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Can you summarize NVRS 104.3206?
Uniform Commercial CodeOriginal Articles > Restrictive endorsement.
Short Summary
This legal document, governed by the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, addresses the concept of restrictive endorsement. It states that an endorsement limiting payment to a particular person or prohibiting further transfer or negotiation of the instrument is not effective to prevent such actions. Additionally, an endorsement stating a condition for the right of the endorsee to receive payment does not affect the endorsee’s right to enforce the instrument. The document also provides rules for instruments bearing specific endorsements, such as those indicating collection by a bank or payment to an endorsee as an agent or fiduciary. It clarifies the rights and liabilities of different parties involved in such transactions. Furthermore, it states that the presence of a restrictive endorsement does not prevent a purchaser from becoming a holder in due course, unless they are a converter or have notice of breach of fiduciary duty. Finally, it mentions that an obligor has a defense if payment would violate a restrictive endorsement covered by this document and not permitted by its provisions.
Whom does it apply to?
Parties involved in the transfer or negotiation of commercial instruments
What does it govern?
Restrictive endorsement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada