NRS 598.506 Rights and remedies of injured consumers; resolution by Unit of claims against security; regulations.

312 words·~1 min read·/nv/chapter-598-deceptive-trade-practices/598-506·

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

1. The security required to be deposited by a tour broker or tour operator pursuant to NRS 598.495 must be held in trust for consumers injured by:

(a)The bankruptcy of the tour broker or tour operator; or

(b)The tour broker’s or tour operator’s breach of any agreement entered into in his or her capacity as a tour broker or tour operator.

2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

3. The Unit may bring an action for interpleader against all claimants upon the security. If the Unit brings such an action, the Unit shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the tour broker or tour operator has its principal place of business. The Unit may deduct its costs of the action, including, without limitation, the costs of the publication of the notice, from the amount of the security.

All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the tour broker or tour operator has posted a bond with the Unit, the surety is then relieved of all liability under the bond.

4. The Unit may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Unit shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the tour broker or tour operator has posted a bond with the Unit, distribution pursuant to this subsection relieves the surety of all liability under the bond.