1. Each licensee shall deposit the gross proceeds received by him or her from the sale of livestock handled on a commission or agency basis in a separate account established and maintained by the licensee in the bank or credit union at which the licensee’s line of credit, as required by paragraph (g) of subsection 2 of NRS 573.020, is established. The separate account must be designated a “custodial account for consignors’ proceeds.”

2. The custodial account for consignors’ proceeds may be drawn on only:

(a) For the payment of net proceeds to the consignor, or any other person or persons of whom the licensee has knowledge who is entitled to those proceeds;

(b) To obtain the sums due the licensee as compensation for his or her services; and

(c) For such sums as are necessary to pay all legal charges against the consignment of livestock which the licensee in his or her capacity as agent is required to pay for and on behalf of the consignor.

3. The licensee shall:

(a) In each case keep such accounts and records that will at all times disclose the names of the consignors and the amount due to each from the money in the custodial account for consignors’ proceeds.

(b) Maintain the custodial account for consignors’ proceeds in a manner that will expedite examination by the Director and indicate compliance with the requirements of this section.

(c) On or before January 15 of each year, submit to the Director an annual audit of the licensee’s custodial account for consignors’ proceeds for the immediately preceding year, which must be performed by a certified public accountant. The certified public accountant:

(1) Must hold a permit issued pursuant to NRS 628.380; and

(2) May be provided by the Packers and Stockyards Division of the United States Department of Agriculture if he or she meets the requirements of subparagraph (1).

(Added to NRS by 1965, 382; A 1993, 1753; 1999, 1514, 3693; 2001, 91; 2019, 1385)