Nev. Admin. Code § 645G.120 - Claim for reimbursement of financial losses caused by qualified intermediary; exceptions

Current through March 28, 2022

1. To obtain reimbursement for financial losses caused by the illegal conduct of a qualified intermediary pursuant to NRS 645.6085, a person must file a claim with the Division in writing on forms supplied by the Division. The claimant must provide information satisfactory to the Division to demonstrate that his or her loss is properly recoverable.
2. The Division will approve a claim if:
(a) The claimant was a resident of Nevada at the time of the loss;
(b) The loss was caused by a qualified intermediary, regardless of whether the qualified intermediary was registered in Nevada;
(c) The loss to the claimant was caused by:
(1) The misappropriation, embezzlement, conversion, wrongful encumbrance, or failure by the qualified intermediary to convey any property to the claimant or to the party intended by the claimant;
(2) The permanent loss of possession of the property by the qualified intermediary as a result of:
(I) A bankruptcy proceeding involving the qualified intermediary or the property which was the subject of the exchange; or
(II) A foreclosure of a judgment lien, tax lien, or other lien against the qualified intermediary; or
(3) The payment by the claimant to creditors of the qualified intermediary to relieve liens against the property placed by creditors of the qualified intermediary;
(d) The claimant made a claim against the bond or other deposit, unless the Division determines that making such a claim was impracticable under the circumstances; and
(e) If the loss was a result of a voluntary act of the qualified intermediary, the claimant obtained a judgment against the qualified intermediary. As used in this paragraph, "a voluntary act of the qualified intermediary" includes willful misappropriation, embezzlement or conversion and wrongful encumbrance and conveyance of property to a person other than its intended beneficiary.
3. The Division will approve claims only in the amount of the actual amount of cash lost by the claimant or the fair market value of the property that was misappropriated or lost by the qualified intermediary.
4. The Division will not approve payment of:
(a) Attorney's fees;
(b) Costs of collection;
(c) Special, consequential, and exemplary damages; or
(d) Interest.
5. A claimant may not recover his or her losses if an exchange of property does not qualify for nontaxable deferred status.

Notes

Nev. Admin. Code § 645G.120
Added to NAC by Real Estate Div., eff. 3-30-94-Substituted in revision for NAC 645.794

NRS 645.6065, 645.6085

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