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Can you summarize NVRS 104.3605?
Uniform Commercial CodeOriginal Articles > Discharge of endorsers and accommodation parties.
Short Summary
This section of the Nevada Revised Statutes governs the discharge of endorsers and accommodation parties in commercial instruments and transactions under the Uniform Commercial CodeOriginal Articles. It clarifies that the discharge of the obligation of a party to pay an instrument does not discharge the obligation of an endorser or accommodation party with a right of recourse against the discharged party. The section also outlines the circumstances under which an extension or material modification of the obligation may discharge an endorser or accommodation party. Additionally, it explains that impairing the value of collateral can discharge the obligation of an endorser or accommodation party. The burden of proving impairment is on the party asserting discharge. The section further specifies that an accommodation party is not discharged unless the person entitled to enforce the instrument knows of the accommodation or has notice of it. Finally, it states that a party is not discharged if they consented to the event or conduct that caused the discharge or if the instrument or a separate agreement provides for a waiver of discharge based on suretyship or impairment of collateral.
Whom does it apply to?
Parties involved in commercial instruments and transactions governed by the Uniform Commercial CodeOriginal Articles in Nevada
What does it govern?
Discharge of endorsers and accommodation parties
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada