Nevada is one of the many states that have codified the Uniform Commercial Code into its statutes. As explained by the United States Small Business Administration, the UCC is a group of laws created by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. Compliance with the UCC is required of companies that engage in business across state lines.
Nevada’s incorporation of the UCC is found in the Nevada Revised Statutes, chapter 104, which is divided into eight articles. The first of these covers the general provisions of the law, including definitions, interpretations and territorial applicability. The remaining articles each deal with particular types of commercial activity.
Some of the UCC articles that businesses may interact with commonly include:
- Article 2 – governs sales, including related contracts such as buy/sell agreements. This section also includes extensive rules and regulations for the formation and interpretation of these types of business contracts.
- Article 3 – covers negotiable instruments, which are writings which deal with promises or orders to make payments for defined amounts of money. Examples of negotiable instruments are checks and certificates of deposit.
- Article 8 – provides rules for the issuance, transfer, registration and security entitlements of investment securities
- Article 9 – governs secured transactions, which are transactions in which a credit or loan is provided by a lender who, in exchange for the loan, gains a security interest in an asset of the borrower
Other topics covered by Nevada’s UCC are bank deposits and collections, letters of credit and warehouse receipts.
