Nevada Revised Statutes 692B.240 – Failure to complete or qualify
1. The Commissioner shall withdraw all funds held in escrow under NRS 692B.170, and refund to securities subscribers or purchasers all sums paid in thereon under the solicitation permit, less that part allowed and used for organization, sales and promotion expenses, if:
Terms Used In Nevada Revised Statutes 692B.240
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(a) The permit holder has failed to complete its organization or financing, within the terms of the permit, or, if to be an insurer, it has failed to secure its certificate of authority, all before expiration of the permit; or
(b) The permit is revoked.
2. As to funds paid in on subscriptions by founders, promoters and incorporators and held on deposit in lieu of the bond under subsection 3 of NRS 692B.150, only such portion of such funds shall be refundable under this section as may remain after discharge of all liabilities against the deposit under NRS 692B.150 and the charging of such funds with a proportionate share of organization, sales and promotion expenses.
3. If a proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within the period allowed therefor by the solicitation permit, the corporation shall transact no further business, and the Commissioner shall return or cause to be returned to the persons entitled thereto all advance deposits or payments of premiums or fees held in escrow under NRS 692B.230.