Tag Archives: Nevada

Nevada Wedding Chapel Bond

Wedding Chapel Bond
Wedding chapels in Nevada can now issue marriage licenses thanks to surety bonds. A new bill titled SB 381 allows counties with less than a 100,000 populace to authorize commercial wedding chapels to issue marriage licenses. In order for the chapel to be eligible, it must be in business for five years or more, register with the county clerk, and must acquire a $50,000 performance surety bond. The bond guarantees the safekeeping of personal information of those applying for the marriage license.

Nevada Automobile Wrecker Bond

The state of Nevada has enacted a new law relating to automobile wreckers. The new law is titled AB 204 and states that an automobile wrecker can utilize the new law’s streamlined method for processing a motor vehicle for parts/scrap if they acquire a $50,000 surety bond; the bond must be from a state licensed surety company. The bond specified in this bill is in addition to other possible bonds already required of the wrecker. The bond also can cover multiple business locations but only if the wrecker holds ownership of at least 51% in each location.

Nevada Tobacco Manufacturer Bond

Certain Nevada tobacco manufacturers are subject to new surety legislation. The new law is named SB 79 and requires certain nonparticipating tobacco manufacturers to acquire a surety bond in order to be included in the State’s directory of tobacco manufacturers and cigarette brands. The bond will be required if the manufacturer’s cigarettes have been sold out of state in the four previous calendar quarters; if the manufacturer purposely failed to make a deposit of its required escrow funds in the prior five calendar years; or if the manufacturer had been terminated from any state’s directory in the past five calendar years. The surety bond must be $25,000.

Nevada Mortgage Broker Bond Update

Nevada mortgage broker surety requirements have been changed due to a new bill. The bill is labeled AB 77 and alters the bond amount required of mortgage brokers. The previous law stated that the bond amount was calculated by the number of branches that the broker had or its yearly loan volume. The set bond amount was $50,000 plus $25,000 for each branch, but was capped at $75,000; or the bond had to be $50,000 if the broker had less than $20 million in loan volume and $75,000 if the broker’s loan volume was over $20 million. AB 77 does away with the bond amount calculation using the number of branches. It’s now calculated by loan volume only. The new legislation also terminates the option to post alternative forms of security in place of a bond and changes the state bond form to require the signature of a Nevada Licensed Insurance Agent instead of a Nevada resident agent.

Unpredictable Job Meets Flexible Bond

Construction jobs tend to be costly and often unpredictable. This is why a surety bond is typically required for construction projects, especially when they are substantial undertakings. It has been quite an unpredictable endeavor when it comes to the project being worked on at Lake Mead in Nevada State.

A company named Vegas Tunnel
Constructors is implementing a new intake which will draw water from deep in Lake Mead, enough to let the flow resume even if the reservoir drops lower than the two existing pipes that provide about 90 percent of the Las Vegas Valley’s drinking water. The projected $487 MM job involves mining a 23-foot tunnel that will channel through three miles of rock and emerge from the bottom of the lake. Unfortunately, the contractor has encountered some unexpected obstacles.

The problems in the tunnel are worse than calculated by the geologic report having experiencing flooding and debris. A $39.5 million “change order” is needed for the intake project because of the roadblocks and the necessary blueprint modifications that are needed to get the job up and running again.

“If the board rejects the change order, the authority will be left with two options, stop the work or keep going and “assume liability” ”, said Water authority General Manager Pat Mulroy.

While this change order option may be a difficult decision for the Nevada Water Authority board to make, it was an obvious choice to obtain a surety bond for this job. If the board approves the change order, the performance bond that is in place will automatically adjust and cover the increased dollar amount avoiding the need for a new bond. The ability to adjust is an advantage of contract bonds and they are flexible in that aspect. Mulroy said this job is so huge and intricate that it took the authority more than a year to find someone willing to insure the work; this would have made it very difficult to find a new bond if the bond contract was not able to adjust for the change order since it took over a year to attain the original bond. Although there hasn’t been a claim put on the bond, the problems experienced with this job show how unpredictable these large tasks can be and why it’s a good idea to have a bond in place just in case things don’t go smoothly.

Surety bonds can be very helpful and flexible. In this case, although the work changed due to unpredicted complications, the bond has the capability to adjust and stay in place for the benefit of both the obligee and public. Hopefully the intake project succeeds at Lake Mead.

Nevada Off-Highway Vehicle Dealer Bond

NevadaThere is a new bill that was enacted concerning off-highway vehicle dealers in Nevada State. Named SB 394, the new law requires a $50,000 surety bond from a corporate surety for off-highway vehicle dealers, lessors and manufacturers. The surety bond is conditioned on cooperation with the new law and that the licensee will operate its company without violating a consumer contract, partaking in deceiving trade practices, fraud, or deceptive representation. SB 394 authorizes direct actions on the surety bond, but the surety’s total aggregate liability is restricted to the quantity of the surety bond. The new law also authorizes licensees that conducted their businesses for 5 years in an approach that the Department of Motor Vehicles found satisfactory to acquire a diminution in the quantity of the required surety bond for up to 50% of the surety bond amount.