NAC645G.100. Purposes and restrictions of bond.

     1. Except as otherwise provided in subsection 2, a bond posted pursuant to NRS 645.608, must, to the satisfaction of the Division:

     (a) Assure payment to all clients up to the amount of the bond in all covered transactions for losses suffered by clients because the principal misappropriates, embezzles, converts, wrongfully encumbers, loses, or fails to convey or cause to be conveyed to the intended party any property which comes into the principal’s possession or control;

     (b) Cover losses incurred as a result of actions or inactions by the principal during the period of the bond; and

     (c) Be effective for a period not less than 18 months after the date of the application for registration or the renewal of registration.

     2. The bond:

     (a) Need only cover losses in transactions in which the principal acts as a qualified intermediary in Nevada;

     (b) May limit payment of losses to the actual cash value or fair market value of the property lost by the client and may expressly exclude attorney’s fees, costs of collection and special, consequential, and exemplary damages;

     (c) May limit the time for filing claims against the bond to 180 days after the expiration of the bond; and

     (d) Need not assure that the qualified intermediary will carry out his or her obligations in such a way as to assure that the transaction will qualify as a nontaxable deferred exchange of real property.

     (Added to NAC by Real Estate Div., eff. 3-30-94)—(Substituted in revision for NAC 645.790)