1.A payor or collecting banks authority to accept, pay or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is undertaken if the bank does not know of an adjudication of incompetence. Neither death nor incompetence of a customer revokes the authority to accept, pay, collect or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.

This legal document, part of the Nevada Revised Statutes under the Uniform Commercial Code, outlines the duty of customers to discover or report unauthorized signatures or alterations. It applies to both banks and customers. The document states that when a bank sends a statement of account to a customer, the customer must promptly examine the statement or items provided to determine if any payment was unauthorized due to an alteration or unauthorized signature.

If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights: 1.

A bank which takes a documentary draft for collection must present or send the draft and accompanying documents for presentment and upon learning that the draft has not been paid or accepted in due course must seasonably notify its customer of such fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right. (Added to NRS by 1965, 853)

When a draft or the relevant instructions require presentment on arrival, when goods arrive or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of such refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.

This legal document governs the responsibility of a presenting bank for documents and goods in the context of a documentary draft. It specifies that a bank presenting a documentary draft must deliver the documents to the drawee on acceptance of the draft if it is payable more than 3 days after presentment, and only on payment if it is payable within 3 days. In case of dishonor, the presenting bank may seek instructions from any referee in case of need designated in the draft or, if it chooses not to utilize the referee’s services, it must diligently and in good faith ascertain the reason for dishonor, notify its transferor of the dishonor and the results of its effort to ascertain the reasons, and request instructions.

1.A presenting bank which, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell or otherwise deal with the goods in any reasonable manner. 2.For its reasonable expenses incurred by action under subsection 1 the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid sellers lien.

This article may be cited as Uniform Commercial CodeLetters of Credit. (Added to NRS by 1965, 854; A 1997, 376)

This legal document, part of the Nevada Revised Statutes, governs commercial instruments and transactions under the Uniform Commercial CodeOriginal Articles. It provides definitions for various terms used in the context of letters of credit, such as adviser, applicant, beneficiary, confirmer, dishonor, document, good faith, honor, issuer, letter of credit, nominated person, presentation, presenter, record, and successor of a beneficiary. The document also refers to definitions in other articles and sections that apply to this article.

This Article of the Nevada Revised Statutes governs letters of credit and the rights and obligations associated with transactions involving letters of credit. It applies to parties involved in such transactions, including issuers, beneficiaries, nominated persons, and applicants. The Article allows for variations by agreement or provision, except for certain specified subsections and to the extent prohibited by other statutes. The rights and obligations of an issuer to a beneficiary or nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement underlying the letter of credit.