§ 697.320 — Bail transaction: Collateral; limitations on transfer of collateral; fiduciary capacity; requirements for receiving title to real property as collateral; return of excess collateral; written receipt for collateral upon acceptance

Nevada § 697.320

• Jurisdiction: Nevada
• Title 57: INSURANCE
• Ch. 697: Businesses

Text

1. A bail agent may accept collateral security in connection with a bail transaction if the collateral security is reasonable in relation to the face amount of the bond. The bail agent shall not transfer the collateral to any person other than a bail agent licensed pursuant to this chapter or a surety insurer holding a valid certificate of authority issued by the Commissioner. The collateral must not be transported or otherwise removed from this state. Any person who receives the collateral:
(a) Shall be deemed to hold the collateral in a fiduciary capacity to the same extent as a bail agent; and
(b) Shall retain, return and otherwise possess the collateral in accordance with the provisions of this chapter.
2. The collateral security must be received by the bail agent in his or her fiduciary capacity, and before any forfeiture of bail must be kept separate and apart from any other funds or assets of the licensee. Any collateral received must be returned to the person who deposited it with the bail agent or any assignee other than the bail agent as soon as the obligation, the satisfaction of which was secured by the collateral, is discharged and all fees owed to the bail agent have been paid. The bail agent or any surety insurer having custody of the collateral shall, immediately after the bail agent or surety insurer receives a request for return of the collateral from the person who deposited the collateral, determine whether the bail agent or surety insurer has received notice that the obligation is discharged. If the collateral is deposited to secure the obligation of a bond, it must be returned immediately after receipt of the request for return of the collateral and notice of the entry of any order by an authorized official by virtue of which liability under the bond is terminated or upon payment of all fees owed to the bail agent, whichever is later. A certified copy of the minute order from the court wherein the bail or undertaking was ordered exonerated shall be deemed prima facie evidence of exoneration or termination of liability.
3. If a bail agent receives as collateral in a bail transaction, whether on the bail agent’s or another person’s behalf, any document conveying title to real property, the bail agent shall not accept the document unless it indicates on its face that it is executed as part of a security transaction. If the document is recorded, the bail agent or any surety insurer having possession of the document shall, immediately after the bail agent or surety insurer receives a request for return of the collateral from the person who executed the document:
(a) Determine whether the bail agent or surety insurer has received notice that the obligation for which the document was accepted is discharged; and
(b) If the obligation has been discharged, reconvey the real property by delivering a deed or other document of conveyance to the person or to the heirs of the person, legal representative or successor in interest. The deed or other document of conveyance must be prepared in such a manner that it may be recorded.
4. If the amount of any collateral received in a bail transaction exceeds the amount of any bail forfeited by the defendant for whom the collateral was accepted, the bail agent or any surety insurer having custody of the collateral shall, immediately after the bail is forfeited, return to the person who deposited the collateral the amount by which the collateral exceeds the amount of the bail forfeited. Any collateral returned to a person pursuant to this subsection is subject to a claim for fees, if any, owed to the bail agent returning the collateral.
5. If a bail agent accepts collateral, the bail agent shall give a written receipt for the collateral. The receipt must include in detail a full account of the collateral received.

Legislative History

(Added to NRS by 1971, 1915 ; A 1997, 3391 ; 2003, 3337 )