NRS 573.108
Duties of Director when licensee fails to pay consignor creditor
- settlement or compromise on bond
- action by Director
- subpoenas.
1.
In case of failure by a licensee to pay the amount due a consignor creditor whose livestock was handled or sold through or at the licensee’s public livestock auction, as evidenced by a verified complaint filed with the Director, the Director shall proceed forthwith to ascertain the names and addresses of all consignor creditors of the licensee, together with the amounts due to them by the licensee, and shall request all the consignor creditors to file a verified statement of their respective claims with the Director. The request must be addressed to each known consignor creditor at his or her last known address.2.
If a consignor creditor so addressed fails, refuses or neglects to file in the office of the Director the consignor creditor’s verified claim as requested by the Director within 60 days after the date of the request, the Director is relieved of further duty or action under this section on behalf of that consignor creditor.3.
If because of the absence of records, or other circumstances making it impossible or unreasonable for the Director to ascertain the names and addresses of all consignor creditors, the Director, after exerting due diligence and making reasonable inquiry to secure the information from all reasonable and available sources, may make demand on the bond on the basis of information in the Director’s possession, and thereafter is not liable or responsible for claims or the handling of claims which may subsequently appear or be discovered.4.
Upon ascertaining all claims and statements in the manner set forth in this section, the Director may make a demand upon the bond on behalf of those claimants whose statements have been filed, and may settle or compromise the claims with the surety company on the bond and execute and deliver a release and discharge of the bond involved.5.
Upon the refusal of the surety company to pay the demand, the Director may thereupon bring an action on the bond on behalf of the consignor creditors. Upon any action being commenced on the bond, the Director may require the filing of a new bond. Immediately upon the recovery in any action on the bond the licensee shall file a new bond. Upon failure to file the bond within 10 days, in either case, the failure constitutes grounds for the suspension or revocation of his or her license.6.
In any settlement or compromise by the Director with a surety company as provided in subsection 4, if there are two or more consignor creditors that have filed claims, fixed or contingent, against a licensee’s bond, the creditors must share pro rata in the proceeds of the bond to the extent of their actual damage.7.
To enforce the provisions of this section, the Director may receive verified complaints from any consignor against any licensee, or agent, or any person assuming or attempting to act as such, and upon receipt of a verified complaint may conduct any necessary investigations relating to the complaint. The Director may administer oaths of verification of the complaints.8.
To conduct investigations as provided for in subsection 7, the Director may enter a public livestock auction and examine any records required under the provisions of this chapter. The Director may issue subpoenas requiring the attendance of witnesses before the Director, together with all books, memoranda, papers and other documents relating to the matters under investigation.
Source:
Section 573.108 — Duties of Director when licensee fails to pay consignor creditor; settlement or compromise on bond; action by Director; subpoenas., https://www.leg.state.nv.us/NRS/NRS-573.html#NRS573Sec108.