NRS692B.170. Deposit of money in escrow.

      1.  The holder of the solicitation permit shall promptly deposit all money except as provided in paragraph (a) of subsection 2, received from an offering of securities in this state pursuant to the permit, other than advance premiums for insurance which are subject to NRS 692B.230, in escrow in a bank, credit union or trust company located in this state and under an agreement consistent with this chapter filed with and approved by the Commissioner.

      2.  No part of the money may be withdrawn from the deposit, except:

      (a) For payment of organization, sales and promotion expenses as earned and as authorized by the permit, and money for such purposes, up to the applicable expense limit on money as received, may be withheld from the deposit;

      (b) For the purpose of making any deposit with the Commissioner required for the issuance of a certificate of authority to an insurer, or if the organization is not, or is not to be, an insurer, upon completion of payments on securities subscriptions made under the permit and deposit or appropriation of such money to the purposes specified in the permit; or

      (c) For the making of refunds as provided in NRS 692B.240.

      3.  Money while so held in escrow may be invested in certificates of deposit or savings accounts. Interest accruing thereon becomes part of the money released as provided in paragraph (b) of subsection 2, or must be applied toward the cost of making refunds under paragraph (c) of subsection 2, or to supplement the bond or deposit in lieu thereof if the bond or deposit is called on pursuant to NRS 692B.150.

      4.  When the Commissioner has issued a certificate of authority to a proposed insurer the Commissioner shall release to the insurer any money remaining in escrow for its account.

      5.  The Commissioner may in the discretion of the Commissioner waive compliance with this section as to money to be received under a subsequent financing permit pursuant to NRS 692B.260, or in other circumstances where the Commissioner deems such an escrow to be unnecessary for the protection of investors or the public.

      (Added to NRS by 1971, 1791; A 1999, 1553)