NRS 240A.127 Claim against bond; requirements; interpleader; priority.

347 words·~2 min read·/nv/chapter-240a-document-preparation-services/240a-127·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. A claim against a bond filed pursuant to NRS 240A.120 , 240A.123 or 240A.124 may be filed in a court of competent jurisdiction for damages to the extent covered by the bond. A claim may not be brought against a bond after 3 years from the date of the act on which the action is based.

2. If a person commences an action pursuant to subsection 1, he or she must notify the Secretary of State in writing upon filing the action. Upon receiving such notification, the Secretary of State shall notify the person:

(a)Whether the bond is in effect;

(b)The amount of the bond; and

(c)If there is any other claim against the bond, the title, court and case number of the action and the amount sought by the plaintiff in the other action.

3. If a surety wishes to make payment without awaiting action by a court:

(a)The amount of the bond must be reduced to the extent of any payment made by the surety in good faith under the bond; and

(b)Any payment must be based on written claims received by the surety before any action is taken by a court.

4. A surety may bring an action for interpleader against all claimants upon the bond. If such an action for interpleader is brought, the surety:

(a)Shall publish notice of the action at least once each week for 2 weeks in every issue of a newspaper of general circulation in the county of the principal place of business of the registrant or business entity, as applicable; and

(b)May deduct its costs of the action, including, without limitation, costs for attorney’s fees and publication, from its liability under the bond.

5. Claims against a bond have equal priority. If a bond is insufficient to pay all claims in full, the claims must be paid on a pro rata basis. Any claimant may bring action against the registrant or business entity, as applicable, for the unpaid balance of a claim.