned upon noncompliance of the provider or its agent with this chapter.

3. If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the Commissioner and, within 30 days after notice by the Commissioner, file a new or additional surety bond in an amount set by the Commissioner. The amount of the new or additional bond must be at least the amount of the bond immediately before payment of the claim or judgment. If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $50,000 or other larger amount determined pursuant to subsection 2.

4. The Commissioner or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:

(a) The Commissioner assesses expenses under paragraph (a) of subsection 2 of NRS 676A.730, issues a final order under paragraph (b) of subsection 1 of NRS 676A.740 or recovers a final judgment under paragraph (d) or (e) of subsection 1 of NRS 676A.740 or subsection 4 of NRS 676A.740; or

(b) An individual recovers a final judgment pursuant to subsection 1 or 2 of NRS 676A.760 or paragraph (a), (b) or (d) of subsection 3 of NRS 676A.760.

5. If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the Commissioner, on the initiative of the Commissioner or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments and claims, distribute the proceeds in the following order:

(a) To satisfaction of a final order or judgment under paragraph (b), (d) or (e) of subsection 1 of NRS 676A.740 or subsection 4 of NRS 676A.740;

(b) To final judgments recovered by individuals pursuant to subsection 1 or 2 of NRS 676A.760 or paragraph (a), (b) or (d) of subsection 3 of NRS 676A.760, pro rata;

(c) To claims of individuals established to the satisfaction of the Commissioner, pro rata; and

(d) If a final order or judgment is issued under subsection 1 of NRS 676A.740, to the expenses charged pursuant to paragraph (a) of subsection 2 of NRS 676A.730.

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Cite this article: FindLaw.com - Nevada Revised Statutes Title 55. Banks and Related Organizations § 676A.390. Surety bond required - last updated January 01, 2025 | https://codes.findlaw.com/nv/title-55-banks-and-related-organizations/nv-rev-st-676a-390/

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