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Can you summarize NVRS 104.9207?
Uniform Commercial CodeOriginal Articles > Rights and duties of secured party having possession or control of collateral.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial Code, outlines the rights and duties of a secured party who has possession or control of collateral. The secured party is required to exercise reasonable care in the custody and preservation of the collateral, including taking necessary steps to preserve rights against prior parties. If the secured party has possession of the collateral, they can charge the debtor for reasonable expenses incurred in the custody, preservation, use, or operation of the collateral. The risk of accidental loss or damage is on the debtor, unless there is a deficiency in insurance coverage. The secured party must keep the collateral identifiable, but fungible collateral may be commingled. The secured party may use or operate the collateral for preserving its value, as permitted by a court order, or as agreed by the debtor. Additionally, the secured party may hold proceeds from the collateral as additional security, apply money received from the collateral to reduce the secured obligation, and create a security interest in the collateral. Certain provisions may not apply if the secured party is a buyer of specific types of assets or a consignor. No penalties are mentioned in this document.
Whom does it apply to?
Secured parties
What does it govern?
Rights and duties of secured party having possession or control of collateral
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
Nevada