Uniform Commercial Code 2022 Amendments

The act incorporates the 2022 amendments to the "Uniform Commercial Code" (UCC), drafted by the Uniform Law Commission.

The 2022 amendments update the UCC to account for emerging technologies by:

• Amending the definitions of "conspicuous", "send", and "sign";
• Adding the definition of "electronic"; and
• Changing current references to "writing" or "written" to refer instead to a "record".

The 2022 amendments update the provisions of the UCC related to secured transactions by:

• Addressing security interests and rights to payment related to controllable electronic records;
• Specifying how to perfect security interests in controllable accounts and controllable payment intangibles;
• Updating the definition of "chattel paper" to distinguish between a right to payment and the record evidencing the right to payment;
• Creating a new definition of "assignee" and "assignor".

The act creates a new article within the UCC that governs controllable electronic records, including the transfer of property rights in certain intangible digital assets that have been or may be created and may involve the use of new technologies.

The act provides guidance for which laws apply during the transition from the current UCC to the UCC as amended by the act.

APPROVED by Governor May 1, 2023

EFFECTIVE August 7, 2023

NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)