NRS 649.105 Bond or substitute security required; amount and conditions; adjustments in amount.

230 words·~1 min read·/nv/chapter-649-collection-agencies/649-105

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

1. An applicant for a license must file with the Commissioner, concurrently with the application, a bond in the sum of $35,000, or an appropriate substitute pursuant to NRS 649.119 , which must run to the State of Nevada. The bond must be made and executed by the principal and a surety company authorized to write bonds in the State of Nevada.

2. The bonds must be conditioned:

(a)That the principal, who must be the applicant, must, upon demand in writing, pay any customer from whom any claim for collection is received, the proceeds of the collection, in accordance with the terms of the agreement made between the principal and the customer; and

(b)That the principal must comply with all requirements of this or any other statute with respect to the duties, obligations and liabilities of collection agencies.

3. The Commissioner shall annually determine the appropriate amount of bond or appropriate substitute which must be maintained by the licensee. If applicable, such a determination must be in accordance with the licensee’s average monthly balance in the trust account maintained pursuant to NRS 649.355 :

AMOUNT OF

AVERAGE MONTHLY BALANCE BOND REQUIRED

Less than $100,000......................................................................................... $35,000

$100,000 or more but less than $150,000..................................................... 40,000

$150,000 or more but less than $200,000..................................................... 50,000

$200,000 or more.............................................................................................. 60,000