Nevada Code § 282.330

Certain officers to report losses to State Board of Examiners; investigations; procedure for restitution
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1. Losses to counties which occur from
defalcation, misappropriation or negligent loss of public money or from failure
faithfully to perform the duties of office on the part of a county or township
officer or employee must be reported by the district attorney of that county to
the State Board of Examiners.
2. Losses to cities which occur from
defalcation, misappropriation or negligent loss of public money or from failure
faithfully to perform the duties of office on the part of a city officer or
employee must be reported by the city attorney of that city to the State Board
of Examiners.
3. In the case of the State, any losses
must be reported to the State Board of Examiners by the Attorney General.
4. In the case of an irrigation district,
any losses must be reported to the State Board of Examiners by the board of
directors of the irrigation district.
5. In each case the State Board of
Examiners shall make, or cause to be made, a full investigation. If, from the
investigation, the State Board of Examiners determines that the loss comes
under the conditions of a surety bond issued pursuant to the provisions of
chapter 193, Statutes of Nevada 1937, as amended, which established the bond
trust fund, the State Board of Examiners shall order that restitution be made
in the following manner:
(a) If there is a sufficient amount in the
Reserve for Statutory Contingency Account to cover the loss, the State
Controller shall draw a warrant on the Reserve for Statutory Contingency
Account for the full amount of the loss as covered by the surety bond, in the
manner in which claims against the State are usually paid, and the State
Treasurer shall pay the warrant.
(b) If there is insufficient money in the Reserve
for Statutory Contingency Account to cover the loss, the State Controller shall
draw a warrant for the full amount in the Reserve for Statutory Contingency
Account for the purpose of making restitution in part, and the State Controller
shall report the condition of the account to the Governor. The Governor shall
take the necessary steps to have the balance due included in the budget, and
report to the next succeeding Legislature. When the balance is thus secured,
the restitution is completed.

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