Title 8

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…

NRS 104.4107 Separate office of bank. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this article and under article 3…

NRS 104.4108 Time of receipt of items. 1. For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of …

NRS 104.4109 Delays. 1. Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permi…

NRS 104.4110 Electronic presentment. 1. “Agreement for electronic presentment” means an agreement, clearing-house rule or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information desc…

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…