1. Except as otherwise provided in subsection 4, the assessments, when levied, shall be and remain a lien on the respective tracts of land assessed until paid, as provided herein, and, when collected, shall be placed in a special fund and as such shall at all times constitute a sinking fund for and be deemed specially appropriated to the payment of the assessment bonds and interest thereon, and shall not be used for any other purpose until the bonds and interest thereon are fully paid, except for the assessments paid during the 30-day payment period provided in NRS 271.405 and applied directly to the costs of the project.

2. If the penalties, collection costs and interest on a delinquency imposed pursuant to subsection 4 of NRS 271.415 or 271.585 in connection with the collection of an assessment or an installment payment that is not paid when it comes due:

(a) Total $100,000 or less, the treasurer may deposit the money in any fund or account of the municipality designated by the governing body or designated by the chief financial officer of the municipality if the governing body has authorized the chief financial officer to make such a designation.

(b) Total more than $100,000, the treasurer:

(1) Shall deposit $100,000 in any fund or account of the municipality designated by the governing body or designated by the chief financial officer of the municipality if the governing body has authorized the chief financial officer to make such a designation; and

(2) Shall deposit money in excess of $100,000 into a fund or account to be used for public capital improvements which are located in:

(I) The municipality that created the district in the case of a district created by a municipality other than a county; or

(II) A township, as described in NRS 257.010, in which all or any part of the district is located in the case of a district created by a county.

3. Except as otherwise provided in this subsection, all money deposited into a fund or account to be used for public capital improvements pursuant to subparagraph (2) of paragraph (b) of subsection 2 must be expended or budgeted to be expended for a public capital improvement not later than 5 years after the date of deposit. If the governing body or chief financial officer makes a determination that there is not an appropriate public capital improvement on which the money may be expended, such money must be transferred to any fund or account of the municipality or township designated by the governing body or the chief financial officer. The governing body or chief financial officer shall not make a determination that there is not an appropriate public capital improvement on which the money may be expended earlier than 120 days before the 5-year period ends.

4. If permitted by the ordinance authorizing the issuance of a bond, the assessments and any penalties, collection costs or interest not needed in any year to pay the principal and interest on the bonds may be used to pay the administrative costs of the municipality incurred in connection with the district and the collection of the assessments.

(Added to NRS by 1965, 1374; A 2005, 1835; 2019, 1300)