Construction control may deposit substitute form of security in lieu of surety bond; amount deposited must equal amount of bond; interest or dividends accrue to depositor.
1. As a substitute for the surety bond required by NRS 627.180, a construction control may, in accordance with the provisions of this section, deposit with any bank or trust company authorized to do business in this state, in a form approved by the State Contractors’ Board:
(a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this state;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state, or guaranteed by this state.
2. The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond. With the approval of the State Contractors’ Board, the depositor may substitute other suitable obligations for those deposited which must be assigned to the State of Nevada and are negotiable only upon approval by the State Contractors’ Board.
3. Any interest or dividends earned on the deposit accrue to the account of the depositor.
4. The deposit must be in an amount at least equal to the required surety bond and must state that the amount may not be withdrawn except by direct and sole order of the State Contractors’ Board. The value of any item deposited pursuant to this section must be based upon principal amount or market value, whichever is lower.
Last modified: February 27, 2006