§ 671.100 — Bond: Amounts; form; notice to Commissioner of action or judgment; replenishment; liability of surety; increase in amount; cancellation or alteration

Nevada § 671.100

• Jurisdiction: Nevada
• Title 55: BANKS AND RELATED ORGANIZATIONS; OTHER FINANCIAL
• Ch. 671: Money

Text

1. Except as provided in NRS 671.110 , each licensee shall have in force a surety bond payable to the State of Nevada for the use and benefit of any purchaser or holder of any outstanding money transmission obligation and for value in the principal sum of the greater of:
(a) One hundred thousand dollars; or
(b) An amount equal to 100 percent of the average daily money transmission liability in this State calculated for the most recently completed quarter, to a maximum of $500,000.
2. A licensee may maintain a bond in a principal sum that exceeds $500,000. A licensee that maintains a bond in a principal sum of $500,000 or more is not required to calculate the average daily money transmission liability in this State for the purposes of subsection 1.
3. The bond must be in a form satisfactory to the Commissioner, issued by a bonding company authorized to do business in this State, and must secure the faithful performance of the obligations of the licensee respecting the provision of money transmission.
4. A licensee shall, within 10 days after the commencement of any action or notice of entry of any judgment against the licensee by any creditor or claimant arising out of business regulated by this chapter, give notice thereof to the Commissioner by registered or certified mail with details sufficient to identify the action or judgment. The surety shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by registered or certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.
5. Whenever the principal sum of the bond is reduced by recoveries or payments thereon, the licensee shall furnish:
(a) A new or additional bond so that the total or aggregate principal sum of the bonds equals the sum required under subsection 1; or
(b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum.
6. The liability of the surety on the bond to a creditor or claimant is not affected by any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the licensee, or by any insolvency or bankruptcy of the licensee.
7. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the licensee’s authorized delegates within 30 days after:
(a) The licensee’s death or the dissolution or liquidation of the licensee’s business; or
(b) The termination of the bond,
Ê whichever event occurs first.
8. Whenever the Commissioner determines that the protection of the public so requires, the Commissioner may order that an increase be made in the principal sum of the bond of any licensee, except that the Commissioner may not order an increase of more than $10,000 if the licensee has submitted a current financial statement, or more than $15,000 otherwise.
9. Neither a licensee nor the licensee’s surety may cancel or alter a bond except after notice to the Commissioner by registered or certified mail. The cancellation or alteration is not effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond before the expiration of the 30-day period designated in subsection 7.

Legislative History

(Added to NRS by 1977, 1085 ; A 1983, 1766 ; 1987, 1951 ; 2023, 125 )