Nevada Revised Statutes 598.9474 – Rights and remedies of injured consumers; resolution by Unit of claims against security; regulations
1. The security required to be deposited by a registrant pursuant to NRS 598.9472 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.
Terms Used In Nevada Revised Statutes 598.9474
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- county: includes Carson City. See Nevada Revised Statutes 0.033
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Unit: means the Consumer Affairs Unit of the Department of Business and Industry. See Nevada Revised Statutes 598.0901
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The Unit may bring an action for interpleader against all claimants upon the security. If the Unit brings such an action, the Unit shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Unit may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Unit, the surety is then relieved of all liability under the bond.
4. The Unit may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Unit shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Unit, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the Unit may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.