Substitute House Bill No. 6970, also known as Public Act No. 25-145, proposes extensive amendments to the Uniform Commercial Code (UCC) to modernize and clarify legal definitions and provisions related to commercial transactions, effective January 1, 2026. The bill introduces new definitions, such as "conspicuous," "holder," and "insolvency proceeding," while refining existing terms like "money" and "security interest." Notably, it replaces the term "authenticated" with "signed" in various contexts, broadening the scope of acceptable documentation for contracts and transactions. The bill also repeals outdated language and definitions, streamlining the legal framework to better reflect contemporary business practices and technological advancements.

Additionally, the bill addresses secured transactions by clarifying the conditions under which security interests can be perfected and prioritized, particularly in relation to electronic records and controllable accounts. It establishes that a security interest remains enforceable until a specified adjustment date and outlines the rights of purchasers and secured parties in transactions involving chattel paper and electronic documents. The amendments aim to enhance clarity, protect consumer rights, and ensure that the legal framework governing secured transactions is adaptable to evolving commercial practices. Overall, the bill seeks to provide a more coherent and relevant legal structure for businesses and consumers alike.

Statutes affected:
Raised Bill: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 5-116, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a
JUD Joint Favorable Substitute: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 5-116, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a
File No. 809: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a
Public Act No. 25-145: 1-204, 1-306, 2-102, 2-106, 2-201, 2-202, 2-203, 2-205, 3-401, 5-104, 5-116, 7-106, 8-102, 8-103, 8-106, 8-110, 8-303, 9-102, 9-104, 9-105, 9-204, 9-210, 9-301, 9-312, 9-313, 9-314, 9-316, 9-317, 9-323, 9-324, 9-330, 9-331, 9-332, 9-341, 9-406, 9-408, 9-509, 9-513, 9-605, 9-608, 9-611, 9-613, 9-614, 9-616, 9-620, 9-621, 9-624, 9-628, 1-1a