NAC353B.510. Penalties for insufficient funds, delinquent payment or termination of contract.

     1. A contract must require the purchaser to pay a penalty of $25 if a payment is returned for insufficient funds in accordance with NRS 353C.115 and the regulations adopted pursuant thereto.

     2. A contract may require the purchaser to pay:

     (a) If a monthly remittance is not received within 15 days after the date due, a penalty of $15.

     (b) If a remittance by a lump sum is not received within:

          (1) Fifteen days after the date due, a penalty of $15; and

          (2) Forty-five days after the date due, a penalty of 1 percent of the total amount due, including the amount of all outstanding fees and penalties imposed pursuant to the contract, for each period of 30 days or portion thereof that passes after the period described in subparagraph (1) until:

               (I) The total amount due is paid; or

               (II) The contract is terminated,

Ê whichever occurs earlier.

     (c) In addition to any other penalties imposed, if a monthly remittance or a remittance by lump sum is not received within 90 days after the due date, a penalty which is calculated by multiplying the total amount of payments due by:

          (1) The estimated annual rate of return established by the Board pursuant to NAC 353B.200 for the year in which the total amount is due; or

          (2) Eight percent,

Ê whichever is less.

     (d) If a contract is terminated pursuant to NAC 353B.370, 353B.400, 353B.410 or 353B.450, a penalty of $100.

     (e) If a contract is terminated pursuant to NAC 353B.440, a penalty, if required, to the Internal Revenue Service pursuant to 26 U.S.C. § 529(c)(6) or any other applicable section of the Internal Revenue Code.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)