NRS598.375. Security required for registration: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount; exception. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 8, each seller of travel shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

      (b) An irrevocable letter of credit for which the seller of travel is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the seller of travel.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $50,000.

      4.  If the seller of travel deposits a bond, the seller of travel shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The seller of travel shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      5.  The Commissioner may reject any bond, letter of credit or certificate of deposit that fails to comply with the requirements of this chapter.

      6.  A seller of travel may change the form of security that he or she has deposited with the Division. If the seller of travel changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the seller of travel as security for claims arising during the time the previous security was in effect.

      7.  If the amount of the deposited security falls below the amount required by this chapter for that security, the seller of travel shall be deemed not to be registered as required by NRS 598.365 for the purposes of this chapter.

      8.  The provisions of this section do not apply to a seller of travel who:

      (a) Is accredited by and appointed as an agent of the Airlines Reporting Corporation; or

      (b) Maintains a trust account in accordance with the provisions of NRS 598.361.

      (Added to NRS by 2001, 2147; A 2003, 1826, 2876, 2889; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)