Ask Reggi Your Question Now
Can you summarize NVRS 104.9408?
Uniform Commercial CodeOriginal Articles > Restrictions on assignment or transfer of promissory notes, health-care insurance receivables and certain general intangibles ineffective.
Short Summary
This legal document, part of the Nevada Revised Statutes, governs the assignment or transfer of promissory notes, health-care insurance receivables, and certain general intangibles. It states that any term in a promissory note or agreement that prohibits, restricts, or requires consent for the assignment, transfer, creation, attachment, or perfection of a security interest in these assets is ineffective if it impairs the creation, attachment, or perfection of a security interest or if it provides that the assignment or transfer may give rise to default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible. However, there are exemptions to these restrictions, such as when the security interest arises from a sale of payment intangibles or promissory notes pursuant to specific dispositions or acceptances of collateral. The document applies to persons obligated on promissory notes, account debtors, debtors, and secured parties.
Whom does it apply to?
Persons obligated on promissory notes, account debtors, debtors, and secured parties
What does it govern?
Assignment or transfer of promissory notes, health-care insurance receivables, and certain general intangibles
What are exemptions?
The restrictions on assignment or transfer are ineffective if they impair the creation, attachment, or perfection of a security interest or if they provide that the assignment or transfer may give rise to default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible. The restrictions also do not apply to security interests arising from a sale of payment intangibles or promissory notes pursuant to specific dispositions or acceptances of collateral.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada