Nevada Revised Statutes
Chapter 645A - Escrow Agencies and Agents
NRS 645A.041 - Duty of escrow agency to deposit surety bond with Commissioner; escrow agents must be named as principals on bond; form and amount of bond; exceptions.


1. Except as otherwise provided in NRS 645A.042, as a condition to doing business in this State, each escrow agency shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the escrow agency and all escrow agents employed by and associated with the escrow agency.
2. At the time of filing an application for a license as an escrow agent, the applicant shall file with the Commissioner proof that the applicant is named as a principal on the corporate surety bond deposited with the Commissioner by the escrow agency with whom he or she is associated and employed.
3. The bond must be in substantially the following form:
Know All Persons by These Presents, that ........................, as principal, and ........................, as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 645A of NRS, in the sum of ............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
The condition of that obligation is such that: Whereas, the principal has been issued a license as an escrow agency or escrow agent by the Commissioner of Mortgage Lending of the Department of Business and Industry of the State of Nevada and is required to furnish a bond, which is conditioned as set forth in this bond:
Now, therefore, if the principal, his or her agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 645A of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 645A of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 645A of NRS, then this obligation is void; otherwise it remains in full force.
This bond becomes effective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Mortgage Lending or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days’ written notice to the principal and to the Commissioner of Mortgage Lending of the Department of Business and Industry of the State of Nevada.
In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ........................, Nevada, this .............(day) of ................(month) of ...….(year).
............................................................................. (Seal)
Principal
............................................................................. (Seal)
Surety
By..........................................................
Attorney-in-fact
...............................................................
Nevada Licensed Insurance Agent
4. Each escrow agency shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of NRS 645A.042 in the following amount based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160:
AVERAGE MONTHLY BALANCE AMOUNT OF BOND OR
SECURITY REQUIRED
$50,000 or less................................................................................................ $20,000
More than $50,000 but not more than $250,000......................................... 50,000
More than $250,000 but not more than $500,000..................................... 100,000
More than $500,000 but not more than $750,000..................................... 150,000
More than $750,000 but not more than $1,000,000................................. 200,000
More than $1,000,000.................................................................................... 250,000
The Commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the escrow agency based upon the expected average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160. After the initial deposit, the Commissioner shall, on a semiannual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the escrow agency based upon the average monthly balance of the trust account or escrow account maintained by the escrow agency pursuant to NRS 645A.160.
5. A bond used to satisfy the requirements of NRS 627.180 or a substitute for that bond which satisfies the requirements of NRS 627.183 may be used to satisfy the requirements of this section if:
(a) The amount required by NRS 627.180 for a bond is not less than the amount required by this section for a bond; or
(b) The amount required by NRS 627.180 for a bond is less than the amount required by this section for a bond, and the escrow agency deposits an additional bond in an amount not less than the difference between the amount required by NRS 627.180 and the amount required by this section.
(Added to NRS by 1973, 1306; A 1985, 1810; 1991, 1849; 1993, 503, 1891; 1995, 527, 1004; 1999, 3762; 2001, 282; 2011, 3598; 2015, 2794)

Structure Nevada Revised Statutes

Nevada Revised Statutes

Chapter 645A - Escrow Agencies and Agents

NRS 645A.010 - Definitions.

NRS 645A.013 - Inapplicability of chapter to participant in Regulatory Experimentation Program for Product Innovation; exceptions.

NRS 645A.015 - Unlawful to engage in business of administering escrows or act in capacity of escrow agent or escrow agency without license; exceptions.

NRS 645A.020 - Application for initial license or renewal: Requirements; issuance or renewal; continuing obligation to notify Division of material change in information in application; restriction.

NRS 645A.021 - Application: Educational prerequisites; regulations.

NRS 645A.025 - Payment of child support: Submission of certain information by applicant; grounds for denial of license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establis...

NRS 645A.032 - Contents of license; escrow agent may associate with and be employed by only one escrow agency at same time.

NRS 645A.034 - Delivery and possession of license of escrow agent; display of licenses.

NRS 645A.036 - Place of business: Maintenance by escrow agency; specification in application; designation on license; effect.

NRS 645A.038 - License not transferable.

NRS 645A.039 - Continuing education: Standards; regulations.

NRS 645A.040 - Expiration; renewal; fees; deposit of money received.

NRS 645A.0405 - Authority of Commissioner to require submission of certain documents, fees and fines through Registry; deposit of fees, assessments and penalties.

NRS 645A.041 - Duty of escrow agency to deposit surety bond with Commissioner; escrow agents must be named as principals on bond; form and amount of bond; exceptions.

NRS 645A.042 - Escrow agency may deposit substitute form of security in lieu of surety bond; amount deposited must equal amount of bond; interest or dividends accrue to depositor.

NRS 645A.043 - Cancellation of bond: Notices required; revocation of license unless equivalent bond or substitute form of security furnished.

NRS 645A.047 - Action on bond: Procedure; limitation of time; duties of Commissioner; preliminary payment by surety; action for interpleader; payment.

NRS 645A.050 - Duties of Commissioner.

NRS 645A.060 - Powers of Commissioner: Subpoenas, oaths and examination of witnesses; penalty.

NRS 645A.065 - Fees for supervision, investigation and examination of persons; standards for supervision of escrow agents; regulations.

NRS 645A.067 - Payment of assessment and cooperation in audits and examinations.

NRS 645A.070 - Records of transactions in escrow: Maintenance; filing.

NRS 645A.080 - Records of Commissioner: General provisions governing public inspection and confidentiality.

NRS 645A.082 - Records of Commissioner: Certain records relating to complaint or investigation deemed confidential; certain records relating to disciplinary action deemed public records.

NRS 645A.085 - Change in ownership of voting stock of escrow agency.

NRS 645A.086 - Duty of Commissioner to take disciplinary action for certain violations.

NRS 645A.090 - Grounds for refusal to issue license or for disciplinary action; orders imposing discipline deemed public records.

NRS 645A.095 - Suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. [Effective until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each sta...

NRS 645A.097 - Investigation, disciplinary or other proceedings, fines and penalties not affected by expiration, revocation or voluntary surrender of license.

NRS 645A.100 - Notice of refusal to issue license or of disciplinary action; hearing; limitation on time to apply for hearing.

NRS 645A.110 - Investigation by Commissioner; powers of Commissioner; injunctive relief; enforcement of subpoenas.

NRS 645A.130 - Procedures following decision on appeal.

NRS 645A.140 - Powers of Commissioner when agency’s affairs in unsafe condition.

NRS 645A.150 - Receivership.

NRS 645A.160 - Requirements.

NRS 645A.170 - Limitations on execution or attachment; commingling prohibited.

NRS 645A.171 - Limitations on disbursements.

NRS 645A.173 - Duty to record certain information concerning real estate brokers and salespersons and mortgage companies.

NRS 645A.175 - Duty to execute documents necessary to release money deposited in escrow; exception for good faith disputes; recovery of damages for failure to execute; award of attorney’s fees.

NRS 645A.177 - Action to recover money deposited in escrow; discharge from further responsibility for holder of escrow; right of holder to bring action for interpleader.

NRS 645A.193 - Attorney General to represent Division.

NRS 645A.195 - Escrow agency that is not natural person to designate natural person as qualified employee.

NRS 645A.1955 - Employment of or association with escrow agent: Duties of escrow agency; prohibited actions.

NRS 645A.196 - Termination of employment of escrow agent: Duties of escrow agency; prohibited actions.

NRS 645A.199 - Proof of licensure required in action for collection of compensation.

NRS 645A.200 - Statutory and common-law rights unaffected.

NRS 645A.201 - Exercise of jurisdiction over party to civil action; service of summons to confer jurisdiction.

NRS 645A.215 - Prohibition on administering escrows in same location as or in conjunction with other businesses; exceptions.

NRS 645A.220 - Transactions by foreign corporations.

NRS 645A.221 - Contracts for escrow transaction voidable for certain violations; administrative fines.

NRS 645A.222 - Civil action authorized for certain violations.

NRS 645A.224 - Employee of Division prohibited from interest in escrow agency.

NRS 645A.225 - Charge for statement of interest payments prohibited.

NRS 645A.230 - Penalties for violations.

NRS 645A.235 - Restitution.