689.580 - Prepaid contracts: Termination on insolvency or other inability of seller to perform; distribution of money in trust fund. - Nevada Statutes

689.580  Prepaid contracts: Termination on insolvency or other inability of seller to perform; distribution of money in trust fund.

      1.  An executory prepaid contract automatically terminates if the seller or any performer under the contract goes out of business, dies, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors or is otherwise unable to fulfill the obligations under the contract, unless the successors or assignees of the business agree to accept all liability and to fulfill all obligations as originally set forth in the contract.

      2.  Upon any such termination, the money in the trust fund, including earned interest, held by the trustee for the account of the buyer must be distributed by the trustee to the buyer or to a qualified seller or performer assuming the outstanding contractual liabilities, as authorized by the Commissioner.

      (Added to NRS by 1987, 1259; A 2001, 2217)