Title 8

NRS 104.3303 Value and consideration. 1. An instrument is issued or transferred for value if: (a) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed; (b) The transferee acquires a security interest or other lien in t…

NRS 104.3304 Overdue instrument. 1. An instrument payable on demand becomes overdue at the earliest of the following times: (a) On the day after the day demand for payment is duly made; (b) If the instrument is a check, 90 days after its date; or (c) If the instrument is not a ch…

NRS 104.3305 Defenses and claims in recoupment. 1. Except as otherwise provided in this section, the right to enforce the obligation of a party to pay an instrument is subject to the following: (a) A defense of the obligor based on: (1) Infancy of the obligor to the extent it is …

NRS 104.3306 Claims to an instrument. A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover t…

NRS 104.3307 Notice of breach of fiduciary duty. 1. In this section: (a) “Fiduciary” means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument. (b) “Represented person” means the principal, benefi…

NRS 104.3308 Proof of signatures and status as holder in due course. 1. In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature…

NRS 104.3309 Enforcement of lost, destroyed or stolen instrument. 1. A person not in possession of an instrument is entitled to enforce the instrument if: (a) The person seeking to enforce the instrument: (1) Was entitled to enforce the instrument when loss of possession occurred…

NRS 104.3310 Effect of instrument on obligation for which taken. 1. Unless otherwise agreed, if a certified check, cashier’s check or teller’s check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to t…

NRS 104.3311 Accord and satisfaction by use of instrument. 1. If a person against whom a claim is asserted proves that he or she in good faith tendered an instrument to the claimant as full satisfaction of the claim, the amount of the claim was unliquidated or subject to a bona f…

NRS 104.3312 Lost, destroyed or stolen cashier’s check, teller’s check or certified check. 1. In this section: (a) “Check” means a cashier’s check, teller’s check or certified check. (b) “Claimant” means a person who claims the right to receive the amount of a cashier’s check, te…

NRS 104.3401 Signature necessary for liability on instrument. A person is not liable on an instrument unless the person: 1. Signed the instrument; or 2. Is represented by an agent or representative who signed the instrument and the signature is binding on him or her under NRS 104…

NRS 104.3402 Signature by representative. 1. If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent he or…

NRS 104.3403 Unauthorized signature. 1. Unless otherwise provided in this article or article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unautho…

NRS 104.3404 Impostors; fictitious payees. 1. If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a perso…

NRS 104.3405 Employer’s responsibility for fraudulent endorsement by employee. 1. In this section: (a) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. (b) “Fraudulent endorsement” means: (1) In the case of an instr…

NRS 104.3406 Negligence contributing to forged signature or alteration of instrument. 1. A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from assertin…

NRS 104.3407 Alteration. 1. “Alteration” means an unauthorized: (a) Change in an instrument that purports to modify in any respect the obligation of a party; or (b) Addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. 2. …

NRS 104.3408 Drawee not liable on unaccepted draft. A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it. (Added to NRS by 1965,…

NRS 104.3409 Acceptance of draft; certified check. 1. “Acceptance” means the drawee’s signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee’s signature alone. Acceptance may be made at any time and becomes effective when notif…

NRS 104.3410 Acceptance varying draft. 1. If the terms of a drawee’s acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance. 2. The terms of a draft are n…

NRS 104.3411 Refusal to pay cashier’s checks, teller’s checks and certified checks. 1. In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from the issuer. 2. If the obligated bank wrongfully refuse…

NRS 104.3412 Obligation of issuer of note or cashier’s check. 1. The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument: (a) According to its terms at the time it was issued or, if not issued, at the time it first came into pos…

NRS 104.3413 Obligation of acceptor. 1. The acceptor of a draft is obliged to pay the draft: (a) According to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms; (b) If the acceptance varies…

NRS 104.3414 Obligation of drawer. 1. This section does not apply to cashier’s checks or other drafts drawn on the drawer. 2. If an unaccepted draft is dishonored, the drawer is obliged to pay the draft: (a) According to its terms at the time it was issued or, if not issued, at t…

NRS 104.3415 Obligation of endorser. 1. Except as otherwise provided in subsections 2, 3 and 4 of this section and in subsection 4 of NRS 104.3419, if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument according to the terms of the instrum…

NRS 104.3416 Transfer warranties. 1. A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that: (a) The warrantor is a person entitled to enforce the instrument; (b) All signatures o…

NRS 104.3417 Presentment warranties. 1. If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the tim…

NRS 104.3418 Payment or acceptance by mistake. 1. Except as otherwise provided in subsection 3, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped pursuant to NRS 104.4403 or the signature …

NRS 104.3419 Instruments signed for accommodation. 1. If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the instrument (“accommodation party”) signs the instrument for the purpose of incurring liabi…

NRS 104.3420 Conversion of instrument. 1. The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or ob…

NRS 104.3501 Presentment. 1. “Presentment” means a demand made by or on behalf of a person entitled to enforce an instrument: (a) To pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to th…

NRS 104.3502 Dishonor. 1. Dishonor of a note is governed by the following rules: (a) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment. (b) If the note is not payable on demand and …

NRS 104.3503 Notice of dishonor. 1. The obligation of an endorser stated in subsection 1 of NRS 104.3415 and the obligation of a drawer stated in subsection 4 of NRS 104.3414 may not be enforced unless: (a) The endorser or drawer is given notice of dishonor of the instrument comp…

NRS 104.3504 Excused presentment and notice of dishonor. 1. Presentment for payment or acceptance of an instrument is excused if: (a) The person entitled to present the instrument cannot with reasonable diligence make presentment; (b) The maker or acceptor has repudiated an oblig…

NRS 104.3505 Evidence of dishonor. 1. The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (a) A document regular in form as provided in subsection 2 which purports to be a protest. (b) A purported stamp or writing of…

NRS 104.3601 Discharge and effect of discharge. 1. The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract. 2. Discharge of the obliga…

NRS 104.3602 Payment. 1. Subject to subsection 5, an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument, and to a person entitled to enforce the instrument. 2. Subject to subsection 5, a note is paid to the extent payment is …

NRS 104.3603 Tender of payment. 1. If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. 2. If tender of pay…

NRS 104.3604 Discharge by cancellation or renunciation. 1. A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument: (a) By an intentional voluntary act, such as surrender of the instrument to the par…

NRS 104.3605 Discharge of endorsers and accommodation parties. 1. In this section, the term “endorser” includes a drawer having the obligation described in subsection 4 of NRS 104.3414. 2. Discharge, under NRS 104.3604, of the obligation of a party to pay an instrument does not d…

NRS 104.4101 Short title. This article may be cited as Uniform Commercial Code—Bank Deposits and Collections. (Added to NRS by 1965, 840; A 1993, 1298)

NRS 104.4102 Applicability. 1. To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is a conflict, this article governs article 3 but article 8 governs this article. 2. The liability of a bank for action or no…

NRS 104.4103 Variation by agreement; measure of damages; action constituting ordinary care. 1. The effect of the provisions of this article may be varied by agreement, but the parties to the agreement cannot disclaim a bank’s responsibility for its own lack of good faith or failu…

NRS 104.4104 Definitions and index of definitions. 1. In this Article, unless the context otherwise requires: (a) “Account” means any deposit or credit account with a bank including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by…

NRS 104.4105 “Depositary bank”; “payor bank”; “intermediary bank”; “collecting bank”; “presenting bank.” In this Article: 1. “Depositary bank” means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the c…

NRS 104.4106 Payable through or payable at bank. 1. If an item states that it is “payable through” a bank identified in the item: (a) The item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and (b) The item may be presented for…