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Can you summarize NVRS 104.4210?
Uniform Commercial CodeOriginal Articles > Security interest of collecting bank in items, accompanying documents and proceeds.
Short Summary
This legal document, governed by the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, establishes the security interest of a collecting bank in items, accompanying documents, and proceeds. A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either in various scenarios, such as when credit has been withdrawn or applied, when credit has been given for the item, or when an advance has been made on the item. The security interest remains on all items and their accompanying documents or proceeds if credit given for several items is withdrawn or applied in part. Receipt of a final settlement for an item by the collecting bank is considered a realization on its security interest. The security interest continues as long as the bank does not receive final settlement, give up possession of the item or possession/control of the accompanying documents for purposes other than collection. Notably, no security agreement or filing is required to make the security interest enforceable or perfect it, and the security interest takes priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.
Whom does it apply to?
Collecting banks
What does it govern?
Security interest of collecting bank in items, accompanying documents, and proceeds
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada