NRS 240A.123
Cash bond or surety bond for business entity
- conditions and requirements
- release of surety
- return of bond
- suspension and reinstatement of registration.
1.
A business entity that has one or more employees who perform document preparation services may file with the Secretary of State a cash bond or surety bond on behalf of all employees of the business entity who are registered as a document preparation service and provide document preparation services for the business entity. Any such bond must be for the applicable amount set forth in NRS 240A.125.2.
If a business entity files a cash bond or surety bond pursuant to subsection 1, the employees of the business entity who are covered by the bond are not required to file a cash bond or surety bond pursuant to NRS 240A.120.3.
A cash or surety bond filed pursuant to subsection 1 must be approved as to form by the Attorney General and conditioned to provide:(a)
Indemnification to a client or any other person who is determined in an action or proceeding to have suffered damage as a result of:(1)
An act or omission of a registrant employed by the business entity which violates a provision of this chapter or a regulation or order adopted or issued pursuant thereto;(2)
A wrongful failure or refusal by a registrant employed by the business entity to provide services in accordance with a contract entered into pursuant to NRS 240A.190;(3)
The fraud, dishonesty, negligence or other wrongful conduct of a registrant employed by the business entity; or(4)
An act or omission of a registrant employed by the business entity in violation of any other federal or state law for which the return of fees, an award of damages or the imposition of sanctions have been awarded by a court of competent jurisdiction in this State; or(b)
Payment to the Secretary of State for any civil penalty or award of attorney’s fees or costs of suit owing and unpaid by a registrant employed by the business entity to the Secretary of State pursuant to this chapter.4.
No part of a bond filed pursuant to this section may be withdrawn while the registration of a registrant employed by the business entity remains in effect, or while a proceeding to suspend or revoke the registration is pending.5.
If a surety bond is filed pursuant to subsection 1:(a)
Except as otherwise provided in subsection 6, the bond must be executed by the business entity as principal and by a surety company qualified and authorized to do business in this State.(b)
The bond must cover the period of registration of each employee of the business entity who is registered as a document preparation service and performs document preparation services for the business entity, except when the surety is released in accordance with this section.(c)
The surety shall pay any final, nonappealable judgment of a court of this State that has jurisdiction, upon receipt of written notice that the judgment is final.(d)
The bond may be continuous, but regardless of the duration of the bond, the aggregate liability of the surety does not exceed the penal sum of the bond.(e)
If the penal sum of the bond is exhausted, the surety shall give written notice to the Secretary of State and the business entity within 30 days after its exhaustion.(f)
The surety may be released after giving 30 days’ written notice to the Secretary of State and the business entity, but the release does not discharge or otherwise affect any claim resulting from an act or omission which is alleged to have occurred while the bond was in effect.6.
If a business entity employs only one registrant to perform document preparation services, the registrant must be named as principal in the bond filed pursuant to this section.7.
Except as otherwise provided in this subsection, if a cash bond is filed pursuant to subsection 1, the Secretary of State may retain the bond until the expiration of 3 years after the date the business entity has ceased to do business, or 3 years after the date of the expiration or revocation of the registration of each employee of the business entity who is registered as a document preparation service and performs document preparation services for the business entity, to ensure that there are no outstanding claims against the bond. A court of competent jurisdiction may order the return of the bond, or any part of the bond, at an earlier date upon evidence satisfactory to the court that there are no outstanding claims against the bond or that the part of the bond retained by the Secretary of State is sufficient to satisfy any outstanding claims. Interest on a cash bond filed pursuant to subsection 1 must accrue to the account of the depositor.8.
The registration of a registrant is suspended by operation of law when the registrant is no longer covered by a bond or the penal sum of the bond is exhausted. If the Secretary of State receives notice pursuant to subsection 5 that the penal sum of a surety bond is exhausted or that the surety is being released, the Secretary of State shall immediately notify the business entity and each registrant covered under the bond in writing that their registration is suspended by operation of law until another bond is filed in the same manner and amount as the former bond.9.
The Secretary of State may reinstate the registration of a registrant whose registration has been suspended pursuant to subsection 8 if, before the current term of the registration expires, the business entity files with the Secretary of State a new bond meeting the requirements of this section or the registrant files with the Secretary of State a new bond meeting the requirements of NRS 240A.120.10.
Except as specifically authorized or required by this chapter, a business entity or registrant shall not make or cause to be made any oral or written reference to the registrant’s compliance with the requirements of this section.
Source:
Section 240A.123 — Cash bond or surety bond for business entity; conditions and requirements; release of surety; return of bond; suspension and reinstatement of registration., https://www.leg.state.nv.us/NRS/NRS-240A.html#NRS240ASec123.