598.9474 - Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2011.] - Nevada Statutes

598.9474  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2011.]

      1.  The security required to be deposited by a registrant pursuant to NRS 598.9472 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.

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

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division 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 organization has its principal place of business. The Division may deduct its costs of the action, including 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 registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division 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 Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      5.  If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.

      (Added to NRS by 2009, 2712, effective July 1, 2011)