NRS: CHAPTER 20 - BONDS AND UNDERTAKINGS; DEPOSITS IN LIEU THEREOF

[Rev. 6/29/2024 2:47:52 PM--2023]

CHAPTER 20 - BONDS AND UNDERTAKINGS; DEPOSITS IN LIEU THEREOF

NRS 20.010 Undertaking with sureties; affidavits.

NRS 20.015 Form of undertaking.

NRS 20.020 Justification of sureties.

NRS 20.030 Surety bond or cash may be furnished in lieu of personal sureties.

NRS 20.035 Limitation on amount of bond in litigation involving Master Settlement Agreement.

NRS 20.037 Limitation on amount of bond to secure stay of execution of judgment pending appeal; exceptions.

NRS 20.040 Undertaking, bond or security not required in action by or against State, county, city or officer thereof.

NRS 20.050 Bond or undertaking to be approved by clerk of court.

_________

NRS 20.010 Undertaking with sureties; affidavits.

1. In all cases where an undertaking with sureties is required by the provisions of titles 2 to 6, inclusive, of NRS, the judge, justice, or clerk, or other officer taking the same, shall, unless it is otherwise provided in NRS, require the sureties to accompany the same with an affidavit that they are each worth the sum specified in the undertaking, over and above all their just debts and liabilities, exclusive of property exempt from execution.

2. When the amount specified in an undertaking exceeds $3,000, and there are more than two sureties thereon, they may state in their affidavits that they are severally worth amounts less than that expressed in the undertaking, if the whole amount be equivalent to that of two sufficient sureties.

[1911 CPA § 542; RL § 5484; NCL § 9031]

NRS 20.015 Form of undertaking. Whenever a party to an action or proceeding desires to give an undertaking pursuant to any provision of titles 2 to 6, inclusive, of NRS, it is sufficient if the sureties sign an undertaking indicating that they are bound to the obligations imposed by the statute under which the undertaking is given. Such undertaking may be in substantially the following form:

UNDERTAKING

State of Nevada }

}ss.

County of.................................... }

In the ............................... court ................................ (state title of the action). Whereas the above-named ................................ desires to give an undertaking for ................................ (state purpose) as provided by NRS ................ Now, therefore, we the undersigned sureties, do hereby obligate ourselves, jointly and severally to ................................ (name the obligee) under the provisions of NRS ................ in the sum of $............. Dated this ............. day of the month of …........ of the year ……….

.......................................................................

(Signature of Principal)

.......................................................................

(Signature of Sureties)

(Added to NRS by 1975, 1015; A 2001, 18)

NRS 20.020 Justification of sureties. In all cases not otherwise provided for in titles 2 to 6, inclusive, of NRS, where sureties are required to justify, they shall appear before the officer or person authorized to take the justification, and may be examined under oath by such officer or person and the adverse party, touching their qualifications as sureties, which examination shall be reduced to writing and subscribed by the sureties if required. If, upon such examination, it shall appear to such officer or person that the sureties, or either of them, have the necessary qualifications of such, the officer or person shall so endorse upon the statement, and cause the same to be filed, and thereupon the justification shall be complete.

[1911 CPA § 543; RL § 5485; NCL § 9032]

NRS 20.030 Surety bond or cash may be furnished in lieu of personal sureties. In all cases where a bond or undertaking is required by the provisions of titles 2 to 6, inclusive, of NRS, the party required to give such bond or undertaking may furnish such bond or undertaking with a surety or bonding company, authorized to do business under the laws of this state and to furnish such bonds or undertakings, to be approved by the court, judge, clerk, or deputy clerk, in lieu of personal sureties. A party may, also, in lieu of a bond or undertaking required by titles 2 to 6, inclusive, of NRS, deposit with the court, or clerk thereof, cash in the amount of the bond or undertaking required.

[1911 CPA § 544; A 1927, 80; NCL § 9033]

NRS 20.035 Limitation on amount of bond in litigation involving Master Settlement Agreement.

1. Except as otherwise provided in subsection 2, if an appeal is taken of a judgment in a civil action involving a signatory, or a successor in interest or affiliate of a signatory, of the Master Settlement Agreement in which an appellant is required to give a bond in order to secure a stay of execution of the judgment during the pendency of any or all such appeals, the total cumulative sum of all the bonds required from all the appellants involved in the civil action must not exceed $50,000,000.

2. If the plaintiff proves by a preponderance of evidence that an appellant who posted a bond pursuant to subsection 1 is purposefully dissipating or diverting assets outside of the ordinary course of its business to evade the ultimate payment of the judgment, the court may, if it determines that such an order is necessary to prevent such dissipation or diversion, require the appellant to post a bond in an amount that does not exceed the full amount of the judgment.

3. The provisions of this section do not limit the discretion of a court, for good cause shown, to set the bond on appeal in an amount less than the amount otherwise required by law.

4. For the purposes of this section:

(a) “Affiliate” has the meaning ascribed to it in NRS 370A.030.

(b) “Master Settlement Agreement” has the meaning ascribed to it in NRS 370A.070.

(Added to NRS by 2001, 1007; A 2005, 476)

NRS 20.037 Limitation on amount of bond to secure stay of execution of judgment pending appeal; exceptions.

1. Notwithstanding any other provision of law or court rule, and except as otherwise provided in this section and NRS 20.035, if an appeal is taken of a judgment in a civil action in which an appellant is required to give a bond in order to secure a stay of execution of the judgment during the pendency of any or all such appeals, the total cumulative sum of all the bonds required from all the appellants involved in the civil action must not exceed the lesser of $50,000,000 or the amount of the judgment.

2. If an appellant is a small business concern, the amount of the appellant’s bond required pursuant to subsection 1 must not exceed the lesser of $1,000,000 or the amount of the judgment.

3. If the plaintiff proves by a preponderance of evidence that an appellant who posted a bond pursuant to subsection 1 or 2 is purposefully dissipating or diverting assets outside of the ordinary course of its business to evade the ultimate payment of the judgment, the court may, if the court determines that such an order is necessary to prevent such dissipation or diversion, require the appellant to post a bond in an amount that does not exceed the full amount of the judgment.

4. The provisions of this section do not limit the discretion of a court, for good cause shown, to set the bond on appeal in an amount less than the amount otherwise required by law.

5. For the purposes of this section, “small business concern” has the meaning ascribed to it in the Small Business Act, 15 U.S.C. §§ 631 et seq., and any regulations adopted pursuant thereto.

(Added to NRS by 2015, 1521)

NRS 20.040 Undertaking, bond or security not required in action by or against State, county, city or officer thereof.

1. In any action or proceeding before any court or other tribunal in this State, wherein the State of Nevada or any county, city or town of this State, or any officer thereof in his or her official capacity, is a party plaintiff or defendant, no bond, undertaking or security shall be required of the State, county, city or town, or such officer in his or her official capacity, but on complying with the other provisions of law the State, county, city or town, or officer thereof, acting as aforesaid, shall have the same rights, remedies and benefits as though such bond, undertaking or security were given and approved as required by law.

2. The provisions of this section shall only apply where such action or proceeding is prosecuted or defended in the name of the State, county, city, town or officer thereof for the public benefit, and shall not be applicable where such action or proceeding is so prosecuted or defended for the benefit of a private individual or for the enforcement or protection of a private right.

[1911 CPA § 545; RL § 5487; NCL § 9034]

NRS 20.050 Bond or undertaking to be approved by clerk of court.

1. In all cases where a bond or other undertaking, except a bail bond, is required by the provisions of titles 2 to 5, inclusive, of NRS or in any civil action arising under any other title of NRS or by the Nevada Rules of Civil Procedure or Nevada Rules of Appellate Procedure, the bond or undertaking shall be presented to the clerk of the court in which the action or proceeding is pending, for approval of the clerk of the court, before being filed or deposited.

2. The clerk of the court may refuse approval of a surety for any bond or other undertaking if a power of attorney-in-fact which covers the agent whose signature appears on the bond or other undertaking is not on file with the clerk of the court.

(Added to NRS by 1973, 385; A 1975, 1197)