1. In lieu of the insurance against liability required by the regulations adopted pursuant to NRS 706.305, an operator of a taxicab may file with the Department:

(a) A bond of a surety company authorized to transact business in this State; or

(b) A bond with at least two individual sureties each owning real property within this State, and together having equities equal in value to at least twice the amount of the bond, if the real property is scheduled in the bond and the bond is approved by a judge of a court of record.

2. Any bond filed pursuant to subsection 1 must be conditioned for payments in the amounts and under the same circumstances as would be required in a contract of insurance against liability complying with the regulations adopted pursuant to NRS 706.305. The bond may not be cancelled unless 10 days before cancellation written notice is given to the Department.

3. Upon the filing of notice by the Department in the office of the county clerk of the county where the real property is located, the bond constitutes a lien in favor of the State upon the real property scheduled in the bond. The lien exists in favor of any holder of a judgment against the person who has filed the bond.

4. If a judgment rendered against the principal on a bond filed pursuant to subsection 1 is not satisfied within 60 days after it has become final, the judgment creditor may, for the judgment creditor’s own use and benefit and at the judgment creditor’s own expense, bring an action in the name of the State against the company or persons executing the bond, including an action or proceeding to foreclose any lien that may exist upon the real property of a person who has executed the bond.

(Added to NRS by 1989, 1784)