1. With respect to a surety bond that a licensed contractor maintains in accordance with NRS 624.270 or 624.276:

(a) The surety shall give prompt notice to the Board of any claims paid against the bond of the licensed contractor.

(b) The surety may cancel the bond upon giving 60 days’ notice to the Board and to the contractor by certified mail.

2. Upon receipt by the Board of the notice described in paragraph (a) of subsection 1, the Board shall immediately notify the contractor who is the principal on the bond that the contractor’s license will be suspended or revoked unless the contractor furnishes an equivalent bond or establishes an equivalent cash deposit before a date set by the Board.

3. Upon receipt by the Board of the notice described in paragraph (b) of subsection 1, the Board shall immediately notify the contractor who is the principal on the bond that the contractor’s license will be suspended or revoked unless the contractor furnishes an equivalent bond or establishes an equivalent cash deposit before the effective date of the cancellation.

4. The notice mailed to the contractor by the Board pursuant to subsection 2 or 3 must be addressed to the contractor’s latest address of record in the office of the Board.

5. If the contractor does not comply with the requirements of the notice from the Board, the contractor’s license must be suspended or revoked on the date:

(a) Set by the Board, if the notice was provided to the contractor pursuant to subsection 2; or

(b) The bond is cancelled, if the notice was provided to the contractor pursuant to subsection 3.

(Added to NRS by 1965, 351; A 1987, 1140; 1989, 852; 1999, 2182; 2005, 2384)