Nev. Rev. Stat. § 365.290 — Form, conditions and amount of bond; deposit in lieu of bond

1.  Before granting any application for a
license as a dealer or supplier, the Department shall require the applicant to
file with the Department a bond executed by the applicant as principal, and by
a corporation qualified under the laws of this State as surety, payable to this
State and conditioned upon the faithful performance of all the requirements of
this chapter and upon the punctual payment of all excise taxes, penalties and
other obligations of the applicant as a dealer or supplier.
2.  The total amount of the bond or bonds
required of any dealer or supplier must be fixed by the Department at three
times the estimated maximum monthly tax, determined in such a manner as the
Department deems proper, or $1,000, whichever is greater. If a person is
habitually delinquent in the payment of amounts due pursuant to this chapter,
the Department may increase the amount of his or her security to not more than
five times the estimated maximum monthly tax. When cash or a savings
certificate, certificate of deposit or investment certificate is used, the
amount required must be rounded off to the next larger integral multiple of
$100, within the same upper limit.
3.  The Department may increase or decrease
the amount of security required by this section subject to the limitations
provided in this section.
4.  No recovery on any bond, execution of
any new bond, or revocation, cancellation or suspension of any license, affects
the validity of any bond.
5.  In lieu of any bond or bonds, a dealer
or supplier may deposit with the Department, under such terms and conditions as
the Department may prescribe, an equivalent amount of lawful money of the
United States or any other form of security authorized by NRS 100.065 . If security is provided in the
form of a savings certificate, certificate of deposit or investment
certificate, the certificate must state that the amount is unavailable for
withdrawal except upon order of the Department.
6.  If the amount of security required by
this section is decreased pursuant to subsection 3, the Department shall
immediately reinstate the original requirements for a bond for a holder of a
license as a dealer or supplier upon his or her:
(a) Lack of faithful performance of the
requirements of this chapter; or
(b) Failure to pay punctually all taxes, fees,
penalties and interest due the State of Nevada.
7.  For the purposes of this section, a
person is “habitually delinquent” if, within any 12-month period, the person
commits each of the following acts or commits either of the following acts more
than once:
(a) Fails timely to file a monthly tax return,
unless the Department determines that:
(1) The failure to file was caused by
circumstances beyond the control of the person and occurred notwithstanding the
exercise of ordinary care; and
(2) The person has paid any penalty and
interest imposed by the Department because of the failure to file.
(b) Fails timely to submit to the Department any
tax collected by the person pursuant to this chapter.