or tour operator ceases to operate. 1. If no claims have been filed against the security deposited with the Division pursuant to NRS 598.495 within 6 months after the tour broker or tour operator ceases to operate, the Commissioner shall release the security to the tour broker or tour operator and shall not audit any claims filed against the security thereafter by consumers. 2. If one or more claims have been filed against the security within 6 months after the tour broker or tour operator ceases to operate, the proceeds must not be released to the tour broker or tour operator or distributed to any consumer earlier than 1 year after the tour broker or tour operator ceases to operate. 3. For the purposes of this section, the Commissioner shall determine the date on which a tour broker or tour operator ceases to operate. (Added to NRS by 2001, 982) NRS 598.525 Regulations. The Commissioner may adopt such regulations as the Commissioner determines are necessary to carry out the intent of NRS 598.405 to 598.525, inclusive. (Added to NRS by 2001, 982; A 2003, 1826) CREDIT SERVICE ORGANIZATIONS, ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND HEALTH CLUBS General Provisions NRS 598.701 Definitions. As used in NRS 598.701 to 598.736, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.706, 598.711 and 598.716 have the meanings ascribed to them in those sections. (Added to NRS by 1997, 3192)—(Substituted in revision for NRS 598.2802) NRS 598.706 “Commissioner” defined. “Commissioner” means the Commissioner of the Consumer Affairs Division of the Department of Business and Industry. (Added to NRS by 1997, 3192)—(Substituted in revision for NRS 598.2803) NRS 598.711 “Division” defined. “Division” means the Consumer Affairs Division of the Department of Business and Industry. (Added to NRS by 1997, 3192)—(Substituted in revision for NRS 598.2804) NRS 598.716 “Registrant” defined. “Registrant” means a credit service organization, an organization for buying goods or services at a discount, a dance studio or a health club which is required to register and post security with the Division pursuant to the provisions of this chapter. (Added to NRS by 1997, 3192)—(Substituted in revision for NRS 598.2805) NRS 598.721 Registration: Application; fee; deposit of security; certificate of registration; renewal of certificate. 1. Each credit service organization, organization for buying goods or services at a discount, dance studio and health club regulated by the provisions of this chapter shall apply for registration on the form prescribed by the Division. 2. At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division. 3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration: (a) Is not transferable or assignable; and (b) Expires 1 year after it is issued. 4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division. (Added to NRS by 1997, 3192; A 2001, 2151)—(Substituted in revision for NRS 598.2806) NRS 598.726 Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount. 1. Each registrant shall deposit with the Division: (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state; (b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant. 2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year. 3. If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division. 4. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this chapter. 5. A registrant may change the form of security which he has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect. 6. If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.721 for the purposes of this chapter. (Added to NRS by 1997, 3192; A 1999, 1517)—(Substituted in revision for NRS 598.2807) NRS 598.731 Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. 1. The security required to be deposited by a registrant pursuant to NRS 598.726 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his capacity as a registrant. 2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security. 3. The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond. 4. The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond. 5. If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security. (Added to NRS by 1997, 3193; A 2001, 2151)—(Substituted in revision for NRS 598.2808) NRS 598.736 Release of security if registrant ceases to operate or registration expires. 1. If no claims have been filed against the security deposited with the Division pursuant to NRS 598.726 within 6 months after the registrant ceases to operate or his registration expires, which

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