205.960 - ntermediaries of clients with certain property: Unlawful acts; criminal penalty; civil penalty. - Nevada Statutes

205.960  Qualified intermediaries of clients with certain property: Unlawful acts; criminal penalty; civil penalty.

      1.  It is unlawful for a person to enter into an agreement to act as a qualified intermediary, as defined in 26 C.F.R. § 1.1031(k)-1(g)(4), for a client whose relinquished property is located in this State unless:

      (a) The proceeds from the disposition of the relinquished property are deposited into a qualified escrow account or qualified trust as defined in 26 C.F.R. § 1.1031(k)-1(g)(3).

      (b) The money is held in such a manner that it may not be withdrawn from the qualified escrow account or qualified trust without the written approval of the intermediary and the client.

      2.  A person who violates the provisions of this section is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      3.  In addition to any other penalty imposed, the court shall order a person who violates subsection 1 to pay a civil penalty of not less than $10,000. The money so collected:

      (a) Must not be deducted from any penal fine imposed by the court;

      (b) Must be stated separately on the court’s docket; and

      (c) Must be remitted forthwith to the Commissioner of Financial Institutions.

      (Added to NRS by 1993, 2021; A 1995, 668, 1236; 2007, 3120)