Title 8

NRS 104A.2302 Title to and possession of goods. Except as otherwise provided in this article, each provision of this article applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee or a third party has possession of the goods, notwit…

NRS 104A.2303 Alienability of party’s interest under lease contract or of lessor’s residual interest in goods; delegation of performance; transfer of rights. 1. As used in this section, “creation of a security interest” includes the sale of a lease contract that is subject to Art…

NRS 104A.2304 Subsequent lease of goods by lessor. 1. Subject to the provisions of NRS 104A.2303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the lease-hold interest transferred, the leasehold interest in the goods that th…

NRS 104A.2305 Sale or sublease of goods by lessee. 1. Subject to the provisions of NRS 104A.2303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee…

NRS 104A.2306 Priority of certain liens arising by operation of law. If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods in the possession of that person given by stat…

NRS 104A.2307 Priority of liens arising by attachment or levy on, security interests in and other claims to goods. 1. Except as otherwise provided in NRS 104A.2306, a creditor of a lessee takes subject to the lease contract. 2. Except as otherwise provided in subsection 3 and in …

NRS 104A.2308 Special rights of creditors. 1. A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent under any statute or rule of law, but retent…

NRS 104A.2309 Lessor’s and lessee’s rights when goods become fixtures. 1. In this section: (a) Goods are “fixtures” when they become so related to particular real estate that an interest in them arises under real estate law; (b) A “fixture filing” is the filing, in the office whe…

NRS 104A.2310 Lessor’s and lessee’s rights when goods become accessions. 1. Goods are “accessions” when they are installed in or affixed to other goods. 2. The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to a…

NRS 104A.2311 Priority subject to subordination. Nothing in this article prevents subordination by agreement by any person entitled to priority. (Added to NRS by 1991, 422) Part 4 Performance of Lease Contract: Repudiated, Substituted and Excused

NRS 104A.2401 Insecurity: Adequate assurance of performance. 1. A lease contract imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired. 2. If reasonable grounds for insecurity arise with respect to the performance of ei…

NRS 104A.2402 Anticipatory repudiation. If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may: 1…

NRS 104A.2403 Retraction of anticipatory repudiation. 1. Until the repudiating party’s next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the lease contract or materially changed the aggrieve…

NRS 104A.2404 Substituted performance. 1. If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impra…

NRS 104A.2405 Excused performance. Subject to NRS 104A.2404 on substituted performance, the following rules apply: 1. Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with subsections 2 and 3 is not a default under the lease contract if …

NRS 104A.2406 Procedure on excused performance. 1. If the lessee receives notification of a material or indefinite delay or an allocation justified under NRS 104A.2405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the g…

NRS 104A.2407 Irrevocable promises: Finance leases. 1. In the case of a finance lease that is not a consumer lease the lessee’s promises under the lease contract become irrevocable and independent upon the lessee’s acceptance of the goods. 2. A promise that has become irrevocable…

NRS 104A.2501 Default: Procedure. 1. Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article. 2. If the lessor or the lessee is in default under the lease contract, the party seeking enforcement has rights and re…

NRS 104A.2502 Notice after default. Except as otherwise provided in this article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement. (Added to N…

NRS 104A.2503 Modification or impairment of rights and remedies. 1. Except as otherwise provided in this article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this article and may limit or alter the measur…

NRS 104A.2504 Liquidation of damages. 1. Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor’s residual interest, may be liquidated in the lease agreement but…

NRS 104A.2505 Cancellation and termination, and effect of cancellation, termination, rescission or fraud on rights and remedies. 1. On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default o…

NRS 104A.2506 Statute of limitations. 1. An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause of action accrued. In a lease that is not a consumer lease, by the original lease contract the partie…

NRS 104A.2507 Proof of market rent: Time and place. 1. Damages based on market rent (NRS 104A.2519 or 104A.2528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prev…

NRS 104A.2508 Lessee’s remedies. 1. If a lessor fails to deliver the goods in conformity to the lease contract (NRS 104A.2509) or repudiates the lease contract (NRS 104A.2402), or a lessee rightfully rejects the goods (NRS 104A.2509) or justifiably revokes acceptance of the goods…

NRS 104A.2509 Lessee’s rights on improper delivery; rightful rejection. 1. Subject to the provisions of NRS 104A.2510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or a…

NRS 104A.2510 Installment lease contracts: Rejection and default. 1. Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defe…

NRS 104A.2511 Merchant lessee’s duties as to rightfully rejected goods. 1. Subject to any security interest of a lessee (subsection 5 of NRS 104A.2508), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of g…

NRS 104A.2512 Lessee’s duties as to rightfully rejected goods. 1. Except as otherwise provided with respect to goods that threaten to decline in value speedily (NRS 104A.2511) and subject to any security interest of a lessee (subsection 5 of NRS 104A.2508): (a) The lessee, after …

NRS 104A.2513 Cure by lessor of improper tender or delivery; replacement. 1. If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of …

NRS 104A.2514 Waiver of lessee’s objections. 1. In rejecting goods, a lessee’s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default: (a) If, stated seasonab…

NRS 104A.2515 Acceptance of goods. 1. Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (a) The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conf…

NRS 104A.2516 Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over. 1. A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for…

NRS 104A.2517 Revocation of acceptance of goods. 1. A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it: (a) Except in the case of a finance lease, on the reasonable assumption …

NRS 104A.2518 Cover; substitute goods. 1. After default by a lessor under a lease contract of the type described in subsection 1 of NRS 104A.2508, or, if agreed after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or l…

NRS 104A.2519 Lessee’s damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods. 1. Except as otherwise provided with respect to damages liquidated in the lease agreement (NRS 104A.2504) or otherwise determined pursuant to agreement of the …

NRS 104A.2520 Lessee’s incidental and consequential damages. 1. Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is …

NRS 104A.2521 Lessee’s right to specific performance or replevin. 1. Specific performance may be decreed if the goods are unique or in other proper circumstances. 2. A decree for specific performance may include any terms and conditions as to payment of the rent, damages or other…

NRS 104A.2522 Lessee’s right to goods on lessor’s insolvency. 1. Subject to subsection 2 and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (NRS 104A.2217) on making and keeping go…

NRS 104A.2523 Lessor’s remedies. 1. If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an inst…

NRS 104A.2524 Lessor’s right to identify goods to lease contract. 1. After default by the lessee under the lease contract of the type described in subsection 1 or paragraph (a) of subsection 3 of NRS 104A.2523 or, if agreed, after other default by the lessee, the lessor may: (a) …

NRS 104A.2525 Lessor’s right to possession of goods. 1. If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. 2. After a default by the lessee under the lease contract of the type described in subsection 1 or paragraph (a) of subsection 3 o…

NRS 104A.2526 Lessor’s stoppage of delivery in transit or otherwise. 1. A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments…

NRS 104A.2527 Lessor’s rights to dispose of goods. 1. After a default by a lessee under the lease contract of the type described in subsection 1 or paragraph (a) of subsection 3 of NRS 104A.2523 or after the lessor refuses to deliver or takes possession of goods (NRS 104A.2525 or…

NRS 104A.2528 Lessor’s damages for nonacceptance, failure to pay, repudiation or other default. 1. Except as otherwise provided with respect to damages liquidated in the lease agreement (NRS 104A.2504) or otherwise determined pursuant to agreement of the parties (NRS 104.1302 and…

NRS 104A.2529 Lessor’s action for the rent. 1. After default by the lessee under the lease contract of the type described in subsection 1 or paragraph (a) of subsection 3 of NRS 104A.2523 or, if agreed, after other default by the lessee, if the lessor complies with subsection 2, …