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Nrs: Chapter 719 - Electronic Transactions (Uniform Act)


Published: 2015

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[Rev. 11/21/2013 3:25:58

PM--2013]



TITLE 59 - ELECTRONIC RECORDS AND TRANSACTIONS

CHAPTER 719 - ELECTRONIC TRANSACTIONS

(UNIFORM ACT)

NRS 719.010           Short

title.

NRS 719.020           Definitions.

NRS 719.030           “Agreement”

defined.

NRS 719.040           “Automated

transaction” defined.

NRS 719.050           “Computer

program” defined.

NRS 719.060           “Contract”

defined.

NRS 719.070           “Electronic”

defined.

NRS 719.080           “Electronic

agent” defined.

NRS 719.090           “Electronic

record” defined.

NRS 719.100           “Electronic

signature” defined.

NRS 719.110           “Governmental

agency” defined.

NRS 719.120           “Information”

defined.

NRS 719.130           “Information

processing system” defined.

NRS 719.140           “Person”

defined.

NRS 719.150           “Record”

defined.

NRS 719.160           “Security

procedure” defined.

NRS 719.170           “State”

defined.

NRS 719.180           “Transaction”

defined.

NRS 719.200           Scope.

NRS 719.210           Prospective

application; application of Electronic Signatures in Global and National

Commerce Act.

NRS 719.220           Use

of electronic records and electronic signatures; variation by agreement.

NRS 719.230           Application

and construction: Promotion of uniformity.

NRS 719.240           Legal

recognition of electronic records, electronic signatures and electronic

contracts.

NRS 719.250           Provision

of information in writing; presentation of records.

NRS 719.260           Attribution

and effect of electronic record and electronic signature.

NRS 719.270           Effect

of change or error.

NRS 719.280           Notarization

and acknowledgment.

NRS 719.290           Retention

of electronic records; originals.

NRS 719.300           Admissibility

in evidence.

NRS 719.310           Automated

transaction.

NRS 719.320           Time

and place of sending and receipt.

NRS 719.330           Transferable

records.

NRS 719.340           Creation

and retention of electronic records and conversion of written records by

governmental agencies.

NRS 719.345           Governmental

agency may be required to have certain electronic capabilities as condition of

participation in state business portal.

NRS 719.350           Acceptance

and distribution of electronic records by governmental agencies.

_________

_________

      NRS 719.010  Short title.  This

chapter may be cited as the Uniform Electronic Transactions Act.

      (Added to NRS by 2001, 2714)

      NRS 719.020  Definitions.  As

used in this chapter, unless the context otherwise requires, the words and

terms defined in NRS 719.030 to 719.180, inclusive, have the meanings ascribed to them

in those sections.

      (Added to NRS by 2001, 2714)

      NRS 719.030  “Agreement” defined.  “Agreement”

means the bargain of the parties in fact, as found in their language or

inferred from other circumstances and from rules, regulations and procedures

given the effect of agreements under laws otherwise applicable to a particular

transaction.

      (Added to NRS by 2001, 2714)

      NRS 719.040  “Automated transaction” defined.  “Automated

transaction” means a transaction conducted or performed, in whole or in part,

by electronic means or electronic records, in which the acts or records of one

or both parties are not reviewed by a natural person in the ordinary course in

forming a contract, performing under an existing contract or fulfilling an

obligation required by the transaction.

      (Added to NRS by 2001, 2714)

      NRS 719.050  “Computer program” defined.  “Computer

program” means a set of statements or instructions to be used directly or

indirectly in an information processing system in order to bring about a

certain result.

      (Added to NRS by 2001, 2715)

      NRS 719.060  “Contract” defined.  “Contract”

means the total legal obligation resulting from the parties’ agreement as affected

by this chapter and other applicable law.

      (Added to NRS by 2001, 2715)

      NRS 719.070  “Electronic” defined.  “Electronic”

means relating to technology having electrical, digital, magnetic, wireless,

optical, electromagnetic or similar capabilities.

      (Added to NRS by 2001, 2715)

      NRS 719.080  “Electronic agent” defined.  “Electronic

agent” means a computer program or an electronic or other automated means used

independently to initiate an action or respond to electronic records or

performances in whole or in part, without review or action by a natural person.

      (Added to NRS by 2001, 2715)

      NRS 719.090  “Electronic record” defined.  “Electronic

record” means a record created, generated, sent, communicated, received or

stored by electronic means.

      (Added to NRS by 2001, 2715)

      NRS 719.100  “Electronic signature” defined.  “Electronic

signature” means an electronic sound, symbol or process attached to or

logically associated with a record and executed or adopted by a person with the

intent to sign the record.

      (Added to NRS by 2001, 2715)

      NRS 719.110  “Governmental agency” defined.  “Governmental

agency” means an executive, legislative or judicial agency, department, board,

commission, authority, institution or instrumentality of the Federal Government

or of a state or of a county, municipality or other political subdivision of a

state.

      (Added to NRS by 2001, 2715)

      NRS 719.120  “Information” defined.  “Information”

means data, text, images, sounds, codes, computer programs, software, databases

or the like.

      (Added to NRS by 2001, 2715)

      NRS 719.130  “Information processing system” defined.  “Information processing system” means an

electronic system for creating, generating, sending, receiving, storing,

displaying or processing information.

      (Added to NRS by 2001, 2715)

      NRS 719.140  “Person” defined.  “Person”

includes a governmental agency and a public corporation.

      (Added to NRS by 2001, 2715)

      NRS 719.150  “Record” defined.  “Record”

means information that is inscribed on a tangible medium or that is stored in

an electronic or other medium and is retrievable in perceivable form.

      (Added to NRS by 2001, 2715)

      NRS 719.160  “Security procedure” defined.  “Security

procedure” means a procedure employed for the purpose of verifying that an

electronic signature, record or performance is that of a specific person or for

detecting changes or errors in the information in an electronic record. The

term includes a procedure that requires the use of algorithms or other codes,

identifying words or numbers, encryption or callback, or other acknowledgment

procedures.

      (Added to NRS by 2001, 2715)

      NRS 719.170  “State” defined.  “State”

means a state of the United States, the District of Columbia, Puerto Rico, the

United States Virgin Islands or any territory or insular possession subject to

the jurisdiction of the United States. The term includes an Indian tribe or

band, or Alaskan native village, which is recognized by federal law or formally

acknowledged by a state.

      (Added to NRS by 2001, 2715)

      NRS 719.180  “Transaction” defined.  “Transaction”

means an action or set of actions occurring between two or more persons

relating to the conduct of business, commercial or governmental affairs.

      (Added to NRS by 2001, 2715)

      NRS 719.200  Scope.

      1.  Except as otherwise provided in

subsection 2, the provisions of this chapter apply to electronic records and

electronic signatures relating to a transaction.

      2.  The provisions of this chapter do not

apply to a transaction to the extent it is governed by:

      (a) A law governing the creation and execution of

wills, codicils or testamentary trusts;

      (b) The Uniform Commercial Code other than NRS 104.1306, 104.2101 to 104.2725, inclusive, and 104A.2101 to 104A.2532, inclusive; or

      (c) The provisions of NRS 439.581 to 439.595, inclusive, and the regulations

adopted pursuant thereto.

      3.  The provisions of this chapter apply to

an electronic record or electronic signature otherwise excluded from the

application of this chapter under subsection 2 to the extent it is governed by

a law other than those specified in subsection 2.

      4.  A transaction subject to the provisions

of this chapter is also subject to other applicable substantive law.

      (Added to NRS by 2001, 2715; A 2005, 885; 2011, 1765)

      NRS 719.210  Prospective application; application of Electronic Signatures in

Global and National Commerce Act.

      1.  The provisions of this chapter apply to

any electronic record or electronic signature created, generated, sent,

communicated, received or stored on or after October 1, 2001.

      2.  The provisions of section 101(c) of the

Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et

seq., apply under this chapter to a transaction in which a natural person

acquires goods or services that are used primarily for personal, family or

household purposes.

      (Added to NRS by 2001, 2716)

      NRS 719.220  Use of electronic records and electronic signatures; variation

by agreement.

      1.  The provisions of this chapter do not

require a record or signature to be created, generated, sent, communicated,

received, stored or otherwise processed or used by electronic means or in

electronic form.

      2.  The provisions of this chapter apply

only to transactions between parties each of whom has agreed to conduct

transactions by electronic means. Whether the parties agree to conduct a

transaction by electronic means is determined from the context and surrounding

circumstances, including the parties’ conduct.

      3.  A party that agrees to conduct a

transaction by electronic means may refuse to conduct other transactions by

electronic means. The right granted by this subsection may not be waived by

agreement.

      4.  Except as otherwise provided in this

chapter, the effect of any of the provisions of this chapter may be varied by

agreement. The presence in certain provisions of this chapter of the words

“unless otherwise agreed” or words of similar import does not imply that the

effect of other provisions may not be varied by agreement.

      5.  Whether an electronic record or

electronic signature has legal consequences is determined by the provisions of

this chapter and other applicable law.

      (Added to NRS by 2001, 2716)

      NRS 719.230  Application and construction: Promotion of uniformity.  In applying and construing this uniform act,

consideration must be given to the need to promote uniformity of the law with

respect to its subject matter among states that enact it.

      (Added to NRS by 2001, 2721)

      NRS 719.240  Legal recognition of electronic records, electronic signatures

and electronic contracts.

      1.  A record or signature may not be denied

legal effect or enforceability solely because it is in electronic form.

      2.  A contract may not be denied legal

effect or enforceability solely because an electronic record was used in its

formation.

      3.  If a law requires a record to be in

writing, an electronic record satisfies the law.

      4.  If a law requires a signature, an

electronic signature satisfies the law.

      (Added to NRS by 2001, 2716)

      NRS 719.250  Provision of information in writing; presentation of records.

      1.  If parties have agreed to conduct a

transaction by electronic means and a law requires that a contract or other

record relating to the transaction be in writing, the legal effect, validity or

enforceability of the contract or other record may be denied if an electronic

record of the contract or other record is not in a form that is capable of

being retained and accurately reproduced for later reference by all parties or

other persons who are entitled to retain the contract or record.

      2.  If a law other than this chapter

requires a record to be posted or displayed in a certain manner, to be sent,

communicated or transmitted by a specified method or to contain information

that is formatted in a certain manner, the following rules apply:

      (a) The record must be posted or displayed in the

manner specified in the other law.

      (b) Except as otherwise provided in paragraph (b)

of subsection 6, the record must be sent, communicated or transmitted by the

method specified in the other law.

      (c) The record must contain the information

formatted in the manner specified in the other law.

      3.  If a sender inhibits the ability of a

recipient to store or print an electronic record, the electronic record is not

enforceable against the recipient.

      4.  A requirement that a notice be in

writing is not satisfied by providing or delivering the notice electronically

if the notice is a notice of:

      (a) The cancellation or termination of service by

a public utility;

      (b) Default, acceleration, repossession,

foreclosure or eviction, or the right to cure, under a credit agreement secured

by, or a rental agreement for, a primary residence of a natural person;

      (c) The cancellation or termination of a policy

of health insurance, benefits received pursuant to a policy of health insurance

or benefits received pursuant to a policy of life insurance, excluding

annuities; or

      (d) The recall of a product, or material failure

of a product, that risks endangering the health or safety of a person.

      5.  A requirement that a document be in

writing is not satisfied by providing or delivering the document electronically

if the document is required to accompany any transportation or handling of

hazardous materials, pesticides, or other toxic or dangerous materials.

      6.  The requirements of this section may

not be varied by agreement, but:

      (a) To the extent a law other than this chapter

requires that a contract or other record relating to a transaction be in

writing but permits that requirement to be varied by agreement, the provisions

of subsection 1 concerning the denial of the legal effect, validity or

enforceability of a contract or other record relating to a transaction may also

be varied by agreement; and

      (b) A requirement under a law other than this

chapter to send, communicate or transmit a record by first-class mail, postage

prepaid, regular United States mail, may be varied by agreement to the extent

permitted by the other law.

      (Added to NRS by 2001, 2716)

      NRS 719.260  Attribution and effect of electronic record and electronic

signature.

      1.  An electronic record or electronic

signature is attributable to a person if it was the act of the person. The act

of the person may be shown in any manner, including a showing of the efficacy

of any security procedure applied to determine the person to whom the

electronic record or electronic signature was attributable.

      2.  The effect of an electronic record or

electronic signature attributed to a person under subsection 1 is determined

from the context and surrounding circumstances at the time of its creation,

execution or adoption, including the parties’ agreement, if any, and otherwise

as provided by law.

      (Added to NRS by 2001, 2717)

      NRS 719.270  Effect of change or error.  If

a change or error in an electronic record occurs in a transmission between

parties to a transaction, the following rules apply:

      1.  If the parties have agreed to use a

security procedure to detect changes or errors and one party has conformed to

the procedure, but the other party has not, and the nonconforming party would

have detected the change or error had that party also conformed, the conforming

party may avoid the effect of the changed or erroneous electronic record.

      2.  In an automated transaction involving a

natural person, the natural person may avoid the effect of an electronic record

that resulted from an error made in dealing with the electronic agent of

another person if the electronic agent did not provide an opportunity for the

prevention or correction of the error and, at the time the natural person

learns of the error, the natural person:

      (a) Promptly notifies the other person of the

error and that the natural person did not intend to be bound by the electronic

record received by the other person;

      (b) Takes reasonable steps, including steps that

conform to the other person’s reasonable instructions, to return to the other

person or, if instructed by the other person, to destroy the consideration

received, if any, as a result of the erroneous electronic record; and

      (c) Has not used or received any benefit or value

from the consideration, if any, received from the other person.

      3.  If neither subsection 1 nor subsection

2 applies, the change or error has the effect provided by other law, including

the law of mistake and the parties’ contract, if any.

      4.  Subsections 2 and 3 may not be varied by

agreement.

      (Added to NRS by 2001, 2718)

      NRS 719.280  Notarization and acknowledgment.  If

a law requires a signature or record to be notarized, acknowledged, verified or

made under oath, the requirement is satisfied if the electronic signature of

the person authorized to perform those acts, together with all other

information required to be included by other applicable law, is attached to or

logically associated with the signature or record.

      (Added to NRS by 2001, 2718)

      NRS 719.290  Retention of electronic records; originals.

      1.  If a law requires that a record be

retained, the requirement is satisfied by retaining an electronic record of the

information in the record which:

      (a) Accurately reflects the information set forth

in the record after it was first generated in its final form as an electronic

record or otherwise; and

      (b) Remains accessible to all persons who are

legally entitled to access to the record, for the period required by law, in a

form that is capable of being accurately reproduced for later reference.

      2.  A requirement to retain a record in

accordance with subsection 1 does not apply to any information the sole purpose

of which is to enable the record to be sent, communicated or received.

      3.  A person may satisfy subsection 1 by

using the services of another person if the requirements of that subsection are

satisfied.

      4.  If a law requires a record to be

presented or retained in its original form, or provides consequences if the

record is not presented or retained in its original form, that law is satisfied

by an electronic record retained in accordance with subsection 1.

      5.  If a law requires retention of a check,

that requirement is satisfied by retention of an electronic record of the

information on the front and back of the check in accordance with subsection 1.

      6.  A record retained as an electronic

record in accordance with subsection 1 satisfies a law requiring a person to

retain a record for evidentiary, audit or like purposes, unless a law enacted

after October 1, 2001, specifically prohibits the use of an electronic record

for the specified purpose.

      7.  This section does not preclude a

governmental agency of this state from specifying additional requirements for

the retention of a record subject to the agency’s jurisdiction.

      (Added to NRS by 2001, 2718)

      NRS 719.300  Admissibility in evidence.  In

a proceeding, evidence of a record or signature must not be excluded solely

because it is in electronic form.

      (Added to NRS by 2001, 2719)

      NRS 719.310  Automated transaction.  In

an automated transaction, the following rules apply:

      1.  A contract may be formed by the

interaction of electronic agents of the parties, even if no natural person was

aware of or reviewed the electronic agents’ actions or the resulting terms and

agreements.

      2.  A contract may be formed by the

interaction of an electronic agent and a natural person, acting on his or her

own behalf or for another person, as by an interaction in which the natural

person performs actions that the natural person is free to refuse to perform

and which the natural person knows or has reason to know will cause the

electronic agent to complete the transaction or performance.

      3.  The terms of the contract are

determined by the substantive law applicable to it.

      (Added to NRS by 2001, 2719)

      NRS 719.320  Time and place of sending and receipt.

      1.  Unless otherwise agreed between the

sender and the recipient, an electronic record is sent when it:

      (a) Is addressed properly or otherwise directed

properly to an information processing system that the recipient has designated

or uses for the purpose of receiving electronic records or information of the

type sent and from which the recipient is able to retrieve the electronic

record;

      (b) Is in a form capable of being processed by

that system; and

      (c) Enters an information processing system

outside the control of the sender or of a person that sent the electronic

record on behalf of the sender or enters a region of the information processing

system designated or used by the recipient which is under the control of the

recipient.

      2.  Unless otherwise agreed between a sender

and the recipient, an electronic record is received when:

      (a) It enters an information processing system

that the recipient has designated or uses for the purpose of receiving

electronic records or information of the type sent and from which the recipient

is able to retrieve the electronic record; and

      (b) It is in a form capable of being processed by

that system.

      3.  Subsection 2 applies even if the place

the information processing system is located is different from the place the

electronic record is deemed to be received under subsection 4.

      4.  Unless otherwise expressly provided in

the electronic record or agreed between the sender and the recipient, an

electronic record is deemed to be sent from the sender’s place of business and

to be received at the recipient’s place of business. For purposes of this

subsection, the following rules apply:

      (a) If the sender or recipient has more than one

place of business, the place of business is the place having the closest

relationship to the underlying transaction.

      (b) If the sender or the recipient does not have

a place of business, the place of business is the sender’s or recipient’s

residence, as the case may be.

      5.  An electronic record is received under

subsection 2 even if no natural person is aware of its receipt.

      6.  Receipt of an electronic acknowledgment

from an information processing system described in subsection 2 establishes

that a record was received but, by itself, does not establish that the content

sent corresponds to the content received.

      7.  If a person is aware that an electronic

record purportedly sent under subsection 1, or purportedly received under

subsection 2, was not actually sent or received, the legal effect of the

sending or receipt is determined by other applicable law. Except to the extent

permitted by the other law, the requirements of this subsection may not be

varied by agreement.

      (Added to NRS by 2001, 2719)

      NRS 719.330  Transferable records.

      1.  In this section, “transferable record”

means an electronic record that:

      (a) Would be a note under NRS 104.3101 to 104.3605, inclusive, or a document under NRS 104.7101 to 104.7603, inclusive, if the electronic

record were in writing; and

      (b) The issuer of the electronic record expressly

has agreed is a transferable record.

      2.  A person has control of a transferable

record if a system employed for evidencing the transfer of interests in the

transferable record reliably establishes him or her as the person to whom the

transferable record was issued or transferred.

      3.  A system satisfies subsection 2, and a

person is deemed to have control of a transferable record, if the transferable

record is created, stored and assigned in such a manner that:

      (a) A single authoritative copy of the

transferable record exists which is unique, identifiable, and, except as

otherwise provided in paragraphs (d), (e) and (f), unalterable;

      (b) The authoritative copy identifies the person

asserting control as:

             (1) The person to whom the transferable

record was issued; or

             (2) If the authoritative copy indicates

that the transferable record has been transferred, the person to whom the

transferable record was most recently transferred;

      (c) The authoritative copy is communicated to and

maintained by the person asserting control or its designated custodian;

      (d) Copies or revisions that add or change an

identified assignee of the authoritative copy can be made only with the consent

of the person asserting control;

      (e) Each copy of the authoritative copy and any

copy of a copy is readily identifiable as a copy that is not the authoritative

copy; and

      (f) Any revision of the authoritative copy is

readily identifiable as authorized or unauthorized.

      4.  Except as otherwise agreed, a person

having control of a transferable record is the holder, as defined in paragraph

(u) of subsection 2 of NRS 104.1201,

of the transferable record and has the same rights and defenses as a holder of

an equivalent record or writing under the Uniform Commercial Code, including,

if the applicable statutory requirements under NRS 104.7501, 104.9308 or subsection 1 of NRS 104.3302 are satisfied, the rights

and defenses of a holder to whom a negotiable document of title has been duly

negotiated, a purchaser, or a holder in due course, respectively. Delivery,

possession and endorsement are not required to obtain or exercise any of the

rights under this subsection.

      5.  Except as otherwise agreed, an obligor

under a transferable record has the same rights and defenses as an equivalent

obligor under equivalent records or writings under the Uniform Commercial Code.

      6.  If requested by a person against whom

enforcement is sought, the person seeking to enforce the transferable record

shall provide reasonable proof that the person is in control of the

transferable record. Proof may include access to the authoritative copy of the

transferable record and related business records sufficient to review the terms

of the transferable record and to establish the identity of the person having

control of the transferable record.

      (Added to NRS by 2001, 2720; A 2005, 886)

      NRS 719.340  Creation and retention of electronic records and conversion of

written records by governmental agencies.  Each

governmental agency of this State shall determine whether, and the extent to

which, it will create and retain electronic records and convert written records

to electronic records.

      (Added to NRS by 2001, 2721)

      NRS 719.345  Governmental agency may be required to have certain electronic

capabilities as condition of participation in state business portal.  The Secretary of State may require a

governmental agency of this State or a governmental agency of a political

subdivision of this State, as a condition of participation in the state

business portal established pursuant to NRS

75A.100, 75A.200 and 75A.300, to send and accept electronic

records and electronic signatures to and from other persons and otherwise

create, generate, communicate, store, process, use and rely upon electronic

records and electronic signatures.

      (Added to NRS by 2009, 2053)

      NRS 719.350  Acceptance and distribution of electronic records by

governmental agencies.

      1.  Except as otherwise provided in subsection

6 of NRS 719.290 and NRS

719.345, each governmental agency of this state shall determine whether,

and the extent to which, it will send and accept electronic records and

electronic signatures to and from other persons and otherwise create, generate,

communicate, store, process, use and rely upon electronic records and

electronic signatures.

      2.  Except as otherwise provided in NRS 719.345, to the extent that a governmental agency

uses electronic records and electronic signatures under subsection 1, the

governmental agency, giving due consideration to security, may specify:

      (a) The manner and format in which the electronic

records must be created, generated, sent, communicated, received and stored and

the systems established for those purposes;

      (b) If electronic records must be signed by

electronic means, the type of electronic signature required, the manner and

format in which the electronic signature must be affixed to the electronic

record, and the identity of, or criteria that must be met by, any third party

used by a person filing a document to facilitate the process;

      (c) Processes and procedures as appropriate to

ensure adequate preservation, disposition, integrity, security, confidentiality

and auditability of electronic records; and

      (d) Any other required attributes for electronic

records which are specified for corresponding nonelectronic records or

reasonably necessary under the circumstances.

      3.  Except as otherwise provided in

subsection 6 of NRS 719.290 and NRS 719.345, the provisions of this chapter do not

require a governmental agency of this state to use or permit the use of

electronic records or electronic signatures.

      (Added to NRS by 2001, 2721; A 2009, 2053)