Nevada § 104.3106 - Unconditional promise or order

§ 104.3106. Unconditional promise or order

1. Except as otherwise provided in this section, for the purposes of subsection 1

of NRS 104.3104 , a promise or order is unconditional unless it states: (a) An express condition to payment; (b) That the promise or order is subject to or governed by another record; or (c) That rights or obligations with respect to the promise or order are stated in

another record. A reference to another record does not of itself make the promise or order conditional. 2. A promise or order is not made conditional by a reference to another record for

a statement of rights with respect to collateral, prepayment or acceleration, or because

payment is limited to resort to a particular fund or source. 3. If a promise or order requires, as a condition to payment, a countersignature by

a person whose specimen signature appears on the promise or order, the condition does

not make the promise or order conditional for the purposes of subsection 1 of NRS 104.3104 . If the person whose specimen signature appears on an instrument fails to countersign

the instrument, the failure to countersign is a defense to the obligation of the issuer,

but the failure does not prevent a transferee of the instrument from becoming a holder

of the instrument. 4. If a promise or order at the time it is issued or first comes into possession of

a holder contains a statement, required by applicable statutory or administrative

law, to the effect that the rights of a holder or transferee are subject to claims

or defenses that the issuer could assert against the original payee, the promise or

order is not thereby made conditional for the purposes of subsection 1 of NRS 104.3104 ; but if the promise or order is an instrument, there cannot be a holder in due course

of the instrument.