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Can you summarize NVRS 104A.4502?
Uniform Commercial CodeAdditional Articles > Creditors process served on receiving bank; setoff by beneficiarys bank.
Short Summary
This section of the Nevada Revised Statutes, under the Uniform Commercial CodeAdditional Articles, governs the process served on receiving banks and the setoff by beneficiary’s banks. It defines ‘creditor’s process’ as levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account. If creditor’s process is served on the receiving bank and the bank accepts the payment order, the balance in the authorized account is deemed to be reduced by the amount of the payment order, unless the bank had a reasonable opportunity to act on the process before accepting the payment order. If a beneficiary’s bank receives a payment order for payment to the beneficiary’s account, the bank may credit the beneficiary’s account and set off the amount credited against an obligation owed by the beneficiary to the bank or to satisfy creditor’s process served on the bank. The bank may also allow withdrawal of the amount credited unless creditor’s process is served in a manner affording the bank a reasonable opportunity to prevent withdrawal. If creditor’s process has been served and the bank had a reasonable opportunity to act on it, the bank may not reject the payment order except for unrelated reasons. Creditor’s process with respect to a payment by the originator to the beneficiary can only be served on the beneficiary’s bank. Other banks served with the creditor’s process are not obliged to act on it.
Whom does it apply to?
Receiving banks, beneficiary's banks, creditors, claimants
What does it govern?
Process served on receiving bank; setoff by beneficiarys bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada