2005 Nevada Revised Statutes - Chapter 162 — Fiduciaries

CHAPTER 162 - FIDUCIARIES

UNIFORM ACT

NRS 162.010 Shorttitle.

NRS 162.020 Definitions.

NRS 162.030 Applicationof payment made to fiduciary.

NRS 162.050 Transferof negotiable instrument by fiduciary.

NRS 162.060 Checkdrawn by fiduciary payable to third person.

NRS 162.070 Checkdrawn by and payable to fiduciary.

NRS 162.080 Depositin name of fiduciary as such.

NRS 162.090 Checkdrawn upon account of principal.

NRS 162.100 Depositin personal account of fiduciary.

NRS 162.110 Depositin names of two or more trustees.

NRS 162.120 Applicability.

NRS 162.130 Casesnot provided for in NRS 162.010 to 162.140, inclusive.

NRS 162.140 Uniformityof interpretation.

ACT FOR SIMPLIFICATION OF FIDUCIARY SECURITY TRANSFERS

NRS 162.150 Shorttitle.

NRS 162.160 Definitions.

NRS 162.170 Registrationin name of fiduciary.

NRS 162.180 Assignmentby fiduciary.

NRS 162.210 Nonliabilityof corporation and transfer agent.

NRS 162.220 Nonliabilityof third person.

NRS 162.230 Applicationof NRS 162.150 to 162.250, inclusive.

NRS 162.240 Taxobligations.

NRS 162.250 Uniformityof interpretation.

MISCELLANEOUS PROVISIONS

NRS 162.260 Successionto powers and duties of original fiduciary.

NRS 162.270 Continuedadministration by surviving fiduciary.

NRS 162.280 Withholdingof property from beneficiary.

NRS 162.300 Formationof entity by fiduciary; transfer, assignment or conveyance of estate or trustproperty to entity; ownership or control of entity by trust.

_________

UNIFORM ACT

NRS 162.010 Shorttitle. NRS162.010 to 162.140, inclusive, maybe cited as the Uniform Fiduciaries Act.

[14:44:1923; NCL 2998](NRS A 1959, 605)

NRS 162.020 Definitions.

1. In NRS 162.010to 162.140, inclusive, unless thecontext of subject matter otherwise requires:

(a) Bank includes any person or association ofpersons, whether incorporated or not, carrying on the business of banking.

(b) Fiduciary includes a trustee under any trust,expressed, implied, resulting or constructive, executor, administrator,guardian, conservator, curator, receiver, trustee in bankruptcy, assignee forthe benefit of creditors, partner, agent, officer of a corporation, public orprivate, public officer, or any other person acting in a fiduciary capacity forany person, trust or estate.

(c) Principal includes any person to whom a fiduciaryas such owes an obligation.

2. A thing is done in good faith within the meaningof NRS 162.010 to 162.140, inclusive, when it is in fact donehonestly, whether it is done negligently or not.

[1:44:1923; NCL 2985](NRS A 1985, 508)

NRS 162.030 Applicationof payment made to fiduciary. A person who ingood faith pays or transfers to a fiduciary any money or other property whichthe fiduciary as such is authorized to receive, is not responsible for theproper application thereof by the fiduciary; and any right or title acquiredfrom the fiduciary in consideration of such payment or transfer is not invalidin consequence of a misapplication by the fiduciary.

[2:44:1923; NCL 2986]

NRS 162.050 Transferof negotiable instrument by fiduciary. If anynegotiable instrument payable or endorsed to a fiduciary as such is endorsed bythe fiduciary, or if any negotiable instrument payable or endorsed to hisprincipal is endorsed by a fiduciary empowered to endorse such instrument onbehalf of his principal, the endorsee is not bound to inquire whether thefiduciary is committing a breach of his obligation as fiduciary in endorsing ordelivering the instrument, and is not chargeable with notice that the fiduciaryis committing a breach of his obligation as fiduciary unless he takes theinstrument with actual knowledge of such breach or with knowledge of such factsthat his action in taking the instrument amounts to bad faith. If, however,such instrument is transferred by the fiduciary in payment of or as securityfor a personal debt of the fiduciary to the actual knowledge of the creditor,or is transferred in any transaction known by the transferee to be for thepersonal benefit of the fiduciary, the creditor or other transferee is liableto the principal if the fiduciary in fact commits a breach of his obligation asfiduciary in transferring the instrument.

[4:44:1923; NCL 2988]

NRS 162.060 Checkdrawn by fiduciary payable to third person. Ifa check or other bill of exchange is drawn by a fiduciary as such, or in thename of his principal by a fiduciary empowered to draw such instrument in thename of his principal, the payee is not bound to inquire whether the fiduciaryis committing a breach of his obligation as fiduciary in drawing or deliveringthe instrument, and is not chargeable with notice that the fiduciary iscommitting a breach of his obligation as fiduciary unless he takes theinstrument with actual knowledge of such breach or with knowledge of such factsthat this action in taking the instrument amounts to bad faith. If, however,such instrument is payable to a personal creditor of the fiduciary anddelivered to the creditor in payment of or as security for a personal debt ofthe fiduciary to the actual knowledge of the creditor, or is drawn anddelivered in any transaction known by the payee to be for the personal benefitof the fiduciary, the creditor or other payee is liable to the principal if thefiduciary in fact commits a breach of his obligation as fiduciary in drawing ordelivering the instrument.

[5:44:1923; NCL 2989]

NRS 162.070 Checkdrawn by and payable to fiduciary. If a checkor other bill of exchange is drawn by a fiduciary as such or in the name of hisprincipal by a fiduciary empowered to draw such instrument in the name of hisprincipal, payable to the fiduciary personally, or payable to a third personand by him transferred to the fiduciary, and is thereafter transferred by thefiduciary, whether in payment of a personal debt of the fiduciary or otherwise,the transferee is not bound to inquire whether the fiduciary is committing abreach of his obligation as fiduciary in transferring the instrument, and isnot chargeable with notice that the fiduciary is committing a breach of hisobligation as fiduciary unless he takes the instrument with actual knowledge ofsuch breach or with knowledge of such facts that his action in taking theinstrument amounts to bad faith.

[6:44:1923; NCL 2990]

NRS 162.080 Depositin name of fiduciary as such. If a deposit ismade in a bank to the credit of a fiduciary as such, the bank is authorized topay the amount of the deposit or any part thereof upon the check of thefiduciary, signed with the name in which such deposit is entered, without beingliable to the principal, unless the bank pays the check with actual knowledgethat the fiduciary is committing a breach of his obligation as fiduciary indrawing the check or with knowledge of such facts that its action in paying thecheck amounts to bad faith. If, however, such check is payable to the draweebank and is delivered to it in payment of or as security for a personal debt ofthe fiduciary to it, the bank is liable to the principal if the fiduciary infact commits a breach of his obligation as fiduciary in drawing or deliveringthe check.

[7:44:1923; NCL 2991]

NRS 162.090 Checkdrawn upon account of principal. If a check isdrawn upon the account of his principal in a bank by a fiduciary who isempowered to draw checks upon his principals account, the bank is authorizedto pay such check without being liable to the principal, unless the bank paysthe check with actual knowledge that the fiduciary is committing a breach ofhis obligation as fiduciary in drawing such check, or with knowledge of suchfacts that its action in paying the check amounts to bad faith. If, however,such a check is payable to the drawee bank and is delivered to it in payment ofor as security for a personal debt of the fiduciary to it, the bank is liableto the principal if the fiduciary in fact commits a breach of his obligation asfiduciary in drawing or delivering the check.

[8:44:1923; NCL 2992]

NRS 162.100 Depositin personal account of fiduciary. If afiduciary makes a deposit in a bank to his personal credit of checks drawn byhim upon an account in his own name as fiduciary, or of checks payable to himas fiduciary, or of checks drawn by him upon an account in the name of hisprincipal if he is empowered to draw checks thereon, or of checks payable tohis principal and endorsed by him, if he is empowered to endorse such checks,or if he otherwise makes a deposit of funds held by him as fiduciary, the bankreceiving such deposit is not bound to inquire whether the fiduciary iscommitting thereby a breach of his obligation as fiduciary; and the bank isauthorized to pay the amount of the deposit or any part thereof upon thepersonal check of the fiduciary without being liable to the principal, unlessthe bank receives the deposit or pays the check with actual knowledge that thefiduciary is committing a breach of his obligation as fiduciary in making suchdeposit or in drawing such check, or with knowledge of such facts that itsaction in receiving the deposit or paying the check amounts to bad faith.

[9:44:1923; NCL 2993]

NRS 162.110 Depositin names of two or more trustees. When adeposit is made in a bank in the name of two or more persons as trustees and acheck is drawn upon the trust account by any trustee or trustees authorized bythe other trustee or trustees to draw checks upon the trust account, neitherthe payee nor other holder nor the bank is bound to inquire whether it is abreach of trust to authorize such trustee or trustees to draw checks upon thetrust account, and neither the payee nor other holder nor the bank shall beliable unless the circumstances be such that the action of the payee or otherholder or the bank amounts to bad faith.

[10:44:1923; NCL 2994]

NRS 162.120 Applicability. The provisions of NRS162.010 to 162.140, inclusive, shallnot apply to transactions taking place prior to March 1, 1923.

[11:44:1923; NCL 2995]

NRS 162.130 Casesnot provided for in NRS 162.010 to 162.140, inclusive. In any case not provided for in NRS 162.010 to 162.140, inclusive, the rules of law andequity, including the law merchant and those rules of law and equity relatingto trusts, agency, negotiable instruments and banking, shall continue to apply.

[12:44:1923; NCL 2996]

NRS 162.140 Uniformityof interpretation. NRS 162.010 to 162.140, inclusive, shall be so interpretedand construed as to effectuate their general purpose to make uniform the law ofthose states which enact them.

[13:44:1923; NCL 2997]

ACT FOR SIMPLIFICATION OF FIDUCIARY SECURITY TRANSFERS

NRS 162.150 Shorttitle. NRS162.150 to 162.250, inclusive, maybe cited as the Act for Simplification of Fiduciary Security Transfers.

(Added to NRS by 1959, 605)

NRS 162.160 Definitions. As used in NRS 162.150to 162.250, inclusive, unless thecontext otherwise requires:

1. Assignment includes any written stock power, bondpower, bill of sale, deed, declaration of trust or other instrument oftransfer.

2. Claim of beneficial interest includes a claim ofany interest by a decedents legatee, distributee, heir or creditor, abeneficiary under a trust, a ward, a beneficial owner of a security registeredin the name of a nominee, or a minor owner of a security registered in the nameof a custodian, or a claim of any similar interest, whether the claim isasserted by the claimant or by a fiduciary or by any other authorized person onhis behalf, and includes a claim that the transfer would be in breach offiduciary duties.

3. Corporation means a private or publiccorporation, association or trust issuing a security.

4. Fiduciary means an executor, administrator,trustee, guardian, committee, conservator, curator, tutor, custodian ornominee.

5. Person includes a government, a governmentalagency and a political subdivision of a government.

6. Security includes any share of stock, bond,debenture, note or other security issued by a corporation which is registeredas to ownership on the books of the corporation.

7. Transfer means a change on the books of acorporation in the registered ownership of a security.

8. Transfer agent means a person employed orauthorized by a corporation to transfer securities issued by the corporation.

(Added to NRS by 1959, 603; A 1985, 509)

NRS 162.170 Registrationin name of fiduciary. A corporation ortransfer agent registering a security in the name of a person who is afiduciary or who is described as a fiduciary is not bound to inquire into theexistence, extent or correct description of the fiduciary relationship, andthereafter the corporation and its transfer agent may assume without inquirythat the newly registered owner continues to be the fiduciary until thecorporation or transfer agent receives written notice that the fiduciary is nolonger acting as such with respect to the particular security.

(Added to NRS by 1959, 603)

NRS 162.180 Assignmentby fiduciary. Except as otherwise provided in NRS 162.150 to 162.250, inclusive, a corporation or transferagent making a transfer of a security pursuant to an assignment by a fiduciary:

1. May assume without inquiry that the assignment,even though to the fiduciary himself or to his nominee, is within his authorityand capacity and is not in breach of his fiduciary duties.

2. May assume without inquiry that the fiduciary hascomplied with any controlling instrument and with the law of the jurisdictiongoverning the fiduciary relationship, including any law requiring the fiduciaryto obtain court approval of the transfer.

3. Is not charged with notice of and is not bound toobtain or examine any court record or any recorded or unrecorded documentrelating to the fiduciary relationship or the assignment, even though therecord or document is in its possession.

(Added to NRS by 1959, 604)

NRS 162.210 Nonliabilityof corporation and transfer agent. A corporationor transfer agent incurs no liability to any person by making a transfer orotherwise acting in a manner authorized by NRS162.150 to 162.250, inclusive.

(Added to NRS by 1959, 605)

NRS 162.220 Nonliabilityof third person.

1. No person who participates in the acquisition,disposition, assignment or transfer of a security by or to a fiduciary,including a person who guarantees the signature of the fiduciary, is liable forparticipation in any breach of fiduciary duty by reason of failure to inquirewhether the transaction involves such a breach unless it is shown that he actedwith actual knowledge that the proceeds of the transaction were being or wereto be used wrongfully for the individual benefit of the fiduciary or that thetransaction was otherwise in breach of duty.

2. If a corporation or transfer agent makes a transferpursuant to an assignment by a fiduciary, a person who guaranteed the signatureof the fiduciary is not liable on the guarantee to any person to whom thecorporation or transfer agent by reason of the provisions of NRS 162.150 to 162.250, inclusive, incurs no liability.

3. This section does not impose any liability upon thecorporation or its transfer agent.

(Added to NRS by 1959, 605)

NRS 162.230 Applicationof NRS162.150 to 162.250, inclusive. The provisions of NRS162.150 to 162.250, inclusive, applyto the rights and duties of a person other than the issuing corporation and itstransfer agents with regard to acts and omission in this state in connectionwith the acquisition, disposition, assignment or transfer of a security by orto a fiduciary and of a person who guarantees in this state the signature of afiduciary in connection with such a transaction.

(Added to NRS by 1959, 605; A 1997, 420)

NRS 162.240 Taxobligations. NRS162.150 to 162.250, inclusive, donot affect any obligation of a corporation or transfer agent with respect toany taxes imposed by the laws of this state.

(Added to NRS by 1959, 605)

NRS 162.250 Uniformityof interpretation. NRS 162.150 to 162.250, inclusive, shall be so construedas to effectuate their general purpose to make uniform the law of those stateswhich enact them.

(Added to NRS by 1959, 605)

MISCELLANEOUS PROVISIONS

NRS 162.260 Successionto powers and duties of original fiduciary. Asuccessor or substitute fiduciary succeeds to all the powers and duties whichthe will, deed or other instrument conferred on the original fiduciary withrespect to the estate or trust unless the instrument expressly prohibits asuccessor or substitute from succeeding to those powers and duties.

(Added to NRS by 1979, 455)

NRS 162.270 Continuedadministration by surviving fiduciary. The survivorof two or more fiduciaries may continue to administer the property of theestate or trust without the appointment of a successor unless the continuedadministration by the survivor is contrary to an express provision of the will,deed or other instrument governing the estate or trust.

(Added to NRS by 1979, 455)

NRS 162.280 Withholdingof property from beneficiary. At the time fordistribution of any property of an estate or trust, the fiduciary may withholdany part or all of the property from the beneficiaries if the fiduciarydetermines that the property may be subject to conflicting claims, taxdeficiencies or other liabilities, contingent or otherwise, relating to theestate or trust.

(Added to NRS by 1979, 455)

NRS 162.300 Formationof entity by fiduciary; transfer, assignment or conveyance of estate or trustproperty to entity; ownership or control of entity by trust.

1. A fiduciary may form a corporation,limited-liability company or other entity, and transfer, assign and convey tothe corporation, limited-liability company or entity all or any part of anestate or of any trust property in exchange for the stock, securities orobligations of the corporation, limited-liability company or entity, andcontinue to hold the stock and securities and obligations.

2. A corporation, limited-liability company or otherentity incorporated, organized or registered under the laws of this State that actsas a fiduciary or trustee of an estate or trust administered under the laws of thisState may be owned or controlled by the trust if the trust instrument authorizesthe trust to own an affiliate.

3. As used in this section, affiliate has the meaningascribed to it in NRS 163.020.

(Added to NRS by 2005, 537)

 

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