NAC720.710. Liability of licensee.

     1. Except as otherwise provided in this section, a licensee who operates a recognized repository shall agree to pay for any loss incurred by a person who reasonably relies on a digital signature that is verified by the public key set forth in a suspended or revoked certificate, if the reliance occurs:

     (a) More than 1 business day after the licensee receives from a recognized certification authority a request to publish notice of the suspension or revocation; and

     (b) Before the licensee has published the notice in the recognized repository it operates.

     2. Subsection 1 does not require a licensee to agree to pay any:

     (a) Punitive or exemplary damages or damages for pain or suffering; or

     (b) Amount in excess of any limitations on obligations, losses or damages listed in the suspended or revoked certificate.

     3. A licensee may liquidate, limit, alter or exclude liability for any consequential or incidental damages resulting from the requirements of subsection 1 by:

     (a) Agreement with the person who incurs the loss; or

     (b) Notification of the person who incurs the loss, before he or she relies on the digital signature, of the liquidation, limitation, alteration or exclusion,

Ê if the liquidation, limitation, alteration or exclusion is not unconscionable.

     (Added to NAC by Sec’y of State by R155-98, eff. 12-2-99)