Section 645F.620 - Surety bonds: Action on bond1. Any person claiming against a surety bond may bring an action in a court of competent jurisdiction on the surety bond for damages to the extent covered by the surety bond. A person who brings an action on a surety bond shall notify the Commissioner in writing upon filing the action. An action may be commenced not more than 3 years following the commission of the act on which the action is based.2. Upon receiving a request from a person for whose benefit a surety bond is required, the Commissioner will notify the person:(a) That a surety bond is in effect and the amount of the surety bond; and(b) If there is an action against the surety bond, the title, court and case number of the action and the amount sought by the plaintiff.3. If a surety wishes to make payment without awaiting action by a court, the amount of the surety bond must be reduced to the extent of any payment made by the surety in good faith under the surety bond. Any payment must be based on written claims received by the surety before any action is taken by a court.4. The surety or the Commissioner may bring an action for interpleader against all claimants upon the surety bond. If the surety or the Commissioner does so, the surety or the Commissioner, as applicable, will publish notice of the action at least once each week for 2 weeks in every issue of a newspaper of general circulation in: (a) If the principal office of the independent licensee whose surety bond is at issue is located within this State, the county in which the independent licensee has his or her principal office; or(b) If the principal office of the independent licensee whose surety bond is at issue is not located within this State, Clark County, Nevada.5. The surety may deduct its costs of the action, including, without limitation, attorney's fees and publication, from its liability under the surety bond.6. Claims against a surety bond have equal priority, and if the surety bond is insufficient to pay all claims in full, they must be paid on a pro rata basis. Partial payment of claims is not full payment, and any claimant may bring an action against the independent licensee for the unpaid balance.Nev. Admin. Code § 645F.620
Added to NAC by Comm'r of Mortgage Lending by R052-09, eff. 8-25-2009