NAC489.310. Determination of experience, financial responsibility and general knowledge of applicant; required documentation; incomplete application.

     1. The Division may require an applicant for a license as a dealer, manufacturer, general serviceperson or specialty serviceperson to show such a degree of experience, financial responsibility and such general knowledge of this chapter, chapter 489 of NRS, federal construction and safety standards relating to manufactured homes, the safety, health, finance and lien laws of this State and the rudimentary principles of the business for which the applicant wishes to obtain a license as the Division deems necessary for the safety and protection of the public.

     2. An applicant may demonstrate his or her experience and knowledge by submitting to the Division:

     (a) Evidence of his or her prior employment or other experience in the occupation for which the applicant wishes to obtain a license; or

     (b) Proof that he or she has completed not less than 30 semester hours in courses of study which are approved by the Division.

     3. An applicant must submit to the Division:

     (a) A copy of the federal income tax return filed by the applicant for the preceding calendar year; and

     (b) Such other proof as the Division deems necessary to show the applicant’s financial responsibility.

     4. If the applicant is a corporation, its financial responsibility must be established independently of the assets of its officers, directors or stockholders, but the Division may inquire into and consider the personal assets of the officers, directors or stockholders in determining the financial responsibility of the corporation.

     5. An applicant shall be deemed to be financially responsible if the Division determines that the applicant has, at the time the Division makes the determination, sufficient assets or income to operate his or her business for not less than 120 days.

     6. The Division will determine financial responsibility according to the following criteria:

     (a) Net worth;

     (b) Liquid assets;

     (c) Payment and credit records;

     (d) Business experience;

     (e) Prior and current liens;

     (f) Prior and pending lawsuits;

     (g) Adverse judgments;

     (h) Prior suspension or revocation of a license in this State or elsewhere for financial insolvency;

     (i) Any adjudication under bankruptcy law, including a composition, arrangement or reorganization;

     (j) Any appointment of a receiver for the property of the applicant or licensee or any officer, director, associate or partner thereof under the laws of this State or of the United States;

     (k) Any making of a prohibited assignment for the benefit of creditors;

     (l) Form of business organization;

     (m) Information obtained from confidential financial references and credit reports; and

     (n) Reputation for honesty and integrity of the applicant or licensee or any officer, director, associate or partner.

     7. An applicant for a new manufactured home or commercial coach dealer’s license must show proof that the applicant has not less than $50,000 in cash on deposit in an operating account of the business in a Nevada financial institution before the Division will issue a license.

     8. An applicant for a used manufactured home or commercial coach dealer’s license must show proof that the applicant has not less than $25,000 in cash on deposit in an operating account of the business in a Nevada financial institution before the Division will issue a license.

     9. An applicant for a new manufactured home dealer’s license, including a franchise dealership, must submit a letter of credit from a financial institution or a provider of inventory financing showing that the applicant will be granted a specified amount of credit of not less than $200,000 from that institution for the flooring of manufactured homes, commercial coaches, manufactured buildings or factory-built housing. This requirement does not apply to a dealership owned by a licensed manufacturer.

     10. An applicant for an initial license must submit to the Division a copy of any similar license issued by another state.

     11. A partnership, limited partnership, limited-liability partnership, limited-liability limited partnership or limited-liability company or a corporation, whether or not for profit, that applies for a dealer’s, general serviceperson’s or specialty serviceperson’s license must file a certified or verified copy of its partnership agreement, articles of organization or articles of incorporation with the Division.

     12. If an applicant submits an incomplete application:

     (a) The Division will notify the applicant of the deficiencies in the application.

     (b) Except as otherwise provided in paragraph (c), the Division will deny the application unless the applicant corrects the deficiencies within 15 days after receiving the notice.

     (c) The Division may grant an extension of time to correct the deficiencies in the application if the applicant requests such an extension in writing within the 15-day period.

     [Mfd. Housing Div., Mobile Homes Reg. § 300 subsec. 3 + § 305, eff. 12-20-79]—(NAC A 8-23-95; 11-12-97; R192-05, 9-18-2006; R126-08, 12-17-2008)