1. As a condition to engaging in the solicitation of trust company business in this State pursuant to NRS 669.205, the Commissioner may require a foreign independent trust company to maintain a surety bond payable to the Division of Financial Institutions in an amount not less than $100,000, plus any additional amount determined by the Commissioner to be appropriate for the size, complexity and inherent risk of the foreign independent trust company.

2. A surety bond required pursuant to subsection 1 is for the exclusive use and benefit of the Division and any customer receiving the services of the foreign independent trust company.

3. Each surety bond must:

(a) Be in a form satisfactory to the Commissioner;

(b) Be issued by a bonding company authorized to do business in this State; and

(c) Secure the faithful performance of the obligations of the foreign independent trust company respecting the services provided to residents of this State.

4. A foreign independent trust company shall, within 10 days after the commencement of any action or notice of entry of any judgment against the foreign independent trust company by any creditor or claimant arising out of business regulated by NRS 669.205, give notice thereof to the Commissioner by certified mail with details sufficient to identify the action or judgment. The surety that executed the bond of the foreign independent trust company shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.

5. Whenever the principal sum of the surety bond is reduced by payments thereon less any recoveries, the foreign independent trust company shall furnish:

(a) A new or additional surety bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to this section; or

(b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum.

6. The liability of the surety on a bond to the Division for a creditor or claimant of the foreign independent trust company is not affected by:

(a) Any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the foreign independent trust company; or

(b) Any insolvency or bankruptcy of the foreign independent trust company.

7. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the agents of the foreign independent trust company within 30 days after:

(a) The withdrawal from this State of the foreign independent trust company or the dissolution or liquidation of the foreign independent trust company; or

(b) The termination of the bond,

whichever occurs first.

8. A foreign independent trust company or its surety shall not cancel or alter a bond except after providing notice to the Commissioner by certified mail. The cancellation or alteration must not become effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond from inception of the surety bond to the expiration of the 30-day period designated in subsection 7.

(Added to NRS by 2017, 555)