NAC482.678. Bond or deposit: General requirements and conditions.

     1. Except as otherwise provided in subsection 2, before a new vehicle dealer who has been chosen to participate in the program may issue a certificate of registration for a motor vehicle, the new vehicle dealer must obtain and file with the Department a good and sufficient surety bond in the amount of $10,000. Each surety bond must:

     (a) Have a corporate surety thereon that is licensed to do business in this State;

     (b) Be approved as to form by the Attorney General; and

     (c) Be subject to the condition that the new vehicle dealer conduct business without fraud or fraudulent representation and without violating any of the provisions of this chapter, chapter 598 of NAC or chapter 482 or 598 of NRS.

     2. In lieu of filing a surety bond, a new vehicle dealer may place on deposit with the Department an amount equal to $10,000 in the form of:

     (a) Cash;

     (b) A bond issued by the United States; or

     (c) A savings certificate.

     3. A deposit placed with the Department pursuant to subsection 2 must be:

     (a) Subject to the condition that the new vehicle dealer conduct business without fraud or fraudulent representation and without violating any of the provisions of this chapter, chapter 598 of NAC or chapter 482 or 598 of NRS; and

     (b) Available for withdrawal only upon the order of the Department.

     4. The undertaking in the surety bond or deposit must include, without limitation, any fraud or fraudulent act or representation, or any violation of any provision of this chapter, chapter 598 of NAC or chapter 482 or 598 of NRS, by any owner, principal, employee or agent of the new vehicle dealer.

     5. The Department will require an increase in the amount of the surety bond or deposit if the Department determines that an increase is necessary and in the public interest. The increase in the amount of the surety bond or deposit will not exceed twice the amount of the original surety bond or deposit.

     6. The surety bond or deposit must provide that any person, including, without limitation, the Department, injured by an action of the new vehicle dealer or an employee or agent of the dealer, in violation of this chapter, chapter 598 of NAC or chapter 482 or 598 of NRS, may bring an action on the surety bond.

     7. Any money received by the Department pursuant to this section will be deposited with the State Treasurer for credit to the Motor Vehicle Fund.

     (Added to NAC by Dep’t of Motor Veh. by R011-08, eff. 6-17-2008)