NRS597.1157. Requirements regarding dealer’s reserve account for recourse after termination of dealer agreement.

      1.  At the end of each year after the termination of a dealer agreement, a dealer’s reserve account for recourse, retail sale or lease contracts may not be debited by a supplier or lender for any deficiency unless the dealer is given written notice of at least 7 business days by certified or registered mail, return receipt requested, of any proposed sale of the inventory which was financed and an opportunity to purchase the inventory.

      2.  The dealer must be given quarterly reports concerning any remaining outstanding recourse contracts. As the recourse contracts are reduced, any money in the reserve account must be returned to the dealer in direct proportion to the liabilities outstanding.

      (Added to NRS by 2003, 3403)