Form, conditions and amount of bond; deposit in lieu of bond.
1. Before granting any application for a license as a dealer or supplier, the Department shall require the applicant to file with the Department a bond executed by the applicant as principal, and by a corporation qualified under the laws of this State as surety, payable to this State and conditioned upon the faithful performance of all the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and other obligations of the applicant as a dealer or supplier.
2. The total amount of the bond or bonds required of any dealer or supplier must be fixed by the Department at three times the estimated maximum monthly tax, determined in such a manner as the Department deems proper, or $1,000, whichever is greater. If the Department determines that a person is habitually delinquent in the payment of amounts due pursuant to this chapter, it may increase the amount of his security to not more than five times the estimated maximum monthly tax. When cash or a savings certificate, certificate of deposit or investment certificate is used, the amount required must be rounded off to the next larger integral multiple of $100, within the same upper limit.
3. The Department may increase or decrease the amount of security required by this section subject to the limitations provided in this section.
4. No recovery on any bond, nor the execution of any new bond, nor the revocation, cancellation or suspension of any license affects the validity of any bond.
5. In lieu of any bond or bonds, a dealer or supplier may deposit with the Department, under such terms and conditions as the Department may prescribe, a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the Department.
Last modified: February 27, 2006