NRS645B.042. Duty of mortgage broker to deposit surety bond with Commissioner; mortgage broker and mortgage agents must be named as principals on bond; form and amount of bond; Commissioner to determine amount of initial deposit.

      1.  As a condition to doing business in this State, each mortgage broker shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the mortgage broker and all mortgage agents employed by or associated with the mortgage broker.

      2.  At the time of filing an application for a license as a mortgage agent and at the time of filing an application for the renewal of a license as a mortgage agent, the applicant shall file with the Commissioner proof that the applicant is named as a principal on the corporate surety bond deposited with the Commissioner by the mortgage broker with whom the applicant is associated or employed.

      3.  The bond must be in substantially the following form:

 

       Know All Persons by These Presents, that ...................., as principal, and ...................., as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 645B of NRS, in the sum of ...................., lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

       The condition of that obligation is such that: Whereas, the principal has been issued a license as a mortgage broker or mortgage agent by the Commissioner of Mortgage Lending and is required to furnish a bond, which is conditioned as set forth in this bond:

       Now, therefore, if the principal, his or her agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 645B of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 645B of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 645B of NRS, then this obligation is void; otherwise it remains in full force.

       This bond becomes effective on the .......... (day) of .......... (month) of .......... (year), and remains in force until the surety is released from liability by the Commissioner of Mortgage Lending or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days’ written notice to the principal and to the Commissioner of Mortgage Lending.

       In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ...................., Nevada, this .......... (day) of .......... (month) of .......... (year).

 

                                                                         (Seal)

       Principal

                                                                         (Seal)

       Surety

       By                                                            

       Attorney-in-fact

                                                                        

       Nevada Licensed Insurance Agent

 

      4.  Each mortgage broker shall deposit a corporate surety bond that complies with the provisions of this section in the following amounts:

      (a) For an annual loan production of $20,000,000 or less, $50,000.

      (b) For an annual loan production of more than $20,000,000, $75,000.

      5.  Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited initially by a mortgage broker based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

      (Added to NRS by 2009, 743; A 2011, 3610)