Nev. Admin. Code § 645F.605

Current through November 8, 2024

Section 645F.605 - Surety bonds: Duty of independent licensee to deposit bond with Commissioner; persons to be named as principals on bond; form and amount of bond

1. As a condition to doing business in this State, each independent licensee shall deposit with the Commissioner and keep in full force and effect a surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the independent licensee and all associated licensees employed by or otherwise associated with the independent licensee.

2. At the time of filing an application for a license as a covered service provider, foreclosure consultant or loan modification consultant and at the time of filing an application for the renewal of such a license, an applicant who is or who will be an independent licensee shall file with the Commissioner proof that the applicant is named as a principal and all associated licensees employed by or otherwise associated with the independent licensee are named as principals on the surety bond deposited with the Commissioner by the independent licensee.

3. The surety bond must be in substantially the following form:

Know All Persons by These Presents, that ...................., as principal, and ...................., as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 645F of NRS and the regulations promulgated thereunder, in the sum of ..................., lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

The condition of that obligation is such that:

Whereas, the principal has been issued a license as a covered service provider, foreclosure consultant or loan modification consultant by the Commissioner of Mortgage Lending and is required to furnish a bond, which is conditioned as set forth in this bond:

Now, therefore, if the principal, the principal's agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 645F of NRS and the regulations promulgated thereunder, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 645F of NRS and the regulations promulgated thereunder, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 645F of NRS or the regulations promulgated thereunder, then this obligation is void; otherwise it remains in full force.

This bond becomes effective on the ..... (day) of .......... (month) of ...... (year), and remains in force until the surety is released from liability by the Commissioner of Mortgage Lending or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days' written notice to the principal and to the Commissioner of Mortgage Lending.

In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ...................., Nevada, this ..... (day) of .......... (month) of ...... (year).

............................................(Seal)

Principal

............................................(Seal)

Surety

By.................................................

Attorney-in-fact

......................................................

Licensed resident agent

4. Except as otherwise provided in subsection 5, each independent licensee shall deposit a surety bond in the amount of $75,000 that complies with the provisions of this section or a substitute form of security that complies with the provisions of NAC 645F.610.

5. If an independent licensee maintains any accounts described in NAC 645F.465, and the 6-month average balance in those accounts exceeds $50,000, the independent licensee shall deposit a surety bond in the amount of $100,000 that complies with the provisions of this section or a substitute form of security that complies with the provisions of NAC 645F.610.

Nev. Admin. Code § 645F.605

Added to NAC by Comm'r of Mortgage Lending by R052-09, eff. 8-25-2009

NRS 645F.255, 645F.390