Nrs: Chapter 91 - Commodities

Link to law: https://www.leg.state.nv.us/NRS/NRS-091.html
Published: 2015

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[Rev. 2/10/2015 4:10:32

PM--2014R2]

CHAPTER 91 - COMMODITIES

GENERAL PROVISIONS

NRS 91.010             Purpose;

construction.

NRS 91.020             Definitions.

NRS 91.030             “Administrator”

defined.

NRS 91.040             “Board

of trade” defined.

NRS 91.050             “Commodity”

defined.

NRS 91.060             “Commodity

contract” defined.

NRS 91.070             “Commodity

Exchange Act” defined.

NRS 91.080             “Commodity

Futures Trading Commission” defined.

NRS 91.090             “Commodity

merchant” defined.

NRS 91.100             “Commodity

option” defined.

NRS 91.110             “Financial

institution” defined.

NRS 91.120             “Offer”

defined.

NRS 91.130             “Person”

defined.

NRS 91.140             “Precious

metal” defined.

NRS 91.150             “Sale”

and “sell” defined.

NRS 91.160             Administration.

NRS 91.170             Cooperation

with other agencies.

NRS 91.180             Effect

on chapter 90 of NRS.

UNLAWFUL ACTS

NRS 91.190             Sale

or purchase of commodities prohibited; exceptions.

NRS 91.200             Persons

exempted.

NRS 91.210             Transactions

exempted.

NRS 91.220             Prohibited

activities of commodity merchant and board of trade.

NRS 91.230             Fraudulent

conduct.

NRS 91.240             Applicability

of NRS 91.190, 91.220

and 91.230.

NRS 91.250             Liability

of principals and agents.

ENFORCEMENT; REMEDIES; PENALTIES

NRS 91.260             Regulations

and orders.

NRS 91.270             Orders:

Procedure.

NRS 91.280             Orders:

Judicial review.

NRS 91.290             Appointment

of Administrator as attorney to receive service of process.

NRS 91.300             Investigations

and subpoenas.

NRS 91.310             Enforcement

by Administrator.

NRS 91.320             Remedies

for violation of this chapter.

NRS 91.330             Remedies

for violation of similar law of another jurisdiction.

NRS 91.340             Criminal

penalties.

_________

GENERAL PROVISIONS

      NRS 91.010  Purpose; construction.  The

Legislature intends that this chapter be construed and implemented to

effectuate its general purpose to protect investors, to prevent and prosecute

illegal and fraudulent schemes involving commodity contracts and to maximize

coordination with federal and other states’ law and the administration and

enforcement thereof. This chapter is not intended to create any rights or

remedies upon which actions may be brought by private persons against persons

who violate the provisions of this chapter.

      (Added to NRS by 1987, 1287)

      NRS 91.020  Definitions.  As

used in this chapter, unless the context otherwise requires, the words and

terms defined in NRS 91.030 to 91.150, inclusive, have the meanings ascribed to them

in those sections.

      (Added to NRS by 1987, 1282; A 2003, 3178)

      NRS 91.030  “Administrator” defined.  “Administrator”

means the Administrator of the Securities Division of the Office of the

Secretary of State.

      (Added to NRS by 1987, 1282)

      NRS 91.040  “Board of trade” defined.  “Board

of trade” means any person or group of persons engaged in buying or selling any

commodity or receiving any commodity for sale on consignment, whether or not the

person or group of persons is characterized as a board of trade, exchange or

other form of market place.

      (Added to NRS by 1987, 1282)

      NRS 91.050  “Commodity” defined.

      1.  “Commodity” means, except as otherwise

provided in subsection 2 or specified by the Administrator by regulation or

order:

      (a) Any agricultural, grain or livestock product

or by-product;

      (b) Any metal or mineral, including a precious

metal;

      (c) Any gem or gemstone whether characterized as

precious, semiprecious or otherwise;

      (d) Any fuel, whether liquid, gaseous or

otherwise;

      (e) Any foreign currency; and

      (f) All other goods, articles, products or items

of any kind.

      2.  “Commodity” does not include:

      (a) A numismatic coin whose fair market value is

at least 15 percent higher than the value of the metal it contains;

      (b) Real property or any timber, agricultural or

livestock product grown or raised on real property and offered or sold by the

owner or lessee of such real property; or

      (c) Any work of art offered or sold by art

dealers, at public auction or offered or sold through a private sale by the

owner thereof.

      (Added to NRS by 1987, 1282)

      NRS 91.060  “Commodity contract” defined.

      1.  “Commodity contract” means any account,

agreement or contract for the purchase or sale, primarily for speculation or

investment purposes and not for use or consumption by the offeree or purchaser,

of one or more commodities, whether for immediate or subsequent delivery or

whether delivery is intended by the parties, and whether characterized as a cash

contract, deferred shipment or deferred delivery contract, forward contract,

futures contract, installment or margin contract, leverage contract or

otherwise. Any commodity contract offered or sold, in the absence of evidence

to the contrary, is presumed to be offered or sold for speculation or

investment purposes.

      2.  “Commodity contract” does not include

any contract or agreement which requires, and under which the purchaser

receives, within 28 calendar days after the payment of any portion of the

purchase price, physical delivery of the total amount of each commodity to be

purchased under the contract or agreement.

      (Added to NRS by 1987, 1283)

      NRS 91.070  “Commodity Exchange Act” defined.  “Commodity

Exchange Act” means the act of Congress known as the Commodity Exchange Act, 7

U.S.C. §§ 1 et seq.

      (Added to NRS by 1987, 1283)

      NRS 91.080  “Commodity Futures Trading Commission” defined.  “Commodity Futures Trading Commission” means

the independent regulatory agency established by Congress to administer the

Commodity Exchange Act.

      (Added to NRS by 1987, 1283)

      NRS 91.090  “Commodity merchant” defined.  “Commodity

merchant” means any of the following, as defined or described in the Commodity

Exchange Act or by a rule of the Commodity Futures Trading Commission:

      1.  A futures commission merchant;

      2.  A commodity pool operator;

      3.  A commodity trading adviser;

      4.  An introducing broker;

      5.  A leverage transaction merchant;

      6.  An associated person of any person

listed in subsections 1 to 5, inclusive;

      7.  A floor broker; or

      8.  Any other person, other than a futures

association, required to register with the Commodity Futures Trading

Commission.

      (Added to NRS by 1987, 1283)

      NRS 91.100  “Commodity option” defined.  “Commodity

option” means any account, agreement or contract giving a party thereto the

right but not the obligation to purchase or sell one or more commodities or one

or more commodity contracts, whether characterized as an option, privilege,

indemnity, bid, offer, put, call, advance guaranty, decline guaranty or

otherwise, but does not include an option traded on a national securities

exchange registered with the Securities and Exchange Commission.

      (Added to NRS by 1987, 1283)

      NRS 91.110  “Financial institution” defined.  “Financial

institution” means a bank, credit union, savings institution or trust company

organized under, or supervised pursuant to, the laws of the United States or of

any state.

      (Added to NRS by 1987, 1284; A 1999, 1456)

      NRS 91.120  “Offer” defined.  “Offer”

includes every offer to sell, purchase or enter into a commodity contract or

commodity option.

      (Added to NRS by 1987, 1284)

      NRS 91.130  “Person” defined.

      1.  “Person” includes a government,

governmental agency or political subdivision of a government.

      2.  “Person” does not include a contract

market designated by the Commodity Futures Trading Commission or any

clearinghouse thereof or a national securities exchange registered with the

Securities and Exchange Commission, or any employee, officer or director of

such a contract market, clearinghouse or exchange acting solely in that capacity.

      (Added to NRS by 1987, 1284)

      NRS 91.140  “Precious metal” defined.  “Precious

metal” means the following in either coin, bullion or other form:

      1.  Silver;

      2.  Gold;

      3.  Platinum;

      4.  Palladium;

      5.  Copper; and

      6.  Such other items as the Administrator

may specify by regulation or order.

      (Added to NRS by 1987, 1284)

      NRS 91.150  “Sale” and “sell” defined.  “Sale”

or “sell” includes every contract of sale, contract to sell or disposition for

value.

      (Added to NRS by 1987, 1284)

      NRS 91.160  Administration.

      1.  This chapter must be administered by

the Administrator of the Securities Division of the Office of the Secretary of

State.

      2.  It is unlawful for the Administrator or

any employee of the Administrator to use for personal benefit any information

which is filed with or obtained by the Administrator and which is not made

public. It is unlawful for the Administrator or any employee of the

Administrator to conduct any dealings regarding a security or commodity based

upon any such information, even though made public, if there has not been a

sufficient period of time for the securities or commodity markets to assimilate

such information.

      3.  Except as otherwise provided in

subsection 4, all information and materials collected, assembled or maintained

by the Administrator are public records.

      4.  Except as otherwise provided in NRS 239.0115, the following information

is confidential:

      (a) Information obtained in private

investigations pursuant to NRS 91.300; and

      (b) Information obtained from federal agencies

which may not be disclosed under federal law.

      5.  The Administrator in his or her

discretion may disclose any information made confidential under subsection 4 to

persons identified in subsection 1 of NRS 91.170.

      6.  No provision of this chapter either

creates or derogates any privilege which exists at common law, by statute or

otherwise when any record or other evidence is sought under subpoena directed

to the Administrator or any employee of the Administrator.

      (Added to NRS by 1987, 1289; A 2003, 3178; 2007, 2070)

      NRS 91.170  Cooperation with other agencies.

      1.  To encourage uniform application and

interpretation of this chapter and regulation and enforcement of securities

laws in general, the Administrator and the employees of the Administrator may

cooperate, including bearing the expense of the cooperation, with the

securities agency or administrator of another jurisdiction, Canadian province

or territory, the Commodity Futures Trading Commission, the Securities and

Exchange Commission, any self-regulatory organization established under the

Commodity Exchange Act or the Securities Exchange Act of 1934, any national or

international organization of officers or agencies which regulate commodities

or securities, and any governmental law enforcement agency.

      2.  The cooperation authorized by

subsection 1 includes, but is not limited to, the following:

      (a) Making joint examinations or investigations;

      (b) Holding joint administrative hearings;

      (c) Filing and prosecuting joint litigation;

      (d) Sharing and exchanging personnel;

      (e) Sharing and exchanging information and

records;

      (f) Formulating and adopting mutual regulations,

statements of policy, guidelines, proposed statutory changes and releases; and

      (g) Issuing and enforcing subpoenas at the

request of the agency administering this chapter in another jurisdiction, the

securities agency of another jurisdiction, the Commodity Futures Trading

Commission or the Securities and Exchange Commission if the information sought

would also be subject to lawful subpoena for conduct occurring in this State.

      (Added to NRS by 1987, 1290; A 2003, 3178)

      NRS 91.180  Effect on chapter 90 of NRS.  Nothing in this chapter impairs, derogates or

otherwise affects the authority or powers of the Administrator under chapter 90 of NRS or the application of any

provision thereof to any person or transaction subject thereto.

      (Added to NRS by 1987, 1287)

UNLAWFUL ACTS

      NRS 91.190  Sale or purchase of commodities prohibited; exceptions.  Except as otherwise provided in NRS 91.200 and 91.210, a person

shall not sell or purchase or offer to sell or purchase any commodity under any

commodity contract or under any commodity option or offer to enter into or

enter into as seller or purchaser any commodity contract or any commodity

option.

      (Added to NRS by 1987, 1284)

      NRS 91.200  Persons exempted.  The

prohibitions in NRS 91.190 do not apply to any

transaction offered by and in which any of the following persons, or any

employee, officer or director thereof acting solely in that capacity, is the

purchaser or seller:

      1.  A person registered with the Commodity

Futures Trading Commission as a futures commission merchant or as a leverage

transaction merchant whose activities require such registration;

      2.  A person registered with the Securities

and Exchange Commission as a broker-dealer whose activities require such

registration;

      3.  A person affiliated with, and whose

obligations and liabilities under the transaction are guaranteed by, a person

referred to in subsection 1 or 2;

      4.  A person who is a member of a contract

market designated by the Commodity Futures Trading Commission or any

clearinghouse thereof;

      5.  A financial institution; or

      6.  A person registered under the laws of

this State as a securities broker-dealer whose activities require such

registration.

Ê The

exemption provided in this section does not apply to any transaction or

activity which is prohibited by the Commodity Exchange Act or by a rule of the

Commodity Futures Trading Commission.

      (Added to NRS by 1987, 1284)

      NRS 91.210  Transactions exempted.

      1.  The prohibitions in NRS 91.190 do not apply to the following:

      (a) An account, agreement or transaction within

the exclusive jurisdiction of the Commodity Futures Trading Commission granted

under the Commodity Exchange Act.

      (b) A commodity contract for the purchase of one

or more precious metals which requires, and under which the purchaser receives,

within 7 calendar days after the payment of any portion of the purchase price,

physical delivery of the quantity of the precious metals purchased by the

payment. For purposes of this paragraph, physical delivery shall be deemed to

have occurred if, within the 7-day period, the quantity of precious metals purchased

by the payment is delivered, whether in specifically segregated or fungible

bulk form, into the possession of a depository other than the seller which is

either:

             (1) A financial institution;

             (2) A depository the warehouse receipts of

which are recognized for delivery purposes for any commodity on a contract

market designated by the Commodity Futures Trading Commission;

             (3) A storage facility licensed or

regulated by the United States or any agency thereof; or

             (4) A depository designated by the

Administrator,

Ê and the

depository issues, and the purchaser receives, a certificate, record of title,

confirmation or other instrument evidencing that such a quantity of precious

metals has been delivered to the depository and is being and will continue to

be held by the depository on the purchaser’s behalf, free and clear of all

liens and encumbrances, other than liens of the purchaser, tax liens, liens

agreed to by the purchaser, or liens of the depository for fees and expenses,

which have previously been disclosed to the purchaser.

      (c) A commodity contract solely between persons

engaged in producing, processing, using commercially or handling as merchants,

each commodity subject thereto, or any by-product thereof.

      (d) A commodity contract under which the offeree

or the purchaser is a person referred to in NRS 91.200,

an insurance company, an investment company as defined in the Investment

Company Act of 1940, or an employee pension and profit-sharing or benefit plan,

other than a self-employed individual retirement plan or individual retirement

account.

      2.  The Administrator may adopt regulations

or issue orders prescribing the terms and conditions of all transactions and

contracts covered by the provisions of this chapter which are not within the

exclusive jurisdiction of the Commodity Futures Trading Commission granted by

the Commodity Exchange Act, exempting any person or transaction from any

provision of this chapter conditionally or unconditionally and otherwise

implementing the provisions of this chapter for the protection of purchasers

and sellers of commodities.

      (Added to NRS by 1987, 1285; A 2003, 3179)

      NRS 91.220  Prohibited activities of commodity merchant and board of trade.

      1.  A person shall not engage in a trade or

business or otherwise act as a commodity merchant unless the person:

      (a) Is registered or temporarily licensed with

the Commodity Futures Trading Commission for each activity constituting the

person as a commodity merchant and the registration or temporary license has

not expired or been suspended or revoked; or

      (b) Is exempt from registration by virtue of the

Commodity Exchange Act or of a rule of the Commodity Futures Trading

Commission.

      2.  A board of trade must not trade, or

provide a place for the trading of, any commodity contract or commodity option

required to be traded on or subject to the rules of a contract market

designated by the Commodity Futures Trading Commission unless the board of

trade has been designated for the commodity contract or commodity option and

the designation has not been vacated, suspended or revoked.

      (Added to NRS by 1987, 1286)

      NRS 91.230  Fraudulent conduct.  A

person shall not directly or indirectly:

      1.  Cheat or defraud, or attempt to cheat

or defraud, any other person or employ any device, scheme or artifice to

defraud any other person;

      2.  Make any false report, enter any false

record, or make any untrue statement of a material fact or omit to state a

material fact necessary in order to make the statements made, in the light of

the circumstances under which they were made, not misleading;

      3.  Engage in any transaction, act, practice

or course of business, including, without limitation, any form of advertising

or solicitation, which operates or would operate as a fraud or deceit upon any

person; or

      4.  Misappropriate or convert the money,

security or property of any other person,

Ê in or in

connection with the purchase or sale of, the offer to purchase or sell, the

offer to enter into, or the entry into of, any commodity contract or commodity

option subject to the provisions of NRS 91.190 or 91.200 or paragraph (b) or (d) of subsection 1 of NRS 91.210.

      (Added to NRS by 1987, 1286)

      NRS 91.240  Applicability of NRS 91.190, 91.220

and 91.230.

      1.  NRS 91.190,

91.220 and 91.230 apply

to persons who sell or offer to sell when:

      (a) An offer to sell is made in this State; or

      (b) An offer to buy is made and accepted in this

State.

      2.  NRS 91.190,

91.220 and 91.230 apply

to persons who buy or offer to buy when:

      (a) An offer to buy is made in this State; or

      (b) An offer to sell is made and accepted in this

State.

      3.  For the purposes of this section, an

offer to sell or to buy is made in this State, whether or not either party is

then present in this State, when the offer:

      (a) Originates from this State; or

      (b) Is directed by the offeror to this State and

received at the place to which it is directed, or at any post office in this

State in the case of a mailed offer.

      4.  For the purposes of this section, an

offer to buy or to sell is accepted in this State when acceptance:

      (a) Is communicated to the offeror in this State;

and

      (b) Has not previously been communicated to the

offeror, orally or in writing, outside this State.

Ê Acceptance

is communicated to the offeror in this State, whether or not either party is

then present in this State, when the offeree directs it to the offeror in this

State, reasonably believing the offeror to be in this State and it is received

at the place to which it is directed, or at any post office in this State in

the case of a mailed acceptance.

      5.  For the purposes of this section, an

offer to sell or to buy is not made in this State when:

      (a) The publisher circulates or there is

circulated on behalf of the publisher in this State a bona fide newspaper or

other publication of general, regular and paid circulation which is not

published in this State, or which is published in this State but has had more

than two-thirds of its circulation outside this State during the past 12

months; or

      (b) A radio or television program originating

outside this State is received in this State.

      (Added to NRS by 1987, 1291)

      NRS 91.250  Liability of principals and agents.

      1.  The act, omission, or failure of any

officer, agent or other person acting for any natural person, association,

partnership, corporation or trust within the scope of his or her employment or

office shall be deemed the act, omission or failure of the natural person,

association, partnership, corporation or trust, as well as of the officer,

agent or other person.

      2.  Every person who directly or indirectly

controls another person liable under any provision of this chapter, every

partner, officer or director of the liable person, every person occupying a

similar status or performing similar functions as the liable person and every

employee of the liable person who materially aids in the violation is also

liable jointly and severally with and to the same extent as the liable person,

unless the person who is also liable by virtue of this provision sustains the

burden of proof that he or she did not know, and in exercise of reasonable care

could not have known, of the existence of the facts by reason of which the

liability is alleged to exist.

      (Added to NRS by 1987, 1286)

ENFORCEMENT; REMEDIES; PENALTIES

      NRS 91.260  Regulations and orders.  The

Administrator may adopt such regulations or issue such orders as are necessary

to carry out the provisions of this chapter and which are in the public

interest or for the protection of investors. The regulations or orders may:

      1.  Designate items which are not

commodities;

      2.  Designate precious metals; and

      3.  Prescribe forms to be used pursuant to

this chapter.

      (Added to NRS by 1987, 1290)

      NRS 91.270  Orders: Procedure.

      1.  The Administrator shall commence an

administrative proceeding under this chapter by entering either a notice of

intent to do a contemplated act or a summary order. The notice of intent or summary

order may be entered without notice or opportunity for hearing, and need not be

supported by findings of fact or conclusions of law, but must be in writing.

      2.  Upon entry of a notice of intent or

summary order, the Administrator shall promptly notify all interested parties

that the notice or summary order has been entered and the reasons therefor. If

the proceeding is pursuant to a notice of intent, the Administrator shall

inform all interested parties of the date, time and place set for the hearing

on the notice. If the proceeding is pursuant to a summary order, the

Administrator shall inform all interested parties that they have 30 business

days after the entry of the order to file a written request for a hearing on

the matter with the Administrator and that the hearing will be scheduled to

commence within 30 business days after the receipt of the written request.

      3.  If the proceeding is pursuant to a

summary order, the Administrator, whether or not a written request for a

hearing is received from any interested party, may set the matter for hearing

on the Administrator’s own motion.

      4.  If no hearing is requested and none is

ordered by the Administrator, the summary order automatically becomes a final

order 30 business days after the entry of the order.

      5.  If a hearing is requested or ordered,

the Administrator, after notice of and opportunity for a hearing, may modify or

vacate the order or extend it until a final determination is made.

      6.  No final order or order after a hearing

may be returned without:

      (a) Appropriate notice to all interested persons;

      (b) Opportunity for hearing by all interested

persons; and

      (c) Entry of written findings of fact and

conclusions of law.

Ê Every

hearing in an administrative proceeding under this chapter must be public

unless the Administrator grants a request joined in by all the respondents that

the hearing be conducted privately.

      (Added to NRS by 1987, 1292)

      NRS 91.280  Orders: Judicial review.

      1.  Any person aggrieved by a final order

of the Administrator may obtain judicial review of the order in the District

Court for the First Judicial District by filing with the court, within 60 days

after the entry of the order, a written petition praying that the order be

modified or set aside in whole or in part. A copy of the petition for review

must be served upon the Administrator.

      2.  Upon the filing of a petition for

review, unless the court orders the taking of additional evidence pursuant to

subsection 5 or 6, the court has exclusive jurisdiction of the matter, and the

Administrator may not modify or set aside the order, in whole or in part.

      3.  The filing of a petition for review

under subsection 1 does not, unless specifically ordered by the court, operate

as a stay of the Administrator’s order, and the Administrator may enforce or

ask the court to enforce the order pending the outcome of the proceedings.

      4.  Upon receipt of the petition for

review, the Administrator shall certify and file in the court a copy of the

order and the transcript or record of the evidence upon which it was based. If

the order became final by operation of law under subsection 4 of NRS 91.270, the Administrator shall certify and file

in court the summary order, evidence of its source and an affidavit certifying

that no hearing has been held and that the order became final pursuant to that

subsection.

      5.  If either the aggrieved party or the

Administrator applies to the court for leave to submit additional evidence, and

shows to the satisfaction of the court that there were reasonable grounds for

failure to submit the evidence in the hearing before the Administrator or other

good cause, the court may order the additional evidence to be taken by the

Administrator under such conditions as the court considers proper.

      6.  If new evidence is ordered taken by the

court, the Administrator may modify the findings and order by reason of the

additional evidence and shall file in the court the additional evidence

together with any modified or new findings or order.

      7.  The court shall review the petition

based upon the original record before the Administrator as amended under

subsections 5 and 6. The findings of the Administrator as to the facts, if

supported by competent, material and substantive evidence, are conclusive.

Based upon this review, the court may affirm, modify, enforce or set aside the

order, in whole or in part.

      8.  The judgment of the court is subject to

review by the appellate court of competent jurisdiction pursuant to the rules

fixed by the Supreme Court pursuant to Section

4 of Article 6 of the Nevada Constitution.

      (Added to NRS by 1987, 1293; A 2013, 1745)

      NRS 91.290  Appointment of Administrator as attorney to receive service of

process.

      1.  Every applicant for registration under

this chapter shall file with the Administrator, in the form prescribed by the

Administrator, an irrevocable consent appointing the Administrator or his or

her successor in office as the applicant’s attorney to receive service of any

lawful process in any noncriminal suit, action or proceeding against the

applicant or his or her successor, executor or administrator which arises under

this chapter or any regulation adopted or order issued under this chapter after

the consent has been filed, with the same force and validity as if served

personally on the person filing the consent.

      2.  When a person, including a nonresident

of this State, engages in conduct prohibited or made actionable by this

chapter, or by any regulation or order of the Administrator, the engaging in

the conduct shall be deemed to constitute the appointment of the Administrator

as the person’s attorney to receive service of any lawful process in a

noncriminal proceeding against the person, a successor or a personal

representative, which grows out of that conduct and which is brought under this

chapter or any regulation or order of the Administrator with the same force and

validity as if served personally.

      3.  Service under subsection 1 or 2 may be

made by leaving a copy of the process in the office of the Administrator, but

it is not effective unless:

      (a) The plaintiff, who may be the Administrator

in a suit, action or proceeding instituted by the Administrator, forthwith

sends notice of the service and a copy of the process by registered mail to the

defendant or respondent at the last address known to the Administrator; and

      (b) The plaintiff’s affidavit of compliance with

this subsection is filed in the case on or before the date for return of the

process, if any, or within such further time as the court allows.

      (Added to NRS by 1987, 1291)

      NRS 91.300  Investigations and subpoenas.

      1.  The Administrator may make investigations,

within or outside of this State, as the Administrator finds necessary or

appropriate to:

      (a) Determine whether any person has violated, or

is about to violate, any provision of this chapter or any regulation or order

of the Administrator; or

      (b) Aid in the enforcement of this chapter.

      2.  The Administrator may publish

information concerning any violation of this chapter or any regulation or order

of the Administrator.

      3.  For the purposes of any investigation

or proceeding under this chapter, the Administrator, or an officer or employee

designated by the Administrator, may administer oaths and affirmations,

subpoena witnesses, compel their attendance, take evidence and require the

production of any books, papers, correspondence, memoranda, agreements or other

records which the Administrator finds to be relevant or material to the

inquiry.

      4.  If a person does not give testimony or

produce the records required by the Administrator or a designated officer or

employee pursuant to an administrative subpoena, the Administrator or

designated officer or employee may apply for a court order compelling

compliance with the subpoena or the giving of the required testimony.

      5.  The request for an order of compliance

may be addressed to either:

      (a) The District Court for the First Judicial

District;

      (b) The district court for any judicial district

where service may be obtained on the person refusing to testify or produce, if

the person is within this State; or

      (c) The appropriate court of the state having jurisdiction

over the person refusing to testify or produce, if the person is outside of

this State.

      6.  If the activities constituting an

alleged violation for which the information is sought would be a violation of

this chapter had the activities occurred in this State, the Administrator may

issue and apply to enforce subpoenas, in the manner set forth in subsection 5,

in this State at the request of a securities agency or administrator of another

state.

      (Added to NRS by 1987, 1287; A 1991, 611; 2003, 3180)

      NRS 91.310  Enforcement by Administrator.

      1.  If the Administrator believes, whether

or not based upon an investigation conducted under NRS

91.300, that any person has engaged or is about to engage in any act or

practice constituting a violation of any provision of this chapter or a regulation

adopted or order issued pursuant to its provisions, the Administrator may:

      (a) Issue an order to cease and desist;

      (b) Take disciplinary action against a licensed

person;

      (c) Issue an order imposing a civil penalty in an

amount which may not exceed $10,000 for any single violation or $100,000 for

multiple violations in a single proceeding or a series of related proceedings;

or

      (d) Initiate any of the actions specified in

subsection 2.

      2.  The Administrator may institute any of

the following actions in the district courts of this State, or in the

appropriate courts of another state, in addition to any legal or equitable

remedies otherwise available:

      (a) An action for a declaratory judgment;

      (b) An action for a prohibitory or mandatory

injunction to enjoin the violation and to ensure compliance with this chapter

or any regulation or order of the Administrator;

      (c) An action for disgorgement;

      (d) An action for appointment of a receiver or

conservator for the defendant or the defendant’s assets; or

      (e) An action to enjoin permanently any person

from acting as a commodity broker-dealer or a commodity sales representative.

      (Added to NRS by 1987, 1287)

      NRS 91.320  Remedies for violation of this chapter.

      1.  Upon a proper showing by the

Administrator that a person has violated, or is about to violate, any provision

of this chapter or any regulation or order of the Administrator, the district

court may grant appropriate legal or equitable remedies.

      2.  Upon a showing of a violation of this

chapter or a regulation or order of the Administrator, the court, in addition

to traditional legal and equitable remedies, including a temporary restraining

order, a permanent or temporary prohibitory or mandatory injunction, and a writ

of prohibition or mandamus, may grant the following special remedies:

      (a) The imposition of a civil penalty in an

amount which may not exceed $10,000 for any single violation or $100,000 for

multiple violations in a single proceeding or a series of related proceedings;

      (b) Disgorgement;

      (c) A declaratory judgment;

      (d) Restitution to investors wishing restitution;

      (e) The appointment of a receiver or conservator

for the defendant or the defendant’s assets; and

      (f) An injunction permanently enjoining a

defendant from acting as a commodity broker-dealer or a commodity sales

representative.

      3.  Upon a showing that the defendant is

about to violate this chapter or a rule or order of the Administrator, the

court may grant the following remedies:

      (a) A temporary restraining order;

      (b) A temporary or permanent injunction;

      (c) A writ of prohibition or mandamus; and

      (d) An order appointing a receiver or conservator

for the defendant or the defendant’s assets.

      4.  A court shall not require the

Administrator to post a bond in any official action under this chapter.

      (Added to NRS by 1987, 1288)

      NRS 91.330  Remedies for violation of similar law of another jurisdiction.

      1.  Upon a proper showing by the

Administrator or a securities or commodity agency of another state that a

person has violated, or is about to violate, any provision of the commodity

code of that state or any rule or order of the Administrator or securities or

commodity agency of that state, a district court in this State may grant

appropriate legal and equitable remedies.

      2.  Upon a showing of a violation of the

securities or commodity act of the foreign state or a rule or order of the

Administrator or securities or commodity agency of the foreign state, the

court, in addition to traditional legal or equitable remedies, including a

temporary restraining order, a permanent or temporary prohibitory or mandatory

injunction and a writ of prohibition or mandamus, may grant the following

special remedies:

      (a) Disgorgement; and

      (b) The appointment of a receiver, conservator or

ancillary receiver or conservator for the defendant or the defendant’s assets

located in this State.

      3.  Upon a showing that the defendant is

about to violate the securities or commodity act of the foreign state or a rule

or order of the Administrator or securities or commodity agency of the foreign

state, the court may grant the following remedies:

      (a) A temporary restraining order;

      (b) A temporary or permanent injunction;

      (c) A writ of prohibition or mandamus; and

      (d) An order appointing a receiver, conservator

or ancillary receiver or conservator for the defendant or the defendant’s

assets located in this State.

      (Added to NRS by 1987, 1288)

      NRS 91.340  Criminal penalties.

      1.  Except as otherwise provided in

subsection 2, a person who willfully violates:

      (a) Any provision of this chapter; or

      (b) Any regulation or order of the Administrator

under this chapter,

Ê is guilty of

a category C felony and shall be punished as provided in NRS 193.130, or by a fine of not more than

$20,000, or by both fine and the punishment provided in NRS 193.130, for each violation. In

addition to any other penalty, the court shall order the person to pay

restitution.

      2.  A person convicted of violating a

regulation or order under this chapter may be fined, but must not be

imprisoned, if the person proves the person had no knowledge of the regulation

or order.

      3.  The Administrator may refer such

evidence as is available concerning violations of this chapter or any

regulation or order of the Administrator to the Attorney General or the proper

district attorney, who may, with or without such a reference from the

Administrator, institute the appropriate criminal proceeding under this

chapter.

      (Added to NRS by 1987, 1289; A 1993, 938; 1995, 1242)