The Nevada Legislature modified bonding requirements in Assembly Bill No. 39 (AB 39) concerning construction, remodeling, repair, or improvements to existing, completed single-family residences that are occupied by their owners.  Bonds for such residential contractors in the penal sum of $100,000 may be required if the contractor is not exempted.  AB is now the law, … Continue reading “Assembly Bill No. 39: Key Highlights for Sureties in Nevada”

by Kurt Faux & Willi Siepmann In most cases, the maximum exposure of the Surety is the penal sum of the bond. However, there are exceptions when the surety litigates a bond claim and ultimately loses against the claimant. Offer of Judgment Under the Nevada Offer of Judgment rules, a claimant may recover attorney’s fees … Continue reading “License Bond Penal Sum Issues in Nevada”

For most contractors in Nevada, the Nevada State Contractors Board (“NSCB”) requires the contractor to obtain a license bond or to post a cash bond in order to get a contractor’s license. These bonds vary in amounts between $5,000 and $50,000, with those amounts, which are also known as ‘penal sums’ set by the NSCB depending on the license history of the contractor and the license amount. This article will address the following questions:

Critical to the surety is the collateral security provision of the General Indemnity Agreement. This provision authorizes the surety to obtain funds from the Indemnitor prior to incurring any loss. A typical collateral security provision provides: POSTING OF COLLATERAL – Indemnitors agree to deposit immediately upon demand by Surety an amount equal to the greater … Continue reading “Tips on Winning the Collateral Security Motion”