Nevada Revised Statutes 482.31776 – Duties of consignee; trust account; disclosure statement; applicability of section; operation of vehicle subject to consignment contract; written log; prohibited acts; penalties
1. A consignee of a vehicle shall, upon entering into a consignment contract or other form of agreement to sell a vehicle owned by another person:
Terms Used In Nevada Revised Statutes 482.31776
- Contract: A legal written agreement that becomes binding when signed.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Executor: A male person named in a will to carry out the decedent
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
- Statute: A law passed by a legislature.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(a) Open and maintain a separate trust account in a federally insured bank, savings and loan association or savings bank that is located in this State, into which the consignee shall deposit all money received from a prospective buyer as a deposit, or as partial or full payment of the purchase price agreed upon, toward the purchase or transfer of interest in the vehicle. A consignee of a vehicle shall not:
(1) Commingle the money in the trust account with any other money that is not on deposit or otherwise maintained toward the purchase of the vehicle subject to the consignment contract or agreement; or
(2) Use any money in the trust account to pay his or her operational expenses for any purpose that is not related to the consignment contract or agreement.
(b) Obtain from the consignor, before receiving delivery of the vehicle, a signed and dated disclosure statement that is included in the consignment contract and provides in at least 10-point bold type or font:
(c) Assist the consignor in completing, with respect to the consignor’s purchase-money security interest in the vehicle, a financing statement of the type described in subsection 5 of NRS 104.9317 and shall file the financing statement with the Secretary of State on behalf of the consignor. If a consignee has previously granted to a third party a security interest with an after-acquired property clause in the consignee’s inventory, the consignee additionally shall assist the consignor in sending a signed notification, as described in paragraph (b) of subsection 1 of NRS 104.9324, to each holder of a conflicting security interest. The consignee must not receive delivery of the vehicle until the consignee has:
(1) Filed the financing statement with the Secretary of State; and
(2) If applicable, assisted the consignor in sending an authenticated notification to each holder of a conflicting security interest.
2. Upon the sale or transfer of interest in the vehicle, the consignee shall forthwith:
(a) Satisfy or cause to be satisfied all outstanding security interests in the vehicle; and
(b) Satisfy the financial obligations due the consignor pursuant to the consignment contract.
3. Upon the receipt of money by delivery of cash, bank check or draft, or any other form of legal monetary exchange, or after any form of transfer of interest in a vehicle, the consignee shall notify the consignor that the money has been received or that a transfer of interest in the vehicle has occurred. Notification by the consignee to the consignor must be given in person or, in the absence of the consignor, by registered or certified mail addressed to the last address or residence of the consignor known to the consignee. The notification must be made within 3 business days after the date on which the money is received or the transfer of interest in the vehicle is made.
4. The provisions of this section do not apply to:
(a) An executor;
(b) An administrator;
(c) A sheriff;
(d) A salvage pool subject to the provisions of NRS 487.400 to 487.510, inclusive; or
(e) Any other person who sells a vehicle pursuant to the powers or duties granted to or imposed on him or her by specific statute.
5. Notwithstanding any provision of NRS 482.423 to 482.4245, inclusive, to the contrary, a vehicle subject to a consignment contract may not be operated by the consignee, an employee or agent of the consignee, or a prospective buyer in accordance with NRS 482.423 to 482.4245, inclusive, by displaying a temporary placard to operate the vehicle unless the operation of the vehicle is authorized by the express written consent of the consignor.
6. A vehicle subject to a consignment contract may not be operated by the consignee, an employee or agent of the consignee, or a prospective buyer in accordance with NRS 482.320 by displaying a special plate unless the operation of the vehicle is authorized by the express written consent of the consignor.
7. A consignee shall maintain a written log for each vehicle for which he or she has entered into a consignment contract. The written log must include:
(a) The name and address, or place of residence, of the consignor;
(b) A description of the vehicle consigned, including the year, make, model and serial or identification number of the vehicle;
(c) The date on which the consignment contract is entered into;
(d) The period that the vehicle is to be consigned;
(e) The minimum agreed upon sales price for the vehicle;
(f) The approximate amount of money due any lienholder or other person known to have an interest in the vehicle;
(g) If the vehicle is sold, the date on which the vehicle is sold;
(h) The date that the money due the consignor and the lienholder was paid;
(i) The name and address of the federally insured bank or savings and loan association in which the consignee opened the trust account required pursuant to subsection 1; and
(j) The signature of the consignor acknowledging that the terms of the consignment contract were fulfilled or terminated, as appropriate.
8. A person who:
(a) Appropriates, diverts or otherwise converts to his or her own use money in a trust account opened pursuant to paragraph (a) of subsection 1 or otherwise subject to a consignment contract or agreement is guilty of embezzlement and shall be punished in accordance with NRS 205.300. The court shall, in addition to any other penalty, order the person to pay restitution.
(b) Violates paragraph (b) or (c) of subsection 1 is guilty of a misdemeanor. The court shall, in addition to any other penalty, order the person to pay restitution.
(c) Violates any other provision of this section is guilty of a misdemeanor.