1.  The Division may investigate and audit any financial account, including, without limitation, any trust account, related to the business of a dealer or distributor if:

Terms Used In Nevada Revised Statutes 489.7235

  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC

(a) The Division has reasonable cause to believe that the dealer or distributor is using or has used the account to carry on the business of the dealer or distributor; and

(b) The Division:

(1) Has reasonable cause to believe or has received a credible complaint that the dealer or distributor is insolvent or is in a financial condition, or has engaged in a financial practice, which creates a substantial risk of insolvency; or

(2) Determines that the investigation and audit are reasonably necessary to assist the Division in administering or enforcing any provision of law.

2.  The Administrator shall adopt regulations prescribing the scope of an audit conducted pursuant to this section.

3.  As used in this section, ‘insolvency’ or ‘insolvent’ means a condition under which a dealer or distributor is unable to meet the liabilities of his or her business as they become due in the regular course of business and which creates a substantial risk of harm to the public or a consumer.

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