Bond or deposit.
1. Except as otherwise provided in subsection 2, a qualified intermediary shall post with the Division a bond executed by the intermediary as principal, and by a corporation qualified pursuant to the laws of this state as a surety. The bond must be payable to the State of Nevada and conditioned upon the payment of all money due to the State and the clients of the intermediary. The Division shall, by regulation, establish the minimum amount required for the bond.
2. In lieu of such a bond an intermediary may deposit with the Division under such terms and conditions as the Division 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 Division.
3. Any person claiming against a bond may bring an action in a court of competent jurisdiction on the bond for damages to the extent covered by the bond. A person who brings an action on a bond shall notify the Division in writing upon filing the action.
4. Upon receiving a request from a person for whose benefit a bond is required, the Division shall notify him:
(a) That a bond is in effect and the amount of the bond; and
(b) If there is an action against the bond, of the title, court and case number of the action and the amount sought by the plaintiff.
5. If a surety wishes to make payment without awaiting action by a court, the amount of the bond must be reduced to the extent of any payment made by the surety in good faith under the bond. Any payment must be based on written claims received by the surety before any action is taken by a court.
6. Claims against a bond have equal priority, and if the bond is insufficient to pay all claims in full, they must be paid on a pro rata basis. Partial payment of claims is not full payment, and any claimant may bring an action against the intermediary for the unpaid balance.
Last modified: February 27, 2006