{"data":{"id":"us-nv/nrs-104.9620","jurisdiction":"us-nv","citation":"NRS 104.9620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.","body":"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:\n(a) The debtor consents to the acceptance under subsection 3;\n(b) The secured party does not receive, within the time set forth in subsection 4, a notification of objection to the proposal signed by:\n(1) A person to which the secured party was required to send a proposal under NRS 104.9621; or\n(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;\n(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\n(d) Subsection 5 does not require the secured party to dispose of the collateral.\n2. A purported or apparent acceptance of collateral under this section is ineffective unless:\n(a) The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(b) The conditions of subsection 1 are met.\n3. For purposes of this section:\n(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 signed after default; and\n(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 signed after default or the secured party:\n(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;\n(2) In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(3) Does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n4. To be effective under paragraph (b) of subsection 1, a notification of objection must be received by the secured party:\n(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\n(b) In other cases:\n(1) Within 20 days after the last notification was sent pursuant to NRS 104.9621; or\n(2) If a notification was not sent, before the debtor consents to the acceptance under subsection 3.\n5. 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:\n(a) Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(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.\n6. To comply with subsection 5, the secured party shall dispose of the collateral:\n(a) Within 90 days after taking possession; or\n(b) Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n7. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["TITLE 8 — COMMERCIAL INSTRUMENTS AND TRANSACTIONS","CHAPTER 104 - UNIFORM COMMERCIAL CODE—ORIGINAL ARTICLES","SECURED TRANSACTIONS","Default"],"source_url":"https://www.leg.state.nv.us/NRS/NRS-104.html#NRS104Sec9620","current_through":"2025 session (NRS as revised 2026-08-25)","vintage":"","retrieved_at":"2026-09-03T05:51:31Z","sha256":"5dbf03239d3b48d185810ef4588e13b9fab1acc03ab2afdbbdb30654e11e274b","source_id":"us-nv","stale":true,"prev":"us-nv/nrs-104.9619","next":"us-nv/nrs-104.9621"},"notice":"GroundRules: Original legal text. Not legal advice."}