Nevada Revised Statutes 370.682 – Bond of nonparticipating manufacturer: Posting requirements; amount; execution; application of amount collected by State; regulations
1. A nonparticipating manufacturer shall post a bond approved by the Attorney General for the benefit of the State of Nevada.
Terms Used In Nevada Revised Statutes 370.682
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
2. The bond must be posted not less than 10 days before the beginning of each calendar quarter as a condition of the nonparticipating manufacturer and its brand families being included in the directory for that quarter. The amount of the bond must be the greater of $50,000 or the greatest required escrow amount due from the nonparticipating manufacturer or its predecessor for any of the immediately preceding 12 calendar quarters.
3. If a nonparticipating manufacturer has failed to make or have made on its behalf escrow deposits equal to the full amount due for a calendar quarter within 15 business days after the due date for that calendar quarter, the State of Nevada may execute upon the bond posted by the nonparticipating manufacturer pursuant to subsection 1 in an amount equal to any remaining escrow amount due.
4. Any amount that the State of Nevada collects on a bond posted by a nonparticipating manufacturer pursuant to this section:
(a) Must be deposited into a special escrow account established and maintained by the State of Nevada and used for purposes authorized for the use of money in the qualified escrow fund of the nonparticipating manufacturer pursuant to this chapter and chapter 370A of NRS; and
(b) Reduces the escrow amount due from the nonparticipating manufacturer in the dollar amount collected.
5. Escrow obligations above the amount collected on the bond remain due from the nonparticipating manufacturer and, as provided in NRS 370.683 and 370.684, from wholesale dealers and importers, respectively, that sold the cigarettes of the nonparticipating manufacturer during that calendar quarter.
6. The withholding, use or return of amounts deposited into the special escrow account must be handled in the same manner as amounts deposited in the qualified escrow fund of the nonparticipating manufacturer pursuant to the provisions of this chapter and chapter 370A of NRS.
7. The Attorney General shall adopt regulations to carry out the provisions of this section.