NRS 104.9620
Acceptance of collateral in full or partial satisfaction of obligation
- compulsory disposition of collateral.
1.
Except as otherwise provided in subsection 7, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:(a)
The debtor consents to the acceptance under subsection 3;(b)
The secured party does not receive, within the time set forth in subsection 4, a notification of objection to the proposal authenticated by:(1)
A person to which the secured party was required to send a proposal under NRS 104.9621; or(2)
Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;(c)
If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and(d)
Subsection 5 does not require the secured party to dispose of the collateral.2.
A purported or apparent acceptance of collateral under this section is ineffective unless:(a)
The secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and(b)
The conditions of subsection 1 are met.3.
For purposes of this section:(a)
A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and(b)
A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:(1)
Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;(2)
In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and(3)
Does not receive a notification of objection authenticated by the debtor within 20 days after the proposal is sent.4.
To be effective under paragraph (b) of subsection 1, a notification of objection must be received by the secured party:(a)
In the case of a person to which the proposal was sent pursuant to NRS 104.9621, within 20 days after notification was sent to the person; and(b)
In other cases:(1)
Within 20 days after the last notification was sent pursuant to NRS 104.9621; or(2)
If a notification was not sent, before the debtor consents to the acceptance under subsection 3.5.
A secured party that has taken possession of collateral shall dispose of the collateral pursuant to NRS 104.9610 within the time specified in subsection 6 if:(a)
Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(b)
Sixty percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.6.
To comply with subsection 5, the secured party shall dispose of the collateral:(a)
Within 90 days after taking possession; or(b)
Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.7.
In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.
Source:
Section 104.9620 — Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral., https://www.leg.state.nv.us/NRS/NRS-104.html#NRS104Sec9620.