NRS 104.9608
Application of proceeds of collection or enforcement

  • liability for deficiency and right to surplus.

1.

If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:

(a)

A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under NRS 104.9607 in the following order to:

(1)

The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney’s fees and legal expenses incurred by the secured party;

(2)

The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and

(3)

The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed.

(b)

If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under subparagraph (3) of paragraph (a).

(c)

A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under NRS 104.9607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.

(d)

A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.

2.

If the underlying transaction is a sale of accounts, chattel paper, payment intangibles or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.

Source: Section 104.9608 — Application of proceeds of collection or enforcement; liability for deficiency and right to surplus., https://www.­leg.­state.­nv.­us/NRS/NRS-104.­html#NRS104Sec9608.

104.9601
Rights after default 104.9602
Waiver and variance of rights and duties of debtor and obligor. 104.9603
Agreement on standards concerning rights and duties of parties. 104.9604
Procedure if security agreement covers real property or fixtures. 104.9605
Duty to unknown debtor or secondary obligor. 104.9606
Time of default for agricultural lien. 104.9607
Collection and enforcement by secured party. 104.9608
Application of proceeds of collection or enforcement 104.9609
Secured party’s right to take possession or dispose of collateral after default. 104.9610
Disposition of collateral after default. 104.9611
Notification before disposition of collateral. 104.9612
Timeliness of notification before disposition of collateral. 104.9613
Contents and form of notification before disposition of collateral: General. 104.9614
Contents and form of notification before disposition of collateral: Consumer-goods transaction. 104.9615
Application of proceeds of disposition 104.9616
Explanation of calculation of surplus or deficiency. 104.9617
Effect of disposition of collateral by secured party after default 104.9618
Rights and duties of certain secondary obligors. 104.9619
Transfer of record or legal title. 104.9620
Acceptance of collateral in full or partial satisfaction of obligation 104.9621
Notification of proposal to accept collateral in satisfaction of obligation. 104.9622
Effect of acceptance of collateral in satisfaction of obligation. 104.9623
Redemption of collateral. 104.9624
Waiver of right to notification of disposition of collateral 104.9625
Remedies for secured party’s failure to comply with article. 104.9626
Action in which deficiency or surplus is in issue. 104.9627
Determination of whether conduct was commercially reasonable. 104.9628
Nonliability and limitation on liability of secured party
Last Updated

Jun. 24, 2021

§ 104.9608’s source at nv​.us