Can you summarize NVRS 104.9407?

Short Summary

This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, governs the restrictions on assignment, transfer, creation, or enforcement of security interest in leasehold interest or in the lessors residual interest. It states that a lease agreement term is ineffective if it prohibits, restricts, or requires consent for assignment, transfer, creation, attachment, perfection, or enforcement of a security interest in a party’s interest under the lease contract or in the lessor’s residual interest in the goods. Additionally, a term that states such actions may give rise to default, breach, recoupment, claim, defense, termination, right of termination, or remedy under the lease is also ineffective. However, there are exceptions if there is a transfer of the lessee’s right of possession or use of the goods in violation of the term, or a delegation of material performance in violation of the term. The creation, attachment, perfection, or enforcement of a security interest in the lessor’s interest or residual interest is not considered a transfer that materially impairs the lessee’s prospect of obtaining return performance or materially changes the duty or increases the burden or risk on the lessee, unless it results in a delegation of material performance by the lessor. Overall, this document provides guidelines and limitations on the assignment, transfer, and security interests in leasehold interests and lessor’s residual interests.

Whom does it apply to?

Parties to a lease agreement.

What does it govern?

Restrictions on assignment, transfer, creation or enforcement of security interest in leasehold interest or in lessors residual interest.

What are exemptions?

None mentioned.

What are the Penalties?

None mentioned.

Jurisdiction

Nevada

Source

NVRS 104.9407 [https://reggi.cloud.regology.com/regulations/US-NVRS/US-NVRS_T_8_C_104_S_9407]

• Banking