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Can you summarize NVRS 104A.4202?
Uniform Commercial CodeAdditional Articles > Authorized and verified payment orders.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeAdditional Articles, governs the authorization and verification of payment orders. It states that a payment order received by a receiving bank is considered authorized if the person identified as the sender authorized the order or is bound by it under agency law. Additionally, if a bank and its customer have agreed to verify the authenticity of payment orders through a security procedure, a payment order received by the bank is effective as the customer’s order, even if unauthorized, as long as the security procedure is commercially reasonable and the bank accepted the order in good faith and compliance with the procedure. The document also discusses the commercial reasonableness of security procedures and the definition of ‘sender.’ It applies to amendments and cancellations of payment orders as well. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Receiving banks and customers who issue payment orders
What does it govern?
Payment orders and security procedures for payment orders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada