2011 Nevada Revised Statutes
Chapter 584 - Dairy Products and Substitutes
NRS 584.600 - Bond: Amount; form and conditions; proceedings for enforcement.

1. Every distributor, before purchasing any fluid milk or fluid cream from a producer, must execute and deliver to the Commission a surety bond in the minimum sum of $1,000 executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety.

2. The bond shall be upon a form approved by the Commission and shall be conditioned upon the payment in the manner required by NRS 584.325 to 584.670, inclusive, of all amounts due to producers for fluid milk and fluid cream purchased by such licensee or applicant during the license year. The bond shall be to the State in favor of every producer of fluid milk and fluid cream.

3. In case of failure by a distributor to pay any producer or producers for fluid milk or fluid cream in the manner required by NRS 584.325 to 584.670, inclusive, the Commission shall proceed forthwith to ascertain the names and addresses of all producer-creditors of such distributor, together with the amounts due and owing to them and each of them by such distributor, and shall request all such producer-creditors to file a verified statement of their respective claims with the Commission. Thereupon, the Commission shall bring an action on the bond on behalf of the producer-creditors.

4. Upon any action being commenced upon the bond, the Commission may require the filing of a new bond and immediately upon a recovery in any action upon such bond, such distributor shall file a new bond, and upon failure to file the same within 10 days in either case, such failure shall constitute grounds for the revocation or suspension of the license of such distributor.

5. In the event that recovery upon the bond is not sufficient to pay all of the claims as finally determined and adjudged by the court, any such amount recovered shall be divided pro rata among the producer-creditors.

[60:387:1955]