Senate Bill No. 49–Committee on Judiciary

 

Prefiled January 24, 2001

 

(On Behalf of Encouraging Businesses to Organize and
Conduct Business in Nevada (S.C.R. 19))

 

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Adopts Uniform Electronic Transactions Act. (BDR 59‑258)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to electronic transactions; adopting the Uniform Electronic Transactions Act; making various related changes pertaining to the use of electronic records and signatures; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1.  Title 59 of NRS is hereby amended by adding thereto a

1-2  new chapter to consist of the provisions set forth as sections 2 to 35,

1-3  inclusive, of this act.

1-4    Sec. 2.  This chapter may be cited as the Uniform Electronic

1-5  Transactions Act.

1-6    Sec. 3.  As used in this chapter, unless the context otherwise

1-7  requires, the words and terms defined in sections 4 to 19, inclusive, of

1-8  this act have the meanings ascribed to them in those sections.

1-9    Sec. 4.  “Agreement” means the bargain of the parties in fact, as

1-10  found in their language or inferred from other circumstances and from

1-11  rules, regulations and procedures given the effect of agreements under

1-12  laws otherwise applicable to a particular transaction.

1-13    Sec. 5.  “Automated transaction” means a transaction conducted or

1-14  performed, in whole or in part, by electronic means or electronic records,

1-15  in which the acts or records of one or both parties are not reviewed by a

1-16  natural person in the ordinary course in forming a contract, performing

1-17  under an existing contract or fulfilling an obligation required by the

1-18  transaction.


2-1    Sec. 6.  “Computer program” means a set of statements or

2-2  instructions to be used directly or indirectly in an information processing

2-3  system in order to bring about a certain result.

2-4    Sec. 7.  “Contract” means the total legal obligation resulting from

2-5  the parties’ agreement as affected by this chapter and other applicable

2-6  law.

2-7    Sec. 8.  “Electronic” means relating to technology having electrical,

2-8  digital, magnetic, wireless, optical, electromagnetic or similar

2-9  capabilities.

2-10    Sec. 9.  “Electronic agent” means a computer program or an

2-11  electronic or other automated means used independently to initiate an

2-12  action or respond to electronic records or performances in whole or in

2-13  part, without review or action by a natural person.

2-14    Sec. 10.  “Electronic record” means a record created, generated,

2-15  sent, communicated, received or stored by electronic means.

2-16    Sec. 11.  “Electronic signature” means an electronic sound, symbol

2-17  or process attached to or logically associated with a record and executed

2-18  or adopted by a person with the intent to sign the record.

2-19    Sec. 12.  “Governmental agency” means an executive, legislative or

2-20  judicial agency, department, board, commission, authority, institution or

2-21  instrumentality of the Federal Government or of a state or of a county,

2-22  municipality or other political subdivision of a state.

2-23    Sec. 13.  “Information” means data, text, images, sounds, codes,

2-24  computer programs, software, databases or the like.

2-25    Sec. 14.  “Information processing system” means an electronic

2-26  system for creating, generating, sending, receiving, storing, displaying or

2-27  processing information.

2-28    Sec. 15.  “Person” includes a governmental agency and a public

2-29  corporation.

2-30    Sec. 16.  “Record” means information that is inscribed on a tangible

2-31  medium or that is stored in an electronic or other medium and is

2-32  retrievable in perceivable form.

2-33    Sec. 17.  “Security procedure” means a procedure employed for the

2-34  purpose of verifying that an electronic signature, record or performance

2-35  is that of a specific person or for detecting changes or errors in the

2-36  information in an electronic record. The term includes a procedure that

2-37  requires the use of algorithms or other codes, identifying words or

2-38  numbers, encryption or callback, or other acknowledgment procedures.

2-39    Sec. 18.  “State” means a state of the United States, the District of

2-40  Columbia, Puerto Rico, the United States Virgin Islands or any territory

2-41  or insular possession subject to the jurisdiction of the United States. The

2-42  term includes an Indian tribe or band, or Alaskan native village, which is

2-43  recognized by federal law or formally acknowledged by a state.

2-44    Sec. 19.  “Transaction” means an action or set of actions occurring

2-45  between two or more persons relating to the conduct of business,

2-46  commercial or governmental affairs.

2-47    Sec. 20.  1.  Except as otherwise provided in subsection 2, the

2-48  provisions of this chapter apply to electronic records and electronic

2-49  signatures relating to a transaction.


3-1    2.  The provisions of this chapter do not apply to a transaction to the

3-2  extent it is governed by:

3-3    (a) A law governing the creation and execution of wills, codicils or

3-4  testamentary trusts;

3-5    (b) The Uniform Commercial Code other than NRS 104.1107,

3-6  104.1206 and 104.2101 to 104.2725, inclusive, and 104A.2101 to

3-7  104A.2532, inclusive; or

3-8    (c) Chapters 162 to 167, inclusive, of NRS.

3-9    3.  The provisions of this chapter apply to an electronic record or

3-10  electronic signature otherwise excluded from the application of this

3-11  chapter under subsection 2 to the extent it is governed by a law other

3-12  than those specified in subsection 2.

3-13    4.  A transaction subject to the provisions of this chapter is also

3-14  subject to other applicable substantive law.

3-15    Sec. 21.  The provisions of this chapter apply to any electronic record

3-16  or electronic signature created, generated, sent, communicated, received

3-17  or stored on or after October 1, 2001.

3-18    Sec. 22.  1.  The provisions of this chapter do not require a record

3-19  or signature to be created, generated, sent, communicated, received,

3-20  stored or otherwise processed or used by electronic means or in

3-21  electronic form.

3-22    2.  The provisions of this chapter apply only to transactions between

3-23  parties each of whom has agreed to conduct transactions by electronic

3-24  means. Whether the parties agree to conduct a transaction by electronic

3-25  means is determined from the context and surrounding circumstances,

3-26  including the parties’ conduct.

3-27    3.  A party that agrees to conduct a transaction by electronic means

3-28  may refuse to conduct other transactions by electronic means. The right

3-29  granted by this subsection may not be waived by agreement.

3-30    4.  Except as otherwise provided in this chapter, the effect of any of

3-31  the provisions of this chapter may be varied by agreement. The presence

3-32  in certain provisions of this chapter of the words “unless otherwise

3-33  agreed” or words of similar import does not imply that the effect of other

3-34  provisions may not be varied by agreement.

3-35    5.  Whether an electronic record or electronic signature has legal

3-36  consequences is determined by the provisions of this chapter and other

3-37  applicable law.

3-38    Sec. 23.  1.  A record or signature may not be denied legal effect or

3-39  enforceability solely because it is in electronic form.

3-40    2.  A contract may not be denied legal effect or enforceability solely

3-41  because an electronic record was used in its formation.

3-42    3.  If a law requires a record to be in writing, an electronic record

3-43  satisfies the law.

3-44    4.  If a law requires a signature, an electronic signature satisfies the

3-45  law.

3-46    Sec. 24.  1.  If parties have agreed to conduct a transaction by

3-47  electronic means and a law requires a person to provide, send or deliver

3-48  information in writing to another person, the requirement is satisfied if

3-49  the information is provided, sent or delivered, as the case may be, in an


4-1  electronic record capable of retention by the recipient at the time of

4-2  receipt. An electronic record is not capable of retention by the recipient if

4-3  the sender or its information processing system inhibits the ability of the

4-4  recipient to print or store the electronic record.

4-5    2.  If a law other than this chapter requires a record to be posted or

4-6  displayed in a certain manner, to be sent, communicated or transmitted

4-7  by a specified method or to contain information that is formatted in a

4-8  certain manner, the following rules apply:

4-9    (a) The record must be posted or displayed in the manner specified in

4-10  the other law.

4-11    (b) Except as otherwise provided in paragraph (b) of subsection 4, the

4-12  record must be sent, communicated or transmitted by the method

4-13  specified in the other law.

4-14    (c) The record must contain the information formatted in the manner

4-15  specified in the other law.

4-16    3.  If a sender inhibits the ability of a recipient to store or print an

4-17  electronic record, the electronic record is not enforceable against the

4-18  recipient.

4-19    4.  The requirements of this section may not be varied by agreement,

4-20  but:

4-21    (a) To the extent a law other than this chapter requires information to

4-22  be provided, sent or delivered in writing but permits that requirement to

4-23  be varied by agreement, the requirement under subsection 1 that the

4-24  information be in the form of an electronic record capable of retention

4-25  may also be varied by agreement; and

4-26    (b) A requirement under a law other than this chapter to send,

4-27  communicate or transmit a record by first-class mail, postage prepaid,

4-28  regular United States mail, may be varied by agreement to the extent

4-29  permitted by the other law.

4-30    Sec. 25.  1.  An electronic record or electronic signature is

4-31  attributable to a person if it was the act of the person. The act of the

4-32  person may be shown in any manner, including a showing of the efficacy

4-33  of any security procedure applied to determine the person to whom the

4-34  electronic record or electronic signature was attributable.

4-35    2.  The effect of an electronic record or electronic signature

4-36  attributed to a person under subsection 1 is determined from the context

4-37  and surrounding circumstances at the time of its creation, execution or

4-38  adoption, including the parties’ agreement, if any, and otherwise as

4-39  provided by law.

4-40    Sec. 26.  If a change or error in an electronic record occurs in a

4-41  transmission between parties to a transaction, the following rules apply:

4-42    1.  If the parties have agreed to use a security procedure to detect

4-43  changes or errors and one party has conformed to the procedure, but the

4-44  other party has not, and the nonconforming party would have detected

4-45  the change or error had that party also conformed, the conforming party

4-46  may avoid the effect of the changed or erroneous electronic record.

4-47    2.  In an automated transaction involving a natural person, the

4-48  natural person may avoid the effect of an electronic record that resulted

4-49  from an error made by him in dealing with the electronic agent of


5-1  another person if the electronic agent did not provide an opportunity for

5-2  the prevention or correction of the error and, at the time the natural

5-3  person learns of the error, the natural person:

5-4    (a) Promptly notifies the other person of the error and that the natural

5-5  person did not intend to be bound by the electronic record received by the

5-6  other person;

5-7    (b) Takes reasonable steps, including steps that conform to the other

5-8  person’s reasonable instructions, to return to the other person or, if

5-9  instructed by the other person, to destroy the consideration received, if

5-10  any, as a result of the erroneous electronic record; and

5-11    (c) Has not used or received any benefit or value from the

5-12  consideration, if any, received from the other person.

5-13    3.  If neither subsection 1 nor subsection 2 applies, the change or

5-14  error has the effect provided by other law, including the law of mistake

5-15  and the parties’ contract, if any.

5-16    4.  Subsections 2 and 3 may not be varied by agreement.

5-17    Sec. 27.  If a law requires a signature or record to be acknowledged,

5-18  the requirement is satisfied if the electronic signature of the person

5-19  authorized to perform those acts, together with all other information

5-20  required to be included by other applicable law, is attached to or logically

5-21  associated with the signature or record.

5-22    Sec. 28.  1.  If a law requires that a record be retained, the

5-23  requirement is satisfied by retaining an electronic record of the

5-24  information in the record which:

5-25    (a) Accurately reflects the information set forth in the record after it

5-26  was first generated in its final form as an electronic record or otherwise;

5-27  and

5-28    (b) Remains accessible for later reference.

5-29    2.  A requirement to retain a record in accordance with subsection 1

5-30  does not apply to any information the sole purpose of which is to enable

5-31  the record to be sent, communicated or received.

5-32    3.  A person may satisfy subsection 1 by using the services of another

5-33  person if the requirements of that subsection are satisfied.

5-34    4.  If a law requires a record to be presented or retained in its original

5-35  form, or provides consequences if the record is not presented or retained

5-36  in its original form, that law is satisfied by an electronic record retained

5-37  in accordance with subsection 1.

5-38    5.  If a law requires retention of a check, that requirement is satisfied

5-39  by retention of an electronic record of the information on the front and

5-40  back of the check in accordance with subsection 1.

5-41    6.  A record retained as an electronic record in accordance with

5-42  subsection 1 satisfies a law requiring a person to retain a record for

5-43  evidentiary, audit or like purposes, unless a law enacted after October 1,

5-44  2001, specifically prohibits the use of an electronic record for the

5-45  specified purpose.

5-46    7.  This section does not preclude a governmental agency of this state

5-47  from specifying additional requirements for the retention of a record

5-48  subject to the agency’s jurisdiction.


6-1    Sec. 29.  In a proceeding, evidence of a record or signature must not

6-2  be excluded solely because it is in electronic form.

6-3    Sec. 30.  In an automated transaction, the following rules apply:

6-4    1.  A contract may be formed by the interaction of electronic agents

6-5  of the parties, even if no natural person was aware of or reviewed the

6-6  electronic agents’ actions or the resulting terms and agreements.

6-7    2.  A contract may be formed by the interaction of an electronic agent

6-8  and a natural person, acting on his own behalf or for another person, as

6-9  by an interaction in which the natural person performs actions that he is

6-10  free to refuse to perform and which he knows or has reason to know will

6-11  cause the electronic agent to complete the transaction or performance.

6-12    3.  The terms of the contract are determined by the substantive law

6-13  applicable to it.

6-14    Sec. 31.  1.  Unless otherwise agreed between the sender and the

6-15  recipient, an electronic record is sent when it:

6-16    (a) Is addressed properly or otherwise directed properly to an

6-17  information processing system that the recipient has designated or uses

6-18  for the purpose of receiving electronic records or information of the type

6-19  sent and from which the recipient is able to retrieve the electronic record;

6-20    (b) Is in a form capable of being processed by that system; and

6-21    (c) Enters an information processing system outside the control of the

6-22  sender or of a person that sent the electronic record on behalf of the

6-23  sender or enters a region of the information processing system

6-24  designated or used by the recipient which is under the control of the

6-25  recipient.

6-26    2.  Unless otherwise agreed between a sender and the recipient, an

6-27  electronic record is received when:

6-28    (a) It enters an information processing system that the recipient has

6-29  designated or uses for the purpose of receiving electronic records or

6-30  information of the type sent and from which the recipient is able to

6-31  retrieve the electronic record; and

6-32    (b) It is in a form capable of being processed by that system.

6-33    3.  Subsection 2 applies even if the place the information processing

6-34  system is located is different from the place the electronic record is

6-35  deemed to be received under subsection 4.

6-36    4.  Unless otherwise expressly provided in the electronic record or

6-37  agreed between the sender and the recipient, an electronic record is

6-38  deemed to be sent from the sender’s place of business and to be received

6-39  at the recipient’s place of business. For purposes of this subsection, the

6-40  following rules apply:

6-41    (a) If the sender or recipient has more than one place of business, his

6-42  place of business is the place having the closest relationship to the

6-43  underlying transaction.

6-44    (b) If the sender or the recipient does not have a place of business, the

6-45  place of business is the sender’s or recipient’s residence, as the case may

6-46  be.

6-47    5.  An electronic record is received under subsection 2 even if no

6-48  natural person is aware of its receipt.


7-1    6.  Receipt of an electronic acknowledgment from an information

7-2  processing system described in subsection 2 establishes that a record was

7-3  received but, by itself, does not establish that the content sent

7-4  corresponds to the content received.

7-5    7.  If a person is aware that an electronic record purportedly sent

7-6  under subsection 1, or purportedly received under subsection 2, was not

7-7  actually sent or received, the legal effect of the sending or receipt is

7-8  determined by other applicable law. Except to the extent permitted by the

7-9  other law, the requirements of this subsection may not be varied by

7-10  agreement.

7-11    Sec. 32.  1.  In this section, “transferable record” means an

7-12  electronic record that:

7-13    (a) Would be a note under NRS 104.3101 to 104.3605, inclusive, or a

7-14  document under NRS 104.7101 to 104.7603, inclusive, if the electronic

7-15  record were in writing; and

7-16    (b) The issuer of the electronic record expressly has agreed is a

7-17  transferable record.

7-18    2.  A person has control of a transferable record if a system employed

7-19  for evidencing the transfer of interests in the transferable record reliably

7-20  establishes him as the person to whom the transferable record was issued

7-21  or transferred.

7-22    3.  A system satisfies subsection 2, and a person is deemed to have

7-23  control of a transferable record, if the transferable record is created,

7-24  stored and assigned in such a manner that:

7-25    (a) A single authoritative copy of the transferable record exists which

7-26  is unique, identifiable, and, except as otherwise provided in paragraphs

7-27  (d), (e) and (f), unalterable;

7-28    (b) The authoritative copy identifies the person asserting control as:

7-29      (1) The person to whom the transferable record was issued; or

7-30      (2) If the authoritative copy indicates that the transferable record

7-31  has been transferred, the person to whom the transferable record was

7-32  most recently transferred;

7-33    (c) The authoritative copy is communicated to and maintained by the

7-34  person asserting control or its designated custodian;

7-35    (d) Copies or revisions that add or change an identified assignee of

7-36  the authoritative copy can be made only with the consent of the person

7-37  asserting control;

7-38    (e) Each copy of the authoritative copy and any copy of a copy is

7-39  readily identifiable as a copy that is not the authoritative copy; and

7-40    (f) Any revision of the authoritative copy is readily identifiable as

7-41  authorized or unauthorized.

7-42    4.  Except as otherwise agreed, a person having control of a

7-43  transferable record is the holder, as defined in subsection 20 of NRS

7-44  104.1201, of the transferable record and has the same rights and

7-45  defenses as a holder of an equivalent record or writing under the

7-46  Uniform Commercial Code, including, if the applicable statutory

7-47  requirements under NRS 104.7501, 104.9308 or subsection 1 of NRS

7-48  104.3302 are satisfied, the rights and defenses of a holder to whom a

7-49  negotiable document of title has been duly negotiated, a purchaser, or a


8-1  holder in due course, respectively. Delivery, possession and endorsement

8-2  are not required to obtain or exercise any of the rights under this

8-3  subsection.

8-4    5.  Except as otherwise agreed, an obligor under a transferable

8-5  record has the same rights and defenses as an equivalent obligor under

8-6  equivalent records or writings under the Uniform Commercial Code.

8-7    6.  If requested by a person against whom enforcement is sought, the

8-8  person seeking to enforce the transferable record shall provide

8-9  reasonable proof that he is in control of the transferable record. Proof

8-10  may include access to the authoritative copy of the transferable record

8-11  and related business records sufficient to review the terms of the

8-12  transferable record and to establish the identity of the person having

8-13  control of the transferable record.

8-14    Sec. 33.  Each governmental agency of this state shall determine

8-15  whether, and the extent to which, it will create and retain electronic

8-16  records and convert written records to electronic records.

8-17    Sec. 34.  1.  Except as otherwise provided in subsection 6 of section

8-18  28 of this act, each governmental agency of this state shall determine

8-19  whether, and the extent to which, it will send and accept electronic

8-20  records and electronic signatures to and from other persons and

8-21  otherwise create, generate, communicate, store, process, use and rely

8-22  upon electronic records and electronic signatures.

8-23    2.  To the extent that a governmental agency uses electronic records

8-24  and electronic signatures under subsection 1, the governmental agency,

8-25  giving due consideration to security, may specify:

8-26    (a) The manner and format in which the electronic records must be

8-27  created, generated, sent, communicated, received and stored and the

8-28  systems established for those purposes;

8-29    (b) If electronic records must be signed by electronic means, the type

8-30  of electronic signature required, the manner and format in which the

8-31  electronic signature must be affixed to the electronic record, and the

8-32  identity of, or criteria that must be met by, any third party used by a

8-33  person filing a document to facilitate the process;

8-34    (c) Processes and procedures as appropriate to ensure adequate

8-35  preservation, disposition, integrity, security, confidentiality and

8-36  auditability of electronic records; and

8-37    (d) Any other required attributes for electronic records which are

8-38  specified for corresponding nonelectronic records or reasonably

8-39  necessary under the circumstances.

8-40    3.  Except as otherwise provided in subsection 6 of section 28 of this

8-41  act, the provisions of this chapter do not require a governmental agency

8-42  of this state to use or permit the use of electronic records or electronic

8-43  signatures.

8-44    Sec. 35.  In applying and construing this uniform act, consideration

8-45  must be given to the need to promote uniformity of the law with respect to

8-46  its subject matter among states that enact it.

8-47    Sec. 36.  Chapter 720 of NRS is hereby amended by adding thereto a

8-48  new section to read as follows:

8-49    “Record” has the meaning ascribed to it in section 16 of this act.


9-1    Sec. 37.  NRS 720.010 is hereby amended to read as follows:

9-2    720.010  As used in this chapter, unless the context otherwise requires,

9-3  the words and terms defined in NRS 720.020 to 720.130, inclusive, and

9-4  section 36 of this act, have the meanings ascribed to them in those

9-5  sections.

9-6    Sec. 38.  NRS 720.060 is hereby amended to read as follows:

9-7    720.060  “Digital signature” means [a transformation of] an electronic

9-8  signature that transforms a message by using an asymmetric

9-9  cryptosystem. As used in this section, “electronic signature” has the

9-10  meaning ascribed to it in section 11 of this act.

9-11    Sec. 39.  NRS 720.140 is hereby amended to read as follows:

9-12    720.140  1.  The provisions of this chapter apply to any transaction for

9-13  which a digital signature [may be] is used to [satisfy a requirement that a

9-14  document or record be signed or in writing as set forth in NRS 720.160,

9-15  including, without limitation, transactions carried out by private businesses

9-16  and transactions carried out by governmental entities.] sign an electronic

9-17  record.

9-18    2.  As used in this section, “electronic record” has the meaning

9-19  ascribed to it in section 10 of this act.

9-20    Sec. 40.  NRS 720.160 is hereby amended to read as follows:

9-21    720.160  1.  Except as otherwise provided in [subsection 2,] this

9-22  section, if each person [or governmental entity] who will be involved in the

9-23  submission and acceptance of a record [or other document] agrees to the

9-24  use of a digital signature, [where a statute or rule of law requires that the

9-25  record or other document be signed or in writing,] the use of a message

9-26  which:

9-27    (a) Represents the record [or other document;] ; and

9-28    (b) Is transformed by a digital signature,

9-29  [shall be deemed to satisfy the statute or rule of law with respect to the

9-30  requirement that the record or other document be signed or in writing.]

9-31  constitutes a sufficient signing of the record.

9-32    2.  The provisions of this section do not apply with respect to:

9-33    (a) [A sworn statement;

9-34    (b)] An acknowledgment;

9-35    [(c)] (b) A record [or other document] that is required to be signed in

9-36  the presence of a third party; or

9-37    [(d)] (c) A record [or other document] with respect to which the

9-38  requirement that the record [or other document] must be signed [or in

9-39  writing] is accompanied by an additional qualifying requirement.

9-40    Sec. 41.  NRS 78.010 is hereby amended to read as follows:

9-41    78.010  1.  As used in this chapter:

9-42    (a) “Approval” and “vote” as describing action by the directors or

9-43  stockholders mean the vote of directors in person or by written consent or

9-44  of stockholders in person, by proxy or by written consent.

9-45    (b) “Articles,” “articles of incorporation” and “certificate of

9-46  incorporation” are synonymous terms and unless the context otherwise

9-47  requires, include all certificates filed pursuant to NRS 78.030, 78.1955,

9-48  78.209, 78.380, 78.385 and 78.390 and any articles of merger or exchange

9-49  filed pursuant to NRS 92A.200 to 92A.240, inclusive. Unless the context


10-1  otherwise requires, these terms include restated articles and certificates of

10-2  incorporation.

10-3    (c) “Directors” and “trustees” are synonymous terms.

10-4    (d) “Receiver” includes receivers and trustees appointed by a court as

10-5  provided in this chapter or in chapter 32 of NRS.

10-6    (e) “Registered office” means the office maintained at the street address

10-7  of the resident agent.

10-8    (f) “Resident agent” means the agent appointed by the corporation upon

10-9  whom process or a notice or demand authorized by law to be served upon

10-10  the corporation may be served.

10-11  (g) “Sign” means to affix a signature to a document.

10-12  (h) “Signature” means a name, word or mark executed or adopted by a

10-13  person with the present intention to authenticate a document. The term

10-14  includes, without limitation, [a digital] an electronic signature as defined

10-15  in [NRS 720.060.] section 11 of this act.

10-16  (i) “Stockholder of record” means a person whose name appears on the

10-17  stock ledger of the corporation.

10-18  (j) “Street address” of a resident agent means the actual physical

10-19  location in this state at which a resident agent is available for service of

10-20  process.

10-21  2.  General terms and powers given in this chapter are not restricted by

10-22  the use of special terms, or by any grant of special powers contained in this

10-23  chapter.

10-24  Sec. 42.  NRS 78A.090 is hereby amended to read as follows:

10-25  78A.090  1.  A close corporation may operate without a board of

10-26  directors if the certificate of incorporation contains a statement to that

10-27  effect.

10-28  2.  An amendment to the certificate of incorporation eliminating a

10-29  board of directors must be approved:

10-30  (a) By all the shareholders of the corporation, whether or not otherwise

10-31  entitled to vote on amendments; or

10-32  (b) If no shares have been issued, by all subscribers for shares, if any, or

10-33  if none, by the incorporators.

10-34  3.  While a corporation is operating without a board of directors as

10-35  authorized by subsection 1:

10-36  (a) All corporate powers must be exercised by or under the authority of,

10-37  and the business and affairs of the corporation managed under the direction

10-38  of, the shareholders.

10-39  (b) Unless the articles of incorporation provide otherwise:

10-40     (1) Action requiring the approval of the board of directors or of both

10-41  the board of directors and the shareholders is authorized if approved by the

10-42  shareholders; and

10-43     (2) Action requiring a majority or greater percentage vote of the

10-44  board of directors is authorized if approved by the majority or greater

10-45  percentage of votes of the shareholders entitled to vote on the action.

10-46  (c) A requirement by a state or the United States that a document

10-47  delivered for filing contain a statement that specified action has been taken

10-48  by the board of directors is satisfied by a statement that the corporation is a


11-1  close corporation without a board of directors and that the action was

11-2  approved by the shareholders.

11-3    (d) The shareholders by resolution may appoint one or more

11-4  shareholders to sign documents as designated directors.

11-5    4.  An amendment to the articles of incorporation that deletes the

11-6  provision which eliminates a board of directors must be approved by the

11-7  holders of at least two-thirds of the votes of each class or series of shares of

11-8  the corporation, voting as separate voting groups, whether or not otherwise

11-9  entitled to vote on amendments. The amendment must specify the number,

11-10  names and mailing addresses of the directors of the corporation or describe

11-11  who will perform the duties of the board of directors.

11-12  5.  As used in this section, “sign” means to execute or adopt a name,

11-13  word or mark, including, without limitation, [a digital] an electronic

11-14  signature as defined in [NRS 720.060,] section 11 of this act, with the

11-15  present intention to authenticate a document.

11-16  Sec. 43.  NRS 80.003 is hereby amended to read as follows:

11-17  80.003  “Signed” means to have executed or adopted a name, word or

11-18  mark, including, without limitation, [a digital] an electronic signature as

11-19  defined in [NRS 720.060,] section 11 of this act, with the present intention

11-20  to authenticate a document.

11-21  Sec. 44.  NRS 81.0015 is hereby amended to read as follows:

11-22  81.0015  “Signed” means to have executed or adopted a name, word or

11-23  mark, including, without limitation, [a digital] an electronic signature as

11-24  defined in [NRS 720.060,] section 11 of this act, with the present intention

11-25  to authenticate a document.

11-26  Sec. 45.  NRS 82.043 is hereby amended to read as follows:

11-27  82.043  “Signature” means a name, word or mark executed or adopted

11-28  by a person with the present intention to authenticate a document. The term

11-29  includes, without limitation, [a digital] an electronic signature as defined

11-30  in [NRS 720.060.] section 11 of this act.

11-31  Sec. 46.  NRS 84.004 is hereby amended to read as follows:

11-32  84.004  “Signed” means to have executed or adopted a name, word or

11-33  mark, including, without limitation, [a digital] an electronic signature as

11-34  defined in [NRS 720.060,] section 11 of this act, with the present intention

11-35  to authenticate a document.

11-36  Sec. 47.  NRS 86.127 is hereby amended to read as follows:

11-37  86.127  “Signature” means a name, word or mark executed or adopted

11-38  by a person with the present intention to authenticate a document. The term

11-39  includes, without limitation, [a digital] an electronic signature as defined

11-40  in [NRS 720.060.] section 11 of this act.

11-41  Sec. 48.  NRS 87.020 is hereby amended to read as follows:

11-42  87.020  As used in this chapter, unless the context otherwise requires:

11-43  1.  “Bankrupt” includes bankrupt under the Federal Bankruptcy Act or

11-44  insolvent under any state insolvent act.

11-45  2.  “Business” includes every trade, occupation or profession.

11-46  3.  “Conveyance” includes every assignment, lease, mortgage or

11-47  encumbrance.

11-48  4.  “Court” includes every court and judge having jurisdiction in the

11-49  case.


12-1    5.  “Professional service” means any type of personal service which

12-2  may legally be performed only pursuant to a license or certificate of

12-3  registration.

12-4    6.  “Real property” includes land and any interest or estate in land.

12-5    7.  “Registered limited-liability partnership” means a partnership

12-6  formed pursuant to an agreement governed by this chapter for the purpose

12-7  of rendering a professional service and registered pursuant to and

12-8  complying with NRS 87.440 to 87.560, inclusive.

12-9    8.  “Signature” means a name, word or mark executed or adopted by a

12-10  person with the present intention to authenticate a document. The term

12-11  includes, without limitation, [a digital] an electronic signature as defined

12-12  in [NRS 720.060.] section 11 of this act.

12-13  9.  “Signed” means to have affixed a signature to a document.

12-14  10.  “Street address” of a resident agent means the actual physical

12-15  location in this state at which a resident agent is available for service of

12-16  process.

12-17  Sec. 49.  NRS 88.315 is hereby amended to read as follows:

12-18  88.315  As used in this chapter, unless the context otherwise requires:

12-19  1.  “Certificate of limited partnership” means the certificate referred to

12-20  in NRS 88.350, and the certificate as amended or restated.

12-21  2.  “Contribution” means any cash, property, services rendered, or a

12-22  promissory note or other binding obligation to contribute cash or property

12-23  or to perform services, which a partner contributes to a limited partnership

12-24  in his capacity as a partner.

12-25  3.  “Event of withdrawal of a general partner” means an event that

12-26  causes a person to cease to be a general partner as provided in NRS 88.450.

12-27  4.  “Foreign limited partnership” means a partnership formed under the

12-28  laws of any state other than this state and having as partners one or more

12-29  general partners and one or more limited partners.

12-30  5.  “General partner” means a person who has been admitted to a

12-31  limited partnership as a general partner in accordance with the partnership

12-32  agreement and named in the certificate of limited partnership as a general

12-33  partner.

12-34  6.  “Limited partner” means a person who has been admitted to a

12-35  limited partnership as a limited partner in accordance with the partnership

12-36  agreement.

12-37  7.  “Limited partnership” and “domestic limited partnership” mean a

12-38  partnership formed by two or more persons under the laws of this state and

12-39  having one or more general partners and one or more limited partners.

12-40  8.  “Partner” means a limited or general partner.

12-41  9.  “Partnership agreement” means any valid agreement, written or oral,

12-42  of the partners as to the affairs of a limited partnership and the conduct of

12-43  its business.

12-44  10.  “Partnership interest” means a partner’s share of the profits and

12-45  losses of a limited partnership and the right to receive distributions of

12-46  partnership assets.

12-47  11.  “Registered office” means the office maintained at the street

12-48  address of the resident agent.


13-1    12.  “Resident agent” means the agent appointed by the limited

13-2  partnership upon whom process or a notice or demand authorized by law to

13-3  be served upon the limited partnership may be served.

13-4    13.  “Sign” means to affix a signature to a document.

13-5    14.  “Signature” means a name, word or mark executed or adopted by a

13-6  person with the present intention to authenticate a document. The term

13-7  includes, without limitation, [a digital] an electronic signature as defined

13-8  in [NRS 720.060.] section 11 of this act.

13-9    15.  “State” means a state, territory or possession of the United States,

13-10  the District of Columbia or the Commonwealth of Puerto Rico.

13-11  16.  “Street address” of a resident agent means the actual physical

13-12  location in this state at which a resident is available for service of process.

13-13  Sec. 50.  NRS 88A.090 is hereby amended to read as follows:

13-14  88A.090  “Signature” means a name, word or mark executed or

13-15  adopted by a person with the present intention to authenticate a document.

13-16  The term includes, without limitation, [a digital] an electronic signature as

13-17  defined in [NRS 720.060.] section 11 of this act.

13-18  Sec. 51.  NRS 89.250 is hereby amended to read as follows:

13-19  89.250  1.  A professional association shall, on or before the last day

13-20  of the month in which the anniversary date of its organization occurs in

13-21  each year, furnish a statement to the secretary of state showing the names

13-22  and residence addresses of all members and employees in such association

13-23  and shall certify that all members and employees are licensed to render

13-24  professional service in this state.

13-25  2.  The statement must:

13-26  (a) Be made on a form prescribed by the secretary of state and must not

13-27  contain any fiscal or other information except that expressly called for by

13-28  this section.

13-29  (b) Be signed by the chief executive officer of the association.

13-30  3.  Upon filing the annual statement required by this section, the

13-31  association shall pay to the secretary of state a fee of $15.

13-32  4.  As used in this section, “signed” means to have executed or adopted

13-33  a name, word or mark, including, without limitation, [a digital] an

13-34  electronic signature as defined in [NRS 720.060,] section 11 of this act,

13-35  with the present intention to authenticate a document.

13-36  Sec. 52.  NRS 92A.230 is hereby amended to read as follows:

13-37  92A.230  1.  Articles of merger or exchange must be signed by each

13-38  domestic constituent entity as follows:

13-39  (a) By the president or a vice president of a domestic corporation,

13-40  whether or not for profit;

13-41  (b) By all the general partners of a domestic limited partnership;

13-42  (c) By a manager of a domestic limited-liability company with

13-43  managers or by all the members of a domestic limited-liability company

13-44  without managers; and

13-45  (d) By a trustee of a domestic business trust.

13-46  2.  If the domestic entity is a corporation, the articles must also be

13-47  signed by the secretary or an assistant secretary.

13-48  3.  Articles of merger or exchange must be signed by each foreign

13-49  constituent entity in the manner provided by the law governing it.


14-1    4.  As used in this section, “signed” means to have executed or adopted

14-2  a name, word or mark, including, without limitation, [a digital] an

14-3  electronic signature as defined in [NRS 720.060,] section 11 of this act,

14-4  with the present intention to authenticate a document.

14-5    Sec. 53.  NRS 720.170 is hereby repealed.

14-6    Sec. 54.  This act becomes effective on July 1, 2001.

 

 

14-7  TEXT OF REPEALED SECTION

 

 

14-8    720.170  Authorization for electronic submission of documents to

14-9   public agency.

14-10  1.  Except as otherwise provided by specific statute, a public agency

14-11   may provide that any document submitted to the public agency may be

14-12   submitted electronically if the document is transformed by a digital

14-13   signature.

14-14  2.  As used in this section, “public agency” means an agency, bureau,

14-15   board, commission, department or division of the State of Nevada or a

14-16   political subdivision thereof.

 

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