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2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 is denied in the pleadings, the burden of establishing validity is on the person claiming validity, but the signature is presumed to be authentic and authorized unless the action is to enforce the liability of the purported signer and the signer is dead or incompetent at the time of trial of the issue of validity of the signature. If an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the instrument as a party to the instrument, the plaintiff has the burden of establishing that the defendant is liable on the instrument as a represented person under subsection 1 of NRS 104.3402.
2. If the validity of signatures is admitted or proved and there is compliance with subsection 1, a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under NRS 104.3301, unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right to payment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff proves that he or she has rights of a holder in due course which are not subject to the defense or claim.
(Added to NRS by 1965, 827; A 1993, 1276)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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; or
(2) Has directly or indirectly acquired ownership of the instrument from a person who was entitled to enforce the instrument when loss of possession occurred;
(b) The loss of possession was not the result of a transfer by the person or a lawful seizure; and
(c) The person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.
2. A person seeking enforcement of an instrument under subsection 1 must prove the terms of the instrument and his or her right to enforce the instrument. If that proof is made, NRS 104.3308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.
(Added to NRS by 1993, 1244; A 2005, 1999)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 the amount of the instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the obligor may have as an endorser of the instrument.
2. Unless otherwise agreed and except as otherwise provided in subsection 1, if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken, and the following rules apply:
(a) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.
(b) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.
(c) Except as otherwise provided in paragraph (d), if the check or note is dishonored and the obligee of the obligation for which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person which is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.
(d) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee’s rights against the obligor are limited to enforcement of the instrument.
3. If an instrument other than one described in subsection 1 or 2 is taken for an obligation, the effect is:
(a) That stated in subsection 1 if the instrument is one on which a bank is liable as maker or acceptor; or
(b) That stated in subsection 2 in any other case.
(Added to NRS by 1993, 1245)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 fide dispute, and the claimant obtained payment of the instrument, subsections 2, 3 and 4 apply.
2. Unless subsection 3 applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
3. Except as otherwise provided in subsection 4, a claim is not discharged under subsection 2 if either of the following applies:
(a) The claimant, if an organization, proves that:
(1) Within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office or place; and
(2) The instrument or accompanying communication was not received by that designated person, office or place.
(b) The claimant, whether or not an organization, proves that within 90 days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with subparagraph (1) of paragraph (a).
4. A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.
(Added to NRS by 1993, 1245)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 104.3402.
(Added to NRS by 1965, 827; A 1993, 1277; 2023, 3184)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 she would be bound if the signature were on a simple contract. If the represented person is bound, the signature of the representative is the "authorized signature of the represented person" and the represented person is liable on the instrument, whether or not identified in the instrument.
2. If a representative signs his or her own name to an instrument and the signature is an authorized signature of the represented person, the following rules apply:
(a) If the form of the signature shows unambiguously that the signature is made on behalf of the represented person who is identified in the instrument, the representative is not liable on the instrument.
(b) Except as otherwise provided in subsection 3, if the form of the signature does not show unambiguously that the signature is made in a representative capacity or the represented person is not identified in the instrument, the representative is liable on the instrument to a holder in due course that took the instrument without notice that the representative was not intended to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless the representative proves that the original parties did not intend the representative to be liable on the instrument.
3. If a representative signs his or her own name as drawer of a check without indication of the representative status and the check is payable from an account of the represented person who is identified on the check, the signer is not liable on the check if the signature is an authorized signature of the represented person.
(Added to NRS by 1965, 827; A 1993, 1278)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 unauthorized signature may be ratified for all purposes of this article.
2. If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
3. The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this article which makes the unauthorized signature effective for the purposes of this article.
(Added to NRS by 1965, 827; A 1993, 1279)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 person authorized to act for the payee, an endorsement of the instrument by any person in the name of the payee is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
2. If a person whose intent determines to whom an instrument is payable (subsection 1 or 2 of NRS 104.3110) does not intend the person identified as payee to have any interest in the instrument, or the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special endorsement:
(a) Any person in possession of the instrument is its holder.
(b) An endorsement by any person in the name of the payee stated in the instrument is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
3. Under subsection 1 or 2, an endorsement is made in the name of a payee if it is made in a name substantially similar to that of the payee or the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
4. With respect to an instrument to which subsection 1 or 2 applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
(Added to NRS by 1965, 828; A 1993, 1280)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 instrument payable to the employer, a forged endorsement purporting to be that of the employer; or
(2) In the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be that of the person identified as payee.
(c) "Responsibility" with respect to instruments means authority:
(1) To sign or endorse instruments on behalf of the employer;
(2) To act upon instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition;
(3) To prepare or act upon instruments for issue in the name of the employer;
(4) To supply information determining the names or addresses of payees of instruments to be issued in the name of the employer;
(5) To control the disposition of instruments to be issued in the name of the employer; or
(6) To act otherwise with respect to instruments in a responsible capacity.
"Responsibility" does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.
2. For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent endorsement of the instrument, the endorsement is effective as the endorsement of the person to whom the instrument is payable if it is made in the name of that person. If the person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
3. Under subsection 2, an endorsement is made in the name of the person to whom an instrument is payable if:
(a) It is made in a name substantially similar to the name of that person; or
(b) The instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.
(Added to NRS by 1965, 827; A 1993, 1277)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
2. Under subsection 1, if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
3. Under subsection 1, the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection 2, the burden of proving failure to exercise ordinary care is on the person precluded.
(Added to NRS by 1965, 828; A 1993, 1280)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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. Except as otherwise provided in subsection 3, an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
3. A payor bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith, and without notice of the alteration, may enforce rights with respect to the instrument:
(a) According to its original terms; or
(b) In the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
(Added to NRS by 1965, 828; A 1993, 1281)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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, 829; A 1993, 1282)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.
2. A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue or has been dishonored.
3. If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
4. "Certified check" means a check accepted by the bank on which it is drawn. Acceptance may be made as stated in subsection 1 or by a writing on the check which indicates that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check.
(Added to NRS by 1965, 829; A 1993, 1282)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.
3. If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.
(Added to NRS by 1965, 829; A 1993, 1283)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 refuses to pay a cashier’s check or certified check, stops payment of a teller’s check, or refuses to pay a dishonored teller’s check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
3. Expenses or consequential damages under subsection 2 are not recoverable if the refusal of the obligated bank to pay occurs because:
(a) The bank suspends payments;
(b) The obligated bank asserts a claim or defense of the bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument;
(c) The obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument; or
(d) Payment is prohibited by law.
(Added to NRS by 1965, 828; A 1993, 1281)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 possession of a holder; or
(b) If the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in NRS 104.3115 and 104.3407.
2. The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under NRS 104.3415.
(Added to NRS by 1965, 829; A 1993, 1283)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 the terms of the draft, according to the terms of the draft as varied; or
(c) If the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in NRS 104.3115 and 104.3407.
The obligation is owed to a person entitled to enforce the draft or to the drawer or an endorser who paid the draft under NRS 104.3414 or 104.3415.
2. If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised, and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
(Added to NRS by 1965, 829; A 1993, 1283)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 the time it first came into possession of a holder; or
(b) If the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in NRS 104.3115 and 104.3407.
The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft under NRS 104.3415.
3. If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
4. If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an endorser under subsections 1 and 3 of NRS 104.3415.
5. If a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection 2 to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection 2 is not effective if the draft is a check.
6. If a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, the drawee suspends payments after expiration of the 30-day period without paying the check, and because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge his or her obligation to pay the check by assigning to the person entitled to enforce the check his or her rights against the drawee with respect to the funds.
(Added to NRS by 1993, 1246)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 instrument at the time it was endorsed, or if the endorser endorsed an incomplete instrument, according to its terms when completed, to the extent stated in NRS 104.3115 and 104.3407. The obligation of the endorser is owed to a person entitled to enforce the instrument or to a subsequent endorser who paid the instrument under this section.
2. If an endorsement states that it is made "without recourse" or otherwise disclaims liability of the endorser, the endorser is not liable under subsection 1 to pay the instrument.
3. If notice of dishonor of an instrument is required by NRS 104.3503 and notice of dishonor complying with that section is not given to an endorser, the liability of the endorser under subsection 1 is discharged.
4. If a draft is accepted by a bank after an endorsement is made, the liability of the endorser under subsection 1 is discharged.
5. If an endorser of a check is liable under subsection 1 and the check is not presented for payment, or given to a depositary bank for collection, within 30 days after the day the endorsement was made, the liability of the endorser under subsection 1 is discharged.
(Added to NRS by 1965, 829; A 1993, 1284)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 on the instrument are authentic and authorized;
(c) The instrument has not been altered;
(d) The instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;
(e) The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and
(f) With respect to a remotely-created item, that the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.
2. A person to whom the warranties under subsection 1 are made and who took the instrument in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
3. The warranties stated in subsection 1 cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under subsection 2 is discharged to the extent of any loss caused by the delay in giving notice of the claim.
4. A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
5. No claim for breach of warranty in paragraph (f) of subsection 1 is available against a person to which an item was transferred to the extent that under applicable law, including the applicable choice-of-law principles, the person that transferred the item did not make the warranty in paragraph (f) of subsection 1.
(Added to NRS by 1965, 830; A 1993, 1287; 2005, 2000)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 of the drawer of the draft was authorized, the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by his or her failure to exercise ordinary care in paying or accepting the draft.
2. Except as otherwise provided in subsection 3, if an instrument has been paid or accepted by mistake and the case is not covered by subsection 1, the person paying or accepting may, to the extent permitted by the law governing mistake and restitution:
(a) Recover the payment from the person to whom or for whose benefit payment was made; or
(b) In the case of acceptance, may revoke the acceptance.
3. The remedies provided by subsection 1 or 2 may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by NRS 104.3417 or 104.4407.
4. If an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection 1 or 2, the instrument is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.
(Added to NRS by 1965, 831; A 1993, 1288)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by the issuer or acceptor of the instrument or a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.
2. In an action under subsection 1, the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff’s interest in the instrument.
3. A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.
(Added to NRS by 1965, 831; A 1993, 1289)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 the bank; or
(b) To accept a draft made to the drawee.
2. The following rules are subject to article 4, agreement of the parties, and clearinghouse rules and the like:
(a) Presentment:
(1) May be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States;
(2) May be made by any commercially reasonable means, including an oral, written or electronic communication;
(3) Is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and
(4) Is effective if made to any one of two or more makers, acceptors, drawees or other payors.
(b) Upon demand of the person to whom presentment is made, the person making presentment must:
(1) Exhibit the instrument;
(2) Give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so; and
(3) Sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.
(c) Without dishonoring the instrument, the party to whom presentment is made may:
(1) Return the instrument for lack of a necessary endorsement; or
(2) Refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties or other applicable law or rule.
(d) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party has established a cutoff hour not earlier than 2 p.m. for the receipt and action upon instruments presented for payment or acceptance and presentment is made after the cutoff hour.
(Added to NRS by 1965, 833; A 1993, 1290)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 complying with this section; or
(b) Notice of dishonor is excused under subsection 2 of NRS 104.3504.
2. Notice of dishonor:
(a) May be given by any person;
(b) May be given by any commercially reasonable means, including an oral, written or electronic communication; and
(c) Is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted.
Return of an instrument given to a bank for collection is sufficient notice of dishonor.
3. Subject to subsection 3 of NRS 104.3504, with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given by the bank before midnight of the next banking day following the banking day on which it receives notice of dishonor of the instrument, or by any other person within 30 days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within 30 days following the day on which dishonor occurs.
(Added to NRS by 1965, 835; A 1993, 1292)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 obligation to pay the instrument or is dead or in insolvency proceedings;
(c) By the terms of the instrument presentment is not necessary to enforce the obligation of endorsers or the drawer;
(d) The drawer or endorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted; or
(e) The drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.
2. Notice of dishonor is excused if by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
3. Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.
(Added to NRS by 1965, 836; A 1993, 1294)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 the drawee, payor bank or presenting bank on the instrument or accompanying it stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor.
(c) A book or record of the drawee, payor bank, or collecting bank kept in the usual course of business which shows dishonor, even though there is no evidence of who made the entry.
2. A protest is a certificate of dishonor made by a United States consul or vice consul, or a notarial officer or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to him or her. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.
(Added to NRS by 1965, 835; A 1993, 1293)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
(Added to NRS by 1965, 836; A 1993, 1295)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 made by or on behalf of a party obliged to pay the note to a person who formerly was entitled to enforce the note only if at the time of the payment the party obliged to pay has not received adequate notification that the note has been transferred and that payment is to be made to the transferee. A notification is adequate only if it:
(a) Is signed by the transferor or the transferee;
(b) Reasonably identifies the transferred note; and
(c) Provides an address at which payments subsequently are to be made.
Upon request, a transferee shall seasonably furnish reasonable proof that the note has been transferred. Unless the transferee complies with the request, a payment to the person that formerly was entitled to enforce the note is effective for purposes of subsection 3 even if the party obliged to pay the note has received a notification under this subsection.
3. Subject to subsection 5, to the extent of a payment under subsections 1 and 2, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under NRS 104.3306 by another person.
4. Subject to subsection 5, a transferee, or any party that has acquired rights in the instrument directly or indirectly from a transferee, including any such party that has rights as a holder in due course, is deemed to have notice of any payment that is made under subsection 2 after the date that the note is transferred to the transferee but before the party obliged to pay the note receives adequate notification of the transfer.
5. The obligation of a party to pay the instrument is not discharged under subsections 1 to 4, inclusive, if:
(a) A claim to the instrument under NRS 104.3306 is enforceable against the party receiving payment and:
(1) Payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction; or
(2) In the case of an instrument other than a cashier’s check, teller’s check or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or
(b) The person making payment knows that the instrument is a stolen instrument and pays a person he or she knows is in wrongful possession of the instrument.
6. As used in this section, "signed," with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process with the present intent to adopt or accept the record.
(Added to NRS by 1965, 837; A 1993, 1297; 2005, 2003)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
3. If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
(Added to NRS by 1965, 837; A 1993, 1297)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 party, destruction, mutilation or cancellation of the instrument, cancellation or striking out of the party’s signature, or the addition of words to the instrument indicating discharge; or
(b) By agreeing not to sue or otherwise renouncing rights against the party by a signed record.
The obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.
2. Cancellation or striking out of an endorsement pursuant to subsection 1 does not affect the status and rights of a party derived from the endorsement.
(Added to NRS by 1965, 837; A 1993, 1298; 2005, 2004; 2023, 3184)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 nonaction with respect to an item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.
(Added to NRS by 1965, 840; A 1993, 1298)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank’s responsibility is to be measured if those standards are not manifestly unreasonable.
2. Federal Reserve regulations and operating circulars, clearinghouse rules, and the like have the effect of agreements under subsection 1, whether or not specifically assented to by all parties interested in items handled.
3. Action or nonaction approved by this article or pursuant to Federal Reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this article, is prima facie the exercise of ordinary care.
4. The specification or approval of certain procedures by this article is not disapproval of other procedures that may be reasonable under the circumstances.
5. The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith, it includes other damages the party suffered as a proximate consequence.
(Added to NRS by 1965, 840; A 1993, 1299)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 counter.
2. "Payor bank" means a bank that is the drawee of a draft.
3. "Intermediary bank" means any bank to which an item is transferred in course of collection except the depositary or payor bank.
4. "Collecting bank" means any bank handling the item for collection except the payor bank.
5. "Presenting bank" means any bank presenting an item except a payor bank.
(Added to NRS by 1965, 842; A 1993, 1301)
2023 Nevada Revised Statutes › Chapter 104 - Uniform Commercial Code—Original Articles › 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 payment only by or through the bank.
2. If an item states that it is "payable at" a bank identified in the item, the item is equivalent to a draft drawn on the bank.
(Added to NRS by 1993, 1248)