1.  An advertising spokesperson for a mortgage company is jointly and severally liable with the mortgage company for damages caused by the mortgage company by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted pursuant thereto, or an action of the mortgage company that is grounds for disciplinary action, if:

Terms Used In Nevada Revised Statutes 645B.196

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • mortgage: includes a deed of trust. See Nevada Revised Statutes 0.037
  • person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039

(a) The advertising spokesperson knew or should have known of the fraud, embezzlement, misappropriation of property, violation of the provisions of this chapter or the regulations adopted pursuant thereto, or action of the mortgage company that is grounds for disciplinary action; or

(b) In advertising for the mortgage company, the advertising spokesperson knew or should have known that:

(1) The conduct of the advertising spokesperson was likely to deceive, defraud or harm the public or any person who engaged in business with the mortgage company; or

(2) The advertising spokesperson was disseminating material information concerning the mortgage company or the business, products or services of the mortgage company which was false or misleading.

2.  As used in this section:

(a) ’Advertising for a mortgage company’ means advertising or otherwise promoting a mortgage company or the business, products or services of the mortgage company using any medium of communication.

(b) ’Advertising spokesperson for a mortgage company’ or ‘advertising spokesperson’ means a person who consents to and receives compensation for using his or her name or likeness in advertising for a mortgage company.

  Previous section
Next section  
 Disclosures and Advertising Contents