NRS489.7235. Authority of Division to investigate and audit financial account related to business of dealer or distributor; regulations governing scope of audit.

      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:

      (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.

      (Added to NRS by 2009, 1900)