2005 Nevada Revised Statutes - Chapter 91 — Commodities

CHAPTER 91 - COMMODITIES

GENERAL PROVISIONS

NRS 91.010 Purpose;construction.

NRS 91.020 Definitions.

NRS 91.030 Administratordefined.

NRS 91.040 Boardof trade defined.

NRS 91.050 Commoditydefined.

NRS 91.060 Commoditycontract defined.

NRS 91.070 CommodityExchange Act defined.

NRS 91.080 CommodityFutures Trading Commission defined.

NRS 91.090 Commoditymerchant defined.

NRS 91.100 Commodityoption defined.

NRS 91.110 Financialinstitution defined.

NRS 91.120 Offerdefined.

NRS 91.130 Persondefined.

NRS 91.140 Preciousmetal defined.

NRS 91.145 Recorddefined.

NRS 91.150 Saleand sell defined.

NRS 91.160 Administration.

NRS 91.170 Cooperationwith other agencies.

NRS 91.180 Effecton chapter 90 of NRS.

UNLAWFUL ACTS

NRS 91.190 Saleor purchase of commodities prohibited; exceptions.

NRS 91.200 Personsexempted.

NRS 91.210 Transactionsexempted.

NRS 91.220 Prohibitedactivities of commodity merchant and board of trade.

NRS 91.230 Fraudulentconduct.

NRS 91.240 Applicabilityof NRS 91.190, 91.220 and 91.230.

NRS 91.250 Liabilityof principals and agents.

ENFORCEMENT; REMEDIES; PENALTIES

NRS 91.260 Regulationsand orders.

NRS 91.270 Orders:Procedure.

NRS 91.280 Orders:Judicial review.

NRS 91.290 Appointmentof Administrator as attorney to receive service of process.

NRS 91.300 Investigationsand subpoenas.

NRS 91.310 Enforcementby Administrator.

NRS 91.320 Remediesfor violation of this chapter.

NRS 91.330 Remediesfor violation of similar law of another jurisdiction.

NRS 91.340 Criminalpenalties.

_________

GENERAL PROVISIONS

NRS 91.010 Purpose;construction. The Legislature intends thatthis chapter be construed and implemented to effectuate its general purpose toprotect investors, to prevent and prosecute illegal and fraudulent schemesinvolving commodity contracts and to maximize coordination with federal andother states law and the administration and enforcement thereof. This chapteris not intended to create any rights or remedies upon which actions may be broughtby private persons against persons who violate the provisions of this chapter.

(Added to NRS by 1987, 1287)

NRS 91.020 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS91.030 to 91.150, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1987, 1282; A 2003, 3178)

NRS 91.030 Administratordefined. Administrator means the Administratorof the Securities Division of the Office of the Secretary of State.

(Added to NRS by 1987, 1282)

NRS 91.040 Boardof trade defined. Board of trade means anyperson or group of persons engaged in buying or selling any commodity orreceiving any commodity for sale on consignment, whether or not the person orgroup of persons is characterized as a board of trade, exchange or other formof market place.

(Added to NRS by 1987, 1282)

NRS 91.050 Commoditydefined.

1. Commodity means, except as otherwise provided insubsection 2 or specified by the Administrator by regulation or order:

(a) Any agricultural, grain or livestock product orby-product;

(b) Any metal or mineral, including a precious metal;

(c) Any gem or gemstone whether characterized asprecious, semiprecious or otherwise;

(d) Any fuel, whether liquid, gaseous or otherwise;

(e) Any foreign currency; and

(f) All other goods, articles, products or items of anykind.

2. Commodity does not include:

(a) A numismatic coin whose fair market value is atleast 15 percent higher than the value of the metal it contains;

(b) Real property or any timber, agricultural orlivestock product grown or raised on real property and offered or sold by theowner or lessee of such real property; or

(c) Any work of art offered or sold by art dealers, atpublic auction or offered or sold through a private sale by the owner thereof.

(Added to NRS by 1987, 1282)

NRS 91.060 Commoditycontract defined.

1. Commodity contract means any account, agreementor contract for the purchase or sale, primarily for speculation or investmentpurposes and not for use or consumption by the offeree or purchaser, of one ormore commodities, whether for immediate or subsequent delivery or whetherdelivery is intended by the parties, and whether characterized as a cashcontract, deferred shipment or deferred delivery contract, forward contract,futures contract, installment or margin contract, leverage contract orotherwise. Any commodity contract offered or sold, in the absence of evidenceto the contrary, is presumed to be offered or sold for speculation or investmentpurposes.

2. Commodity contract does not include any contractor agreement which requires, and under which the purchaser receives, within 28calendar days after the payment of any portion of the purchase price, physicaldelivery of the total amount of each commodity to be purchased under thecontract or agreement.

(Added to NRS by 1987, 1283)

NRS 91.070 CommodityExchange Act defined. Commodity ExchangeAct means the act of Congress known as the Commodity Exchange Act, 7 U.S.C. 1 et seq.

(Added to NRS by 1987, 1283)

NRS 91.080 CommodityFutures Trading Commission defined. CommodityFutures Trading Commission means the independent regulatory agency establishedby Congress to administer the Commodity Exchange Act.

(Added to NRS by 1987, 1283)

NRS 91.090 Commoditymerchant defined. Commodity merchant meansany of the following, as defined or described in the Commodity Exchange Act orby a rule of the Commodity Futures Trading Commission:

1. A futures commission merchant;

2. A commodity pool operator;

3. A commodity trading adviser;

4. An introducing broker;

5. A leverage transaction merchant;

6. An associated person of any person listed insubsections 1 to 5, inclusive;

7. A floor broker; or

8. Any other person, other than a futures association,required to register with the Commodity Futures Trading Commission.

(Added to NRS by 1987, 1283)

NRS 91.100 Commodityoption defined. Commodity option means anyaccount, agreement or contract giving a party thereto the right but not theobligation to purchase or sell one or more commodities or one or more commoditycontracts, whether characterized as an option, privilege, indemnity, bid,offer, put, call, advance guaranty, decline guaranty or otherwise, but does notinclude an option traded on a national securities exchange registered with theSecurities and Exchange Commission.

(Added to NRS by 1987, 1283)

NRS 91.110 Financialinstitution defined. Financial institutionmeans a bank, credit union, savings institution or trust company organizedunder, or supervised pursuant to, the laws of the United States or of anystate.

(Added to NRS by 1987, 1284; A 1999, 1456)

NRS 91.120 Offerdefined. Offer includes every offer to sell,purchase or enter into a commodity contract or commodity option.

(Added to NRS by 1987, 1284)

NRS 91.130 Persondefined.

1. Person includes a government, governmental agencyor political subdivision of a government.

2. Person does not include a contract marketdesignated by the Commodity Futures Trading Commission or any clearinghouse thereofor a national securities exchange registered with the Securities and ExchangeCommission, or any employee, officer or director of such a contract market,clearinghouse or exchange acting solely in that capacity.

(Added to NRS by 1987, 1284)

NRS 91.140 Preciousmetal defined. Precious metal means thefollowing in either coin, bullion or other form:

1. Silver;

2. Gold;

3. Platinum;

4. Palladium;

5. Copper; and

6. Such other items as the administrator may specifyby regulation or order.

(Added to NRS by 1987, 1284)

NRS 91.145 Recorddefined. Record means information that is inscribedon a tangible medium or that is stored in an electronic or other medium and isretrievable in perceivable form.

(Added to NRS by 2003, 3178)

NRS 91.150 Saleand sell defined. Sale or sell includesevery contract of sale, contract to sell or disposition for value.

(Added to NRS by 1987, 1284)

NRS 91.160 Administration.

1. This chapter must be administered by theAdministrator of the Securities Division of the Office of the Secretary ofState.

2. It is unlawful for the Administrator or anyemployee of the Administrator to use for personal benefit any information whichis filed with or obtained by the Administrator and which is not made public. Itis unlawful for the Administrator or any employee of the Administrator toconduct any dealings regarding a security or commodity based upon any suchinformation, even though made public, if there has not been a sufficient periodof time for the securities or commodity markets to assimilate such information.

3. Except as otherwise provided in subsection 4, allinformation and materials collected, assembled or maintained by theAdministrator are public records.

4. The following information is confidential:

(a) Information obtained in private investigations pursuantto NRS 91.300; and

(b) Information obtained from federal agencies whichmay not be disclosed under federal law.

5. The Administrator in his discretion may discloseany information made confidential under subsection 4 to persons identified insubsection 1 of NRS 91.170.

6. No provision of this chapter either creates orderogates any privilege which exists at common law, by statute or otherwisewhen any record or other evidence is sought under subpoena directed to theAdministrator or any employee of the Administrator.

(Added to NRS by 1987, 1289; A 2003, 3178)

NRS 91.170 Cooperationwith other agencies.

1. To encourage uniform application and interpretationof this chapter and regulation and enforcement of securities laws in general,the Administrator and the employees of the Administrator may cooperate, includingbearing the expense of the cooperation, with the securities agency oradministrator of another jurisdiction, Canadian province or territory, theCommodity Futures Trading Commission, the Securities and Exchange Commission,any self-regulatory organization established under the Commodity Exchange Actor the Securities Exchange Act of 1934, any national or internationalorganization of officers or agencies which regulate commodities or securities,and any governmental law enforcement agency.

2. The cooperation authorized by subsection 1includes, but is not limited to, the following:

(a) Making joint examinations or investigations;

(b) Holding joint administrative hearings;

(c) Filing and prosecuting joint litigation;

(d) Sharing and exchanging personnel;

(e) Sharing and exchanging information and records;

(f) Formulating and adopting mutual regulations,statements of policy, guidelines, proposed statutory changes and releases; and

(g) Issuing and enforcing subpoenas at the request ofthe agency administering this chapter in another jurisdiction, the securitiesagency of another jurisdiction, the Commodity Futures Trading Commission or theSecurities and Exchange Commission if the information sought would also besubject to lawful subpoena for conduct occurring in this State.

(Added to NRS by 1987, 1290; A 2003, 3178)

NRS 91.180 Effecton chapter 90of NRS. Nothing in this chapter impairs,derogates or otherwise affects the authority or powers of the Administratorunder chapter 90 of NRS or the application ofany provision thereof to any person or transaction subject thereto.

(Added to NRS by 1987, 1287)

UNLAWFUL ACTS

NRS 91.190 Saleor purchase of commodities prohibited; exceptions. Exceptas otherwise provided in NRS 91.200 and 91.210, a person shall not sell or purchaseor offer to sell or purchase any commodity under any commodity contract orunder any commodity option or offer to enter into or enter into as seller or purchaserany commodity contract or any commodity option.

(Added to NRS by 1987, 1284)

NRS 91.200 Personsexempted. The prohibitions in NRS 91.190 do not apply to any transactionoffered by and in which any of the following persons, or any employee, officeror director thereof acting solely in that capacity, is the purchaser or seller:

1. A person registered with the Commodity FuturesTrading Commission as a futures commission merchant or as a leveragetransaction merchant whose activities require such registration;

2. A person registered with the Securities andExchange Commission as a broker-dealer whose activities require suchregistration;

3. A person affiliated with, and whose obligations andliabilities under the transaction are guaranteed by, a person referred to in subsection1 or 2;

4. A person who is a member of a contract marketdesignated by the Commodity Futures Trading Commission or any clearinghousethereof;

5. A financial institution; or

6. A person registered under the laws of this State asa securities broker-dealer whose activities require such registration.

Theexemption provided in this section does not apply to any transaction or activitywhich is prohibited by the Commodity Exchange Act or by a rule of the CommodityFutures Trading Commission.

(Added to NRS by 1987, 1284)

NRS 91.210 Transactionsexempted.

1. The prohibitions in NRS 91.190 do not apply to the following:

(a) An account, agreement or transaction within theexclusive jurisdiction of the Commodity Futures Trading Commission grantedunder the Commodity Exchange Act.

(b) A commodity contract for the purchase of one ormore precious metals which requires, and under which the purchaser receives,within 7 calendar days after the payment of any portion of the purchase price,physical delivery of the quantity of the precious metals purchased by thepayment. For purposes of this paragraph, physical delivery shall be deemed tohave occurred if, within the 7-day period, the quantity of precious metals purchasedby the payment is delivered, whether in specifically segregated or fungiblebulk form, into the possession of a depository other than the seller which iseither:

(1) A financial institution;

(2) A depository the warehouse receipts of whichare recognized for delivery purposes for any commodity on a contract marketdesignated by the Commodity Futures Trading Commission;

(3) A storage facility licensed or regulated bythe United States or any agency thereof; or

(4) A depository designated by theAdministrator,

and thedepository issues, and the purchaser receives, a certificate, record of title,confirmation or other instrument evidencing that such a quantity of preciousmetals has been delivered to the depository and is being and will continue tobe held by the depository on the purchasers behalf, free and clear of allliens and encumbrances, other than liens of the purchaser, tax liens, liensagreed to by the purchaser, or liens of the depository for fees and expenses,which have previously been disclosed to the purchaser.

(c) A commodity contract solely between persons engagedin producing, processing, using commercially or handling as merchants, eachcommodity subject thereto, or any by-product thereof.

(d) A commodity contract under which the offeree or thepurchaser is a person referred to in NRS91.200, an insurance company, an investment company as defined in theInvestment Company Act of 1940, or an employee pension and profit-sharing orbenefit plan, other than a self-employed individual retirement plan orindividual retirement account.

2. The Administrator may adopt regulations or issueorders prescribing the terms and conditions of all transactions and contractscovered by the provisions of this chapter which are not within the exclusivejurisdiction of the Commodity Futures Trading Commission granted by theCommodity Exchange Act, exempting any person or transaction from any provisionof this chapter conditionally or unconditionally and otherwise implementing theprovisions of this chapter for the protection of purchasers and sellers of commodities.

(Added to NRS by 1987, 1285; A 2003, 3179)

NRS 91.220 Prohibitedactivities of commodity merchant and board of trade.

1. A person shall not engage in a trade or business orotherwise act as a commodity merchant unless the person:

(a) Is registered or temporarily licensed with theCommodity Futures Trading Commission for each activity constituting the personas a commodity merchant and the registration or temporary license has notexpired or been suspended or revoked; or

(b) Is exempt from registration by virtue of theCommodity Exchange Act or of a rule of the Commodity Futures TradingCommission.

2. A board of trade must not trade, or provide a placefor the trading of, any commodity contract or commodity option required to betraded on or subject to the rules of a contract market designated by theCommodity Futures Trading Commission unless the board of trade has beendesignated for the commodity contract or commodity option and the designationhas not been vacated, suspended or revoked.

(Added to NRS by 1987, 1286)

NRS 91.230 Fraudulentconduct. A person shall not directly orindirectly:

1. Cheat or defraud, or attempt to cheat or defraud,any other person or employ any device, scheme or artifice to defraud any otherperson;

2. Make any false report, enter any false record, ormake any untrue statement of a material fact or omit to state a material factnecessary in order to make the statements made, in the light of thecircumstances under which they were made, not misleading;

3. Engage in any transaction, act, practice or courseof business, including, without limitation, any form of advertising orsolicitation, which operates or would operate as a fraud or deceit upon anyperson; or

4. Misappropriate or convert the money, security orproperty of any other person,

in or inconnection with the purchase or sale of, the offer to purchase or sell, theoffer to enter into, or the entry into of, any commodity contract or commodityoption subject to the provisions of NRS91.190 or 91.200 or paragraph (b) or(d) of subsection 1 of NRS 91.210.

(Added to NRS by 1987, 1286)

NRS 91.240 Applicabilityof NRS91.190, 91.220 and 91.230.

1. NRS 91.190, 91.220 and 91.230 apply to persons who sell or offerto sell when:

(a) An offer to sell is made in this State; or

(b) An offer to buy is made and accepted in this State.

2. NRS 91.190, 91.220 and 91.230 apply to persons who buy or offer tobuy when:

(a) An offer to buy is made in this State; or

(b) An offer to sell is made and accepted in this State.

3. For the purposes of this section, an offer to sellor to buy is made in this State, whether or not either party is then present inthis State, when the offer:

(a) Originates from this State; or

(b) Is directed by the offeror to this State and receivedat the place to which it is directed, or at any post office in this State inthe case of a mailed offer.

4. For the purposes of this section, an offer to buyor to sell is accepted in this State when acceptance:

(a) Is communicated to the offeror in this State; and

(b) Has not previously been communicated to theofferor, orally or in writing, outside this State.

Acceptanceis communicated to the offeror in this State, whether or not either party isthen present in this State, when the offeree directs it to the offeror in thisState, reasonably believing the offeror to be in this State and it is receivedat the place to which it is directed, or at any post office in this State inthe case of a mailed acceptance.

5. For the purposes of this section, an offer to sellor to buy is not made in this State when:

(a) The publisher circulates or there is circulated onhis behalf in this State a bona fide newspaper or other publication of general,regular and paid circulation which is not published in this State, or which ispublished in this State but has had more than two-thirds of its circulationoutside this State during the past 12 months; or

(b) A radio or television program originating outsidethis State is received in this State.

(Added to NRS by 1987, 1291)

NRS 91.250 Liabilityof principals and agents.

1. The act, omission, or failure of any officer, agentor other person acting for any natural person, association, partnership,corporation or trust within the scope of his employment or office shall bedeemed the act, omission or failure of the natural person, association,partnership, corporation or trust, as well as of the officer, agent or otherperson.

2. Every person who directly or indirectly controlsanother person liable under any provision of this chapter, every partner,officer or director of the liable person, every person occupying a similarstatus or performing similar functions as the liable person and every employeeof the liable person who materially aids in the violation is also liablejointly and severally with and to the same extent as the liable person, unlessthe person who is also liable by virtue of this provision sustains the burdenof proof that he did not know, and in exercise of reasonable care could nothave known, of the existence of the facts by reason of which the liability isalleged to exist.

(Added to NRS by 1987, 1286)

ENFORCEMENT; REMEDIES; PENALTIES

NRS 91.260 Regulationsand orders. The Administrator may adopt suchregulations or issue such orders as are necessary to carry out the provisionsof this chapter and which are in the public interest or for the protection ofinvestors. The regulations or orders may:

1. Designate items which are not commodities;

2. Designate precious metals; and

3. Prescribe forms to be used pursuant to thischapter.

(Added to NRS by 1987, 1290)

NRS 91.270 Orders:Procedure.

1. The Administrator shall commence an administrativeproceeding under this chapter by entering either a notice of intent to do acontemplated act or a summary order. The notice of intent or summary order maybe entered without notice or opportunity for hearing, and need not be supportedby findings of fact or conclusions of law, but must be in writing.

2. Upon entry of a notice of intent or summary order,the Administrator shall promptly notify all interested parties that the noticeor summary order has been entered and the reasons therefor. If the proceedingis pursuant to a notice of intent, the Administrator shall inform allinterested parties of the date, time and place set for the hearing on thenotice. If the proceeding is pursuant to a summary order, the Administratorshall inform all interested parties that they have 30 business days after the entryof the order to file a written request for a hearing on the matter with theAdministrator and that the hearing will be scheduled to commence within 30 businessdays after the receipt of the written request.

3. If the proceeding is pursuant to a summary order,the Administrator, whether or not a written request for a hearing is receivedfrom any interested party, may set the matter for hearing on theAdministrators own motion.

4. If no hearing is requested and none is ordered bythe Administrator, the summary order automatically becomes a final order 30business days after the entry of the order.

5. If a hearing is requested or ordered, theAdministrator, after notice of and opportunity for a hearing, may modify orvacate the order or extend it until a final determination is made.

6. No final order or order after a hearing may bereturned without:

(a) Appropriate notice to all interested persons;

(b) Opportunity for hearing by all interested persons;and

(c) Entry of written findings of fact and conclusionsof law.

Everyhearing in an administrative proceeding under this chapter must be publicunless the Administrator grants a request joined in by all the respondents thatthe hearing be conducted privately.

(Added to NRS by 1987, 1292)

NRS 91.280 Orders:Judicial review.

1. Any person aggrieved by a final order of theAdministrator may obtain judicial review of the order in the District Court forthe First Judicial District by filing with the court, within 60 days after theentry of the order, a written petition praying that the order be modified orset aside in whole or in part. A copy of the petition for review must be servedupon the Administrator.

2. Upon the filing of a petition for review, unlessthe court orders the taking of additional evidence pursuant to subsection 5 or6, the court has exclusive jurisdiction of the matter, and the Administratormay not modify or set aside the order, in whole or in part.

3. The filing of a petition for review undersubsection 1 does not, unless specifically ordered by the court, operate as astay of the Administrators order, and the Administrator may enforce or ask thecourt to enforce the order pending the outcome of the proceedings.

4. Upon receipt of the petition for review, theAdministrator shall certify and file in the court a copy of the order and thetranscript or record of the evidence upon which it was based. If the orderbecame final by operation of law under subsection 4 of NRS 91.270, the Administrator shall certifyand file in court the summary order, evidence of its source and an affidavitcertifying that no hearing has been held and that the order became finalpursuant to that subsection.

5. If either the aggrieved party or the Administratorapplies to the court for leave to submit additional evidence, and shows to thesatisfaction of the court that there were reasonable grounds for failure tosubmit the evidence in the hearing before the Administrator or other goodcause, the court may order the additional evidence to be taken by theAdministrator under such conditions as the court considers proper.

6. If new evidence is ordered taken by the court, theAdministrator may modify the findings and order by reason of the additionalevidence and shall file in the court the additional evidence together with anymodified or new findings or order.

7. The court shall review the petition based upon theoriginal record before the Administrator as amended under subsections 5 and 6.The findings of the Administrator as to the facts, if supported by competent,material and substantive evidence, are conclusive. Based upon this review, thecourt may affirm, modify, enforce or set aside the order, in whole or in part.

8. The judgment of the court is subject to review bythe Supreme Court.

(Added to NRS by 1987, 1293)

NRS 91.290 Appointmentof Administrator as attorney to receive service of process.

1. Every applicant for registration under this chaptershall file with the Administrator, in the form prescribed by the Administrator,an irrevocable consent appointing the Administrator or his successor in officeas his attorney to receive service of any lawful process in any noncriminalsuit, action or proceeding against him or his successor, executor orAdministrator which arises under this chapter or any regulation adopted ororder issued under this chapter after the consent has been filed, with the sameforce and validity as if served personally on the person filing the consent.

2. When a person, including a nonresident of thisState, engages in conduct prohibited or made actionable by this chapter, or byany regulation or order of the Administrator, the engaging in the conduct shallbe deemed to constitute the appointment of the Administrator as the personsattorney to receive service of any lawful process in a noncriminal proceedingagainst the person, a successor or a personal representative, which grows outof that conduct and which is brought under this chapter or any regulation ororder of the Administrator with the same force and validity as if servedpersonally.

3. Service under subsection 1 or 2 may be made byleaving a copy of the process in the office of the Administrator, but it is noteffective unless:

(a) The plaintiff, who may be the Administrator in asuit, action or proceeding instituted by him, forthwith sends notice of theservice and a copy of the process by registered mail to the defendant orrespondent at his last address known to the Administrator; and

(b) The plaintiffs affidavit of compliance with thissubsection is filed in the case on or before the date for return of theprocess, if any, or within such further time as the court allows.

(Added to NRS by 1987, 1291)

NRS 91.300 Investigationsand subpoenas.

1. The Administrator may make investigations, withinor outside of this State, as he finds necessary or appropriate to:

(a) Determine whether any person has violated, or isabout to violate, any provision of this chapter or any regulation or order ofthe Administrator; or

(b) Aid in the enforcement of this chapter.

2. The Administrator may publish informationconcerning any violation of this chapter or any regulation or order of theAdministrator.

3. For the purposes of any investigation or proceedingunder this chapter, the Administrator, or an officer or employee designated bythe Administrator, may administer oaths and affirmations, subpoena witnesses,compel their attendance, take evidence and require the production of any books,papers, correspondence, memoranda, agreements or other records which theAdministrator finds to be relevant or material to the inquiry.

4. If a person does not give testimony or produce therecords required by the Administrator or a designated officer or employeepursuant to an administrative subpoena, the Administrator or designated officeror employee may apply for a court order compelling compliance with the subpoenaor the giving of the required testimony.

5. The request for an order of compliance may beaddressed to either:

(a) The District Court for the First Judicial District;

(b) The district court for any judicial district whereservice may be obtained on the person refusing to testify or produce, if theperson is within this State; or

(c) The appropriate court of the state having jurisdictionover the person refusing to testify or produce, if the person is outside ofthis State.

6. If the activities constituting an alleged violationfor which the information is sought would be a violation of this chapter hadthe activities occurred in this State, the Administrator may issue and apply toenforce subpoenas, in the manner set forth in subsection 5, in this State atthe request of a securities agency or administrator of another state.

(Added to NRS by 1987, 1287; A 1991, 611; 2003, 3180)

NRS 91.310 Enforcementby Administrator.

1. If the Administrator believes, whether or not basedupon an investigation conducted under NRS91.300, that any person has engaged or is about to engage in any act orpractice constituting a violation of any provision of this chapter or a regulationadopted or order issued pursuant to its provisions, the Administrator may:

(a) Issue an order to cease and desist;

(b) Take disciplinary action against a licensed person;

(c) Issue an order imposing a civil penalty in anamount which may not exceed $10,000 for any single violation or $100,000 formultiple violations in a single proceeding or a series of related proceedings;or

(d) Initiate any of the actions specified in subsection2.

2. The Administrator may institute any of thefollowing actions in the district courts of this State, or in the appropriatecourts of another state, in addition to any legal or equitable remediesotherwise available:

(a) An action for a declaratory judgment;

(b) An action for a prohibitory or mandatory injunctionto enjoin the violation and to ensure compliance with this chapter or any regulationor order of the Administrator;

(c) An action for disgorgement;

(d) An action for appointment of a receiver orconservator for the defendant or the defendants assets; or

(e) An action to enjoin permanently any person fromacting as a commodity broker-dealer or a commodity sales representative.

(Added to NRS by 1987, 1287)

NRS 91.320 Remediesfor violation of this chapter.

1. Upon a proper showing by the Administrator that aperson has violated, or is about to violate, any provision of this chapter orany regulation or order of the Administrator, the district court may grantappropriate legal or equitable remedies.

2. Upon a showing of a violation of this chapter or aregulation or order of the Administrator, the court, in addition to traditionallegal and equitable remedies, including a temporary restraining order, apermanent or temporary prohibitory or mandatory injunction, and a writ ofprohibition or mandamus, may grant the following special remedies:

(a) The imposition of a civil penalty in an amountwhich may not exceed $10,000 for any single violation or $100,000 for multipleviolations in a single proceeding or a series of related proceedings;

(b) Disgorgement;

(c) A declaratory judgment;

(d) Restitution to investors wishing restitution;

(e) The appointment of a receiver or conservator forthe defendant or the defendants assets; and

(f) An injunction permanently enjoining a defendantfrom acting as a commodity broker-dealer or a commodity sales representative.

3. Upon a showing that the defendant is about toviolate this chapter or a rule or order of the Administrator, the court maygrant the following remedies:

(a) A temporary restraining order;

(b) A temporary or permanent injunction;

(c) A writ of prohibition or mandamus; and

(d) An order appointing a receiver or conservator forthe defendant or the defendants assets.

4. A court shall not require the Administrator to posta bond in any official action under this chapter.

(Added to NRS by 1987, 1288)

NRS 91.330 Remediesfor violation of similar law of another jurisdiction.

1. Upon a proper showing by the Administrator or asecurities or commodity agency of another state that a person has violated, oris about to violate, any provision of the commodity code of that state or anyrule or order of the Administrator or securities or commodity agency of thatstate, a district court in this State may grant appropriate legal and equitableremedies.

2. Upon a showing of a violation of the securities orcommodity act of the foreign state or a rule or order of the Administrator orsecurities or commodity agency of the foreign state, the court, in addition totraditional legal or equitable remedies, including a temporary restrainingorder, a permanent or temporary prohibitory or mandatory injunction and a writof prohibition or mandamus, may grant the following special remedies:

(a) Disgorgement; and

(b) The appointment of a receiver, conservator orancillary receiver or conservator for the defendant or the defendants assetslocated in this State.

3. Upon a showing that the defendant is about toviolate the securities or commodity act of the foreign state or a rule or orderof the Administrator or securities or commodity agency of the foreign state,the court may grant the following remedies:

(a) A temporary restraining order;

(b) A temporary or permanent injunction;

(c) A writ of prohibition or mandamus; and

(d) An order appointing a receiver, conservator orancillary receiver or conservator for the defendant or the defendants assetslocated in this State.

(Added to NRS by 1987, 1288)

NRS 91.340 Criminalpenalties.

1. Except as otherwise provided in subsection 2, aperson who willfully violates:

(a) Any provision of this chapter; or

(b) Any regulation or order of the Administrator underthis chapter,

is guilty ofa category C felony and shall be punished as provided in NRS 193.130, or by a fine of not more than$20,000, or by both fine and the punishment provided in NRS 193.130, for each violation. Inaddition to any other penalty, the court shall order the person to payrestitution.

2. A person convicted of violating a regulation ororder under this chapter may be fined, but must not be imprisoned, if theperson proves he had no knowledge of the regulation or order.

3. The Administrator may refer such evidence as isavailable concerning violations of this chapter or any regulation or order ofthe Administrator to the Attorney General or the proper district attorney, whomay, with or without such a reference from the Administrator, institute theappropriate criminal proceeding under this chapter.

(Added to NRS by 1987, 1289; A 1993, 938; 1995, 1242)

 

Disclaimer: These codes may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.