NRS 116B.915
Remedial and disciplinary action: Audit of association
- appointment of receiver.
1.
If the Commission or a hearing panel, after notice and hearing, finds that the executive board or any person acting on behalf of the association has committed a violation, the Commission or the hearing panel may order an audit of the association.2.
The Commission, or the Division with the approval of the Commission, may apply to a court of competent jurisdiction for the appointment of a receiver for an association if, after notice and a hearing, the Commission or a hearing officer finds that any of the following violations occurred:(a)
The executive board, or any member thereof, has been guilty of fraud or collusion or gross mismanagement in the conduct or control of its affairs;(b)
The executive board, or any member thereof, has been guilty of misfeasance, malfeasance or nonfeasance; or(c)
The assets of the association are in danger of waste or loss through attachment, foreclosure, litigation or otherwise.3.
In any application for the appointment of a receiver pursuant to this section, notice of a temporary appointment of a receiver may be given to the association alone, by process as in the case of an application for a temporary restraining order or injunction. The hearing thereon may be had after 5 days’ notice unless the court directs a longer or different notice and different parties.4.
The court may, if good cause exists, appoint one or more receivers pursuant to this section to carry out the business of the association. The members of the executive board who have not been guilty of negligence or active breach of duty must be preferred in making the appointment.5.
The powers of any receiver appointed pursuant to this section may be continued as long as the court deems necessary and proper. At any time, for sufficient cause, the court may order the receivership terminated.6.
Any receiver appointed pursuant to this section has, among the usual powers, all the functions, powers, tenure and duties to be exercised under the direction of the court as are conferred on receivers and as provided in NRS 78.635, 78.640 and 78.645, whether or not the association is insolvent. Such powers include, without limitation, the powers to:(a)
Take charge of the estate and effects of the association;(b)
Appoint an agent or agents;(c)
Collect any debts and property due and belonging to the association and prosecute and defend, in the name of the association, or otherwise, any civil action as may be necessary or proper for the purposes of collecting debts and property;(d)
Perform any other act in accordance with the governing documents of the association and this chapter that may be necessary for the association to carry out its obligations; and(e)
By injunction, restrain the association from exercising any of its powers or doing business in any way except by and through a receiver appointed by the court.
Source:
Section 116B.915 — Remedial and disciplinary action: Audit of association; appointment of receiver., https://www.leg.state.nv.us/NRS/NRS-116B.html#NRS116BSec915.