1. A consignee of an off-highway vehicle shall, upon entering into a consignment contract or other form of agreement to sell an off-highway vehicle owned by another person:
(a)Open and maintain a separate trust account in a federally insured bank, savings and loan association or savings bank that is located in this State, into which the consignee shall deposit all money received from a prospective buyer as a deposit, or as partial or full payment of the purchase price agreed upon, toward the purchase or transfer of interest in the off-highway vehicle. A consignee of an off-highway vehicle shall not:
(1)Commingle the money in the trust account with any other money that is not on deposit or otherwise maintained toward the purchase of the off-highway vehicle subject to the consignment contr
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1. A consignee of an off-highway vehicle shall, upon entering into a consignment contract or other form of agreement to sell an off-highway vehicle owned by another person:
(a) Open and maintain a separate trust account in a federally insured bank, savings and loan association or savings bank that is located in this State, into which the consignee shall deposit all money received from a prospective buyer as a deposit, or as partial or full payment of the purchase price agreed upon, toward the purchase or transfer of interest in the off-highway vehicle. A consignee of an off-highway vehicle shall not:
(1) Commingle the money in the trust account with any other money that is not on deposit or otherwise maintained toward the purchase of the off-highway vehicle subject to the consignment contract or agreement; or
(2) Use any money in the trust account to pay his or her operational expenses for any purpose that is not related to the consignment contract or agreement.
(b) Obtain from the consignor, before receiving delivery of the off-highway vehicle, a signed and dated disclosure statement that is included in the consignment contract and provides in at least 10-point bold type or font:
IMPORTANT NOTICE TO OFF-HIGHWAY VEHICLE OWNERS
State law ( NRS 490.160 ) requires that the operator of this business file a Uniform Commercial Code 1 (UCC1) form with the Office of the Secretary of State on your behalf to protect your interest in your off-highway vehicle. The form is required to protect your off-highway vehicle from forfeiture in the event that the operator of this business fails to meet his or her financial obligations to a third party holding a security interest in his or her inventory. The form must be filed by the operator of this business before the operator may take possession of your off-highway vehicle. If the form is not filed as required, YOU MAY LOSE YOUR VEHICLE THROUGH NO FAULT OF YOUR OWN. For a copy of the UCC1 form filed on your behalf or for more information, please contact:
The Office of the Secretary of State of Nevada
Uniform Commercial Code Division
(775) 684-5708
I understand and acknowledge the above disclosure.
...................................... ...............
Consignee Signature Date
(c) Assist the consignor in completing, with respect to the consignor’s purchase-money security interest in the off-highway vehicle, a financing statement of the type described in subsection 5 of NRS 104.9317 and shall file the financing statement with the Secretary of State on behalf of the consignor. If a consignee has previously granted to a third party a security interest with an after-acquired property clause in the consignee’s inventory, the consignee additionally shall assist the consignor in sending a signed notification, as described in paragraph (b) of subsection 1 of NRS 104.9324 , to each holder of a conflicting security interest. The consignee must not receive delivery of the off-highway vehicle until the consignee has:
(1) Filed the financing statement with the Secretary of State; and
(2) If applicable, assisted the consignor in sending a signed notification to each holder of a conflicting security interest.
2. Upon the sale or transfer of interest in the off-highway vehicle, the consignee shall forthwith:
(a) Satisfy or cause to be satisfied all outstanding security interests in the off-highway vehicle; and
(b) Satisfy the financial obligations due the consignor pursuant to the consignment contract.
3. Upon the receipt of money by delivery of cash, bank check or draft, or any other form of legal monetary exchange, or after any form of transfer of interest in an off-highway vehicle, the consignee shall notify the consignor that the money has been received or that a transfer of interest in the off-highway vehicle has occurred. Notification by the consignee to the consignor must be given in person or, in the absence of the consignor, by registered or certified mail addressed to the last address or residence of the consignor known to the consignee. The notification must be made within 3 business days after the date on which the money is received or the transfer of interest in the off-highway vehicle is made.
4. The provisions of this section do not apply to:
(a) An executor;
(b) An administrator;
(c) A sheriff; or
(d) Any other person who sells off-highway vehicles pursuant to the powers or duties granted to or imposed on him or her by specific statute.
5. Notwithstanding any provision of the Nevada Revised Statutes to the contrary, an off-highway vehicle subject to a consignment contract may not be operated by the consignee, an employee or agent of the consignee, or a prospective buyer unless the operation of the off-highway vehicle is authorized by the express written consent of the consignor.
6. A consignee shall maintain a written log for each off-highway vehicle for which he or she has entered into a consignment contract. The written log must include:
(a) The name and address, or place of residence, of the consignor;
(b) A description of the off-highway vehicle consigned, including the year, make, model and unique vehicle identification number, serial number or distinguishing number obtained pursuant to NRS 490.0835 of the off-highway vehicle;
(c) The date on which the consignment contract is entered into;
(d) The period that the off-highway vehicle is to be consigned;
(e) The minimum agreed upon sales price for the off-highway vehicle;
(f) The approximate amount of money due any lienholder or other person known to have an interest in the off-highway vehicle;
(g) If the off-highway vehicle is sold, the date on which the off-highway vehicle is sold;
(h) The date that the money due the consignor and the lienholder was paid;
(i) The name and address of the federally insured bank or savings and loan association in which the consignee opened the trust account required pursuant to subsection 1; and
(j) The signature of the consignor acknowledging that the terms of the consignment contract were fulfilled or terminated, as appropriate.
7. A person who:
(a) Appropriates, diverts or otherwise converts to his or her own use money in a trust account opened pursuant to paragraph (a) of subsection 1 or otherwise subject to a consignment contract or agreement is guilty of embezzlement and shall be punished in accordance with NRS 205.300 . The court shall, in addition to any other penalty, order the person to pay restitution.
(b) Violates paragraph (b) or (c) of subsection 1 is guilty of a misdemeanor. The court shall, in addition to any other penalty, order the person to pay restitution.
(c) Violates any other provision of this section is guilty of a misdemeanor.