Nevada Code § 104.3305

1. Except as otherwise provided in this
section, the right to enforce the obligation of a party to pay an instrument is
subject to the following:
(a) A defense of the obligor based on:
(1) Infancy of the obligor to the extent
it is a defense to a simple contract;
(2) Duress, lack of legal capacity or
illegality of the transaction which, under other law, nullifies the obligation
of the obligor;
(3) Fraud that induced the obligor to sign
the instrument with neither knowledge nor reasonable opportunity to learn of
its character or its essential terms; or
(4) Discharge of the obligor in insolvency
proceedings;
(b) A defense of the obligor stated in another
section of this Article or a defense of the obligor that would be available if
the person entitled to enforce the instrument were enforcing a right to payment
under a simple contract; and
(c) A claim in recoupment of the obligor against
the original payee of the instrument if the claim arose from the transaction
that gave rise to the instrument; but the claim of the obligor may be asserted
against a transferee of the instrument only to reduce the amount owing on the
instrument at the time the action is brought.
2. The right of a holder in due course to
enforce the obligation of a party to pay the instrument is subject to defenses
of the obligor stated in paragraph (a) of subsection 1, but is not subject to
defenses of the obligor stated in paragraph (b) of subsection 1 or claims in
recoupment stated in paragraph (c) of subsection 1 against a person other than
the holder.
3. Except as otherwise provided in
subsection 4, in an action to enforce the obligation of a party to pay the
instrument, the obligor may not assert against the person entitled to enforce
the instrument a defense, claim in recoupment or claim to the instrument ( NRS 104.3306 ) of another person, but the
other persons claim to the instrument may be asserted by the obligor if the
other person is joined in the action and personally asserts the claim against
the person entitled to enforce the instrument. An obligor is not obliged to pay
the instrument if the person seeking enforcement of the instrument does not
have rights of a holder in due course and the obligor proves that the
instrument is a lost or stolen instrument.
4. In an action to enforce the obligation
of an accommodation party to pay an instrument, the accommodation party may
assert against the person entitled to enforce the instrument any defense or
claim in recoupment under subsection 1 that the accommodated party could assert
against the person entitled to enforce the instrument, except the defenses of
discharge in insolvency proceedings, infancy and lack of legal capacity.

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