NRS573.033. Details and amount of bond; liability of surety.

      1.  If an applicant delivers a surety bond to the Director pursuant to the provisions of subsection 1 of NRS 573.030, the surety bond must be:

      (a) In the sum provided for in subsection 2.

      (b) Executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety.

      (c) A standard form and approved by the Director as to terms and conditions.

      (d) Conditioned that the principal will not commit any fraudulent act and will comply with the provisions of this chapter and the rules and regulations adopted by the Department.

      (e) To the State of Nevada in favor of every consignor creditor whose livestock was handled or sold through or at the licensee’s public livestock auction.

      2.  If the application for a license to operate a public livestock auction is submitted by a person who:

      (a) Has not operated in the past 12-month period, the Director shall determine the sum of the initial bond that the applicant must execute in favor of the State, which sum must be equal to an amount estimated to be 50 percent of the average monthly gross sales proceeds of the public livestock auction in the first 6 months of operation, but the sum must not be less than $10,000 or more than $100,000. At any time within the first 12 months of licensed operation, the Director may, upon written notice to the licensee, review the licensee’s operations and determine whether, because of increased or decreased sales, the amount of the bond should be altered.

      (b) Has operated in the past 12-month period, the Director shall determine the sum of the bond that the applicant must execute in favor of the State, which sum must be equal to an amount equal to 50 percent of the average monthly gross sales proceeds received by the public livestock auction during the 6 successive months of the last 12-month period which produced the highest dollar volume, but the sum must not be less than $10,000 or more than $100,000.

      3.  The total and aggregate liability of the surety for all claims upon the bond must be limited to the face amount of the bond.

      (Added to NRS by 1965, 381; A 1993, 1750; 1999, 3690)