[Rev. 2/8/2019 9:22:42 AM]
κ2005 Statutes of Nevada, Page 805 (CHAPTER 225, SB 276)κ
Board shall deposit the money in banks, credit unions or savings and loan associations in the State of Nevada.
2. Except as otherwise provided in subsection 5, all money received by the Board pursuant to this chapter must be used to:
(a) Pay the per diem and travel expenses of the members of the Board.
(b) Pay the salaries and per diem and travel expenses of the employees of the Board.
(c) Administer the provisions of this chapter.
3. Any money which remains at the end of the fiscal year must be retained by the Board for future disbursement for the purposes enumerated in subsection 2.
4. [The] In a manner consistent with the provisions of sections 2 to 41, inclusive, of this act, the Board may delegate to a hearing officer or panel its authority to take any disciplinary action pursuant to this chapter, impose and collect fines and penalties therefor and deposit the money therefrom in banks, credit unions or savings and loan associations in this State.
5. If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 4 and the Board deposits the money collected from the imposition of fines with the State Treasurer for credit to the State General Fund, it may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is needed to pay attorneys fees or the costs of an investigation, or both.
Sec. 233. NRS 654.190 is hereby amended to read as follows:
654.190 1. The Board may, after notice and a hearing [,] as required by law, impose an administrative fine of not more than $2,500 on and suspend or revoke the license of any nursing facility administrator or administrator of a residential facility for groups who:
(a) Is convicted of a felony relating to the practice of administering a nursing facility or residential facility or of any offense involving moral turpitude.
(b) Has obtained his license by the use of fraud or deceit.
(c) Violates any of the provisions of this chapter.
(d) Aids or abets any person in the violation of any of the provisions of NRS 449.001 to 449.240, inclusive, as those provisions pertain to a facility for skilled nursing, facility for intermediate care or residential facility for groups.
(e) Violates any regulation of the Board prescribing additional standards of conduct for nursing facility administrators or administrators of residential facilities for groups.
2. The Board shall give a licensee against whom proceedings are brought pursuant to this section written notice of a hearing not less than 10 days before the date of the hearing.
3. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
Sec. 234. NRS 654.195 is hereby amended to read as follows:
654.195 1. Except as otherwise provided in subsection 2, the Board may reinstate the license of an administrator of a residential facility for groups that has been suspended by the Board if a majority of the members of the Board vote in favor of the reinstatement.
2. The Board may reinstate a license of an administrator of a residential facility for groups that has been suspended pursuant to NRS 425.540 only if the holder of the license complies with the requirements for reinstatement set forth in NRS 654.193.
κ2005 Statutes of Nevada, Page 806 (CHAPTER 225, SB 276)κ
the holder of the license complies with the requirements for reinstatement set forth in NRS 654.193.
3. [The] In a manner consistent with the provisions of sections 2 to 41, inclusive, of this act, the Board may reinstate the license of an administrator of a residential facility for groups that has been revoked by the Board if all of the members of the Board vote in favor of reinstatement.
Sec. 235. NRS 654.195 is hereby amended to read as follows:
654.195 1. The Board may reinstate the license of an administrator of a residential facility for groups that has been suspended by the Board if a majority of the members of the Board vote in favor of the reinstatement.
2. [The] In a manner consistent with the provisions of sections 2 to 41, inclusive, of this act, the Board may reinstate the license of an administrator of a residential facility for groups that has been revoked by the Board if all of the members of the Board vote in favor of reinstatement.
Sec. 236. NRS 656.105 is hereby amended to read as follows:
656.105 1. Except as otherwise provided in this section, a complaint filed with the Board, all documents and other information filed with the complaint and all documents and other information compiled as a result of an investigation conducted to determine whether to initiate disciplinary action against a person are confidential [.] , unless the person submits a written statement to the Board requesting that such documents and information be made public records.
2. The [complaint or other document filed by] charging documents filed with the Board to initiate disciplinary action pursuant to sections 2 to 41, inclusive, of this act and all documents and information considered by the Board when determining whether to impose discipline are public records.
3. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
4. The provisions of this section do not prohibit the Board from communicating or cooperating with or providing any documents or other information to any other licensing board or any other agency that is investigating a person, including, without limitation, a law enforcement agency.
Sec. 237. (Deleted by amendment.)
Sec. 238. NRS 656.253 is hereby amended to read as follows:
656.253 The Board may refuse to issue or renew or may suspend or revoke a license if, after notice and a hearing [,] as required by law, the Board determines that the licensee has committed any of the acts set forth in NRS 656.240 or 656.250.
Sec. 238.5. NRS 656.280 is hereby amended to read as follows:
656.280 1. The Board may upon its own motion and shall upon the verified complaint in writing of any person setting forth facts which if proven would constitute grounds for refusal, suspension or revocation as set forth in NRS 656.240 to 656.270, inclusive, investigate the actions of any person who applies for, or holds or represents that he holds a license or certificate. [Such a person is in this section and in NRS 656.290 called the accused.]
2. The Board shall, before refusing to issue [, suspending or revoking] any license or certificate, notify the [accused] applicant in writing of [any charges made.] the reasons for the refusal. The notice must be served by delivery personally to the [accused,] applicant or by mailing by registered or certified mail to the last known place of business of the [accused.] applicant.
κ2005 Statutes of Nevada, Page 807 (CHAPTER 225, SB 276)κ
3. The time set in the notice must not be less than 10 nor more than 30 days after delivery or mailing.
4. The Board may continue the hearing from time to time.
Sec. 239. NRS 656.290 is hereby amended to read as follows:
656.290 1. The Board may subpoena and bring before it any person in this State and take testimony orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed in civil cases in courts of this State.
2. Any district court, upon the application of the accused or complainant or of the Board may, by order, require the attendance of witnesses and the production of relevant books and papers before the Board in any hearing relative to the application for or refusal, recall, suspension or revocation of a license or certificate, and the court may compel obedience to its order by proceedings for contempt.
3. [The Board shall provide a court reporter to transcribe the testimony and preserve a record of all proceedings at the hearing of any case wherein a license or certificate is revoked or suspended. The notice of hearing, complaint and all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony, the report of the Board and its orders constitute the record of the proceedings. The Board shall furnish a transcript of the record to any person interested in the hearing upon payment therefor of the statutory fees for transcription as provided in NRS 3.370.
4.] At any time after the suspension [or revocation] of any license or certificate, the Board may restore it to the accused without examination upon unanimous vote by the Board.
4. In a manner consistent with the provisions of sections 2 to 41, inclusive, of this act, after the revocation of any license or certificate, the Board may reinstate the license or certificate without examination upon unanimous vote by the Board.
Sec. 240. NRS 623.280, 623A.310, 623A.320, 623A.330, 623A.3535, 633.611, 637.087, 637.165, 637A.295, 637B.285, 638.088, 638.146, 638.1476, 638.1479, 640.165, 640.166, 640.167, 641.255, 641.275, 641.2755, 641.280, 641.300, 641.310, 641B.420, 641B.440, 641C.750, 644.445, 648.034, 648.178 and 654.115 are hereby repealed.
Sec. 241. (Deleted by amendment.)
Sec. 242. The provisions of this act do not apply to any disciplinary proceeding commenced before October 1, 2005.
Sec. 243. 1. This section and sections 1 to 203, inclusive, 205 to 234, inclusive, and 236 to 242, inclusive, of this act become effective on October 1, 2005.
2. Sections 203 and 234 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
κ2005 Statutes of Nevada, Page 808 (CHAPTER 225, SB 276)κ
3. Sections 204 and 235 of this act become effective on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
________
Senate Bill No. 381Committee on Transportation and Homeland Security
CHAPTER 226
AN ACT relating to structures; authorizing the Administrator of the Manufactured Housing Division of the Department of Business and Industry to establish a system for the issuance and renewal of permits for certain activities relating to manufactured homes, mobile homes or commercial coaches; requiring that a city or county building department have the written approval of the Division before enforcing regulations and making inspections regarding the installation and tie down of certain structures; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 489 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The Administrator may adopt regulations establishing a system for the issuance and renewal of permits for the installation, design, approval or modification of manufactured homes, mobile homes or commercial coaches.
2. The regulations may include, without limitation:
(a) The requirements and procedures for applying for and renewing a permit;
(b) The criteria for determining whether to issue or renew a permit;
(c) The grounds for revocation and the requirements for reinstatement of a permit; and
(d) The procedures for the enforcement of a system for issuing and renewing permits.
Sec. 2. NRS 489.287 is hereby amended to read as follows:
489.287 1. Except as otherwise provided in subsection 2, a city or county building department [shall] may, with the written approval of the Division, enforce all regulations adopted pursuant to this chapter and make all inspections within its jurisdiction required by those regulations regarding the installation and tie down of manufactured homes, mobile homes or commercial coaches. Those inspections must be conducted in compliance with the provisions of this chapter and the regulations adopted pursuant to this chapter.
κ2005 Statutes of Nevada, Page 809 (CHAPTER 226, SB 381)κ
with the provisions of this chapter and the regulations adopted pursuant to this chapter.
2. If a city or county building department fails to enforce the regulations adopted pursuant to this chapter or make the inspections required by subsection 1, the Division shall enforce those regulations and make the inspections in that jurisdiction, and may, at no cost to the local governing body, engage an independent contractor to perform any inspection.
Sec. 3. NRS 489.311 is hereby amended to read as follows:
489.311 1. Except as otherwise provided by NRS 489.331, no person may engage in the business of a dealer, manufacturer, rebuilder, serviceman or installer in this State, or be entitled to any other license or permit required by this chapter, until he has applied for and has been issued a license by the Division.
2. For the purposes of this section, a person engages in the business of a dealer, manufacturer, rebuilder, serviceman or installer in this State if he, without limitation, submits a bid to perform any activity requiring a license pursuant to this section.
Sec. 4. This act becomes effective upon passage and approval for the purpose of adopting regulations and on July 1, 2005, for all other purposes.
________
Senate Bill No. 354Senator Schneider
CHAPTER 227
AN ACT relating to sanitation; revising the provisions governing the fees and charges levied by a municipality which has an approved plan for the management of solid waste; providing that any such unpaid fee or charge constitutes a lien against the property served; providing for the foreclosure of such a lien; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 444.520 is hereby amended to read as follows:
444.520 1. The governing body of any municipality which has an approved plan for the management of solid waste may, by ordinance, provide for the levy and collection of other or additional fees and charges and require such licenses as may be appropriate and necessary to meet the requirements of NRS 444.460 to 444.610, inclusive.
2. The fees authorized by this section are not subject to the limit on the maximum allowable revenue from fees established pursuant to NRS 354.5989.
3. Until paid, any fee or charge levied pursuant to subsection 1 constitutes a perpetual lien against the property served, superior to all liens, claims and titles other than liens for general taxes and special assessments. The lien is not extinguished by the sale of any property on account of nonpayment of any other lien, claim or title, except liens for general taxes and special assessments.
κ2005 Statutes of Nevada, Page 810 (CHAPTER 227, SB 354)κ
general taxes and special assessments. The lien may be foreclosed in the same manner as provided for the foreclosure of mechanics liens.
4. A lien against the property served is not effective until a notice of the lien, separately prepared for each lot affected, is:
(a) Mailed to the last known owner at his last known address according to the records of the county in which the property is located;
(b) Delivered to the office of the county recorder of the county in which the property is located;
(c) Recorded by the county recorder in a book kept by him for the purpose of recording instruments encumbering land; and
(d) Indexed in the real estate index as deeds and other conveyances are required by law to be indexed.
________
Senate Bill No. 225Senator Carlton
CHAPTER 228
AN ACT relating to industrial insurance; setting forth the primary obligation of a vocational rehabilitation counselor; prohibiting a vocational rehabilitation counselor from providing services to an injured employee if the employer of the vocational rehabilitation counselor administers the case of the injured employee; requiring a provider of vocational rehabilitation services to employ certain vocational rehabilitation counselors; requiring a vocational rehabilitation counselor to prepare a written assessment not more than 30 days after it is requested by an insurer or injured employee under certain circumstances; requiring each written assessment of an injured employee to be signed by a certified vocational rehabilitation counselor; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 616C of NRS is hereby amended by adding thereto a new section to read as follows:
1. The primary obligation of a vocational rehabilitation counselor is to the injured employee.
2. A vocational rehabilitation counselor shall not provide services as a vocational rehabilitation counselor, including, without limitation, completing a written assessment pursuant to NRS 616C.550, if the employer of the vocational rehabilitation counselor administers the case of the injured employee.
Sec. 2. NRS 616C.540 is hereby amended to read as follows:
616C.540 An insurer, or a private person or public agency providing vocational rehabilitation services to an insurer, shall:
1. Ensure that the work of a vocational rehabilitation counselor who is not certified is supervised and reviewed by a certified vocational rehabilitation counselor.
κ2005 Statutes of Nevada, Page 811 (CHAPTER 228, SB 225)κ
2. [Ensure that the caseload for a vocational rehabilitation counselor who conducts full vocational assessments does not exceed 35 active claims.
3.] Employ at least one certified vocational rehabilitation counselor for every four vocational rehabilitation counselors that it employs who are not certified.
3. Employ vocational rehabilitation counselors who have knowledge of the labor market within the geographical area where the injured employee resides.
Sec. 3. NRS 616C.550 is hereby amended to read as follows:
616C.550 1. [Except as otherwise provided in this section, if] If benefits for a temporary total disability will be paid to an injured employee for more than 90 days, the insurer or the injured employee may request a vocational rehabilitation counselor [shall, within 30 days after being assigned to the claim, make] to prepare a written assessment of the injured employees ability or potential to return to:
(a) The position he held at the time that he was injured; or
(b) Any other gainful employment.
2. Before completing the written assessment, the counselor shall:
(a) Contact the injured employee and:
(1) Identify the injured employees educational background, work experience and career interests; and
(2) Determine whether the injured employee has any existing marketable skills.
(b) Contact the injured employees treating physician or chiropractor and determine:
(1) Whether the employee has any temporary or permanent physical limitations;
(2) The estimated duration of the limitations;
(3) Whether there is a plan for continued medical treatment; and
(4) When the employee may return to the position that he held at the time of his injury or to any other position. The treating physician or chiropractor shall determine whether an employee may return to the position that he held at the time of his injury.
3. Except as otherwise provided in section 1 of this act, a vocational rehabilitation counselor shall prepare a written assessment not more than 30 days after receiving a request for a written assessment pursuant to subsection 1. The written assessment must contain a determination as to whether the employee is eligible for vocational rehabilitation services pursuant to NRS 616C.590. If the insurer, with the assistance of the counselor, determines that the employee is eligible for vocational rehabilitation services, a plan for a program of vocational rehabilitation must be completed pursuant to NRS 616C.555.
4. The Division may, by regulation, require a written assessment to include additional information.
5. If an insurer determines that [the] a written assessment [required by this section] requested pursuant to subsection 1 is impractical because of the expected duration of the injured employees total temporary disability, the insurer shall:
(a) Complete a written report which specifies his reasons for the decision; and
(b) Review the claim at least once every 60 days.
κ2005 Statutes of Nevada, Page 812 (CHAPTER 228, SB 225)κ
6. The insurer shall deliver a copy of the written assessment or the report completed pursuant to subsection 5 to the injured employee, his employer, the treating physician or chiropractor and the injured employees attorney or representative, if applicable.
7. For the purposes of this section, existing marketable skills include, but are not limited to:
(a) Completion of:
(1) A program at a trade school;
(2) A program which resulted in an associates degree; or
(3) A course of study for certification,
Κ if the program or course of study provided the skills and training necessary for the injured employee to be gainfully employed on a reasonably continuous basis in an occupation that is reasonably available in this State.
(b) Completion of a 2-year or 4-year program at a college or university which resulted in a degree.
(c) Completion of any portion of a program for a graduates degree at a college or university.
(d) Skills acquired in previous employment, including those acquired during an apprenticeship or a program for on-the-job training.
Κ The skills set forth in paragraphs (a) to (d), inclusive, must have been acquired within the preceding 7 years and be compatible with the physical limitations of the injured employee to be considered existing marketable skills.
8. Each written assessment of an injured employee must be signed by a certified vocational rehabilitation counselor.
Sec. 4. This act becomes effective on July 1, 2005.
________
Assembly Bill No. 83Assemblymen McCleary, Manendo and Munford
CHAPTER 229
AN ACT relating to public works; revising the requirements relating to the payment of overtime to certain mechanics and workmen employed on public works; revising the manner in which a contractor or subcontractor engaged on a public work may discharge his obligation to pay wages to workmen; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 338.020 is hereby amended to read as follows:
338.020 1. Every contract to which a public body of this State is a party, requiring the employment of skilled mechanics, skilled workmen, semiskilled mechanics, semiskilled workmen or unskilled labor in the performance of public work, must contain in express terms the hourly and daily rate of wages to be paid each of the classes of mechanics and workmen. The hourly and daily rate of wages must:
κ2005 Statutes of Nevada, Page 813 (CHAPTER 229, AB 83)κ
(a) Not be less than the rate of such wages then prevailing in the county in which the public work is located, which prevailing rate of wages must have been determined in the manner provided in NRS 338.030; and
(b) Be posted on the site of the public work in a place generally visible to the workmen.
2. When public work is performed by day labor, the prevailing wage for each class of mechanics and workmen so employed applies and must be stated clearly to such mechanics and workmen when employed.
3. Except as otherwise provided in subsection 4, a contractor or subcontractor shall pay to a mechanic or workman employed by the contractor or subcontractor on the public work not less than one and one-half times the prevailing rate of wages applicable to the class of the mechanic or workman [whenever] for each hour the mechanic or workman works [:
(a) More than 40] on the public work in excess of:
(a) Forty hours in any scheduled week of work [;] by the mechanic or workman for the contractor or subcontractor, including, without limitation, hours worked for the contractor or subcontractor on work other than the public work; or
(b) [More than 8] Eight hours in any workday that the mechanic or workman was employed by the contractor or subcontractor, including, without limitation, hours worked for the contractor or subcontractor on work other than the public work, unless by mutual agreement the mechanic or workman works a scheduled 10 hours per day for 4 calendar days within any scheduled week of work.
4. The provisions of subsection 3 do not apply to a mechanic or workman who is covered by a collective bargaining agreement that provides for the payment of wages at not less than one and one-half times the rate of wages set forth in the collective bargaining agreement for work in excess of:
(a) Forty hours in any scheduled week of work; or
(b) Eight hours in any workday unless the collective bargaining agreement provides that the mechanic or workman shall work a scheduled 10 hours per day for 4 calendar days within any scheduled week of work.
5. The prevailing wage and any wages paid for overtime pursuant to subsection 3 or 4 to each class of mechanics or workmen must be in accordance with the jurisdictional classes recognized in the locality where the work is performed.
6. Nothing in this section prevents an employer who is signatory to a collective bargaining agreement from assigning such work in accordance with established practice.
Sec. 2. NRS 338.035 is hereby amended to read as follows:
338.035 The obligation of a contractor engaged on a public work or a subcontractor engaged on a public work to pay wages in accordance with the determination of the Labor Commissioner may be discharged [by the making of payments in cash, or] in part by making contributions to a third person pursuant to a fund, plan or program in the name of the workman.
Sec. 3. This act becomes effective on July 1, 2005.
________
κ2005 Statutes of Nevada, Page 814κ
Senate Bill No. 353Committee on Judiciary
CHAPTER 230
AN ACT relating to guardianships; requiring certain guardians to meet certain qualifications; requiring that a guardianship petition include proof of such qualifications under certain circumstances; expanding the list of guardians who may be appointed by the court for a minor under certain circumstances; providing the circumstances under which certain guardians may not receive compensation or expenses for certain services; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 159 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. Private professional guardian means a person who receives compensation for services as a guardian to three or more wards who are not related to the person by blood or marriage. The term does not include:
1. A governmental agency.
2. A public guardian appointed or designated pursuant to the provisions of chapter 253 of NRS.
3. A banking corporation, as defined in NRS 657.016, or an organization permitted to act as fiduciary pursuant to NRS 662.245 if it is appointed as guardian of an estate only.
4. A trust company, as defined in NRS 669.070.
5. A court-appointed attorney licensed to practice law in this State.
Sec. 3. 1. A private professional guardian, if a person, must be qualified to serve as a guardian pursuant to NRS 159.059 and must be a registered guardian or master guardian unless a hearing is held and the court finds that good cause exists to waive the requirement that the private professional guardian be a registered guardian or master guardian.
2. A private professional guardian, if an entity, must be qualified to serve as a guardian pursuant to NRS 159.059 and must have a registered guardian or master guardian involved in the day-to-day operation or management of the entity unless a hearing is held and the court finds that good cause exists to waive the requirement that the private professional guardian have a registered guardian or master guardian involved in the day-to-day operation or management of the entity.
3. As used in this section:
(a) Entity includes, without limitation, a corporation, whether or not for profit, a limited-liability company and a partnership.
(b) Master guardian means a person who is certified by the National Guardianship Foundation or any successor organization as a master guardian.
(c) Person means a natural person.
κ2005 Statutes of Nevada, Page 815 (CHAPTER 230, SB 353)κ
(d) Registered guardian means a person who is certified by the National Guardianship Foundation or any successor organization as a registered guardian.
Sec. 4. NRS 159.013 is hereby amended to read as follows:
159.013 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 159.014 to 159.027, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.
Sec. 5. NRS 159.044 is hereby amended to read as follows:
159.044 1. Except as otherwise provided in NRS 127.045, a proposed ward, a governmental agency, a nonprofit corporation or any interested person may petition the court for the appointment of a guardian.
2. To the extent the petitioner knows or reasonably may ascertain or obtain, the petition must include, without limitation:
(a) The name and address of the petitioner.
(b) The name, date of birth and current address of the proposed ward.
(c) A copy of one of the following forms of identification of the proposed ward which must be placed in the records relating to the guardianship proceeding and, except as otherwise required to carry out a specific statute, maintained in a confidential manner:
(1) A social security number;
(2) A taxpayer identification number;
(3) A valid drivers license number;
(4) A valid identification card number; or
(5) A valid passport number.
Κ If the information required pursuant to this paragraph is not included with the petition, the information must be provided to the court not later than 60 days after the appointment of a guardian or as otherwise ordered by the court.
(d) If the proposed ward is a minor, the date on which he will attain the age of majority and:
(1) Whether there is a current order concerning custody and, if so, the state in which the order was issued; and
(2) Whether the petitioner anticipates that the proposed ward will need guardianship after attaining the age of majority.
(e) Whether the proposed ward is a resident or nonresident of this State.
(f) The names and addresses of the spouse of the proposed ward and the relatives of the proposed ward who are within the second degree of consanguinity.
(g) The name, date of birth and current address of the proposed guardian. If the proposed guardian is a private professional guardian, the petition must include proof that the guardian meets the requirements of section 3 of this act. If the proposed guardian is not a private professional guardian, the petition must include a statement that the guardian currently is not receiving compensation for services as a guardian to more than one ward who is not related to the person by blood or marriage.
(h) A copy of one of the following forms of identification of the proposed guardian which must be placed in the records relating to the guardianship proceeding and, except as otherwise required to carry out a specific statute, maintained in a confidential manner:
(1) A social security number;
(2) A taxpayer identification number;
(3) A valid drivers license number;
κ2005 Statutes of Nevada, Page 816 (CHAPTER 230, SB 353)κ
(4) A valid identification card number; or
(5) A valid passport number.
(i) Whether the proposed guardian has ever been convicted of a felony and, if so, information concerning the crime for which he was convicted and whether the proposed guardian was placed on probation or parole.
(j) A summary of the reasons why a guardian is needed and recent documentation demonstrating the need for a guardianship. The documentation may include, without limitation:
(1) A certificate signed by a physician who is licensed to practice medicine in this State stating the need for a guardian;
(2) A letter signed by any governmental agency in this State which conducts investigations stating the need for a guardian; or
(3) A certificate signed by any other person whom the court finds qualified to execute a certificate stating the need for a guardian.
(k) Whether the appointment of a general or a special guardian is sought.
(l) A general description and the probable value of the property of the proposed ward and any income to which the proposed ward is or will be entitled, if the petition is for the appointment of a guardian of the estate or a special guardian. If any money is paid or is payable to the proposed ward by the United States through the Department of Veterans Affairs, the petition must so state.
(m) The name and address of any person or care provider having the care, custody or control of the proposed ward.
(n) The relationship, if any, of the petitioner to the proposed ward and the interest, if any, of the petitioner in the appointment.
(o) Requests for any of the specific powers set forth in NRS 159.117 to 159.175, inclusive, necessary to enable the guardian to carry out the duties of the guardianship.
(p) Whether the guardianship is sought as the result of an investigation of a report of abuse or neglect that is conducted pursuant to chapter 432B of NRS by an agency which provides child welfare services. As used in this paragraph, agency which provides child welfare services has the meaning ascribed to it in NRS 432B.030.
(q) Whether the proposed ward is a party to any pending criminal or civil litigation.
(r) Whether the guardianship is sought for the purpose of initiating litigation.
(s) Whether the proposed ward has executed a durable power of attorney for health care, a durable power of attorney for financial matters or a written nomination of guardian and, if so, who the named agents are for each document.
Sec. 6. NRS 159.059 is hereby amended to read as follows:
159.059 [Any] Except as otherwise provided in section 3 of this act, any qualified person or entity that the court finds suitable may serve as a guardian. A person is not qualified to serve as a guardian who:
1. Is an incompetent.
2. Is a minor.
3. Has been convicted of a felony relating to the position of a guardian, unless the court finds that it is in the best interests of the ward to appoint the convicted felon as the guardian of the ward.
4. Has been suspended for misconduct or disbarred from:
(a) The practice of law;
κ2005 Statutes of Nevada, Page 817 (CHAPTER 230, SB 353)κ
(b) The practice of accounting; or
(c) Any other profession which:
(1) Involves or may involve the management or sale of money, investments, securities or real property; and
(2) Requires licensure in this State or any other state,
Κ during the period of the suspension or disbarment.
5. Is a nonresident of this State and:
(a) Is not a foreign guardian of a nonresident proposed ward pursuant to subsection 2 of NRS 159.049;
(b) Has not associated as a coguardian, a resident of this State or a banking corporation whose principal place of business is in this State; and
(c) Is not a petitioner in the guardianship proceeding.
6. Has been judicially determined, by clear and convincing evidence, to have committed abuse, neglect or exploitation of a child, spouse, parent or other adult, unless the court finds that it is in the best interests of the ward to appoint the person as the guardian of the ward.
Sec. 7. NRS 159.061 is hereby amended to read as follows:
159.061 1. The parents of a minor, or either parent, if qualified and suitable, are preferred over all others for appointment as guardian for the minor. The appointment of a parent as a guardian of the person must not conflict with a valid order for custody of the minor. In determining whether the parents of a minor, or either parent, is qualified and suitable, the court shall consider, without limitation:
(a) Which parent has physical custody of the minor;
(b) The ability of the parents or parent to provide for the basic needs of the child, including, without limitation, food, shelter, clothing and medical care;
(c) Whether the parents or parent has engaged in the habitual use of alcohol or any controlled substance during the previous 6 months, except the use of marijuana in accordance with the provisions of chapter 453A of NRS; and
(d) Whether the parents or parent has been convicted of a crime of moral turpitude, a crime involving domestic violence or a crime involving the exploitation of a child.
2. Subject to the preference set forth in subsection 1, the court shall appoint as guardian for an incompetent, a person of limited capacity or minor the qualified person who is most suitable and is willing to serve.
3. In determining who is most suitable, the court shall give consideration, among other factors, to:
(a) Any request for the appointment as guardian for an incompetent contained in a written instrument executed by the incompetent while competent.
(b) Any nomination of a guardian for an incompetent, minor or person of limited capacity contained in a will or other written instrument executed by a parent or spouse of the proposed ward.
(c) Any request for the appointment as guardian for a minor 14 years of age or older made by the minor.
(d) The relationship by blood, adoption or marriage of the proposed guardian to the proposed ward. In considering preferences of appointment, the court may consider relatives of the half blood equally with those of the whole blood. The court may consider relatives in the following order of preference:
κ2005 Statutes of Nevada, Page 818 (CHAPTER 230, SB 353)κ
(1) Spouse.
(2) Adult child.
(3) Parent.
(4) Adult sibling.
(5) Grandparent or adult grandchild.
(6) Uncle, aunt, adult niece or adult nephew.
(e) Any recommendation made by a master of the court or special master pursuant to NRS 159.0615.
(f) Any request for the appointment of any other interested person that the court deems appropriate.
4. If the court finds that there is no suitable person to appoint as guardian pursuant to subsection 3, the court may appoint as guardian:
(a) The public guardian of the county where the ward resides, if:
(1) There is a public guardian in the county where the ward resides; and
(2) The proposed ward qualifies for a public guardian pursuant to chapter 253 of NRS; [or]
(b) A private fiduciary who may obtain a bond in this State and who is a resident of this State, if the court finds that the interests of the ward will be served appropriately by the appointment of a private fiduciary [.] ; or
(c) A private professional guardian who meets the requirements of section 3 of this act.
Sec. 8. NRS 159.183 is hereby amended to read as follows:
159.183 1. Subject to the discretion and approval of the court [,] and except as otherwise provided in subsection 4, a guardian must be allowed:
(a) Reasonable compensation for the guardians services;
(b) Necessary and reasonable expenses incurred in exercising the authority and performing the duties of a guardian; and
(c) Reasonable expenses incurred in retaining accountants, attorneys, appraisers or other professional services.
2. Reasonable compensation and services must be based upon similar services performed for persons who are not under a legal disability. In determining whether compensation is reasonable, the court may consider:
(a) The nature of the guardianship;
(b) The type, duration and complexity of the services required; and
(c) Any other relevant factors.
3. In the absence of an order of the court pursuant to this chapter shifting the responsibility of the payment of compensation and expenses, the payment of compensation and expenses must be paid from the estate of the ward. In evaluating the ability of a ward to pay such compensation and expenses, the court may consider:
(a) The nature, extent and liquidity of the wards assets;
(b) The disposable net income of the ward;
(c) Any foreseeable expenses; and
(d) Any other factors that are relevant to the duties of the guardian pursuant to NRS 159.079 or 159.083.
4. A private professional guardian is not allowed compensation or expenses for services incurred by the private professional guardian as a result of a petition to have him removed as guardian if the court removes the private professional guardian pursuant to the provisions of subsection 2, 4, 5, 6 or 8 of NRS 159.185.
κ2005 Statutes of Nevada, Page 819 (CHAPTER 230, SB 353)κ
Sec. 9. NRS 159.185 is hereby amended to read as follows:
159.185 The court may remove a guardian if the court determines that:
1. The guardian has become mentally incompetent, unsuitable or otherwise incapable of exercising the authority and performing the duties of a guardian as provided by law;
2. The guardian is no longer qualified to act as a guardian pursuant to NRS 159.059;
3. The guardian has filed for bankruptcy within the previous 5 years;
4. The guardian of the estate has mismanaged the estate of the ward;
5. The guardian has negligently failed to perform any duty as provided by law or by any order of the court and:
(a) The negligence resulted in injury to the ward or his estate; or
(b) There was a substantial likelihood that the negligence would result in injury to the ward or his estate;
6. The guardian has intentionally failed to perform any duty as provided by law or by any lawful order of the court, regardless of injury; [or]
7. The best interests of the ward will be served by the appointment of another person as guardian [.] ; or
8. The guardian is a private professional guardian who is no longer qualified as a private professional guardian pursuant to section 3 of this act.
Sec. 10. 1. Except as otherwise provided in this section, the amendatory provisions of this act apply to a person appointed as a guardian pursuant to the provisions of chapter 159 of NRS on or after October 1, 2005.
2. A person who receives compensation for services as a guardian to three or more wards who are not related to the person by blood or marriage on October 1, 2005, and who does not meet the requirements of section 3 of this act is exempt from those requirements until October 1, 2006.
3. After October 1, 2006, in order to serve as a private professional guardian, a person described in subsection 2 must meet the requirements of section 3 of this act.
________
Assembly Bill No. 483Committee on Government Affairs
CHAPTER 231
AN ACT relating to local governments; revising provisions governing the timing of certain events for collective bargaining between local governmental employers and employee organizations; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 288.190 is hereby amended to read as follows:
288.190 Except in cases to which NRS 288.205 and 288.215 apply:
1. Anytime before [July] March 1, the dispute may be submitted to a mediator, if both parties agree. [On or after July 1 but before July 5,] Anytime after March 1, either party involved in negotiations may request a mediator.
κ2005 Statutes of Nevada, Page 820 (CHAPTER 231, AB 483)κ
Anytime after March 1, either party involved in negotiations may request a mediator. If the parties do not agree upon a mediator, the Commissioner shall submit to the parties a list of seven potential mediators. The parties shall select their mediator from the list by alternately striking one name until the name of only one mediator remains, who will be the mediator to hear the dispute. The employee organization shall strike the first name.
2. If mediation is agreed to or requested pursuant to subsection 1, the mediator must be selected [on or before July 15.] at the time the parties agree upon a mediator or, if the parties do not agree upon a mediator, within 5 days after the parties receive the list of potential mediators from the Commissioner.
3. The mediator shall bring the parties together as soon as possible and, unless otherwise agreed upon by the parties, attempt to settle the dispute [no later than July 31.] within 30 days after being notified of his selection as mediator. He may establish the times and dates for meetings and compel the parties to attend but has no power to compel the parties to agree.
4. The local government employer and employee organization each shall pay one-half of the cost of mediation. Each party shall pay its own costs of preparation and presentation of its case in mediation.
5. If the dispute is submitted to a mediator and then submitted to a fact finder, the mediator shall, [before August 15,] within 15 days after the last meeting between the parties, give to the Commissioner of the Board a report of the efforts made to settle the dispute.
Sec. 2. NRS 288.200 is hereby amended to read as follows:
288.200 Except in cases to which NRS 288.205 and 288.215, or NRS 288.217 apply:
1. If:
(a) The parties have participated in mediation and by [August] April 1, have not reached agreement; or
(b) The bargaining unit represented by the employee organization contains fewer than 30 persons,
Κ either party to the dispute, at any time [up to September 20,] after April 1, may submit the dispute to an impartial fact finder for his findings and recommendations. His findings and recommendations are not binding on the parties except as provided in subsections 5, 6 and 9. The mediator of a dispute may also be chosen by the parties to serve as the fact finder.
2. If the parties are unable to agree on an impartial fact finder within 5 days, either party may request from the American Arbitration Association or the Federal Mediation and Conciliation Service a list of seven potential fact finders. If the parties are unable to agree upon which arbitration service should be used, the Federal Mediation and Conciliation Service must be used. [The] Within 5 days after receiving a list from the applicable arbitration service, the parties shall select their fact finder from this list by alternately striking one name until the name of only one fact finder remains, who will be the fact finder to hear the dispute in question. The employee organization shall strike the first name.
3. The local government employer and employee organization each shall pay one-half of the cost of fact-finding. Each party shall pay its own costs of preparation and presentation of its case in fact-finding.
4. A schedule of dates and times for the hearing must be established [before October 20] within 10 days after the selection of the fact finder pursuant to subsection 2, and the fact finder shall report his findings and recommendations to the parties to the dispute within 30 days after the conclusion of the fact-finding hearing.
κ2005 Statutes of Nevada, Page 821 (CHAPTER 231, AB 483)κ
recommendations to the parties to the dispute within 30 days after the conclusion of the fact-finding hearing.
5. The parties to the dispute may agree, before the submission of the dispute to fact-finding, to make the findings and recommendations on all or any specified issues final and binding on the parties.
6. If the parties do not agree on whether to make the findings and recommendations of the fact finder final and binding, either party may request the formation of a panel to determine whether the findings and recommendations of a fact finder on all or any specified issues in a particular dispute which are within the scope of subsection 9 are to be final and binding. The determination must be made upon the concurrence of at least two members of the panel and not later than [October 20] the date which is 30 days after the date on which the matter is submitted to the panel, unless that date is extended by the Commissioner of the Board. Each panel shall, when making its determination, consider whether the parties have bargained in good faith and whether it believes the parties can resolve any remaining issues. Any panel may also consider the actions taken by the parties in response to any previous fact-finding between these parties, the best interests of the State and all its citizens, the potential fiscal effect both within and outside the political subdivision, and any danger to the safety of the people of the State or a political subdivision.
7. Except as otherwise provided in subsection 8, any fact finder, whether his recommendations are to be binding or not, shall base his recommendations or award on the following criteria:
(a) A preliminary determination must be made as to the financial ability of the local government employer based on all existing available revenues as established by the local government employer and within the limitations set forth in NRS 354.6241, with due regard for the obligation of the local government employer to provide facilities and services guaranteeing the health, welfare and safety of the people residing within the political subdivision.
(b) Once the fact finder has determined in accordance with paragraph (a) that there is a current financial ability to grant monetary benefits, he shall use normal criteria for interest disputes regarding the terms and provisions to be included in an agreement in assessing the reasonableness of the position of each party as to each issue in dispute and he shall consider whether the Board found that either party had bargained in bad faith.
Κ The fact finders report must contain the facts upon which he based his determination of financial ability to grant monetary benefits and his recommendations or award.
8. Any sum of money which is maintained in a fund whose balance is required by law to be:
(a) Used only for a specific purpose other than the payment of compensation to the bargaining unit affected; or
(b) Carried forward to the succeeding fiscal year in any designated amount, to the extent of that amount,
Κ must not be counted in determining the financial ability of a local government employer and must not be used to pay any monetary benefits recommended or awarded by the fact finder.
9. The issues which may be included in a panels order pursuant to subsection 6 are:
κ2005 Statutes of Nevada, Page 822 (CHAPTER 231, AB 483)κ
(a) Those enumerated in subsection 2 of NRS 288.150 as the subjects of mandatory bargaining, unless precluded for that year by an existing collective bargaining agreement between the parties; and
(b) Those which an existing collective bargaining agreement between the parties makes subject to negotiation in that year.
Κ This subsection does not preclude the voluntary submission of other issues by the parties pursuant to subsection 5.
Sec. 3. NRS 288.201 is hereby amended to read as follows:
288.201 Any request for the formation of a panel to determine whether the findings and recommendations of a fact finder must be final and binding must be filed [no later than October 1] with the Commissioner. The request must include:
1. A list of the issues which remain unresolved and the position of each party regarding those issues;
2. The requesters assessment of the fiscal effect on the local government of the requesters positions;
3. An outline of any previous fact-finding between the parties, which includes any recommendations and awards of a fact finder and the actions of each party in response thereto;
4. A statement of whether the parties engaged in mediation regarding the current dispute;
5. A schedule of the dates and times set by the fact finder for the hearing; and
6. Any other information deemed necessary by the Commissioner.
Κ Any person filing such a request shall give written notice of the request to the Nevada State Board of Accountancy and the State Bar of Nevada.
Sec. 4. NRS 288.202 is hereby amended to read as follows:
288.202 1. Within 5 days after receiving notice of such a request, the Nevada State Board of Accountancy and the State Bar of Nevada shall each submit to the Commissioner and each party to the dispute a list of names of five of their members who would serve on a panel and are not closely allied with any employee association or local government employer.
2. Within 8 days after receiving the lists, the parties shall choose one name from each list by alternately striking one name until the names of only one attorney and one accountant remain, who will each be a member of the panel. The parties shall choose the member from the list of accountants separately from their choice from the list of attorneys. The parties shall notify the Commissioner of their selections and he shall notify the attorney and accountant selected.
3. Within 5 days after receiving notice of their selection, the attorney and accountant shall:
(a) Choose the third member of the panel, who must:
(1) Be willing to serve on the panel;
(2) Be a resident of this State; and
(3) Not be closely allied with any employee organization or local government employer.
(b) Notify the Commissioner of their choice, and the three members shall , within 5 days after selecting the third member of the panel, notify the Commissioner of the dates [before August 10] when they will all be available to attend hearings.
4. The Commissioner shall serve as a nonvoting member and also as the chairman of the panel.
κ2005 Statutes of Nevada, Page 823 (CHAPTER 231, AB 483)κ
5. If the accountant or attorney selected to serve on the panel is unable to do so, the Nevada State Board of Accountancy or State Bar of Nevada shall designate a person to replace its nominee. If the person selected by the accountant and attorney is unable to serve, they shall designate a person to replace him. If the Commissioner is unable to serve, the Governor shall designate a person to serve in his capacity.
Sec. 5. This act becomes effective on July 1, 2006.
________
Assembly Bill No. 156Assemblymen Conklin, Hardy, Parks, Atkinson, Christensen, Kirkpatrick and Sibley
Joint Sponsors: Senators Hardy, Lee and Tiffany
CHAPTER 232
AN ACT relating to public works; revising the provisions governing the terms of certain contracts between public bodies and certain design professionals; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 338.155 is hereby amended to read as follows:
338.155 If a public body enters into a contract with a design professional who is not a member of a design-build team, for the provision of services in connection with a public work, the contract:
1. Must set forth:
(a) The specific period within which the public body must pay the design professional.
(b) The specific period and manner in which the public body may dispute a payment or portion thereof that the design professional alleges is due.
(c) The terms of any penalty that will be imposed upon the public body if the public body fails to pay the design professional within the specific period set forth in the contract pursuant to paragraph (a).
(d) That the prevailing party in an action to enforce the contract is entitled to reasonable attorneys fees and costs.
2. May set forth the terms of any discount that the public body will receive if the public body pays the design professional within the specific period set forth in the contract pursuant to paragraph (a) of subsection 1.
3. May set forth the terms by which the design professional agrees to name the public body, at the cost of the public body, as an additional insured in an insurance policy held by the design professional [.] , if the policy allows such an addition.
4. Except as otherwise provided in subsection 5, must not require the design professional to defend, indemnify or hold harmless the public body or the employees, officers or agents of that public body from any liability, damage, loss, claim, action or proceeding caused by the negligence, errors, omissions, recklessness or intentional misconduct of the employees, officers or agents of the public body.
κ2005 Statutes of Nevada, Page 824 (CHAPTER 232, AB 156)κ
omissions, recklessness or intentional misconduct of the employees, officers or agents of the public body.
5. [May] Except as otherwise provided in this subsection, may require the design professional to defend, indemnify and hold harmless the public body, and the employees, officers and agents of the public body from any liabilities, damages, losses, claims, actions or proceedings, including, without limitation, reasonable attorneys fees, that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design professional or the employees or agents of the design professional in the performance of the contract. If the insurer by which the design professional is insured against professional liability does not so defend the public body and the employees, officers and agents of the public body and the design professional is adjudicated to be liable by a trier of fact, the trier of fact shall award reasonable attorneys fees to be paid to the public body by the design professional in an amount which is proportionate to the liability of the design professional. As used in this subsection, agents means those persons who are directly involved in and acting on behalf of the public body in furtherance of the contract or the public work to which the contract pertains.
Sec. 2. The amendatory provisions of this act do not apply to contracts entered into before October 1, 2005.
________
Senate Bill No. 201Senators Care and Amodei
Joint Sponsor: Assemblywoman Ohrenschall
CHAPTER 233
AN ACT relating to the Uniform Commercial Code; revising the provisions of Articles 1 and 7 of the Uniform Commercial Code; and providing other matters properly relating thereto.
[Approved: June 2, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 104 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 65, inclusive, of this act.
Sec. 2. 1. This chapter, together with chapter 104A of NRS, may be cited as the Uniform Commercial Code.
2. This Article may be cited as the Uniform Commercial CodeGeneral Provisions.
Sec. 3. This Article applies to a transaction to the extent that it is governed by another Article of the Uniform Commercial Code.
Sec. 4. 1. The Uniform Commercial Code must be liberally construed and applied to promote its underlying purposes and policies, which are:
(a) To simplify, clarify, and modernize the law governing commercial transactions;
κ2005 Statutes of Nevada, Page 825 (CHAPTER 233, SB 201)κ
(b) To permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and
(c) To make uniform the law among the various jurisdictions.
2. Unless displaced by the particular provisions of the Uniform Commercial Code, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, and other validating or invalidating cause supplement its provisions.
Sec. 5. The Uniform Commercial Code being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
Sec. 6. If any provision or clause of the Uniform Commercial Code or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Uniform Commercial Code which can be given effect without the invalid provision or application, and to this end the provisions of the Uniform Commercial Code are severable.
Sec. 7. In the Uniform Commercial Code, unless the statutory context otherwise requires:
1. Words in the singular number include the plural, and those in the plural include the singular; and
2. Words of any gender also refer to any other gender.
Sec. 8. This Article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et. seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. § 7003(b).
Sec. 9. 1. Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other Articles of the Uniform Commercial Code that apply to particular Articles or parts thereof, have the meanings stated.
2. Subject to definitions contained in other Articles of the Uniform Commercial Code that apply to particular Articles or parts thereof:
(a) Action, in the sense of a judicial proceeding, includes recoupment, counterclaim, set off, suit in equity, and any other proceeding in which rights are determined.
(b) Aggrieved party means a party entitled to pursue a remedy.
(c) Agreement, as distinguished from contract, means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in section 17 of this act.
(d) Bank means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company.
(e) Bearer means a person in control of a negotiable electronic document of title or a person in possession of a negotiable instrument, negotiable tangible document of title, or certificated security that is payable to bearer or endorsed in blank.
(f) Bill of lading means a document of title evidencing the receipt of goods for shipment issued by a person engaged in the business of directly or indirectly transporting or forwarding goods.
κ2005 Statutes of Nevada, Page 826 (CHAPTER 233, SB 201)κ
or indirectly transporting or forwarding goods. The term does not include a warehouse receipt.
(g) Branch includes a separately incorporated foreign branch of a bank.
(h) Burden of establishing a fact means the burden of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.
(i) Buyer in ordinary course of business means a person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind. A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the sellers own usual or customary practices. A person that sells oil, gas, or other minerals at the wellhead or minehead is a person in the business of selling goods of that kind. A buyer in ordinary course of business may buy for cash, by exchange of other property, or on secured or unsecured credit, and may acquire goods or documents of title under a preexisting contract for sale. Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under Article 2 may be a buyer in ordinary course of business. Buyer in ordinary course of business does not include a person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
(j) Conspicuous, with reference to a term, means so written, displayed, or presented that a reasonable person against which it is to operate ought to have noticed it. Whether a term is conspicuous or not is a decision for the court. Conspicuous terms include the following:
(1) A heading in capitals equal to or greater in size than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same or lesser size; and
(2) Language in the body of a record or display in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from surrounding text of the same size by symbols or other marks that call attention to the language.
(k) Consumer means a natural person who enters into a transaction primarily for personal, family, or household purposes.
(l) Contract, as distinguished from agreement, means the total legal obligation that results from the parties agreement as determined by the Uniform Commercial Code as supplemented by any other applicable laws.
(m) Creditor includes a general creditor, a secured creditor, a lien creditor, and any representative of creditors, including an assignee for the benefit of creditors, a trustee in bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtors or assignors estate.
(n) Defendant includes a person in the position of defendant in a counterclaim, cross-claim, or third-party claim.
(o) Delivery, with respect to an electronic document of title means voluntary transfer of control and with respect to an instrument, a tangible document of title, or chattel paper, means voluntary transfer of possession.
(p) Document of title means a record:
(1) That in the regular course of business or financing is treated as adequately evidencing that the person in possession or control of the record is entitled to receive, control, hold, and dispose of the record and the goods the record covers; and
κ2005 Statutes of Nevada, Page 827 (CHAPTER 233, SB 201)κ
record is entitled to receive, control, hold, and dispose of the record and the goods the record covers; and
(2) That purports to be issued by or addressed to a bailee and to cover goods in the bailees possession which are either identified or are fungible portions of an identified mass.
Κ The term includes a bill of lading, transport document, dock warrant, dock receipt, warehouse receipt, and order for delivery of goods. An electronic document of title means a document of title evidenced by a record consisting of information stored in an electronic medium. A tangible document of title means a document of title evidenced by a record consisting of information that is inscribed on a tangible medium.
(q) Fault means a default, breach, or wrongful act or omission.
(r) Fungible goods means:
(1) Goods of which any unit, by nature or usage of trade, is the equivalent of any other like unit; or
(2) Goods that by agreement are treated as equivalent.
(s) Genuine means free of forgery or counterfeiting.
(t) Good faith, except as otherwise provided in Article 5, means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(u) Holder means:
(1) The person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession;
(2) The person in possession of a negotiable tangible document of title if the goods are deliverable either to bearer or to the order of the person in possession; or
(3) The person in control of a negotiable electronic document of title.
(v) Insolvency proceeding includes an assignment for the benefit of creditors or other proceeding intended to liquidate or rehabilitate the estate of the person involved.
(w) Insolvent means:
(1) Having generally ceased to pay debts in the ordinary course of business other than as a result of bona fide dispute;
(2) Being unable to pay debts as they become due; or
(3) Being insolvent within the meaning of federal bankruptcy law.
(x) Money means a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.
(y) Organization means a person other than a natural person.
(z) Party, as distinguished from third party, means a person that has engaged in a transaction or made an agreement subject to the Uniform Commercial Code.
(aa) Person means a natural person, corporation, business trust, estate, trust, partnership, limited-liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity.
(bb) Present value means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain by use of either an interest rate specified by the parties if that rate is not manifestly unreasonable at the time the transaction is entered into or, if an interest rate is not so specified, a commercially reasonable rate that takes into account the facts and circumstances at the time the transaction is entered into.
κ2005 Statutes of Nevada, Page 828 (CHAPTER 233, SB 201)κ
either an interest rate specified by the parties if that rate is not manifestly unreasonable at the time the transaction is entered into or, if an interest rate is not so specified, a commercially reasonable rate that takes into account the facts and circumstances at the time the transaction is entered into.
(cc) Purchase means taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.
(dd) Purchaser means a person that takes by purchase.
(ee) Record means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(ff) Remedy means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal.
(gg) Representative means a person empowered to act for another, including an agent, an officer of a corporation or association, and a trustee, executor, or administrator of an estate.
(hh) Right includes remedy.
(ii) Security interest means an interest in personal property or fixtures which secures payment or performance of an obligation. Security interest includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Article 9. Security interest does not include the special property interest of a buyer of goods on identification of those goods to a contract for sale under NRS 104.2401, but a buyer may also acquire a security interest by complying with Article 9. Except as otherwise provided in NRS 104.2505, the right of a seller or lessor of goods under Article 2 or 2A to retain or acquire possession of the goods is not a security interest, but a seller or lessor may also acquire a security interest by complying with Article 9. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under NRS 104.2401 is limited in effect to a reservation of a security interest. Whether a transaction in the form of a lease creates a security interest is determined pursuant to section 11 of this act.
(jj) Send in connection with a writing, record, or notice means:
(1) To deposit in the mail or deliver for transmission by any other usual means of communication with postage or cost of transmission provided for and properly addressed and, in the case of an instrument, to an address specified thereon or otherwise agreed, or if there be none to any address reasonable under the circumstances; or
(2) In any other way to cause to be received any record or notice within the time it would have arrived if properly sent.
(kk) Signed includes using any symbol executed or adopted with present intention to adopt or accept a writing.
(ll) State means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(mm) Surety includes a guarantor or other secondary obligor.
(nn) Term means a portion of an agreement that relates to a particular matter.
(oo) Unauthorized signature means a signature made without actual, implied, or apparent authority. The term includes a forgery.
κ2005 Statutes of Nevada, Page 829 (CHAPTER 233, SB 201)κ
(pp) Warehouse receipt means a document of title issued by a person engaged in the business of storing goods for hire.
(qq) Writing includes printing, typewriting, or any other intentional reduction to tangible form. Written has a corresponding meaning.
Sec. 10. 1. Subject to subsection 6, a person has notice of a fact if the person:
(a) Has actual knowledge of it;
(b) Has received a notice or notification of it; or
(c) From all the facts and circumstances known to the person at the time in question, has reason to know that it exists.
2. Knowledge means actual knowledge. Knows has a corresponding meaning.
3. Discover, learn, or words of similar import refer to knowledge rather than to reason to know.
4. A person notifies or gives a notice or notification to another person by taking such steps as may be reasonably required to inform the other person in ordinary course, whether or not the other person actually comes to know of it.
5. Subject to subsection 6, a person receives a notice or notification when:
(a) It comes to that persons attention; or
(b) It is duly delivered in a form reasonable under the circumstances at the place of business through which the contract was made or at another location held out by that person as the place for receipt of such communications.
6. Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time it is brought to the attention of the natural person conducting that transaction and, in any event, from the time it would have been brought to the natural persons attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routines. Due diligence does not require a natural person acting for the organization to communicate information unless the communication is part of the natural persons regular duties or the natural person has reason to know of the transaction and that the transaction would be materially affected by the information.
Sec. 11. 1. Whether a transaction in the form of a lease creates a lease or security interest is determined by the facts of each case.
2. A transaction in the form of a lease creates a security interest if the consideration that the lessee is to pay the lessor for the right to possession and use of the goods is an obligation for the term of the lease and is not subject to termination by the lessee, and:
(a) The original term of the lease is equal to or greater than the remaining economic life of the goods;
(b) The lessee is bound to renew the lease for the remaining economic life of the goods or is bound to become the owner of the goods;
(c) The lessee has an option to renew the lease for the remaining economic life of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement; or
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(d) The lessee has an option to become the owner of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement.
3. A transaction in the form of a lease does not create a security interest merely because:
(a) The present value of the consideration the lessee is obligated to pay the lessor for the right to possession and use of the goods is substantially equal to or is greater than the fair market value of the goods at the time the lease is entered into;
(b) The lessee assumes risk of loss of the goods;
(c) The lessee agrees to pay, with respect to the goods, taxes, insurance, filing, recording, or registration fees, or service or maintenance costs;
(d) The lessee has an option to renew the lease or to become the owner of the goods;
(e) The lessee has an option to renew the lease for a fixed rent that is equal to or greater than the reasonably predictable fair market rent for the use of the goods for the term of the renewal at the time the option is to be performed; or
(f) The lessee has an option to become the owner of the goods for a fixed price that is equal to or greater than the reasonably predictable fair market value of the goods at the time the option is to be performed.
4. Additional consideration is nominal if it is less than the lessees reasonably predictable cost of performing under the lease agreement if the option is not exercised. Additional consideration is not nominal if:
(a) When the option to renew the lease is granted to the lessee, the rent is stated to be the fair market rent for the use of the goods for the term of the renewal determined at the time the option is to be performed; or
(b) When the option to become the owner of the goods is granted to the lessee, the price is stated to be the fair market value of the goods determined at the time the option is to be performed.
5. The remaining economic life of the goods and reasonably predictable fair market rent, fair market value, or cost of performing under the lease agreement must be determined with reference to the facts and circumstances at the time the transaction is entered into.
Sec. 12. Except as otherwise provided in Articles 3, 4, and 5, a person gives value for rights if the person acquires them:
1. In return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;
2. As security for, or in total or partial satisfaction of, a preexisting claim;
3. By accepting delivery under a preexisting contract for purchase; or
4. In return for any consideration sufficient to support a simple contract.
Sec. 13. 1. Whether a time for taking an action required by the Uniform Commercial Code is reasonable depends on the nature, purpose, and circumstances of the action.
2. An action is taken seasonably if it is taken at or within the time agreed or, if no time is agreed, at or within a reasonable time.
Sec. 14. Whenever the Uniform Commercial Code creates a presumption with respect to a fact, or provides that a fact is presumed, the trier of fact must find the existence of the fact unless and until evidence is introduced that supports a finding of its nonexistence.
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the trier of fact must find the existence of the fact unless and until evidence is introduced that supports a finding of its nonexistence.
Sec. 15. 1. Except as otherwise provided in this section, when a transaction bears a reasonable relation to this State and also to another state or nation the parties may agree that the law either of this State or of such other state or nation shall govern their rights and duties.
2. In the absence of an agreement effective under subsection 1, and except as otherwise provided in subsection 3, the Uniform Commercial Code applies to transactions bearing an appropriate relation to this State.
3. If one of the following provisions of the Uniform Commercial Code specifies the applicable law, that provision governs and a contrary agreement is effective only to the extent permitted by the law so specified:
(a) NRS 104.2402;
(b) NRS 104.4102;
(c) NRS 104.5116;
(d) NRS 104.8110;
(e) NRS 104.9301 to 104.9307, inclusive;
(f) NRS 104A.2105 and 104A.2106; and
(g) NRS 104A.4507.
Sec. 16. 1. Except as otherwise provided in subsection 2 or elsewhere in the Uniform Commercial Code, the effect of provisions of the Uniform Commercial Code may be varied by agreement.
2. The obligations of good faith, diligence, reasonableness, and care prescribed by the Uniform Commercial Code may not be disclaimed by agreement. The parties, by agreement, may determine the standards by which the performance of those obligations is to be measured if those standards are not manifestly unreasonable. Whenever the Uniform Commercial Code requires an action to be taken within a reasonable time, a time that is not manifestly unreasonable may be fixed by agreement.
3. The presence in certain provisions of the Uniform Commercial Code of the phrase unless otherwise agreed, or words of similar import, does not imply that the effect of other provisions may not be varied by agreement under this section.
Sec. 17. 1. A course of performance is a sequence of conduct between the parties to a particular transaction that exists if:
(a) The agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and
(b) The other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection.
2. A course of dealing is a sequence of conduct concerning previous transactions between the parties to a particular transaction that is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.
3. A usage of trade is any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question. The existence and scope of such a usage must be proved as facts. If it is established that such a usage is embodied in a trade code or similar record, the interpretation of the record is a question of law.
4. A course of performance or course of dealing between the parties or usage of trade in the vocation or trade in which they are engaged or of which they are or should be aware is relevant in ascertaining the meaning of the parties agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement.
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which they are or should be aware is relevant in ascertaining the meaning of the parties agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement. A usage of trade applicable in the place in which part of the performance under the agreement is to occur may be so utilized as to that part of the performance.
5. Except as otherwise provided in subsection 6, the express terms of an agreement and any applicable course of performance, course of dealing, or usage of trade must be construed whenever reasonable as consistent with each other. If such a construction is unreasonable:
(a) Express terms prevail over course of performance, course of dealing, and usage of trade;
(b) Course of performance prevails over course of dealing and usage of trade; and
(c) Course of dealing prevails over usage of trade.
6. Subject to NRS 104.2209, a course of performance is relevant to show a waiver or modification of any term inconsistent with the course of performance.
7. Evidence of a relevant usage of trade offered by one party is not admissible unless that party has given the other party notice that the court finds sufficient to prevent unfair surprise to the other party.
Sec. 18. Every contract or duty within the Uniform Commercial Code imposes an obligation of good faith in its performance and enforcement.
Sec. 19. 1. The remedies provided by the Uniform Commercial Code must be liberally administered to the end that the aggrieved party may be put in as good a position as if the other party had fully performed but neither consequential or special damages nor penal damages may be had except as specifically provided in the Uniform Commercial Code or by other rule of law.
2. Any right or obligation declared by the Uniform Commercial Code is enforceable by action unless the provision declaring it specifies a different and limited effect.
Sec. 20. A claim or right arising out of an alleged breach may be discharged in whole or in part without consideration by agreement of the aggrieved party in an authenticated record.
Sec. 21. A document in due form purporting to be a bill of lading, policy or certificate of insurance, official weighers or inspectors certificate, consular invoice, or any other document authorized or required by the contract to be issued by a third party is prima facie evidence of its own authenticity and genuineness and of the facts stated in the document by the third party.
Sec. 22. 1. A party that with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as without prejudice, under protest, or the like are sufficient.
2. Subsection 1 does not apply to an accord and satisfaction.
Sec. 23. A term providing that one party or that partys successor in interest may accelerate payment or performance or require collateral or additional collateral at will or when the party deems itself insecure, or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired.
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performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.
Sec. 24. An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to performance of an obligation by agreement with either the person obligated or another creditor of the person obligated. Subordination does not create a security interest as against either the common debtor or a subordinated creditor.
Sec. 25. This Article may be cited as Uniform Commercial Code — Documents of Title.
Sec. 26. 1. In this Article, unless the context otherwise requires:
(a) Bailee means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them.
(b) Carrier means a person that issues a bill of lading.
(c) Consignee means a person named in a bill of lading to which or to whose order the bill promises delivery.
(d) Consignor means a person named in a bill of lading as the person from whom the goods have been received for shipment.
(e) Delivery order means a record that contains an order to deliver goods directed to a warehouse, carrier, or other person that in the ordinary course of business issues warehouse receipts or bills of lading.
(f) Goods means all things that are treated as movable for the purposes of a contract for storage or transportation.
(g) Issuer means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. The term includes a person for whom an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents, even if the issuer did not receive any goods, the goods were misdescribed, or in any other respect the agent or employee violated the issuers instructions.
(h) Person entitled under the document means the holder, in the case of a negotiable document of title, or the person to whom delivery of the goods is to be made by the terms of, or pursuant to instructions in a record under, a nonnegotiable document of title.
(i) Sign means, with present intent to authenticate or adopt a record:
(1) To execute or adopt a tangible symbol; or
(2) To attach to or logically associate with the record an electronic sound, symbol, or process.
(j) Shipper means a person that enters into a contract of transportation with a carrier.
(k) Warehouse means a person engaged in the business of storing goods for hire.
2. Definitions in other Articles applying to this Article and the sections in which they appear are:
(a) Contract for sale, NRS 104.2106.
(b) Lessee in the ordinary course of business, NRS 104A.2103.
(c) Receipt of goods, NRS 104.2103.
3. In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
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Sec. 27. 1. This Article is subject to any treaty or statute of the United States or regulatory statute of this state to the extent the treaty, statute, or regulatory statute is applicable.
2. This Article does not modify or repeal any law prescribing the form or content of a document of title or the services or facilities to be afforded by a bailee, or otherwise regulating a bailees business in respects not specifically treated in this Article. However, violation of such a law does not affect the status of a document of title that otherwise is within the definition of a document of title.
3. This Article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et. seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. § 7003(b).
4. To the extent there is a conflict between the Uniform Electronic Transactions Act and this Article, this Article governs.
Sec. 28. 1. Except as otherwise provided in subsection 3, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.
2. A document of title other than one described in subsection 1 is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.
3. A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.
Sec. 29. 1. Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:
(a) The person entitled under the electronic document surrenders control of the document to the issuer; and
(b) The tangible document when issued contains a statement that it is issued in substitution for the electronic document.
2. Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection 1:
(a) The electronic document ceases to have any effect or validity; and
(b) The person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.
3. Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:
(a) The person entitled under the tangible document surrenders possession of the document to the issuer; and
(b) The electronic document when issued contains a statement that it is issued in substitution for the tangible document.
4. Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection 3:
(a) The tangible document ceases to have any effect or validity; and
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(b) The person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.
Sec. 30. 1. A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to whom the electronic document was issued or transferred.
2. A system satisfies subsection 1, and a person is deemed to have control of an electronic document of title, if the document is created, stored, and assigned in such a manner that:
(a) A single authoritative copy of the document exists which is unique, identifiable, and, except as otherwise provided in paragraphs (d), (e), and (f), unalterable;
(b) The authoritative copy identifies the person asserting control as:
(1) The person to whom the document was issued; or
(2) If the authoritative copy indicates that the document has been transferred, the person to whom the document was most recently transferred;
(c) The authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;
(d) Copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control;
(e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
(f) Any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
Sec. 31. 1. A warehouse receipt may be issued by any warehouse.
2. If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods is deemed to be a warehouse receipt even if issued by a person that is the owner of the goods and is not a warehouse.
Sec. 32. 1. A warehouse receipt need not be in any particular form.
2. Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a person injured by its omission:
(a) A statement of the location of the warehouse facility where the goods are stored;
(b) The date of issue of the receipt;
(c) The unique identification code of the receipt;
(d) A statement whether the goods received will be delivered to the bearer, to a named person, or to a named person or its order;
(e) The rate of storage and handling charges, unless goods are stored under a field warehousing arrangement, in which case a statement of that fact is sufficient on a nonnegotiable receipt;
(f) A description of the goods or the packages containing them;
(g) The signature of the warehouse or its agent;
(h) If the receipt is issued for goods that the warehouse owns, either solely, jointly, or in common with others, a statement of the fact of that ownership; and
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(i) A statement of the amount of advances made and of liabilities incurred for which the warehouse claims a lien or security interest, unless the precise amount of advances made or liabilities incurred, at the time of the issue of the receipt, is unknown to the warehouse or to its agent that issued the receipt, in which case a statement of the fact that advances have been made or liabilities incurred and the purpose of the advances or liabilities is sufficient.
3. A warehouse may insert in its receipt any terms that are not contrary to the Uniform Commercial Code and do not impair its obligation of delivery under section 52 of this act or its duty of care under section 34 of this act. Any contrary provision is ineffective.
Sec. 33. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:
1. The document conspicuously indicates that the issuer does not know whether all or part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity, or condition, or the receipt or description is qualified by contents, condition, and quality unknown, said to contain, or words of similar import, if the indication is true; or
2. The party or purchaser otherwise has notice of the nonreceipt or misdescription.
Sec. 34. 1. A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably careful person would exercise under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages that could not have been avoided by the exercise of that care.
2. Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage beyond which the warehouse is not liable. Such a limitation is not effective with respect to the warehouses liability for conversion to its own use. On request of the bailor in a record at the time of signing the storage agreement or within a reasonable time after receipt of the warehouse receipt, the warehouses liability may be increased on part or all of the goods covered by the storage agreement or the warehouse receipt. In this event, increased rates may be charged based on an increased valuation of the goods.
3. Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the bailment may be included in the warehouse receipt or storage agreement.
Sec. 35. A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
Sec. 36. 1. A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an interest in the goods, may require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the document of title or, if a period is not fixed, within a stated period not less than 30 days after the warehouse gives notice.
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period not less than 30 days after the warehouse gives notice. If the goods are not removed before the date specified in the notice, the warehouse may sell them pursuant to section 40 of this act.
2. If a warehouse in good faith believes that goods are about to deteriorate or decline in value to less than the amount of its lien within the time provided in subsection 1 and section 40 of this act, the warehouse may specify in the notice given under subsection 1 any reasonable shorter time for removal of the goods and, if the goods are not removed, may sell them at public sale held not less than 1 week after a single advertisement or posting.
3. If, as a result of a quality or condition of the goods of which the warehouse did not have notice at the time of deposit, the goods are a hazard to other property, the warehouse facilities, or other persons, the warehouse may sell the goods at public or private sale without advertisement or posting on reasonable notification to all persons known to claim an interest in the goods. If the warehouse, after a reasonable effort, is unable to sell the goods, it may dispose of them in any lawful manner and does not incur liability by reason of that disposition.
4. A warehouse shall deliver the goods to any person entitled to them under this Article upon due demand made at any time before sale or other disposition under this section.
5. A warehouse may satisfy its lien from the proceeds of any sale or disposition under this section but shall hold the balance for delivery on the demand of any person to whom the warehouse would have been bound to deliver the goods.
Sec. 37. 1. Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.
2. If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owners share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to which overissued receipts have been duly negotiated.
Sec. 38. If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of the lack of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any tangible or electronic warehouse receipt enforceable against the issuer according to its original tenor.
Sec. 39. 1. A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds thereof in its possession for charges for storage or transportation, including demurrage and terminal charges, insurance, labor, or other charges, present or future, in relation to the goods, and for expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on whose account the goods are held is liable for similar charges or expenses in relation to other goods whenever deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed for charges and expenses in relation to other goods, the warehouse also has a lien against the goods covered by the warehouse receipt or storage agreement or on the proceeds thereof in its possession for those charges and expenses, whether or not the other goods have been delivered by the warehouse.
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receipt or storage agreement or on the proceeds thereof in its possession for those charges and expenses, whether or not the other goods have been delivered by the warehouse. However, as against a person to whom a negotiable warehouse receipt is duly negotiated, a warehouses lien is limited to charges in an amount or at a rate specified in the warehouse receipt or, if no charges are so specified, to a reasonable charge for storage of the specific goods covered by the receipt subsequent to the date of the receipt.
2. A warehouse may also reserve a security interest against the bailor for the maximum amount specified on the receipt for charges other than those specified in subsection 1, such as for money advanced and interest. The security interest is governed by Article 9.
3. A warehouses lien for charges and expenses under subsection 1 or a security interest under subsection 2 is also effective against any person that so entrusted the bailor with possession of the goods that a pledge of them by the bailor to a good-faith purchaser for value would have been valid. However, the lien or security interest is not effective against a person that before issuance of a document of title had a legal interest or a perfected security interest in the goods and that did not:
(a) Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailors nominee with:
(1) Actual or apparent authority to ship, store, or sell;
(2) Power to obtain delivery under section 52 of this act; or
(3) Power of disposition under NRS 104.2403, 104.9320, subsection 3 of NRS 104.9321, subsection 2 of NRS 104A.2304 or subsection 2 of NRS 104A.2305, or other statute or rule of law; or
(b) Acquiesce in the procurement by the bailor or its nominee of any document.
4. A warehouses lien on household goods for charges and expenses in relation to the goods under subsection 1 is also effective against all persons if the depositor was the legal possessor of the goods at the time of deposit. In this subsection, household goods means furniture, furnishings, or personal effects used by the depositor in a dwelling.
5. A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to deliver.
Sec. 40. 1. Except as otherwise provided in subsection 2, a warehouses lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include a statement of the amount due, the nature of the proposed sale, and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the warehouse is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The warehouse sells in a commercially reasonable manner if the warehouse sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of the sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable, except in cases covered by the preceding sentence.
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2. A warehouse may enforce its lien on goods, other than goods stored by a merchant in the course of its business, only if the following requirements are satisfied:
(a) All persons known to claim an interest in the goods must be notified.
(b) The notification must include an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than 10 days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be advertised for sale and sold by auction at a specified time and place.
(c) The sale must conform to the terms of the notification.
(d) The sale must be held at the nearest suitable place to where the goods are held or stored.
(e) After the expiration of the time given in the notification, an advertisement of the sale must be published once a week for 2 weeks consecutively in a newspaper of general circulation where the sale is to be held. The advertisement must include a description of the goods, the name of the person on whose account the goods are being held, and the time and place of the sale. The sale must take place at least 15 days after the first publication. If there is no newspaper of general circulation where the sale is to be held, the advertisement must be posted at least 10 days before the sale in not fewer than six conspicuous places in the neighborhood of the proposed sale.
3. Before any sale pursuant to this section, any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this section. In that event, the goods may not be sold but must be retained by the warehouse subject to the terms of the receipt and this Article.
4. A warehouse may buy at any public sale held pursuant to this section.
5. A purchaser in good faith of goods sold to enforce a warehouses lien takes the goods free of any rights of persons against whom the lien was valid, despite the warehouses noncompliance with this section.
6. A warehouse may satisfy its lien from the proceeds of any sale pursuant to this section but shall hold the balance, if any, for delivery on demand to any person to whom the warehouse would have been bound to deliver the goods.
7. The rights provided by this section are in addition to all other rights allowed by law to a creditor against a debtor.
8. If a lien is on goods stored by a merchant in the course of its business, the lien may be enforced in accordance with subsection 1 or 2.
9. A warehouse is liable for damages caused by failure to comply with the requirements for sale under this section and, in case of willful violation, is liable for conversion.
Sec. 41. 1. A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to whom a negotiable bill has been duly negotiated, relying upon the description of the goods in the bill or upon the date shown in the bill, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the bill indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by contents or condition of contents of packages unknown, said to contain, shippers weight, load, and count, or words of similar import, if that indication is true.
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to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by contents or condition of contents of packages unknown, said to contain, shippers weight, load, and count, or words of similar import, if that indication is true.
2. If goods are loaded by the issuer of a bill of lading:
(a) The issuer shall count the packages of goods if shipped in packages and ascertain the kind and quantity if shipped in bulk; and
(b) Words such as shippers weight, load, and count, or words of similar import indicating that the description was made by the shipper are ineffective except as to goods concealed in packages.
3. If bulk goods are loaded by a shipper that makes available to the issuer of a bill of lading adequate facilities for weighing those goods, the issuer shall ascertain the kind and quantity within a reasonable time after receiving the shippers request in a record to do so. In that case, shippers weight or words of similar import are ineffective.
4. The issuer of a bill of lading, by including in the bill the words shippers weight, load, and count, or words of similar import, may indicate that the goods were loaded by the shipper, and, if that statement is true, the issuer is not liable for damages caused by the improper loading. However, omission of such words does not imply liability for damages caused by improper loading.
5. A shipper guarantees to an issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition, and weight, as furnished by the shipper, and the shipper shall indemnify the issuer against damage caused by inaccuracies in those particulars. This right of indemnity does not limit the issuers responsibility or liability under the contract of carriage to any person other than the shipper.
Sec. 42. 1. The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier, is liable to any person entitled to recover on the bill or other document for any breach by the other person or the performing carrier of its obligation under the bill or other document. However, to the extent that the bill or other document covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation, this liability for breach by the other person or the performing carrier may be varied by agreement of the parties.
2. If goods covered by a through bill of lading or other document of title embodying an undertaking to be performed in part by a person other than the issuer are received by that person, the person is subject, with respect to its own performance while the goods are in its possession, to the obligation of the issuer. The persons obligation is discharged by delivery of the goods to another person pursuant to the bill or other document and does not include liability for breach by any other person or by the issuer.
3. The issuer of a through bill of lading or other document of title described in subsection 1 is entitled to recover from the performing carrier, or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:
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(a) The amount it may be required to pay to any person entitled to recover on the bill or other document for the breach, as may be evidenced by any receipt, judgment, or transcript of judgment; and
(b) The amount of any expense reasonably incurred by the issuer in defending any action commenced by any person entitled to recover on the bill or other document for the breach.
Sec. 43. 1. Unless the bill of lading otherwise provides, a carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods, without liability for misdelivery, on instructions from:
(a) The holder of a negotiable bill;
(b) The consignor on a nonnegotiable bill, even if the consignee has given contrary instructions;
(c) The consignee on a nonnegotiable bill in the absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the tangible bill or in control of the electronic bill; or
(d) The consignee on a nonnegotiable bill, if the consignee is entitled as against the consignor to dispose of the goods.
2. Unless instructions described in subsection 1 are included in a negotiable bill of lading, a person to whom the bill is duly negotiated may hold the bailee according to the original terms.
Sec. 44. 1. Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.
2. If a tangible bill of lading is lawfully issued in a set of parts, each of which contains an identification code and is expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitutes one bill.
3. If a tangible negotiable bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to which the first due negotiation is made prevails as to both the document of title and the goods even if any later holder may have received the goods from the carrier in good faith and discharged the carriers obligation by surrendering its part.
4. A person that negotiates or transfers a single part of a tangible bill of lading issued in a set is liable to holders of that part as if it were the whole set.
5. The bailee shall deliver in accordance with sections 50 to 53, inclusive, of this act against the first presented part of a tangible bill of lading lawfully issued in a set. Delivery in this manner discharges the bailees obligation on the whole bill.
Sec. 45. 1. Instead of issuing a bill of lading to the consignor at the place of shipment, a carrier, at the request of the consignor, may procure the bill to be issued at destination or at any other place designated in the request.
2. Upon request of any person entitled as against a carrier to control the goods while in transit and on surrender of possession or control of any outstanding bill of lading or other receipt covering the goods, the issuer, subject to section 29 of this act, may procure a substitute bill to be issued at any place designated in the request.
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Sec. 46. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.
Sec. 47. 1. A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof in its possession for charges after the date of the carriers receipt of the goods for storage or transportation, including demurrage and terminal charges, and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law. However, against a purchaser for value of a negotiable bill of lading, a carriers lien is limited to charges stated in the bill or the applicable tariffs or, if no charges are stated, a reasonable charge.
2. A lien for charges and expenses under subsection 1 on goods that the carrier was required by law to receive for transportation is effective against the consignor or any person entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to those charges and expenses. Any other lien under subsection 1 is effective against the consignor and any person that permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked authority.
3. A carrier loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to deliver.
Sec. 48. 1. A carriers lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include a statement of the amount due, the nature of the proposed sale, and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The carrier sells goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of the sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable, except in cases covered by the preceding sentence.
2. Before any sale pursuant to this section, any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this section. In that event, the goods may not be sold but must be retained by the carrier, subject to the terms of the bill of lading and this Article.
3. A carrier may buy at any public sale pursuant to this section.
4. A purchaser in good faith of goods sold to enforce a carriers lien takes the goods free of any rights of persons against whom the lien was valid, despite the carriers noncompliance with this section.
5. A carrier may satisfy its lien from the proceeds of any sale pursuant to this section but shall hold the balance, if any, for delivery on demand to any person to which the carrier would have been bound to deliver the goods.
6. The rights provided by this section are in addition to all other rights allowed by law to a creditor against a debtor.
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7. A carriers lien may be enforced pursuant to either subsection 1 or the procedure set forth in subsection 2 of section 40 of this act.
8. A carrier is liable for damages caused by failure to comply with the requirements for sale under this section and, in case of willful violation, is liable for conversion.
Sec. 49. 1. A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods which a reasonably careful person would exercise under similar circumstances. This subsection does not affect any statute, regulation, or rule of law that imposes liability upon a common carrier for damages not caused by its negligence.
2. Damages may be limited by a term in the bill of lading or in a transportation agreement that the carriers liability may not exceed a value stated in the bill or transportation agreement if the carriers rates are dependent upon value and the consignor is afforded an opportunity to declare a higher value and the consignor is advised of the opportunity. However, such a limitation is not effective with respect to the carriers liability for conversion to its own use.
3. Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the shipment may be included in a bill of lading or a transportation agreement.
Sec. 50. The obligations imposed by this Article on an issuer apply to a document of title even if:
1. The document does not comply with the requirements of this Article or of any other statute, rule, or regulation regarding its issuance, form, or content;
2. The issuer violated laws regulating the conduct of its business;
3. The goods covered by the document were owned by the bailee when the document was issued; or
4. The person issuing the document is not a warehouse but the document purports to be a warehouse receipt.
Sec. 51. A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of documents for fungible goods, substitutes for lost, stolen, or destroyed documents, or substitute documents issued pursuant to section 29 of this act. The issuer is liable for damages caused by its overissue or failure to identify a duplicate document by a conspicuous notation.
Sec. 52. 1. A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections 2 and 3, unless and to the extent that the bailee establishes any of the following:
(a) Delivery of the goods to a person whose receipt was rightful as against the claimant;
(b) Damage to or delay, loss, or destruction of the goods for which the bailee is not liable;
(c) Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouses lawful termination of storage;
(d) The exercise by a seller of its right to stop delivery pursuant to NRS 104.2705 or by a lessor of its right to stop delivery pursuant to NRS 104A.2526;
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(e) A diversion, reconsignment, or other disposition pursuant to section 43 of this act;
(f) Release, satisfaction, or any other personal defense against the claimant; or
(g) Any other lawful excuse.
2. A person claiming goods covered by a document of title shall satisfy the bailees lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until the charges are paid.
3. Unless a person claiming the goods is a person against whom the document of title does not confer a right under subsection 1 of section 56 of this act:
(a) The person claiming under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and
(b) The bailee shall cancel the document or conspicuously indicate in the document the partial delivery or the bailee is liable to any person to whom the document is duly negotiated.
Sec. 53. A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this Article is not liable for the goods even if:
1. The person from whom the bailee received the goods did not have authority to procure the document or to dispose of the goods; or
2. The person to whom the bailee delivered the goods did not have authority to receive the goods.
Sec. 54. 1. The following rules apply to a negotiable tangible document of title:
(a) If the documents original terms run to the order of a named person, the document is negotiated by the named persons endorsement and delivery. After the named persons endorsement in blank or to bearer, any person may negotiate the document by delivery alone.
(b) If the documents original terms run to bearer, it is negotiated by delivery alone.
(c) If the documents original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated.
(d) Negotiation of the document after it has been endorsed to a named person requires endorsement by the named person and delivery.
(e) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation.
2. The following rules apply to a negotiable electronic document of title:
(a) If the documents original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Endorsement by the named person is not required to negotiate the document.
(b) If the documents original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.
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(c) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.
3. Endorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferees rights.
4. The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
Sec. 55. 1. Subject to sections 35 and 56 of this act, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:
(a) Title to the document;
(b) Title to the goods;
(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and
(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this Article, but in the case of a delivery order, the bailees obligation accrues only upon the bailees acceptance of the delivery order and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.
2. Subject to section 56 of this act, title and rights acquired by due negotiation are not defeated by any stoppage of the goods represented by the document of title or by surrender of the goods by the bailee and are not impaired even if:
(a) The due negotiation or any prior due negotiation constituted a breach of duty;
(b) Any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake, duress, loss, theft, or conversion; or
(c) A previous sale or other transfer of the goods or document has been made to a third person.
Sec. 56. 1. A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:
(a) Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailors nominee with:
(1) Actual or apparent authority to ship, store, or sell;
(2) Power to obtain delivery under section 52 of this act; or
(3) Power of disposition under NRS 104.2403, 104.9320, subsection 3 of NRS 104.9321, subsection 2 of NRS 104A.2304 or subsection 2 of NRS 104A.2305, or other statute or rule of law; or
(b) Acquiesce in the procurement by the bailor or its nominee of any document.
2. Title to goods based upon an unaccepted delivery order is subject to the rights of any person to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated.
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lading covering the goods has been duly negotiated. That title may be defeated under section 57 of this act to the same extent as the rights of the issuer or a transferee from the issuer.
3. Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to whom a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with sections 50 to 53, inclusive, of this act pursuant to its own bill of lading discharges the carriers obligation to deliver.
Sec. 57. 1. A transferee of a document of title, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that its transferor had or had actual authority to convey.
2. In the case of a transfer of a nonnegotiable document of title, until but not after the bailee receives notice of the transfer, the rights of the transferee may be defeated:
(a) By those creditors of the transferor which could treat the transfer as void under NRS 104.2402 or 104A.2308;
(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyers rights;
(c) By a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessees rights; or
(d) As against the bailee, by good-faith dealings of the bailee with the transferor.
3. A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver the goods to the consignee defeats the consignees title to the goods if the goods have been delivered to a buyer in ordinary course of business or a lessee in ordinary course of business and, in any event, defeats the consignees rights against the bailee.
4. Delivery of the goods pursuant to a nonnegotiable document of title may be stopped by a seller under NRS 104.2705 or a lessor under NRS 104A.2526, subject to the requirements of due notification in those sections. A bailee that honors the sellers or lessors instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.
Sec. 58. The endorsement of a tangible document of title issued by a bailee does not make the endorser liable for any default by the bailee or previous endorsers.
Sec. 59. The transferee of a negotiable tangible document of title has a specifically enforceable right to have its transferor supply any necessary endorsement, but the transfer becomes a negotiation only as of the time the endorsement is supplied.
Sec. 60. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 61 of this act, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:
1. The document is genuine;
2. The transferor does not have knowledge of any fact that would impair the documents validity or worth; and
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3. The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
Sec. 61. A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by the delivery of the documents only its own good faith and authority even if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected.
Sec. 62. Whether a document of title is adequate to fulfill the obligations of a contract for sale, a contract for lease, or the conditions of a letter of credit is determined by Article 2, 5, or 2A.
Sec. 63. 1. If a document of title is lost, stolen, or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with the order. If the document was negotiable, a court may not order delivery of the goods or issuance of a substitute document without the claimants posting security unless it finds that any person that may suffer loss as a result of nonsurrender of possession or control of the document is adequately protected against the loss. If the document was nonnegotiable, the court may require security. The court may also order payment of the bailees reasonable costs and attorneys fees in any action under this subsection.
2. A bailee that, without a court order, delivers goods to a person claiming under a missing negotiable document of title is liable to any person injured thereby. If the delivery is not in good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery who files a notice of claim within 1 year after the delivery.
Sec. 64. Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the documents negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or to the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.
Sec. 65. If more than one person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpleader either in defending an action for nondelivery of the goods or by original action.
Sec. 66. NRS 104.2103 is hereby amended to read as follows:
104.2103 1. In this Article unless the context otherwise requires:
(a) Buyer means a person who buys or contracts to buy goods.
(b) [Good faith in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.
(c)] Receipt of goods means taking physical possession of them.
[(d)] (c) Seller means a person who sells or contracts to sell goods.
2. Other definitions applying to this Article or to specified parts thereof, and the sections in which they appear are:
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Acceptance. NRS 104.2606.
Bankers credit. NRS 104.2325.
Between merchants. NRS 104.2104.
Cancellation. Subsection 4 of NRS 104.2106.
Commercial unit. NRS 104.2105.
Confirmed credit. NRS 104.2325.
Conforming to contract. NRS 104.2106.
Contract for sale. NRS 104.2106.
Cover. NRS 104.2712.
Entrusting. NRS 104.2403.
Financing agency. NRS 104.2104.
Future goods. NRS 104.2105.
Goods. NRS 104.2105.
Identification. NRS 104.2501.
Installment contract. NRS 104.2612.
Letter of credit. NRS 104.2325.
Lot. NRS 104.2105.
Merchant. NRS 104.2104.
Overseas. NRS 104.2323.
Person in position of seller. NRS 104.2707.
Present sale. NRS 104.2106.
Sale. NRS 104.2106.
Sale on approval. NRS 104.2326.
Sale or return. NRS 104.2326.
Termination. NRS 104.2106.
3. [The] Control as provided in section 30 of this act and the following definitions in other Articles apply to this Article:
Check. NRS 104.3104.
Consignee. [NRS 104.7102.] Section 26 of this act.
Consignor. [NRS 104.7102.] Section 26 of this act.
Consumer goods. NRS 104.9102.
Draft. NRS 104.3104.
4. In addition Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
Sec. 67. NRS 104.2104 is hereby amended to read as follows:
104.2104 1. Merchant means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill.
2. Financing agency means a bank, finance company or other person who in the ordinary course of business makes advances against goods or documents of title or who by arrangement with either the seller or the buyer intervenes in ordinary course to make or collect payment due or claimed under the contract for sale, as by purchasing or paying the sellers draft or making advances against it or by merely taking it for collection whether or not documents of title accompany or are associated with the draft. Financing agency includes also a bank or other person who similarly intervenes between persons who are in the position of seller and buyer in respect to the goods (NRS 104.2707).
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intervenes between persons who are in the position of seller and buyer in respect to the goods (NRS 104.2707).
3. Between merchants means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.
Sec. 68. NRS 104.2202 is hereby amended to read as follows:
104.2202 Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be explained or supplemented:
1. By course of performance, course of dealing or usage of trade [(NRS 104.1205) or by course of performance (NRS 104.2208);] (section 17 of this act); and
2. By evidence of consistent additional terms unless the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement.
Sec. 69. NRS 104.2310 is hereby amended to read as follows:
104.2310 Unless otherwise agreed:
1. Payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery; and
2. If the seller is authorized to send the goods he may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless such inspection is inconsistent with the terms of the contract (NRS 104.2513); and
3. If delivery is authorized and made by way of documents of title otherwise than by subsection 2 then payment is due [at] regardless of where the goods are to be received:
(a) At the time and place at which the buyer is to receive delivery of the tangible documents [regardless of where the goods are to be received;] ; or
(b) At the time the buyer is to receive delivery of the electronic documents and at the sellers place of business or if none, the sellers residence; and
4. Where the seller is required or authorized to ship the goods on credit the credit period runs from the time of shipment but postdating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.
Sec. 70. NRS 104.2323 is hereby amended to read as follows:
104.2323 1. Where the contract contemplates overseas shipment and contains a term C.I.F. or C. & F. or F.O.B. vessel, the seller unless otherwise agreed must obtain a negotiable bill of lading stating that the goods have been loaded on board or, in the case of a term C.I.F. or C. & F., received for shipment.
2. Where in a case within subsection 1 a tangible bill of lading has been issued in a set of parts, unless otherwise agreed if the documents are not to be sent from abroad the buyer may demand tender of the full set; otherwise only one part of the bill of lading need be tendered. Even if the agreement expressly requires a full set:
(a) Due tender of a single part is acceptable within the provisions of this Article on cure of improper delivery (subsection 1 of NRS 104.2508); and
(b) Even though the full set is demanded, if the documents are sent from abroad the person tendering an incomplete set may nevertheless require payment upon furnishing an indemnity which the buyer in good faith deems adequate.
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payment upon furnishing an indemnity which the buyer in good faith deems adequate.
3. A shipment by water or by air or a contract contemplating such shipment is overseas insofar as by usage of trade or agreement it is subject to the commercial, financing or shipping practices characteristic of international deep water commerce.
Sec. 71. NRS 104.2401 is hereby amended to read as follows:
104.2401 Each provision of this Article with regard to the rights, obligations and remedies of the seller, the buyer, purchasers or other third parties applies irrespective of title to the goods except where the provision refers to such title. Insofar as situations are not covered by the other provisions of this Article and matters concerning title become material the following rules apply:
1. Title to goods cannot pass under a contract for sale prior to their identification to the contract (NRS 104.2501), and unless otherwise explicitly agreed the buyer acquires by their identification a special property as limited by this chapter. Any retention or reservation by the seller of the title (property) in goods shipped or delivered to the buyer is limited in effect to a reservation of a security interest. Subject to these provisions and to the provisions of the Article on secured transactions (Article 9), title to goods passes from the seller to the buyer in any manner and on any conditions explicitly agreed on by the parties.
2. Unless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods, despite any reservation of a security interest and even though a document of title is to be delivered at a different time or place; and in particular and despite any reservation of a security interest by the bill of lading:
(a) If the contract requires or authorizes the seller to send the goods to the buyer but does not require him to deliver them at destination, title passes to the buyer at the time and place of shipment; but
(b) If the contract requires delivery at destination, title passes on tender there.
3. Unless otherwise explicitly agreed where delivery is to be made without moving the goods:
(a) If the seller is to deliver a tangible document of title, title passes at the time when and the place where he delivers such documents [;] and if the seller is to deliver an electronic document of title, title passes when the seller delivers the document; or
(b) If the goods are at the time of contracting already identified and no documents of title are to be delivered, title passes at the time and place of contracting.
4. A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller. Such revesting occurs by operation of law and is not a sale.
Sec. 72. NRS 104.2503 is hereby amended to read as follows:
104.2503 1. Tender of delivery requires that the seller put and hold conforming goods at the buyers disposition and give the buyer any notification reasonably necessary to enable him to take delivery. The manner, time and place for tender are determined by the agreement and this Article, and in particular:
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(a) Tender must be at a reasonable hour, and if it is of goods they must be kept available for the period reasonably necessary to enable the buyer to take possession; but
(b) Unless otherwise agreed the buyer must furnish facilities reasonably suited to the receipt of the goods.
2. Where the case is within the next section respecting shipment tender requires that the seller comply with its provisions.
3. Where the seller is required to deliver at a particular destination tender requires that he comply with subsection 1 and also in any appropriate case tender documents as described in subsections 4 and 5 of this section.
4. Where goods are in the possession of a bailee and are to be delivered without being moved:
(a) Tender requires that the seller either tender a negotiable document of title covering such goods or procure acknowledgment by the bailee of the buyers right to possession of the goods; but
(b) Tender to the buyer of a nonnegotiable document of title or of a [written direction to] record directing the bailee to deliver is sufficient tender unless the buyer seasonably objects, and except as otherwise provided in Article 9, receipt by the bailee of notification of the buyers rights fixes those rights as against the bailee and all third persons; but risk of loss of the goods and of any failure by the bailee to honor the nonnegotiable document of title or to obey the direction remains on the seller until the buyer has had a reasonable time to present the document or direction, and a refusal by the bailee to honor the document or to obey the direction defeats the tender.
5. Where the contract requires the seller to deliver documents:
(a) He must tender all such documents in correct form, except as provided in this Article with respect to bills of lading in a set (subsection 2 of NRS 104.2323); and
(b) Tender through customary banking channels is sufficient and dishonor of a draft accompanying or associated with the documents constitutes nonacceptance or rejection.
Sec. 73. NRS 104.2505 is hereby amended to read as follows:
104.2505 1. Where the seller has identified goods to the contract by or before shipment:
(a) His procurement of a negotiable bill of lading to his own order or otherwise reserves in him a security interest in the goods. His procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the sellers expectation of transferring that interest to the person named.
(b) A nonnegotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection 2 of NRS 104.2507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control of the bill of lading.
2. When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the preceding section but impairs neither the rights given to the buyer by shipment and identification of the goods to the contract nor the sellers powers as a holder of a negotiable document [.] of title.
Sec. 74. NRS 104.2506 is hereby amended to read as follows:
104.2506 1. A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shippers right to have the draft honored by the buyer.
κ2005 Statutes of Nevada, Page 852 (CHAPTER 233, SB 201)κ
payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shippers right to have the draft honored by the buyer.
2. The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular . [on its face.]
Sec. 75. NRS 104.2509 is hereby amended to read as follows:
104.2509 1. Where the contract requires or authorizes the seller to ship the goods by carrier:
(a) If it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (NRS 104.2505); but
(b) If it does require him to deliver them at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the buyer when the goods are there duly so tendered as to enable the buyer to take delivery.
2. Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer:
(a) On his receipt of possession or control of a negotiable document of title covering the goods; or
(b) On acknowledgment by the bailee of the buyers right to possession of the goods; or
(c) After his receipt of possession or control of a nonnegotiable document of title or other [written] direction to deliver [,] in a record, as provided in paragraph (b) of subsection 4 of NRS 104.2503.
3. In any case not within subsection 1 or 2, the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant; otherwise the risk passes to the buyer on tender of delivery.
4. The provisions of this section are subject to contrary agreement of the parties and to the provisions of this Article on sale on approval (NRS 104.2327) and on effect of breach on risk of loss (NRS 104.2510).
Sec. 76. NRS 104.2605 is hereby amended to read as follows:
104.2605 1. The buyers failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes him from relying on the unstated defect to justify rejection or to establish breach:
(a) Where the seller could have cured it if stated seasonably; or
(b) Between merchants when the seller has after rejection made a request in writing for a full and final written statement of all defects on which the buyer proposes to rely.
2. Payment against documents made without reservation of rights precludes recovery of the payment for defects apparent [on the face of] in the documents.
Sec. 77. NRS 104.2705 is hereby amended to read as follows:
104.2705 1. The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be insolvent (NRS 104.2702) and may stop delivery of carload, truckload, planeload or larger shipments of express or freight when the buyer repudiates or fails to make a payment due before delivery or if for any other reason the seller has a right to withhold or reclaim the goods.
κ2005 Statutes of Nevada, Page 853 (CHAPTER 233, SB 201)κ
2. As against such buyer the seller may stop delivery until:
(a) Receipt of the goods by the buyer; or
(b) Acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer; or
(c) Such acknowledgment to the buyer by a carrier by reshipment or as [warehouseman;] a warehouse; or
(d) Negotiation to the buyer of any negotiable document of title covering the goods.
3. [(a)] To stop delivery the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
[(b)] After such notification the bailee must hold and deliver the goods according to the directions of the seller but the seller is liable to the bailee for any ensuing charges or damages.
[(c)] If a negotiable document of title has been issued for goods the bailee is not obligated to obey a notification to stop until surrender of possession or control of the document.
[(d)] A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
Sec. 78. NRS 104.3103 is hereby amended to read as follows:
104.3103 1. In this Article:
(a) Acceptor means a drawee who has accepted a draft.
(b) Drawee means a person ordered in a draft to make payment.
(c) Drawer means a person who signs or is identified in a draft as a person ordering payment.
(d) [Good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(e)] Maker means a person who signs or is identified in a note as a person undertaking to pay.
[(f)] (e) Order means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
[(g)] (f) Ordinary care in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which he is located, with respect to the business in which he is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate its prescribed procedures and its procedures do not vary unreasonably from general banking usage not disapproved by this Article or Article 4.
[(h)] (g) Party means a party to an instrument.
[(i)] (h) Promise means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.
[(j)] (i) Prove with respect to a fact means to meet the burden of establishing the fact [(subsection 8 of NRS 104.1201).
(k)] (paragraph (h) of subsection 2 of section 9 of this act).
κ2005 Statutes of Nevada, Page 854 (CHAPTER 233, SB 201)κ
(j) Remitter means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
2. Other definitions applying to this Article and the sections in which they appear are:
Acceptance. NRS 104.3409.
Accommodated party. NRS 104.3419.
Accommodation party. NRS 104.3419.
Alteration. NRS 104.3407.
Anomalous endorsement. NRS 104.3205.
Blank endorsement. NRS 104.3205.
Cashiers check. NRS 104.3104.
Certificate of deposit. NRS 104.3104.
Certified check. NRS 104.3409.
Check. NRS 104.3104.
Consideration. NRS 104.3303.
Draft. NRS 104.3104.
Endorsement. NRS 104.3204.
Endorser. NRS 104.3204.
Holder in due course. NRS 104.3302.
Incomplete instrument. NRS 104.3115.
Instrument. NRS 104.3104.
Issue. NRS 104.3105.
Issuer. NRS 104.3105.
Negotiable instrument. NRS 104.3104.
Negotiation. NRS 104.3201.
Note. NRS 104.3104.
Payable at a definite time. NRS 104.3108.
Payable on demand. NRS 104.3108.
Payable to bearer. NRS 104.3109.
Payable to order. NRS 104.3109.
Payment. NRS 104.3602.
Person entitled to enforce. NRS 104.3301.
Presentment. NRS 104.3501.
Reacquisition. NRS 104.3207.
Special endorsement. NRS 104.3205.
Tellers check. NRS 104.3104.
Transfer of instrument. NRS 104.3203.
Travelers check. NRS 104.3104.
Value. NRS 104.3303.
3. The following definitions in other Articles apply to this Article:
Bank. NRS 104.4105.
Banking day. NRS 104.4104.
Clearinghouse. NRS 104.4104.
Collecting bank. NRS 104.4105.
Customer. NRS 104.4104.
Depositary bank. NRS 104.4105.
Documentary draft. NRS 104.4104.
Intermediary bank. NRS 104.4105.
κ2005 Statutes of Nevada, Page 855 (CHAPTER 233, SB 201)κ
Item. NRS 104.4104.
Payor bank. NRS 104.4105.
Suspends payments. NRS 104.4104.
4. In addition Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
Sec. 79. NRS 104.4104 is hereby amended to read as follows:
104.4104 1. In this Article, unless the context otherwise requires:
(a) Account means any deposit or credit account with a bank including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit.
(b) Afternoon means the period of a day between noon and midnight.
(c) Banking day means that part of any day on which a bank is open to the public for carrying on substantially all of its banking functions.
(d) Clearinghouse means any association of banks or other payors regularly clearing items.
(e) Customer means any person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank.
(f) Documentary draft means a draft to be presented for acceptance or payment if specified documents, certificated securities or instructions for uncertificated securities, or other certificates, statements or the like are to be received by the drawee or other payor before acceptance or payment of the draft.
(g) Draft means a draft as defined in NRS 104.3104 or an item, other than an instrument, that is an order.
(h) Drawee means a person ordered in a draft to make payment.
(i) Item means an instrument or a promise or order to pay money handled by a bank for collection or payment. The term does not include a payment order governed by Article 4A or a credit or debit card slip.
(j) Midnight deadline with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from which the time for taking action commences to run, whichever is later.
(k) Settle means to pay in cash, by clearinghouse settlement, in a charge or credit or by remittance, or otherwise as instructed. A settlement may be either provisional or final.
(l) Suspends payments with respect to a bank means that it has been closed by order of the supervisory authorities, that a public officer has been appointed to take it over or that it ceases or refuses to make payments in the ordinary course of business.
2. Other definitions applying to this Article and the sections in which they appear are:
Agreement for electronic presentment. NRS 104.4110.
Bank. NRS 104.4105.
Collecting bank. NRS 104.4105.
Depositary bank. NRS 104.4105.
Intermediary bank. NRS 104.4105.
Payor bank. NRS 104.4105.
Presenting bank. NRS 104.4105.
Presentment notice. NRS 104.4110.
κ2005 Statutes of Nevada, Page 856 (CHAPTER 233, SB 201)κ
3. [The] Control as provided in section 30 of this act and the following definitions in other Articles apply to this Article:
Acceptance. NRS 104.3409.
Alteration. NRS 104.3407.
Cashiers check. NRS 104.3104.
Certificate of deposit. NRS 104.3104.
Certified check. NRS 104.3409.
Check. NRS 104.3104.
[Good faith. NRS 104.3103.]
Holder in due course. NRS 104.3302.
Instrument. NRS 104.3104.
Notice of dishonor. NRS 104.3503.
Order. NRS 104.3103.
Ordinary care. NRS 104.3103.
Person entitled to enforce. NRS 104.3301.
Presentment. NRS 104.3501.
Promise. NRS 104.3103.
Prove. NRS 104.3103.
Tellers check. NRS 104.3104.
Unauthorized signature. NRS 104.3403.
4. In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
Sec. 80. NRS 104.4210 is hereby amended to read as follows:
104.4210 1. A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
(a) In case of an item deposited in an account to the extent to which credit given for the item has been withdrawn or applied;
(b) In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or
(c) If it makes an advance on or against the item.
2. If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
3. Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. To the extent and so long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues and is subject to the provisions of Article 9 except that:
(a) No security agreement is necessary to make the security interest enforceable (subparagraph (1) of paragraph (c) of subsection 2 of NRS 104.9203);
(b) No filing is required to perfect the security interest; and
(c) The security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.
κ2005 Statutes of Nevada, Page 857 (CHAPTER 233, SB 201)κ
Sec. 81. NRS 104.5103 is hereby amended to read as follows:
104.5103 1. This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.
2. The statement of a rule in this Article does not by itself require, imply or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this Article.
3. Except as otherwise provided in this subsection, subsections 1 and 4 of this section, paragraphs (i) and (j) of subsection 1 of NRS 104.5102, subsection 4 of NRS 104.5106 and subsection 4 of NRS 104.5114, and except to the extent prohibited in [subsection 3 of NRS 104.1102 and] subsection 4 of NRS 104.5117 [,] and section 16 of this act, the effect of this Article may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this Article.
4. Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.
Sec. 82. NRS 104.8102 is hereby amended to read as follows:
104.8102 1. In this Article:
(a) Adverse claim means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, transfer or deal with the financial asset.
(b) Bearer form, as applied to a certificated security, means a form in which the security is payable to the bearer of the security certificate according to its terms but not by reason of an endorsement.
(c) Broker means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity.
(d) Certificated security means a security that is represented by a certificate.
(e) Clearing corporation means:
(1) A person that is registered as a clearing agency under the federal securities laws;
(2) A Federal Reserve bank; or
(3) Any other person that provides clearance or settlement with respect to financial assets that would require it to register as a clearing agency under the federal securities laws but for an exclusion or exemption from the requirement of registration, if its activities as a clearing corporation, including promulgation of rules, are subject to regulation by a federal or state governmental authority.
(f) Communicate means to:
(1) Send a signed writing; or
(2) Transmit information by any mechanism agreed upon by the persons transmitting and receiving the information.
(g) Endorsement means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring or redeeming the security or granting a power to assign, transfer or redeem it.
κ2005 Statutes of Nevada, Page 858 (CHAPTER 233, SB 201)κ
(h) Entitlement holder means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary. If a person acquires a security entitlement by virtue of paragraph (a) or (b) of subsection 2 of NRS 104.8501, he is the entitlement holder.
(i) Entitlement order means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement.
(j) Financial asset, except as otherwise provided in NRS 104.8103, means:
(1) A security;
(2) An obligation of a person or a share, participation or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment; or
(3) Any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset under this Article.
Κ As context requires, the term means the interest itself or the means by which a persons claim to it is evidenced, including a certificated or uncertificated security, a security certificate or a security entitlement.
(k) [Good faith, for purposes of the obligation of good faith in the performance or enforcement of contracts or duties within this Article, means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(l)] Instruction means a notification communicated to the issuer of an uncertificated security which directs that the transfer of the security be registered or that the security be redeemed.
[(m)] (l) Registered form, as applied to a certificated security, means a form in which:
(1) The security certificate specifies a person entitled to the security; and
(2) A transfer of the security may be registered upon books maintained for that purpose by or on behalf of the issuer, or the security certificate so states.
[(n)] (m) Securities intermediary means:
(1) A clearing corporation; or
(2) A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity.
[(o)] (n) Security, except as otherwise provided in NRS 104.8103, means an obligation of an issuer or a share, participation or other interest in an issuer or in property or an enterprise of an issuer:
(1) Which is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;
(2) Which is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests or obligations; and
(3) Which:
(I) Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or
κ2005 Statutes of Nevada, Page 859 (CHAPTER 233, SB 201)κ
(II) Is a medium for investment and by its terms expressly provides that it is a security governed by this Article.
[(p)] (o) Security certificate means a certificate representing a security.
[(q)] (p) Security entitlement means the rights and property interest of an entitlement holder with respect to a financial asset specified in part 5 of this Article.
[(r)] (q) Uncertificated security means a security that is not represented by a certificate.
2. Other definitions applying to this Article and the sections in which they appear are:
Appropriate person. NRS 104.8107.
Control. NRS 104.8106.
Delivery. NRS 104.8301.
Investment company security. NRS 104.8103.
Issuer. NRS 104.8201.
Overissue. NRS 104.8210.
Protected purchaser. NRS 104.8303.
Securities account. NRS 104.8501.
3. In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
4. The characterization of a person, business or transaction for purposes of this Article does not determine the characterization of the person, business or transaction for purposes of any other law, regulation or rule.
Sec. 83. NRS 104.8103 is hereby amended to read as follows:
104.8103 1. A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security.
2. An investment company security is a security. Investment company security means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered or a face-amount certificate issued by a face-amount certificate company that is so registered. The term does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.
3. An interest in a partnership or limited-liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this Article, or it is an investment company security. However, an interest in a partnership or limited-liability company is a financial asset if it is held in a securities account.
4. A writing that is a security certificate is governed by this Article and not by Article 3, even though it also meets the requirements of that Article. However, a negotiable instrument governed by Article 3 is a financial asset if it is held in a securities account.
5. An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.
6. A commodity contract, as defined in paragraph (o) of subsection 1 of NRS 104.9102, is not a security or a financial asset.
7. A document of title is not a financial asset unless subparagraph 3 of paragraph (j) of subsection 1 of NRS 104.8102 applies.
κ2005 Statutes of Nevada, Page 860 (CHAPTER 233, SB 201)κ
Sec. 84. NRS 104.9102 is hereby amended to read as follows:
104.9102 1. In this Article:
(a) Accession means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.
(b) Account, except as used in account for, means a right to payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of; for services rendered or to be rendered; for a policy of insurance issued or to be issued; for a secondary obligation incurred or to be incurred; for energy provided or to be provided; for the use or hire of a vessel under a charter or other contract; arising out of the use of a credit or charge card or information contained on or for use with the card; or as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state. The term includes health-care-insurance receivables. The term does not include rights to payment evidenced by chattel paper or an instrument; commercial tort claims; deposit accounts; investment property; letter-of-credit rights or letters of credit; or rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
(c) Account debtor means a person obligated on an account, chattel paper or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
(d) Accounting, except as used in accounting for, means a record:
(1) Authenticated by a secured party;
(2) Indicating the aggregate unpaid secured obligations as of a date not more than 35 days earlier or 35 days later than the date of the record; and
(3) Identifying the components of the obligations in reasonable detail.
(e) Agricultural lien means an interest, other than a security interest, in farm products:
(1) Which secures payment or performance of an obligation for:
(I) Goods or services furnished in connection with a debtors farming operation; or
(II) Rent on real property leased by a debtor in connection with its farming operation;
(2) Which is created by statute in favor of a person that:
(I) In the ordinary course of its business furnished goods or services to a debtor in connection with his farming operation; or
(II) Leased real property to a debtor in connection with his farming operation; and
(3) Whose effectiveness does not depend on the persons possession of the personal property.
(f) As-extracted collateral means:
(1) Oil, gas or other minerals that are subject to a security interest that:
(I) Is created by a debtor having an interest in the minerals before extraction; and
(II) Attaches to the minerals as extracted; or
κ2005 Statutes of Nevada, Page 861 (CHAPTER 233, SB 201)κ
(2) Accounts arising out of the sale at the wellhead or minehead of oil, gas or other minerals in which the debtor had an interest before extraction.
(g) Authenticate means:
(1) To sign; or
(2) To execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify himself and adopt or accept a record.
(h) Bank means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions and trust companies.
(i) Cash proceeds means proceeds that are money, checks, deposit accounts or the like.
(j) Certificate of title means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interests obtaining priority over the rights of a lien creditor with respect to the collateral.
(k) Chattel paper means a record or records that evidence both a monetary obligation and a security interest in or a lease of specific goods or of specific goods and software used in the goods, or a security interest in or a lease of specific goods and a license of software used in the goods. The term does not include charters or other contracts involving the use or hire of a vessel, or records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper. As used in this paragraph, monetary obligation means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods.
(l) Collateral means the property subject to a security interest or agricultural lien. The term includes:
(1) Proceeds to which a security interest attaches;
(2) Accounts, chattel paper, payment intangibles and promissory notes that have been sold; and
(3) Goods that are the subject of a consignment.
(m) Commercial tort claim means a claim arising in tort with respect to which:
(1) The claimant is an organization; or
(2) The claimant is a natural person and the claim:
(I) Arose in the course of his business or profession; and
(II) Does not include damages arising out of personal injury to or the death of a natural person.
(n) Commodity account means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer.
(o) Commodity contract means a commodity futures contract, an option on a commodity futures contract, a commodity option or another contract if the contract or option is:
(1) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
κ2005 Statutes of Nevada, Page 862 (CHAPTER 233, SB 201)κ
(2) Traded on a foreign commodity board of trade, exchange or market, and is carried on the books of a commodity intermediary for a commodity customer.
(p) Commodity customer means a person for which a commodity intermediary carries a commodity contract on its books.
(q) Commodity intermediary means a person that:
(1) Is registered as a futures commission merchant under federal commodities law; or
(2) In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.
(r) Communicate means:
(1) To send a written or other tangible record;
(2) To transmit a record by any means agreed upon by the persons sending and receiving the record; or
(3) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office rule.
(s) Consignee means a merchant to which goods are delivered in a consignment.
(t) Consignment means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:
(1) The merchant:
(I) Deals in goods of that kind under a name other than the name of the person making delivery;
(II) Is not an auctioneer; and
(III) Is not generally known by its creditors to be substantially engaged in selling the goods of others;
(2) With respect to each delivery, the aggregate value of the goods is $1,000 or more at the time of delivery;
(3) The goods are not consumer goods immediately before delivery; and
(4) The transaction does not create a security interest that secures an obligation.
(u) Consignor means a person that delivers goods to a consignee in a consignment.
(v) Consumer debtor means a debtor in a consumer transaction.
(w) Consumer goods means goods that are used or bought for use primarily for personal, family or household purposes.
(x) Consumer-goods transaction means a consumer transaction to the extent that:
(1) A natural person incurs an obligation primarily for personal, family or household purposes; and
(2) A security interest in consumer goods or in consumer goods and software that is held or acquired primarily for personal, family or household purposes secures the obligation.
(y) Consumer obligor means an obligor who is a natural person and who incurred the obligation as part of a transaction entered into primarily for personal, family or household purposes.
(z) Consumer transaction means a transaction to the extent that a natural person incurs an obligation primarily for personal, family or household purposes; a security interest secures the obligation; and the collateral is held or acquired primarily for personal, family or household purposes.
κ2005 Statutes of Nevada, Page 863 (CHAPTER 233, SB 201)κ
collateral is held or acquired primarily for personal, family or household purposes. The term includes consumer-goods transactions.
(aa) Continuation statement means a change of a financing statement which:
(1) Identifies, by its file number, the initial financing statement to which it relates; and
(2) Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.
(bb) Debtor means:
(1) A person having an interest, other than a security interest or other lien, in the collateral, whether or not he is an obligor;
(2) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(3) A consignee.
(cc) Deposit account means a demand, time, savings, passbook or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument.
(dd) Document means a document of title or a receipt of the type described in subsection 2 of [NRS 104.7201.] section 31 of this act.
(ee) Electronic chattel paper means chattel paper evidenced by a record or records consisting of information stored in an electronic medium.
(ff) Encumbrance means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.
(gg) Equipment means goods other than inventory, farm products or consumer goods.
(hh) Farm products means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are:
(1) Crops grown, growing or to be grown, including:
(I) Crops produced on trees, vines and bushes; and
(II) Aquatic goods produced in aquacultural operations;
(2) Livestock, born or unborn, including aquatic goods produced in aquacultural operations;
(3) Supplies used or produced in a farming operation; or
(4) Products of crops or livestock in their unmanufactured states.
(ii) Farming operation means raising, cultivating, propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.
(jj) File number means the number assigned to an initial financing statement pursuant to subsection 1 of NRS 104.9519.
(kk) Filing office means an office designated in NRS 104.9501 as the place to file a financing statement.
(ll) Filing-office rule means a rule adopted pursuant to NRS 104.9526.
(mm) Financing statement means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.
(nn) Fixture filing means the filing of a financing statement covering goods that are or are to become fixtures and satisfying subsections 1 and 2 of NRS 104.9502. The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.
(oo) Fixtures means goods that have become so related to particular real property that an interest in them arises under real property law.
(pp) General intangible means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas or other minerals before extraction.
κ2005 Statutes of Nevada, Page 864 (CHAPTER 233, SB 201)κ
accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas or other minerals before extraction. The term includes payment intangibles and software.
(qq) [Good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(rr)] Goods means all things that are movable when a security interest attaches. The term includes fixtures; standing timber that is to be cut and removed under a conveyance or contract for sale; the unborn young of animals; crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes; and manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if the program is associated with the goods in such a manner that it customarily is considered part of the goods, or by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas or other minerals before extraction.
[(ss)] (rr) Governmental unit means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
[(tt)] (ss) Health-care-insurance receivable means an interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.
[(uu)] (tt) Instrument means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary endorsement or assignment. The term does not include investment property, letters of credit or writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.
[(vv)] (uu) Inventory means goods, other than farm products, which:
(1) Are leased by a person as lessor;
(2) Are held by a person for sale or lease or to be furnished under a contract of service;
(3) Are furnished by a person under a contract of service; or
(4) Consist of raw materials, work in process, or materials used or consumed in a business.
[(ww)] (vv) Investment property means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account.
[(xx)] (ww) Jurisdiction of organization, with respect to a registered organization, means the jurisdiction under whose law the organization is organized.
[(yy)] (xx) Letter-of-credit right means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance.
κ2005 Statutes of Nevada, Page 865 (CHAPTER 233, SB 201)κ
demanded or is at the time entitled to demand payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.
[(zz)] (yy) Lien creditor means:
(1) A creditor that has acquired a lien on the property involved by attachment, levy or the like;
(2) An assignee for benefit of creditors from the time of assignment;
(3) A trustee in bankruptcy from the date of the filing of the petition; or
(4) A receiver in equity from the time of appointment.
[(aaa)] (zz) Manufactured home means a structure, transportable in one or more sections, which in the traveling mode, is 8 feet or more in body width or 40 feet or more in body length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning and electrical systems contained therein. The term includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.
[(bbb)] (aaa) Manufactured-home transaction means a secured transaction:
(1) That creates a purchase-money security interest in a manufactured home, other than a manufactured home held as inventory; or
(2) In which a manufactured home, other than a manufactured home held as inventory, is the primary collateral.
[(ccc)] (bbb) Mortgage means a consensual interest in real property, including fixtures, which is created by a mortgage, deed of trust, or similar transaction.
[(ddd)] (ccc) New debtor means a person that becomes bound as debtor under subsection 4 of NRS 104.9203 by a security agreement previously entered into by another person.
[(eee)] (ddd) New value means money; moneys worth in property, services or new credit; or release by a transferee of an interest in property previously transferred to the transferee. The term does not include an obligation substituted for another obligation.
[(fff)] (eee) Noncash proceeds means proceeds other than cash proceeds.
[(ggg)] (fff) Obligor means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, owes payment or other performance of the obligation, has provided property other than the collateral to secure payment or other performance of the obligation, or is otherwise accountable in whole or in part for payment or other performance of the obligation. The term does not include an issuer or a nominated person under a letter of credit.
[(hhh)] (ggg) Original debtor means, except as used in subsection 3 of NRS 104.9310, a person that, as debtor, entered into a security agreement to which a new debtor has become bound under subsection 4 of NRS 104.9203.
[(iii)] (hhh) Payment intangible means a general intangible under which the account debtors principal obligation is a monetary obligation.
κ2005 Statutes of Nevada, Page 866 (CHAPTER 233, SB 201)κ
[(jjj)] (iii) Person related to, with respect to a natural person, means:
(1) His spouse;
(2) His brother, brother-in-law, sister or sister-in-law;
(3) His or his spouses ancestor or lineal descendant; or
(4) Any other relative, by blood or marriage, of the person or his spouse who shares the same home with him.
[(kkk)] (jjj) Person related to, with respect to an organization, means:
(1) A person directly or indirectly controlling, controlled by or under common control with the organization;
(2) An officer or director of, or a person performing similar functions with respect to, the organization;
(3) An officer or director of, or a person performing similar functions with respect to, a person described in subparagraph (1);
(4) The spouse of a natural person described in subparagraph (1), (2) or (3); or
(5) A person who is related by blood or marriage to a person described in subparagraph (1), (2), (3) or (4) and shares the same home with that person.
[(lll)] (kkk) Proceeds means, except as used in subsection 2 of NRS 104.9609, the following property:
(1) Whatever is acquired upon the sale, lease, license, exchange or other disposition of collateral;
(2) Whatever is collected on, or distributed on account of, collateral;
(3) Rights arising out of collateral;
(4) To the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; and
(5) To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.
[(mmm)] (lll) Promissory note means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
[(nnn)] (mmm) Proposal means a record authenticated by a secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to NRS 104.9620, 104.9621 and 104.9622.
[(ooo)] (nnn) Public-finance transaction means a secured transaction in connection with which:
(1) Debt securities are issued;
(2) All or a portion of the securities issued have an initial stated maturity of at least 20 years; and
(3) The debtor, the obligor, the secured party, the account debtor or other person obligated on collateral, the assignor or assignee of a secured obligation, or the assignor or assignee of a security interest is a state or a governmental unit of a state.
[(ppp)] (ooo) Pursuant to commitment, with respect to an advance made or other value given by a secured party, means pursuant to the secured partys obligation, whether or not a subsequent event of default or other event not within the secured partys control has relieved or may relieve the secured party from its obligation.
κ2005 Statutes of Nevada, Page 867 (CHAPTER 233, SB 201)κ
event not within the secured partys control has relieved or may relieve the secured party from its obligation.
[(qqq)] (ppp) Record, except as used in for record, of record, record or legal title, and record owner, means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.
[(rrr)] (qqq) Registered organization means an organization organized solely under the law of a single state or the United States and as to which the state or the United States must maintain a public record showing the organization to have been organized.
[(sss)] (rrr) Secondary obligor means an obligor to the extent that:
(1) The obligors obligation is secondary; or
(2) The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor or property of either.
[(ttt)] (sss) Secured party means:
(1) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(2) A person that holds an agricultural lien;
(3) A consignor;
(4) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(5) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(6) A person that holds a security interest arising under NRS 104.2401, 104.2505, subsection 3 of NRS 104.2711, NRS 104.4210, 104.5118 or subsection 5 of NRS 104A.2508.
[(uuu)] (ttt) Security agreement means an agreement that creates or provides for a security interest.
[(vvv)] (uuu) Send, in connection with a record or notification, means:
(1) To deposit in the mail, deliver for transmission or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or
(2) To cause the record or notification to be received within the time that it would have been received if properly sent under subparagraph (1).
[(www)] (vvv) Software means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is contained in goods unless the goods are a computer or computer peripheral.
[(xxx)] (www) State means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
[(yyy)] (xxx) Supporting obligation means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, document, general intangible, instrument or investment property.
[(zzz)] (yyy) Tangible chattel paper means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.
κ2005 Statutes of Nevada, Page 868 (CHAPTER 233, SB 201)κ
[(aaaa)] (zzz) Termination statement means a subsequent filing which:
(1) Identifies, by its file number, the initial financing statement to which it relates; and
(2) Indicates either that it is a termination statement or that the identified financing statement is no longer effective.
[(bbbb)] (aaaa) Transmitting utility means a person primarily engaged in the business of:
(1) Operating a railroad, subway, street railway or trolley bus;
(2) Transmitting communications electrically, electromagnetically or by light;
(3) Transmitting goods by pipeline;
(4) Providing sewerage; or
(5) Transmitting or producing and transmitting electricity, steam, gas or water.
2. [The] Control as provided in section 30 of this act and the following definitions in other Articles apply to this Article:
Applicant. NRS 104.5102.
Beneficiary. NRS 104.5102.
Broker. NRS 104.8102.
Certificated security. NRS 104.8102.
Check. NRS 104.3104.
Clearing corporation. NRS 104.8102.
Contract for sale. NRS 104.2106.
Customer. NRS 104.4104.
Entitlement holder. NRS 104.8102.
Financial asset. NRS 104.8102.
Holder in due course. NRS 104.3302.
[Issuer.] Issuer (with respect to a letter of credit or letter-of-credit right). NRS 104.5102.
Issuer (with respect to a security). NRS 104.8201.
Issuer (with respect to documents of title). Section 26 of this act.
Lease. NRS 104A.2103.
Lease agreement. NRS 104A.2103.
Lease contract. NRS 104A.2103.
Leasehold interest. NRS 104A.2103.
Lessee. NRS 104A.2103.
Lessee in ordinary course of business. NRS 104A.2103.
Lessor. NRS 104A.2103.
Lessors residual interest. NRS 104A.2103.
Letter of credit. NRS 104.5102.
Merchant. NRS 104.2104.
Negotiable instrument. NRS 104.3104.
Nominated person. NRS 104.5102.
Note. NRS 104.3104.
Proceeds of a letter of credit. NRS 104.5114.
Prove. NRS 104.3103.
Sale. NRS 104.2106.
Securities account. NRS 104.8501.
Securities intermediary. NRS 104.8102.
Security. NRS 104.8102.
Security certificate. NRS 104.8102.
κ2005 Statutes of Nevada, Page 869 (CHAPTER 233, SB 201)κ
Security entitlement. NRS 104.8102.
Uncertificated security. NRS 104.8102.
3. Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
Sec. 85. NRS 104.9203 is hereby amended to read as follows:
104.9203 1. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.
2. Except as otherwise provided in subsections 3 to 9, inclusive, a security interest is enforceable against the debtor and third parties with respect to the collateral only if:
(a) Value has been given;
(b) The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and
(c) One of the following conditions is met:
(1) The debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;
(2) The collateral is not a certificated security and is in the possession of the secured party under NRS 104.9313 pursuant to the debtors security agreement;
(3) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under NRS 104.8301 pursuant to the debtors security agreement; or
(4) The collateral is deposit accounts, electronic chattel paper, investment property , [or] letter-of-credit rights [,] or electronic documents, and the secured party has control under NRS 104.9104, 104.9105, 104.9106 or 104.9107 or section 30 of this act pursuant to the debtors security agreement.
3. Subsection 2 is subject to NRS 104.4210 on the security interest of a collecting bank, NRS 104.5118 on the security interest of a letter-of-credit issuer or nominated person, NRS 104.9110 on a security interest arising under Article 2 or 2A, and NRS 104.9206 on security interests in investment property.
4. A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than this Article or by contract:
(a) The security agreement becomes effective to create a security interest in his property; or
(b) He becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.
5. If a new debtor becomes bound as debtor by a security agreement entered into by another person:
(a) The agreement satisfies paragraph (c) of subsection 2 with respect to existing or after-acquired property of the new debtor to the extent the property is described in the agreement; and
(b) Another agreement is not necessary to make a security interest in the property enforceable.
κ2005 Statutes of Nevada, Page 870 (CHAPTER 233, SB 201)κ
6. The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by NRS 104.9315 and is also attachment of a security interest in a supporting obligation for the collateral.
7. The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or real property is also attachment of a security interest in the security interest, mortgage or other lien.
8. The attachment of a security interest in a securities account is also attachment of a security interest in the security entitlements carried in the securities account.
9. The attachment of a security interest in a commodity account is also attachment of a security interest in the commodity contracts carried in the commodity account.
Sec. 85.5. NRS 104.9207 is hereby amended to read as follows:
104.9207 1. Except as otherwise provided in subsection 4, a secured party shall use reasonable care in the custody and preservation of collateral in the secured partys possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
2. Except as otherwise provided in subsection 4, if a secured party has possession of collateral:
(a) Reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(b) The risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;
(c) The secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and
(d) The secured party may use or operate the collateral:
(1) For the purpose of preserving the collateral or its value;
(2) As permitted by an order of a court having competent jurisdiction; or
(3) Except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
3. Except as otherwise provided in subsection 4, a secured party having possession of collateral or control of collateral under NRS 104.9104, 104.9105, 104.9106 or 104.9107 [:] or section 30 of this act:
(a) May hold as additional security any proceeds, except money or funds, received from the collateral;
(b) Shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and
(c) May create a security interest in the collateral.
4. If the secured party is a buyer of accounts, chattel paper, payment intangibles or promissory notes or a consignor:
(a) Subsection 1 does not apply unless the secured party is entitled under an agreement:
(1) To charge back uncollected collateral; or
(2) Otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(b) Subsections 2 and 3 do not apply.
κ2005 Statutes of Nevada, Page 871 (CHAPTER 233, SB 201)κ
Sec. 86. NRS 104.9208 is hereby amended to read as follows:
104.9208 If there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations or otherwise give value, within 10 days after receiving an authenticated demand by the debtor:
1. A secured party having control of a deposit account under paragraph (b) of subsection 1 of NRS 104.9104 shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
2. A secured party having control of a deposit account under paragraph (c) of subsection 1 of NRS 104.9104 shall:
(a) Pay the debtor the balance on deposit in the deposit account; or
(b) Transfer the balance on deposit into a deposit account in the debtors name;
3. A secured party, other than a buyer, having control of electronic chattel paper under NRS 104.9105 shall:
(a) Communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;
(b) If the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(c) Take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
4. A secured party having control of investment property under paragraph (b) of subsection 4 of NRS 104.8106 or under subsection 2 of NRS 104.9106 shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party; [and]
5. A secured party having control of a letter-of-credit right under NRS 104.9107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party [.] ; and
6. A secured party having control of an electronic document shall:
(a) Give control of the electronic document to the debtor or its designated custodian;
(b) If the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(c) Take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party.
κ2005 Statutes of Nevada, Page 872 (CHAPTER 233, SB 201)κ
add or change an identified assignee of the authoritative copy without the consent of the secured party.
Sec. 87. NRS 104.9301 is hereby amended to read as follows:
104.9301 Except as otherwise provided in NRS 104.9303 to 104.9306, inclusive, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:
1. Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
2. While collateral is located in a jurisdiction, the law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
3. Except as otherwise provided in subsections 4, 5 and 6, while tangible negotiable documents, goods, instruments, money or tangible chattel paper is located in a jurisdiction, the law of that jurisdiction governs the effect of perfection or nonperfection, and the priority of a nonpossessory security interest.
4. While goods are located in a jurisdiction, the law of that jurisdiction governs perfection of a security interest in the goods by a fixture filing.
5. The law of the jurisdiction in which timber to be cut is located governs perfection of a security interest in the timber.
6. The law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
Sec. 88. NRS 104.9310 is hereby amended to read as follows:
104.9310 1. Except as otherwise provided in subsection 2 or subsection 2 of NRS 104.9312, a financing statement must be filed to perfect all security interests and agricultural liens.
2. The filing of a financing statement is not necessary to perfect a security interest:
(a) That is perfected under subsection 4, 5, 6 or 7 of NRS 104.9308;
(b) That is perfected under NRS 104.9309 when it attaches;
(c) In property subject to a statute, regulation or treaty described in subsection 1 of NRS 104.9311;
(d) In goods in possession of a bailee which is perfected under paragraph (a) or (b) of subsection 4 of NRS 104.9312;
(e) In certificated securities, documents, goods or instruments which is perfected without filing , control or possession under subsection 5, 6 or 7 of NRS 104.9312;
(f) In collateral in the secured partys possession under NRS 104.9313;
(g) In a certificated security which is perfected by delivery of the security certificate to the secured party under NRS 104.9313;
(h) In deposit accounts, electronic chattel paper, electronic documents, investment property or letter-of-credit rights which is perfected by control under NRS 104.9314;
(i) In proceeds which is perfected under NRS 104.9315; or
(j) That is perfected under NRS 104.9316.
3. If a secured party assigns a perfected security interest or agricultural lien, a filing under this Article is not required to reconfirm the perfected status of the security interest against creditors of and transferees from the original debtor.
κ2005 Statutes of Nevada, Page 873 (CHAPTER 233, SB 201)κ
status of the security interest against creditors of and transferees from the original debtor.
Sec. 89. NRS 104.9312 is hereby amended to read as follows:
104.9312 1. A security interest in chattel paper, negotiable documents, instruments or investment property may be perfected by filing.
2. Except as otherwise provided in subsections 3 and 4 of NRS 104.9315 for proceeds:
(a) A security interest in a deposit account may be perfected only by control under NRS 104.9314;
(b) A security interest in a letter-of-credit right may be perfected only by control under NRS 104.9314, except as otherwise provided in subsection 4 of NRS 104.9308; and
(c) A security interest in money may be perfected only by the secured partys taking possession under NRS 104.9313.
3. While goods are in the possession of a bailee that has issued a negotiable document covering the goods:
(a) A security interest in the goods may be perfected by perfecting a security interest in the document; and
(b) A security interest perfected in the document has priority over any security interest that becomes perfected in the goods by another method during that time.
4. While goods are in the possession of a bailee that has issued a nonnegotiable document covering the goods, a security interest in the goods may be perfected by:
(a) Issuance of a document in the name of the secured party;
(b) The bailees receipt of notification of the secured partys interest; or
(c) Filing as to the goods.
5. A security interest in certificated securities, negotiable documents or instruments is perfected without filing or the taking of possession or control for a period of 20 days after the time it attaches to the extent that it arises for new value given under an authenticated security agreement.
6. A perfected security interest in a negotiable document or goods in possession of a bailee, other than one that has issued a negotiable document for the goods, remains perfected for 20 days without filing if the secured party makes available to the debtor the goods or documents representing the goods for the purpose of:
(a) Ultimate sale or exchange; or
(b) Loading, unloading, storing, shipping, transshipping, manufacturing, processing or otherwise dealing with them in a manner preliminary to their sale or exchange.
7. A perfected security interest in a certificated security or instrument remains perfected for 20 days without filing if the secured party delivers the security certificate or instrument to the debtor for the purpose of:
(a) Ultimate sale or exchange; or
(b) Presentation, collection, enforcement, renewal or registration of transfer.
8. After the 20-day period specified in subsection 5, 6 or 7 expires, perfection depends upon compliance with this Article.
Sec. 90. NRS 104.9313 is hereby amended to read as follows:
104.9313 1. Except as otherwise provided in subsection 2, a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money or tangible chattel paper by taking possession of the collateral.
κ2005 Statutes of Nevada, Page 874 (CHAPTER 233, SB 201)κ
the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under NRS 104.8301.
2. With respect to goods covered by a certificate of title issued by this State, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in subsection 5 of NRS 104.9316.
3. With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party or a lessee of the collateral from the debtor in the ordinary course of the debtors business, when:
(a) The person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured partys benefit; or
(b) The person takes possession of the collateral after having authenticated a record acknowledging that it will hold possession of collateral for the secured partys benefit.
4. If perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs no earlier than the time the secured party takes possession and continues only while he retains possession.
5. A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under NRS 104.8301 and remains perfected by delivery until the debtor obtains possession of the security certificate.
6. A person in possession of collateral is not required to acknowledge that it holds possession for a secured partys benefit.
7. If a person acknowledges that it holds possession for the secured partys benefit:
(a) The acknowledgment is effective under subsection 3 or subsection 1 of NRS 104.8301, even if the acknowledgment violates the rights of a debtor; and
(b) Unless the person otherwise agrees or law other than this Article otherwise provides, he does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.
8. A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtors business if he was instructed before the delivery or is instructed contemporaneously with the delivery:
(a) To hold possession of the collateral for the secured partys benefit; or
(b) To redeliver the collateral to the secured party.
9. A secured party does not relinquish possession, even if a delivery under subsection 8 violates the rights of a debtor. A person to which collateral is delivered under subsection 8 does not owe any duty to the secured party and is not required to confirm the delivery to another person unless he otherwise agrees or law other than this Article otherwise provides.
Sec. 91. NRS 104.9314 is hereby amended to read as follows:
104.9314 1. A security interest in investment property, deposit accounts, letter-of-credit rights , [or] electronic chattel paper or electronic documents may be perfected by control of the collateral under NRS 104.9104, 104.9105, 104.9106 or 104.9107 [.] or section 30 of this act.
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2. A security interest in deposit accounts, letter-of-credit rights, electronic chattel paper or [letter-of-credit rights] electronic documents is perfected by control under NRS 104.9104, 104.9105 or 104.9107 or section 30 of this act when the secured party obtains control and remains perfected by control only while the secured party retains control.
3. A security interest in investment property is perfected by control under NRS 104.9106 from the time the secured party obtains control and remains perfected by control until:
(a) The secured party does not have control; and
(b) One of the following occurs:
(1) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(2) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(3) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
Sec. 92. NRS 104.9317 is hereby amended to read as follows:
104.9317 1. A security interest or agricultural lien is subordinate to the rights of:
(a) A person entitled to priority under NRS 104.9322; and
(b) A person that becomes a lien creditor before the earlier of the time:
(1) The security interest or agricultural lien is perfected; or
(2) One of the conditions specified in paragraph (c) of subsection 2 of NRS 104.9203 is met and a financing statement covering the collateral is filed.
2. Except as otherwise provided in subsection 5, a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a security certificate takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
3. Except as otherwise provided in subsection 5, a lessee of goods takes free of a security interest or agricultural lien if he gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
4. A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles or investment property other than a certificated security takes free of a security interest if he gives value without knowledge of the security interest and before it is perfected.
5. Except as otherwise provided in NRS 104.9320 and 104.9321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee or lien creditor which arise between the time the security interest attaches and the time of filing.
Sec. 93. NRS 104.9338 is hereby amended to read as follows:
104.9338 If a security interest or agricultural lien is perfected by a filed financing statement providing information described in paragraph (e) of subsection 2 of NRS 104.9516 which is incorrect at the time the financing statement is filed:
κ2005 Statutes of Nevada, Page 876 (CHAPTER 233, SB 201)κ
1. The security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
2. A purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments or a security certificate, receives delivery of the collateral.
Sec. 94. NRS 104.9601 is hereby amended to read as follows:
104.9601 1. After default, a secured party has the rights provided in this part and, except as otherwise provided in NRS 104.9602, those provided by agreement of the parties. A secured party:
(a) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
(b) If the collateral is documents, may proceed either as to the documents or as to the goods they cover.
2. A secured party in possession of collateral or control of collateral under NRS 104.9104, 104.9105, 104.9106 or 104.9107 or section 30 of this act has the rights and duties provided in NRS 104.9207.
3. The rights under subsections 1 and 2 are cumulative and may be exercised simultaneously.
4. Except as otherwise provided in subsection 7 and NRS 104.9605, after default, a debtor and an obligor have the rights provided in this part and by agreement of the parties.
5. If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
(a) The date of perfection of the security interest or agricultural lien in the collateral;
(b) The date of filing a financing statement covering the collateral; or
(c) Any date specified in a statute under which the agricultural lien was created.
6. A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this Article.
7. Except as otherwise provided in subsection 3 of NRS 104.9607, this part imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles or promissory notes.
Sec. 95. NRS 104A.010 is hereby amended to read as follows:
104A.010 1. The provisions of [NRS 104.1101 to 104.1208, inclusive,] sections 2 to 24, inclusive, of this act apply to this chapter as if the provisions of this chapter were included in chapter 104 of NRS.
2. Unless limited by specific statute, a reference in NRS to the Uniform Commercial Code or to chapter 104 of NRS shall be deemed to refer to chapter 104 of NRS together with this chapter.
Sec. 96. NRS 104A.2103 is hereby amended to read as follows:
104A.2103 1. In this Article unless the context otherwise requires:
(a) Buyer in ordinary course of business means a person who, in good faith and without knowledge that the sale to him is in violation of the ownership, rights or security interest or leasehold interest of a third party in the goods buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker.
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ownership, rights or security interest or leasehold interest of a third party in the goods buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. Buying may be for cash or by exchange of other property or on secured or unsecured credit and includes [receiving] acquiring goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
(b) Cancellation occurs when either party puts an end to the lease contract for default by the other party.
(c) Commercial unit means such a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. A commercial unit may be a single Article, as a machine, or a set of Articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole.
(d) Conforming goods or performance under a lease contract means goods or performance that are in accordance with the obligations under the lease contract.
(e) Consumer lease means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is a natural person and who takes under the lease primarily for a personal, family or household purpose.
(f) Fault means wrongful act, omission, breach or default.
(g) Finance lease means a lease with respect to which:
(1) The lessor does not select, manufacture or supply the goods;
(2) The lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and
(3) One of the following occurs:
(I) The lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;
(II) The lessees approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;
(III) The lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or
(IV) If the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, that the lessee is entitled under this Article to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.
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an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.
(h) Goods means all things that are movable at the time of identification to the lease contract, or are fixtures (NRS 104A.2309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. The term also includes the unborn young of animals.
(i) Installment lease contract means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains a clause each delivery is a separate lease or its equivalent.
(j) Lease means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. Unless the context clearly indicates otherwise, the term includes a sublease.
(k) Lease agreement means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this Article. Unless the context clearly indicates otherwise, the term includes a sublease agreement.
(l) Lease contract means the total legal obligation that results from the lease agreement as affected by this Article and any other applicable rules of law. Unless the context clearly indicates otherwise, the term includes a sublease contract.
(m) Leasehold interest means the interest of the lessor or the lessee under a lease contract.
(n) Lessee means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.
(o) Lessee in ordinary course of business means a person who in good faith and without knowledge that the lease to him is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. Leasing may be for cash or by exchange of other property or on secured or unsecured credit and includes [receiving] acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
(p) Lessor means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.
(q) Lessors residual interest means the lessors interest in the goods after expiration, termination or cancellation of the lease contract.
(r) Lien means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest.
(s) Lot means a parcel or a single Article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract.
(t) Merchant lessee means a lessee that is a merchant with respect to goods of the kind subject to the lease.
κ2005 Statutes of Nevada, Page 879 (CHAPTER 233, SB 201)κ
(u) Present value means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case at the time the transaction was entered into.
(v) Purchase includes taking by sale, lease, mortgage, security interest, pledge, gift or any other voluntary transaction creating an interest in goods.
(w) Sublease means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease.
(x) Supplier means a person from whom a lessor buys or leases goods to be leased under a finance lease.
(y) Supply contract means a contract under which a lessor buys or leases goods to be leased.
(z) Termination occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.
2. Other definitions applying to this Article and the sections in which they appear are:
Accessions. NRS 104A.2310.
Construction mortgage. NRS 104A.2309.
Encumbrance. NRS 104A.2309.
Fixtures. NRS 104A.2309.
Fixture filing. NRS 104A.2309.
Purchase money lease. NRS 104A.2309.
3. The following definitions in other Articles apply to this Article:
Account. NRS 104.9102.
Between merchants. NRS 104.2104.
Buyer. NRS 104.2103.
Chattel paper. NRS 104.9102.
Consumer goods. NRS 104.9102.
Document. NRS 104.9102.
Entrusting. NRS 104.2403.
General intangible. NRS 104.9102.
[Good faith. NRS 104.2103.]
Instrument. NRS 104.9102.
Merchant. NRS 104.2104.
Mortgage. NRS 104.9102.
Pursuant to commitment. NRS 104.9102.
Receipt. NRS 104.2103.
Sale. NRS 104.2106.
Sale on approval. NRS 104.2326.
Sale or return. NRS 104.2326.
Seller. NRS 104.2103.
4. In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
κ2005 Statutes of Nevada, Page 880 (CHAPTER 233, SB 201)κ
Sec. 97. NRS 104A.2501 is hereby amended to read as follows:
104A.2501 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 remedies as provided in this Article and, except as limited by this Article, as provided in the lease agreement.
3. If the lessor or the lessee is in default under the lease contract, the party seeking enforcement may reduce the partys claim to judgment, or otherwise enforce the lease contract by self-help or any available judicial procedure or nonjudicial procedure, including an administrative proceeding, arbitration or the like, in accordance with this Article.
4. Except as otherwise provided in subsection 1 of [NRS 104.1106] section 19 of this act or this Article or the lease agreement, the rights and remedies referred to in subsections 2 and 3 are cumulative.
5. If the lease agreement covers both real property and goods, the party seeking enforcement may proceed under this part as to the goods, or under other applicable law as to both the real property and the goods in accordance with his rights and remedies in respect of the real property, in which case this part does not apply.
Sec. 98. NRS 104A.2514 is hereby amended to read as follows:
104A.2514 1. In rejecting goods, a lessees 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 seasonably, the lessor or the supplier could have cured it (NRS 104A.2513); or
(b) Between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
2. A lessees failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent [on the face of] in the documents.
Sec. 99. NRS 104A.2518 is hereby amended to read as follows:
104A.2518 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 lease goods in substitution for those due from the lessor.
2. 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 104A.2503 and [subsection 3 of NRS 104.1102),] section 16 of this act), if a lessees cover is by lease agreement substantially similar to the original lease agreement and the lease agreement is made in good faith and in a commercially reasonable manner, the lessee may recover from the lessor as damages:
(a) The present value, as of the date of the commencement of the term of the new lease agreement, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement minus the present value as of the same date of the total rent for the remaining lease term of the original lease agreement; and
(b) Any incidental or consequential damages less expenses saved in consequence of the lessors default.
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3. If a lessees cover is by lease agreement that for any reason does not qualify for treatment under subsection 2, or is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover and NRS 104A.2519 governs.
Sec. 100. NRS 104A.2519 is hereby amended to read as follows:
104A.2519 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 [(subsection 3 of NRS 104.1102 and NRS 104A.2503),] (NRS 104A.2503 and section 16 of this act), if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify for treatment under subsection 2 of NRS 104A.2518, or is by purchase or otherwise, the measure of damages for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee is the present value, as of the date of the default, of the then market rent minus the present value as of the same date of the original rent, computed for the remaining lease term of the original lease agreement, together with incidental and consequential damages, less expenses saved in consequence of the lessors default.
2. Market rent is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
3. Except as otherwise agreed, if the lessee has accepted goods and given notification (subsection 3 of NRS 104A.2516), the measure of damages for nonconforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessors default as determined in any manner that is reasonable together with incidental and consequential damages, less expenses saved in consequence of the lessors default.
4. Except as otherwise agreed, the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, unless special circumstances show proximate damages of a different amount, together with incidental and consequential damages, less expenses saved in consequence of the lessors default or breach of warranty.
Sec. 101. NRS 104A.2526 is hereby amended to read as follows:
104A.2526 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 of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
2. In pursuing its remedies under subsection 1, the lessor may stop delivery until:
(a) Receipt of the goods by the lessee;
(b) Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c) Such an acknowledgment to the lessee by a carrier via reshipment or as [warehouseman.
3. (a)] a warehouse.
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3. To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
[(b)] After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
[(c)] A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
Sec. 102. NRS 104A.2527 is hereby amended to read as follows:
104A.2527 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 104A.2526), or, if agreed, after other default by the lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale or otherwise.
2. 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 [(subsection 3 of NRS 104.1102 and NRS 104A.2503),] (NRS 104A.2503 and section 16 of this act), if the disposition is by lease agreement substantially similar to the original lease agreement and the lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages:
(a) Accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement;
(b) The present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement; and
(c) Any incidental damages allowed under NRS 104A.2530,
Κ less expenses saved in consequence of the lessees default.
3. If the lessors disposition is by lease agreement that for any reason does not qualify for treatment under subsection 2, or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and NRS 104A.2528 governs.
4. A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this Article.
5. The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessees security interest (subsection 5 of NRS 104A.2508).
Sec. 103. NRS 104A.2528 is hereby amended to read as follows:
104A.2528 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 [(subsection 3 of NRS 104.1102 and NRS 104A.2503),] (NRS 104A.2503 and section 16 of this act), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under subsection 2 of NRS 104A.2527, or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in subsection 1 or paragraph (a) of subsection 3 of NRS 104A.2523, or, if agreed, for other default of the lessee:
κ2005 Statutes of Nevada, Page 883 (CHAPTER 233, SB 201)κ
the lessor may recover from the lessee as damages for a default of the type described in subsection 1 or paragraph (a) of subsection 3 of NRS 104A.2523, or, if agreed, for other default of the lessee:
(a) Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
(b) The present value as of the date determined under paragraph (a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term; and
(c) Any incidental damages allowed under NRS 104A.2530, less expenses saved in consequence of the lessees default.
2. If the measure of damages provided in subsection 1 is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under NRS 104A.2530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
Sec. 104. NRS 104A.4105 is hereby amended to read as follows:
104A.4105 1. In this Article:
(a) Authorized account means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.
(b) Bank means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of this Article.
(c) Customer means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.
(d) Funds-transfer business day of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing and transmittal of payment orders and cancellations and amendments of payment orders.
(e) Funds-transfer system means a wire transfer network, automated clearing house, or other communication system of a clearing house or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.
(f) [Good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(g)] Prove with respect to a fact means to meet the burden of establishing the fact [(subsection 8 of NRS 104.1201).] (paragraph (h) of subsection 2 of section 9 of this act).
2. Other definitions applying to this Article and the sections in which they appear are:
Acceptance. NRS 104A.4209.
Beneficiary. NRS 104A.4103.
κ2005 Statutes of Nevada, Page 884 (CHAPTER 233, SB 201)κ
Beneficiarys bank. NRS 104A.4103.
Executed. NRS 104A.4301.
Execution date. NRS 104A.4301.
Funds transfer. NRS 104A.4104.
Funds-transfer system rule. NRS 104A.4501.
Intermediary bank. NRS 104A.4104.
Originator. NRS 104A.4104.
Originators bank. NRS 104A.4104.
Payment by beneficiarys bank to beneficiary. NRS 104A.4405.
Payment by originator to beneficiary. NRS 104A.4406.
Payment by sender to receiving bank. NRS 104A.4403.
Payment date. NRS 104A.4401.
Payment order. NRS 104A.4103.
Receiving bank. NRS 104A.4103.
Security procedure. NRS 104A.4201.
Sender. NRS 104A.4103.
3. The following definitions in Article 4 apply to this Article:
Clearing house. NRS 104.4104.
Item. NRS 104.4104.
Suspends payments. NRS 104.4104.
4. In addition Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
Sec. 105. NRS 104A.4106 is hereby amended to read as follows:
104A.4106 1. The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in [subsection 27 of NRS 104.1201.] section 10 of this act. A receiving bank may fix a cutoff time or times of a funds-transfer business day for the receipt and processing of payment orders and communications cancelling or amending payment orders. Different cutoff times may apply to payment orders, cancellations or amendments, or to different categories of payment orders, cancellations or amendments. A cutoff time may apply to senders generally or different cutoff times may apply to different senders or categories of payment orders. If a payment order or communication cancelling or amending a payment order is received after the close of a funds-transfer business day or after the appropriate cutoff time on a funds-transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds-transfer business day.
2. If this Article refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business day is treated as the date or day stated, unless the contrary is stated in this Article.
Sec. 106. NRS 104A.4204 is hereby amended to read as follows:
104A.4204 1. If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer under NRS 104A.4202, or not enforceable, in whole or in part, against the customer under NRS 104A.4203, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund.
κ2005 Statutes of Nevada, Page 885 (CHAPTER 233, SB 201)κ
extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if he fails to exercise ordinary care to determine that the order was not authorized by him and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date he received notification from the bank that the order was accepted or that his account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by him to give notification as stated in this section.
2. Reasonable time under subsection 1 may be fixed by agreement as stated in subsection [1 of NRS 104.1204,] 2 of section 16 of this act, but the obligation of a receiving bank to refund payment as stated in subsection 1 may not otherwise be varied by agreement.
Sec. 107. NRS 108.475 is hereby amended to read as follows:
108.475 1. A person shall not use a facility for a residence. The owner of such a facility shall evict any person who uses the facility as a residence in the manner provided for in NRS 40.760.
2. A facility shall not be deemed to be a warehouse or a public utility.
3. If an owner of a facility issues a warehouse receipt, bill of lading or other document of title for the personal property stored in the facility, the owner and occupant are subject to the provisions of [NRS 104.7101 to 104.7603,] sections 25 to 65, inclusive, of this act, and the provisions of NRS 108.473 to 108.4783, inclusive, do not apply.
Sec. 108. NRS 597.020 is hereby amended to read as follows:
597.020 1. A lease agreement with an option to purchase which complies with the provisions of NRS 597.010 to 597.110, inclusive, is exempt from the provisions of law governing:
(a) A security interest as defined in [NRS 104.1201.] section 9 of this act.
(b) A door-to-door sale as defined in NRS 598.180.
(c) The sale of consumer goods as defined in NRS 104.9102.
2. The provisions of NRS 597.010 to 597.110, inclusive, do not apply to:
(a) A lease agreement with an option to purchase entered into primarily for business, commercial or agricultural purposes.
(b) A lease agreement with an option to purchase made with any governmental agency.
(c) The lease of a safe deposit box.
(d) A lease or bailment of personal property which is incidental to the lease of real property and which does not provide the customer with an option to purchase the leased property.
(e) The lease of a motor vehicle.
Sec. 109. NRS 719.200 is hereby amended to read as follows:
719.200 1. Except as otherwise provided in subsection 2, the provisions of this chapter apply to electronic records and electronic signatures relating to a transaction.
2. The provisions of this chapter do not apply to a transaction to the extent it is governed by:
(a) A law governing the creation and execution of wills, codicils or testamentary trusts; or
κ2005 Statutes of Nevada, Page 886 (CHAPTER 233, SB 201)κ
(b) The Uniform Commercial Code other than NRS [104.1107, 104.1206 and] 104.2101 to 104.2725, inclusive, and 104A.2101 to 104A.2532, inclusive [.] , and section 20 of this act.
3. The provisions of this chapter apply to an electronic record or electronic signature otherwise excluded from the application of this chapter under subsection 2 to the extent it is governed by a law other than those specified in subsection 2.
4. A transaction subject to the provisions of this chapter is also subject to other applicable substantive law.
Sec. 110. NRS 719.330 is hereby amended to read as follows:
719.330 1. In this section, transferable record means an electronic record that:
(a) Would be a note under NRS 104.3101 to 104.3605, inclusive, or a document under [NRS 104.7101 to 104.7603, inclusive,] sections 25 to 65, inclusive, of this act, if the electronic record were in writing; and
(b) The issuer of the electronic record expressly has agreed is a transferable record.
2. A person has control of a transferable record if a system employed for evidencing the transfer of interests in the transferable record reliably establishes him as the person to whom the transferable record was issued or transferred.
3. A system satisfies subsection 2, and a person is deemed to have control of a transferable record, if the transferable record is created, stored and assigned in such a manner that:
(a) A single authoritative copy of the transferable record exists which is unique, identifiable, and, except as otherwise provided in paragraphs (d), (e) and (f), unalterable;
(b) The authoritative copy identifies the person asserting control as:
(1) The person to whom the transferable record was issued; or
(2) If the authoritative copy indicates that the transferable record has been transferred, the person to whom the transferable record was most recently transferred;
(c) The authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;
(d) Copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control;
(e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
(f) Any revision of the authoritative copy is readily identifiable as authorized or unauthorized.
4. Except as otherwise agreed, a person having control of a transferable record is the holder, as defined in [subsection 20 of NRS 104.1201,] paragraph (u) of subsection 2 of section 9 of this act, of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under the Uniform Commercial Code, including, if the applicable statutory requirements under NRS [104.7501,] 104.9308 or subsection 1 of NRS 104.3302 or section 54 of this act are satisfied, the rights and defenses of a holder to whom a negotiable document of title has been duly negotiated, a purchaser, or a holder in due course, respectively. Delivery, possession and endorsement are not required to obtain or exercise any of the rights under this subsection.
κ2005 Statutes of Nevada, Page 887 (CHAPTER 233, SB 201)κ
5. Except as otherwise agreed, an obligor under a transferable record has the same rights and defenses as an equivalent obligor under equivalent records or writings under the Uniform Commercial Code.
6. If requested by a person against whom enforcement is sought, the person seeking to enforce the transferable record shall provide reasonable proof that he is in control of the transferable record. Proof may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record.
Sec. 111. NRS 104.1101, 104.1102, 104.1103, 104.1104, 104.1105, 104.1106, 104.1107, 104.1108, 104.1110, 104.1201, 104.1202, 104.1203, 104.1204, 104.1205, 104.1206, 104.1207, 104.1208, 104.2208, 104.7101, 104.7102, 104.7103, 104.7104, 104.7105, 104.7106, 104.7201, 104.7202, 104.7203, 104.7204, 104.7205, 104.7206, 104.7207, 104.7208, 104.7209, 104.7210, 104.7301, 104.7302, 104.7303, 104.7304, 104.7305, 104.7306, 104.7307, 104.7308, 104.7309, 104.7401, 104.7402, 104.7403, 104.7404, 104.7501, 104.7502, 104.7503, 104.7504, 104.7505, 104.7506, 104.7507, 104.7508, 104.7509, 104.7601, 104.7602, 104.7603 and 104A.2207 are hereby repealed.
Sec. 112. 1. The amendatory provisions of this act apply to a document of title that is issued or a bailment that arises on or after October 1, 2005.
2. The amendatory provisions of this act do not apply to a document of title that is issued or a bailment that arises before October 1, 2005, even if the document of title or bailment would be subject to the amendatory provisions of this act if the document of title had been issued or bailment had arisen on or after October 1, 2005.
3. A document of title issued or a bailment that arises before October 1, 2005, and the rights, obligations and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by the amendatory provisions of this act as if that amendment or repeal had not occurred and may be terminated, completed, consummated or enforced under that statute or other rule.
4. The amendatory provisions of this act do not apply to a right of action that has accrued before October 1, 2005.
Sec. 113. The Legislative Counsel shall reserve for reuse the numbers of the sections repealed by section 111 of this act and, in preparing the 2005 reprint of NRS, shall number the sections of chapter 104 of NRS that are added by sections 2 to 65, inclusive, of this act, and the internal references thereto, to correspond to the numbers assigned to those sections of the Uniform Commercial Code by the National Conference of Commissioners on Uniform State Laws. The reserved numbers not so used are reserved for future use for similar purposes.
________
Senate Bill No. 99Committee on Finance
CHAPTER 234
AN ACT making an appropriation to the Department of Administration for litigation costs incurred by the Interstate Commission for Adult Offender Supervision; and providing other matters properly relating thereto.
κ2005 Statutes of Nevada, Page 888 (CHAPTER 234, SB 99)κ
Offender Supervision; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the State General Fund to the Department of Administration the sum of $3,000 for litigation costs incurred by the Interstate Commission for Adult Offender Supervision.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. This act becomes effective upon passage and approval.
________
Senate Bill No. 102Committee on Finance
CHAPTER 235
AN ACT making an appropriation to the Office of Veterans Services to pay for construction costs of a shelter to protect state-owned vehicles; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the State General Fund to the Office of Veterans Services the sum of $60,000 to pay for construction costs of a shelter to protect state-owned vehicles.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. This act becomes effective upon passage and approval.
________
Senate Bill No. 104Committee on Finance
CHAPTER 236
AN ACT making an appropriation to the Department of Corrections for the purchase of replacement vehicles; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
κ2005 Statutes of Nevada, Page 889 (CHAPTER 236, SB 104)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the State General Fund to the Department of Corrections the sum of $1,012,482 for the purchase of 48 replacement vehicles.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. This act becomes effective upon passage and approval.
________
Senate Bill No. 46Senator McGinness
CHAPTER 237
AN ACT relating to the Public Employees Retirement System; increasing the maximum assumed monthly wage of a volunteer firefighter for the purpose of determining the contribution to be paid into the Public Employees Retirement Fund and the Public Employees Retirement Administrative Fund; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 286.367 is hereby amended to read as follows:
286.367 1. The volunteers of a regularly organized and recognized fire department may, by the joint application of a majority of those volunteers addressed to the Board, become members of the System. A volunteer firefighter who joins a fire department of which all the volunteers have become members of the System becomes a member of the System. The volunteers of a participating fire department may withdraw from the System by the joint application of a majority of those volunteers addressed to the Board.
2. The city, town, county or district which recognizes the volunteers is the public employer and shall collect and pay over the employees share and pay the employers share of the contribution to the Public Employees Retirement Fund and the Public Employees Retirement Administrative Fund, in the manner prescribed in this chapter. The local government may, if so requested by the volunteers, further contribute any amount by which the sum receivable by each volunteer for any month is less than the amount of his required share of the contribution, but no further contributions may be placed in a volunteers account with the System or refunded to a volunteer or his employer upon the volunteers termination.
3. In determining the amount of contributions to be paid for the volunteers, they are assumed to be receiving a wage established by the local government which is not less than $150 nor more than [$750] $2,000 per month.
κ2005 Statutes of Nevada, Page 890 (CHAPTER 237, SB 46)κ
4. Except as otherwise required as a result of NRS 286.535 or 286.537, the average compensation for a volunteer firefighter is the weighted average of:
(a) The assumed wage as a volunteer firefighter; and
(b) The average salary in other covered employment which, if the service in that employment exceeds 3 years, is calculated upon the 3 highest consecutive years.
Κ The weight given to the assumed wage and average salary, respectively, is proportionate to the length of service in each capacity. Except as otherwise required as a result of NRS 286.535 or 286.537, average compensation is computed from the sum of the assumed wage and actual salary if a member is employed simultaneously as a volunteer firefighter and as a regular member.
5. Any dispute over the status of a person as a volunteer firefighter under this section must be conclusively determined by the Board.
6. A volunteer firefighter may purchase all previous service as a volunteer firefighter with any volunteer fire department which is a member of the System. To validate such service, the volunteer firefighter must pay the full cost as determined by the actuary. The employing agency may pay the employers share of the cost but is not required to do so.
7. In addition to the purchase authorized pursuant to the provisions of subsection 6, a volunteer firefighter who has 5 years of creditable service as a volunteer firefighter may purchase up to 5 years of service to add to his volunteer service. The member must pay the full actuarial cost of the service as determined by an actuary of the System.
Sec. 2. This act becomes effective on July 1, 2005.
________
Senate Bill No. 87Committee on Transportation and Homeland Security
CHAPTER 238
AN ACT relating to motor vehicles; eliminating the additional fee charged and collected by the Department of Motor Vehicles for the renewal of a drivers license by mail; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 483.383 is hereby amended to read as follows:
483.383 [1.] The Department shall:
[(a)] 1. Establish a procedure to allow such persons as it deems appropriate to renew their drivers licenses by mail.
[(b) In addition to the fees set forth in NRS 483.410, for every drivers license which is renewed by mail, charge and collect a fee of $1.50.
(c)] 2. Adopt regulations necessary to carry out the provisions of this section.
κ2005 Statutes of Nevada, Page 891 (CHAPTER 238, SB 87)κ
[2. The fees collected pursuant to paragraph (b) of subsection 1 must be deposited in the State Treasury for credit to the Motor Vehicle Fund and must be allocated to the Department to defray the cost of complying with the provisions of this section.]
Sec. 2. NRS 483.410 is hereby amended to read as follows:
483.410 1. Except as otherwise provided in subsection 6, for every drivers license, including a motorcycle drivers license, issued and service performed, the following fees must be charged:
A license issued to a person 65 years of age or older....................................... $14
An original license issued to any other person..................................................... 19
A renewal license issued to any other person....................................................... 19
Reinstatement of a license after suspension, revocation or cancellation, except a revocation for a violation of NRS 484.379 or 484.3795 or pursuant to NRS 484.384 and 484.385........................................................................................................ 40
Reinstatement of a license after revocation for a violation of NRS 484.379 or 484.3795 or pursuant to NRS 484.384 and 484.385......................................................... 65
A new photograph, change of name, change of other information, except address, or any combination.......................................................................................................... 5
A duplicate license.................................................................................................... 14
2. For every motorcycle endorsement to a drivers license, a fee of $5 must be charged.
3. If no other change is requested or required, the Department shall not charge a fee to convert the number of a license from the licensees social security number, or a number that was formulated by using the licensees social security number as a basis for the number, to a unique number that is not based on the licensees social security number.
4. The increase in fees authorized by NRS 483.347 and the fees charged pursuant to NRS [483.383 and] 483.415 must be paid in addition to the fees charged pursuant to subsections 1 and 2.
5. A penalty of $10 must be paid by each person renewing his license after it has expired for a period of 30 days or more as provided in NRS 483.386 unless he is exempt pursuant to that section.
6. The Department may not charge a fee for the reinstatement of a drivers license that has been:
(a) Voluntarily surrendered for medical reasons; or
(b) Cancelled pursuant to NRS 483.310.
7. All fees and penalties are payable to the Administrator at the time a license or a renewal license is issued.
8. Except as otherwise provided in NRS 483.340, 483.415 and 483.840, all money collected by the Department pursuant to this chapter must be deposited in the State Treasury for credit to the Motor Vehicle Fund.
Sec. 3. This act becomes effective on July 1, 2005.
________
κ2005 Statutes of Nevada, Page 892κ
Senate Bill No. 82Committee on Human Resources and Education
CHAPTER 239
AN ACT relating to the Comstock Historic District Commission; authorizing staff of the Commission to issue certificates of appropriateness in certain situations; revising provisions governing notice of hearings of the Commission; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 384 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The Commission may authorize its staff to issue certificates of appropriateness on behalf of the Commission for specific categories and types of applications if those applications comply substantially with the requirements and public policy set forth in NRS 384.010 to 384.210, inclusive.
2. If an application for a certificate of appropriateness submitted to the Commission:
(a) Does not fall within a category or type for which the Commission has authorized its staff to issue certificates of appropriateness pursuant to subsection 1; or
(b) Is determined by the staff of the Commission as not being in substantial compliance with the requirements and public policy set forth in NRS 384.010 to 384.210, inclusive,
Κ the staff shall forward the application to the Commission for a hearing and determination by the Commission pursuant to NRS 384.120 and 384.130.
3. If the staff forwards an application to the Commission pursuant to subsection 2 because the application does not comply substantially with the requirements and public policy set forth in NRS 384.010 to 384.210, inclusive, the staff shall include a statement of the reasons for its determination.
Sec. 2. NRS 384.030 is hereby amended to read as follows:
384.030 As used in NRS 384.010 to 384.210, inclusive [:] , and section 1 of this act:
1. Commission means the Comstock Historic District Commission.
2. Exterior architectural features means the architectural style, general design and general arrangement of the exterior of a structure, including the kind and texture of the building material, the type and style of all windows, doors, light fixtures and signs, color, and other appurtenant fixtures.
3. Historic district means an area within which structures and places of historical interest are under the protection of the Commission.
4. Structure means any building for whatever purpose constructed or used, house trailer as defined in NRS 484.069, mobile home as defined in NRS 484.0795, stone wall, fence, light fixture, step, paving, advertising sign, bill poster and any fixture appurtenant thereto, but does not include structures or signs of a temporary nature such as those erected for celebrations or parades.
κ2005 Statutes of Nevada, Page 893 (CHAPTER 239, SB 82)κ
bill poster and any fixture appurtenant thereto, but does not include structures or signs of a temporary nature such as those erected for celebrations or parades.
Sec. 3. NRS 384.110 is hereby amended to read as follows:
384.110 1. No structure may be erected, reconstructed, altered, restored, moved or demolished within the historic district until after an application for a certificate of appropriateness as to exterior architectural features has been submitted to and approved by the Commission [.] , or by its staff pursuant to section 1 of this act. The application for a certificate of appropriateness [shall] must be in such form and accompanied by such plans, specifications and other material as the Commission may from time to time prescribe.
2. In its deliberations under the provisions of NRS 384.010 to 384.210, inclusive, and section 1 of this act, the Commission and its staff shall not consider interior arrangement or use [,] and shall take no action under NRS 384.010 to 384.210, inclusive, and section 1 of this act, except for the purpose of preventing the erection, reconstruction, restoration, alteration, moving or razing of buildings in the district obviously incongruous with the historic aspects of the district.
3. The provisions of NRS 384.010 to 384.210, inclusive, and section 1 of this act do not prevent:
(a) The ordinary maintenance or repair of any exterior architectural feature in the historic district which does not involve a change of design or material or the outward appearance thereof;
(b) The construction, reconstruction, alteration or demolition of any such feature which the building inspector or similar authority certifies is required by the public safety because of an unsafe or dangerous condition; or
(c) The construction, reconstruction, alteration or demolition of any such feature under a permit issued by a building inspector or similar authority prior to the effective date of the establishment of such district.
Sec. 4. NRS 384.120 is hereby amended to read as follows:
384.120 1. The Commission shall hold a public hearing upon each application for a certificate of appropriateness within 30 days after the application has been filed with the Commission, excluding Saturdays, Sundays and legal holidays, unless [waived] :
(a) The application is approved by the staff of the Commission pursuant to section 1 of this act; and
(b) The holding of a hearing is waived in writing by [all persons entitled to notice thereof as provided in this section.
2. Within 30 days after the filing of an application for a certificate of appropriateness, Saturdays, Sundays and legal holidays excluded, the Commission shall determine the estates and property deemed by it to be materially affected by such application and, unless a public hearing on such application is waived by all persons entitled to notice, shall forthwith cause notice of such application and of] the applicant or his designated representative.
2. The Commission shall cause notice of a hearing to be held [thereon] on an application pursuant to subsection 1 to be given [by regular mail, postage prepaid, to the applicant, to the] in accordance with NRS 241.020 to:
(a) The applicant;
κ2005 Statutes of Nevada, Page 894 (CHAPTER 239, SB 82)κ
(b) The owners of all [such estates or property] properties deemed by the Commission to be materially affected by the application as they appear on the most recent tax list [, and to any] ; and
(c) Any person who has filed a written request for notice of hearings during the preceding calendar year. [The notices shall be mailed at least 10 days prior to the date set for the hearing.]
3. The Commission may, if it determines the matter to be of sufficient public interest, give an additional notice of the time and place of the hearing by publication in the form of a legal advertisement in a newspaper having a substantial circulation in the district at least 7 days before such hearing.
Sec. 5. NRS 384.130 is hereby amended to read as follows:
384.130 As soon as practicable after [such] a public hearing [, or the waiver thereof,] held pursuant to NRS 384.120, but not more than 60 days, Saturdays, Sundays and legal holidays excluded, after the filing of the application for the certificate of appropriateness, or within such further time as the applicant may in writing allow, the Commission shall determine:
1. That the proposed erection, construction, reconstruction, restoration, alteration, moving or razing of the exterior architectural feature involved will be appropriate to the preservation of the historic district for the purposes of NRS 384.010 to 384.210, inclusive [;] , and section 1 of this act;
2. That, even though the proposed project may be inappropriate, failure to issue a certificate would involve a substantial hardship to the applicant because of conditions especially affecting the structure involved, but not affecting the historic district generally, and that a certificate could be issued without substantial detriment to the public welfare or the purposes of NRS 384.010 to 384.210, inclusive [;] , and section 1 of this act; or
3. That the proposed project is inappropriate.
Sec. 6. NRS 384.140 is hereby amended to read as follows:
384.140 1. In passing upon the appropriateness [,] of an application pursuant to NRS 384.130 or section 1 of this act, the Commission , and its staff shall consider, in addition to any other pertinent factors:
(a) Historic and architectural value and significance;
(b) Architectural style;
(c) Location on the lot;
(d) Position of the structure in relation to the street or public way and whether it is subject to public view from a public place;
(e) General design, arrangement, texture, material, color and size of the exterior architectural features involved and the relationship thereof to the exterior architectural features of other structures in the immediate neighborhood; and
(f) The relationship of the exterior architectural features to well recognized styles of early western architecture of the late 19th and early 20th centuries.
2. A certificate of appropriateness may be refused for any structure , the erection, reconstruction, restoration, alteration, moving or razing of which, in the opinion of the Commission, would be detrimental to the interest of the historic district or incongruous with the historic aspects of the surroundings and the historic environment of the district.
Sec. 7. NRS 384.150 is hereby amended to read as follows:
384.150 1. If , after a hearing held pursuant to NRS 384.120, the Commission determines that the proposed construction, reconstruction, restoration, alteration, moving or razing of the exterior architectural feature involved will be appropriate, or, although inappropriate, that failure to issue a certificate would result in hardship as provided in subsection 2 of NRS 384.130, or if the Commission fails to make a determination within the time prescribed in NRS 384.130, the Commission shall immediately issue to the applicant a certificate of appropriateness.
κ2005 Statutes of Nevada, Page 895 (CHAPTER 239, SB 82)κ
involved will be appropriate, or, although inappropriate, that failure to issue a certificate would result in hardship as provided in subsection 2 of NRS 384.130, or if the Commission fails to make a determination within the time prescribed in NRS 384.130, the Commission shall immediately issue to the applicant a certificate of appropriateness.
2. The Commission may charge and collect a reasonable fee for [issuing the certificate.] the issuance of a certificate of appropriateness by the Commission pursuant to this section or by its staff pursuant to section 1 of this act. If a fee is charged, 50 percent of the proceeds must be deposited in the State General Fund for credit to the appropriate account for the Comstock Historic District and 50 percent must be deposited in a nonreverting Account for the Restoration of the Fourth Ward School in Virginia City, which is hereby created. Money in the Account for the Restoration of the Fourth Ward School may be expended only upon approval by the Commission.
[2.] 3. In exercising the power to vary or modify strict adherence to the provisions of NRS 384.010 to 384.210, inclusive, and section 1 of this act or to interpret the meaning of NRS 384.010 to 384.210, inclusive, and section 1 of this act so as to relieve hardship under the provisions of subsection 2 of NRS 384.130, the Commission shall require any variance, modification or interpretation to be in harmony with the general purpose and intent of NRS 384.010 to 384.210, inclusive, and section 1 of this act so that the general historical character of the District is conserved and substantial justice done. In allowing variations, the Commission may impose such reasonable and additional conditions as will, in its judgment, better fulfill the purposes of NRS 384.010 to 384.210, inclusive [.
3. ] , and section 1 of this act.
4. If the Commission determines that a certificate of appropriateness should not issue, it shall immediately set forth in its records the reasons for the determination, and may include recommendations respecting the proposed erection, construction, restoration, alteration, moving or razing, and shall immediately notify the applicant of the determination by transmitting to him an attested copy of the reasons and recommendations, if any, as set forth in the records of the Commission.
[4.] 5. The applicant may appeal a refusal of the Commission to issue a certificate of appropriateness to the Board of Museums and History within 30 days after its determination and the Board, after a hearing on the matter, may:
(a) Approve the application with or without conditions by a unanimous vote; or
(b) Deny the application.
Κ If the Board approves the application, the Commission shall immediately issue a certificate of appropriateness to the applicant.
Sec. 8. NRS 384.210 is hereby amended to read as follows:
384.210 1. Any person aggrieved by a determination of the Commission, or of the Board of Museums and History made pursuant to subsection [4] 5 of NRS 384.150, may, within 30 days after the making of the determination, appeal to the district court of the county where the property in question is located.
2. The court may reverse the determination of the Commission if it finds that the reasons given for the determination are unsupported by the evidence or contrary to law.
κ2005 Statutes of Nevada, Page 896 (CHAPTER 239, SB 82)κ
evidence or contrary to law. The proceeding in the district court is limited to the record made before the Commission.
Sec. 9. This act becomes effective on July 1, 2005.
________
Senate Bill No. 26Committee on Natural Resources
CHAPTER 240
AN ACT relating to air pollution; revising the provisions governing the distribution of money in the Pollution Control Account to local governmental agencies; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 445B.830 is hereby amended to read as follows:
445B.830 1. In areas of the State where and when a program is commenced pursuant to NRS 445B.770 to 445B.815, inclusive, the following fees must be paid to the Department of Motor Vehicles and accounted for in the Pollution Control Account, which is hereby created in the State General Fund:
(a) For the issuance and annual renewal of a license for an authorized inspection station, authorized maintenance station, authorized station or fleet station......................... $25
(b) For each set of 25 forms certifying emission control compliance................ 150
(c) For each form issued to a fleet station................................................................... 6
2. Except as otherwise provided in subsections [4, 5 and] 6, 7 and 8, and after deduction of the [amount required for grants pursuant to paragraph (a) of] amounts distributed pursuant to subsection 4, money in the Pollution Control Account may, pursuant to legislative appropriation or with the approval of the Interim Finance Committee, be expended by the following agencies in the following order of priority:
(a) The Department of Motor Vehicles to carry out the provisions of NRS 445B.770 to 445B.845, inclusive.
(b) The State Department of Conservation and Natural Resources to carry out the provisions of this chapter.
(c) The State Department of Agriculture to carry out the provisions of NRS 590.010 to 590.150, inclusive.
(d) Local governmental agencies in nonattainment or maintenance areas for an air pollutant for which air quality criteria have been issued pursuant to 42 U.S.C. § 7408, for programs related to the improvement of the quality of the air.
(e) The Tahoe Regional Planning Agency to carry out the provisions of NRS 277.200 with respect to the preservation and improvement of air quality in the Lake Tahoe Basin.
3. The Department of Motor Vehicles may prescribe by regulation routine fees for inspection at the prevailing shop labor rate, including, without limitation, maximum charges for those fees, and for the posting of those fees in a conspicuous place at an authorized inspection station or authorized station.
κ2005 Statutes of Nevada, Page 897 (CHAPTER 240, SB 26)κ
without limitation, maximum charges for those fees, and for the posting of those fees in a conspicuous place at an authorized inspection station or authorized station.
4. The Department of Motor Vehicles shall make quarterly distributions of money in the Pollution Control Account to local governmental agencies in nonattainment or maintenance areas for an air pollutant for which air quality criteria have been issued pursuant to 42 U.S.C. § 7408. The distributions of money made to agencies in a county pursuant to this subsection must be made from an amount of money in the Pollution Control Account that is equal to one-sixth of the amount received for each form issued in the county pursuant to subsection 1.
5. Each local governmental agency that receives money pursuant to subsection 4 shall, not later than 45 days after the end of the fiscal year in which the money is received, submit to the Director of the Legislative Counsel Bureau for transmittal to the Interim Finance Committee a report on the use of the money received.
6. The Department of Motor Vehicles shall by regulation establish a program to award grants of money in the Pollution Control Account to local governmental agencies in nonattainment or maintenance areas for an air pollutant for which air quality criteria have been issued pursuant to 42 U.S.C. § 7408, for programs related to the improvement of the quality of the air. The grants to agencies in a county pursuant to this subsection must be made from [:
(a) An amount of money in the Pollution Control Account that is equal to one-sixth of the amount received for each form issued in the county pursuant to subsection 1; and
(b) Excess] any excess money in the Pollution Control Account. As used in this [paragraph,] subsection, excess money means the money in excess of [$500,000] $1,000,000 remaining in the Pollution Control Account at the end of the fiscal year, after deduction of the [amount required for grants pursuant to paragraph (a)] amounts distributed pursuant to subsection 4 and any disbursements made from the Account pursuant to subsection 2.
[5.] 7. Any regulations adopted pursuant to subsection [4] 6 must provide for the creation of an advisory committee consisting of representatives of state and local agencies involved in the control of emissions from motor vehicles. The committee shall:
(a) Review applications for grants and make recommendations for their approval, rejection or modification;
(b) Establish goals and objectives for the program for control of emissions from motor vehicles;
(c) Identify areas where funding should be made available; and
(d) Review and make recommendations concerning regulations adopted pursuant to subsection [4] 6 or NRS 445B.770.
[6.] 8. Grants proposed pursuant to subsections [4 and 5] 6 and 7 must be submitted to the appropriate deputy director of the Department of Motor Vehicles and the Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources. Proposed grants approved by the appropriate deputy director and the Administrator must not be awarded until approved by the Interim Finance Committee.
Sec. 2. This act becomes effective on July 1, 2005.
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κ2005 Statutes of Nevada, Page 898κ
Senate Bill No. 4Committee on Finance
CHAPTER 241
AN ACT relating to the Commission for Cultural Affairs; authorizing the Commission to reimburse members for certain expenses; increasing the amount of financial assistance that the Commission may grant from the proceeds of certain bonds; and providing other matters properly relating thereto.
[Approved: June 3, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 233C.200 is hereby amended to read as follows:
233C.200 1. The Commission for Cultural Affairs is hereby created. The Commission is advisory to the Department and consists of:
(a) The Chairman of the Nevada Humanities Committee or a member of the Committee designated by him;
(b) The Chairman of the Board or a member of the Board designated by him;
(c) The Chairman of the Board of Museums and History or a member of the Board of Museums and History designated by him;
(d) A member of the Board of Museums and History, to be appointed by the Governor;
(e) One representative of the general public who has a working knowledge of the promotion of tourism in Nevada, to be appointed by the Governor; and
(f) The Chairman of the State Council on Libraries and Literacy or a member of the Council designated by him.
2. The Commission shall:
(a) Elect from its membership a Chairman who shall serve for a term of 2 years. A vacancy occurring in this position must be filled by election of the members of the Commission for the remainder of the unexpired term.
(b) Prescribe rules for its own management and government.
(c) Meet biannually, or at more frequent times if it deems necessary, and may, within the limitations of its budget, hold special meetings at the call of its Chairman.
3. Three members of the Commission constitute a quorum, but a majority of the members of the Commission is necessary to consider the particular business before it and to exercise the power conferred on the Commission.
4. The members of the Commission are not entitled to be paid a salary [or receive reimbursement for] , but are entitled, while engaged in the business of the Commission, to receive the per diem [or] allowance and travel expenses [.] provided for state officers and employees generally.
5. The Commission may use the money derived from interest earned on the money in the Fund for the Preservation and Promotion of Cultural Resources created pursuant to NRS 233C.230 to pay for:
(a) Any administrative services required by the Commission [.] ; and