Title 8

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 …

NRS 104.5116 Choice of law and forum. 1. The liability of an issuer, nominated person or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected parties or by a provision in his or her letter …

NRS 104.5117 Subrogation of issuer, applicant and nominated person. 1. An issuer that honors a beneficiary’s presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficia…

NRS 104.5118 Security interest of issuer or nominated person. 1. An issuer or a nominated person has a security interest in a document presented under a letter of credit and any identifiable proceeds of the collateral to the extent that the issuer or nominated person honors or gi…

NRS 104.7101 Short title. This Article may be cited as the Uniform Commercial Code—Documents of Title. (Added to NRS by 2005, 833)

NRS 104.7102 Definitions and index of definitions. 1. In this Article, unless the context otherwise requires: (a) “Bailee” means a person that by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them. (b) “Ca…

NRS 104.7103 Relation of Article to treaty or statute. 1. This Article is subject to any treaty or statute of the United States or regulatory statute of this State to the extent the treaty, statute or regulatory statute is applicable. 2. This Article does not modify or repeal any…

NRS 104.7104 Negotiable and nonnegotiable document of title. 1. Except as otherwise provided in subsection 3, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person. 2. A document of title other than one describ…

NRS 104.7105 Reissuance in alternative medium. 1. Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if: (a) The person entitled under th…

NRS 104.7106 Control of electronic document of title. 1. A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to whom the electronic document…

NRS 104.7201 Person that may issue warehouse receipt; storage under bond. 1. A warehouse receipt may be issued by any warehouse. 2. If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for …

NRS 104.7202 Form of warehouse receipt; effect of omission. 1. A warehouse receipt need not be in any particular form. 2. Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a person injured by its omission: (a) A statement…

NRS 104.7203 Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt…

NRS 104.7204 Duty of care; contractual limitation of warehouse’s liability. 1. A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably careful person would exercise under similar circum…

NRS 104.7205 Title under warehouse receipt defeated in certain cases. A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse r…

NRS 104.7206 Termination of storage at warehouse’s option. 1. A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an interest in the goods, may require payment of any charges and removal of the goods from the warehou…

NRS 104.7207 Goods must be kept separate; fungible goods. 1. Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fung…

NRS 104.7208 Altered warehouse receipts. If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of the lack of authority may treat the insertion as authorized. Any other unauthorized alterati…

NRS 104.7209 Lien of warehouse. 1. A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds thereof in its possession for charges for storage or transportation, including demurrage and terminal charges, insuranc…

NRS 104.7210 Enforcement of warehouse’s lien. 1. Except as otherwise provided in subsection 2, a warehouse’s lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifyin…

NRS 104.7301 Liability for nonreceipt or misdescription; “said to contain”; “shipper’s weight, load and count”; improper handling. 1. A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to whom a negotiable bill has been duly negotiated,…

NRS 104.7302 Through bills of lading and similar documents of title. 1. The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier, is liable to any person entitled…