Title 8

NRS 104.4111 Statute of limitations. An action to enforce an obligation, duty or right arising under this article must be commenced within three years after the cause of action accrues. (Added to NRS by 1993, 1248) Part 2 Collection of Items: Depositary and Collecting Banks

NRS 104.4201 Status of collecting bank as agent and provisional status of credits; item endorsed “pay any bank.” 1. Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to…

NRS 104.4202 Responsibility for collection or return; when action timely. 1. A collecting bank must exercise ordinary care in: (a) Presenting an item or sending it for presentment; (b) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to…

NRS 104.4203 Effect of instructions. Subject to the provisions of article 3 concerning conversion of instruments (NRS 104.3420) and restrictive endorsements (NRS 104.3206), only a collecting bank’s transferor can give instructions that affect the bank or constitute notice to it, …

NRS 104.4204 Methods of sending and presenting; sending directly to payor bank. 1. A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of such items on hand, the cost of collection i…

NRS 104.4205 Depository bank holder of unendorsed item. If a customer delivers an item to a depositary bank for collection: 1. The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of …

NRS 104.4206 Transfer between banks. Any agreed method which identifies the transferor bank is sufficient for the item’s further transfer to another bank. (Added to NRS by 1965, 844)

NRS 104.4207 Transfer warranties. 1. A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: (a) The warrantor is a person entitled to enforce the item; (b) All si…

NRS 104.4208 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 104.4209 Encoding and retention warranties. 1. A person who encodes information on or with respect to an item after issue, warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositar…

NRS 104.4210 Security interest of collecting bank in items, accompanying documents and proceeds. 1. A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (a) In case of an item deposited in an account to the extent to which…

NRS 104.4211 When bank gives value for purposes of holder in due course. For purposes of determining its status as a holder in due course, a bank has given value to the extent that it has a security interest in an item if the bank otherwise complies with the requirements of NRS 1…

NRS 104.4212 Presentment by notice of item not payable by, through or at bank; liability of drawer or endorser. 1. Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to accept or pay a record providing n…

NRS 104.4213 Medium and time of settlement by bank. 1. With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, or agreement. In the absence of such prescription: (a) …

NRS 104.4214 Right of charge-back or refund; liability of collecting bank; return of item. 1. If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive a settlement…

NRS 104.4215 Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal. 1. Except as otherwise provided in NRS 104.3418, an item is finally paid by a payor bank when the bank has first done any of t…

NRS 104.4216 Insolvency and preference. 1. If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid the item must be returned by the receiver, trustee or agent in charge of the closed bank to the pres…

NRS 104.4301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank. 1. If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of t…

NRS 104.4302 Payor bank’s responsibility for late return of item. 1. If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (a) A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case wh…

NRS 104.4303 When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified. 1. Any knowledge, notice or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to t…

NRS 104.4401 When bank may charge customer’s account. 1. A bank may charge against the account of a customer any item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in …

NRS 104.4402 Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account. 1. Except as otherwise provided in this article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an i…

NRS 104.4403 Customer’s right to stop payment; burden of proof of loss. 1. A customer or any person authorized to draw on the account if there is more than one person, may stop payment of any item drawn on the customer’s account or close the account by an order to the bank descri…

NRS 104.4404 Bank not obligated to pay check more than 6 months old. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than 6 months after its date, but it may charge its customer’s account …

NRS 104.4405 Death or incompetence of customer. 1. A payor or collecting bank’s authority to accept, pay or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at t…

NRS 104.4406 Customer’s duty to discover or report unauthorized signature or alteration. 1. A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or p…

NRS 104.4407 Payor bank’s right to subrogation on improper payment. If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, t…

NRS 104.4501 Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor. A bank which takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and upon learning that the draft has not b…

NRS 104.4502 Presentment of “on arrival” drafts. When a draft or the relevant instructions require presentment “on arrival,” “when goods arrive” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal…

NRS 104.4503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need. Unless otherwise instructed and except as provided in article 5 a bank presenting a documentary draft: 1. Must deliver the documents to the drawee on a…

NRS 104.4504 Privilege of presenting bank to deal with goods; security interest for expenses. 1. A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell or oth…

NRS 104.5101 Short title. This article may be cited as Uniform Commercial Code—Letters of Credit. (Added to NRS by 1965, 854; A 1997, 376)

NRS 104.5102 Definitions. 1. In this article: (a) “Adviser” means a person who, at the request of the issuer, a confirmer or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed or amended. (b) “Applica…

NRS 104.5103 Scope. 1. This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. 2. The statement of a rule in this Article does not by itself require, imply or negate application of the same or a diff…

NRS 104.5104 Formal requirements. A letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a signed record. (Added to NRS by 1965, 855; A 1997, 379; 2023, 3185)

NRS 104.5105 Consideration. Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation. (Added to NRS by 1965, 855; A 1997, 379)

NRS 104.5106 Issuance, amendment, cancellation and duration. 1. A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of cred…

NRS 104.5107 Confirmer, nominated person and adviser. 1. A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer…

NRS 104.5108 Issuer’s rights and obligations. 1. Except as otherwise provided in NRS 104.5109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection 5, appears on its face strictly to comply with the terms and conditions of th…

NRS 104.5109 Fraud and forgery. 1. If a presentation is made that appears on its face strictly to comply with the terms and conditions of a letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud…

NRS 104.5110 Warranties. 1. If its presentation is honored, the beneficiary warrants: (a) To the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in subsection 1 of NRS 104.5109; and (b) To the applic…

NRS 104.5111 Remedies. 1. If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor or nominated person presenting on its own behalf may recover from the issuer the amount that is the subje…

NRS 104.5112 Transfer of letter of credit. 1. Except as otherwise provided in NRS 104.5113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under the letter of credit may not be transferred. 2. Even if…

NRS 104.5113 Transfer by operation of law. 1. A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. 2. A successor of a beneficia…

NRS 104.5114 Assignment of proceeds. 1. As used in this section, “proceeds of a letter of credit” means the cash, check, accepted draft or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The ter…

NRS 104.5115 Statute of limitations. An action to enforce a right or obligation arising under this article must be commenced within 1 year after the expiration date of the relevant letter of credit or 1 year after the claim for relief accrues, whichever occurs later. A claim for …