Nev. Rev. Stat. » NRS: CHAPTER 104 - UNIFORM COMMERCIAL CODE—ORIGINAL ARTICLES

Nev. Rev. Stat. § 104.9313

When possession by or delivery to secured party perfects security interest without filing

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NRS 104.9313  When possession by or delivery to secured party perfects security interest without filing.

      1.  Except as otherwise provided in subsection 2, a secured party may perfect a security interest in goods, instruments, negotiable tangible documents or money by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under NRS 104.8301.

      2.  With respect to goods covered by a certificate of title issued by this State, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in subsection 5 of NRS 104.9316.

      3.  With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business, when:

      (a) The person in possession signs a record acknowledging that it holds possession of the collateral for the secured party’s benefit; or

      (b) The person takes possession of the collateral after having signed a record acknowledging that it will hold possession of the collateral for the secured party’s benefit.

      4.  If perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs not earlier than the time the secured party takes possession and continues only while the secured party retains possession.

      5.  A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under NRS 104.8301 and remains perfected by delivery until the debtor obtains possession of the security certificate.

      6.  A person in possession of collateral is not required to acknowledge that it holds possession for a secured party’s benefit.

      7.  If a person acknowledges that it holds possession for the secured party’s benefit:

      (a) The acknowledgment is effective under subsection 3 or subsection 1 of NRS 104.8301, even if the acknowledgment violates the rights of a debtor; and

      (b) Unless the person otherwise agrees or law other than this Article otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.

      8.  A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business if he or she was instructed before the delivery or is instructed contemporaneously with the delivery:

      (a) To hold possession of the collateral for the secured party’s benefit; or

      (b) To redeliver the collateral to the secured party.

      9.  A secured party does not relinquish possession, even if a delivery under subsection 8 violates the rights of a debtor. A person to which collateral is delivered under subsection 8 does not owe any duty to the secured party and is not required to confirm the delivery to another person unless he or she otherwise agrees or law other than this Article otherwise provides.

      (Added to NRS by 1999, 308; A 2005, 873; 2023, 3213)

     

Notes of Decisions
Cited in 5 cases, 1993–2012 · leading case: Edelstein v. Bank of New York Mellon
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Edelstein v. Bank of New York Mellon (2012) nev “NRS 104.9313 and UCC § 9-313, rant. 3 “Possession” (explaining that principles of agency apply in determining actual possession in the UCC, and that where an agent of a secured party has physical possession of a note, the secured party has taken actual possession).”
Leasepartners Corp. v. Robert L. Brooks Trust (1997) nev “9401(2) or NRS 104.9313(5) such that LeasePartners obtained a perfected security interest in the fixtures.”
PREMIER TRUST, INC. v. Duvall (2008) nvd · cites it 4× “Nevada does not define “possession” with respect to this provision, but the Uniform Commercial Code Comment to § 104.9313 directs that agency principles apply.”
In Re SCHWALB (2006) nvb “The issue thus boils down to whether the “debtor authenticated a security agreement that provides a description of the collateral,” or whether the collateral was “in the possession of the secured party under NRS 104.9313 pursuant to the debt- or’s security agreement.”
Bank of California v. LMJ, Inc. (In Re LMJ, Inc.) (1993) nvd “To be a fixture under NRS 104.9313 the personal property must be so related to the real estate that an interest arises under real estate law.”
— Nev. Rev. Stat. § 104.9313(1) — 1 case
PREMIER TRUST, INC. v. Duvall (2008) nvd “Nevada does not define “possession” with respect to this provision, but the Uniform Commercial Code Comment to § 104.9313 directs that agency principles apply.”
— Nev. Rev. Stat. § 104.9313(3) — 1 case
PREMIER TRUST, INC. v. Duvall (2008) nvd “Nevada does not define “possession” with respect to this provision, but the Uniform Commercial Code Comment to § 104.9313 directs that agency principles apply.”
— Nev. Rev. Stat. § 104.9313(5) — 1 case
Leasepartners Corp. v. Robert L. Brooks Trust (1997) nev “9401(2) or NRS 104.9313(5) such that LeasePartners obtained a perfected security interest in the fixtures.”
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