RÉSUMÉ DIGEST
ACT 773 (SB 110) 2024 Regular Session Pressly
Prior law (R.S. 10:1-201(b)(10)) defined the term "conspicuous".
New law retains prior law and clarifies that whether a term is conspicuous is determined by
reference to the totality of the circumstances in a given case.
Prior law (R.S. 10:1-201(b)(15)) defined the term "delivery".
New law retains prior law and conforms the reference to chattel paper to the definition of the
term provided in new law (R.S. 10:9-102(a)(11)).
New law (R.S. 10:1-201(b)(15)) provides a definition for the term "electronic".
Prior law (R.S. 10:1-201(b)(21)(c)) defined the term "holder".
New law retains prior law but excludes from the definition of the term "holder" someone
who has control of an electronic document of title by acknowledgment pursuant to new law
(R.S. 10:7-106(g)).
Prior law (R.S. 10:1-201(b)(24)) defined the term "money".
New law retains prior law but excludes from the definition of "money" any medium of
exchange in electronic form.
Prior law (R.S. 10:1-201(b)(27)) defined the term "person".
New law retains prior law and clarifies that the definition of "person" includes a protected
series.
Prior law (R.S. 10:1-201(b)(36)(A)) provided a definition of the term "send", limiting the
appropriateness of sending the communication to "any address reasonable under the
circumstances" to the case of an instrument.
New law retains prior law but eliminates the limitation.
Prior law (R.S. 10:1-201(b)(36)(B)) provided a definition of "send".
New law retains prior law and makes minor changes for grammatical uniformity.
Prior law (R.S. 10:1-201(b)(37)) defined the term "signed".
New law defines the term "sign" as, with present intent to authenticate or adapt a record,
execute or adopt a tangible symbol, or attach to or logically associate with the record an
electronic symbol, sound, or process. New law further clarifies that this definition applies to
alternate forms of the term "sign".
Prior law (R.S. 10:1-204(intro. para.)) specified the portions of Title 10 to which the
description of giving for "value" is inapplicable.
New law retains prior law and adds new Chapter 12 of Title 10 to the list provided in prior
law.
Prior law (R.S. 10:1-301(g)) set out a list of exceptions to the general rule for territorial
applicability and parties' power to choose applicable law.
New law retains prior law and adds R.S. 10:12-107 to this list of exceptions.
Prior law (R.S. 10:3-104(a)) provided the criteria necessary for an unconditional promise or
order to pay a fixed amount of money to constitute a "negotiable instrument", including that
the promise or order to pay does not include any other undertaking or instruction beyond the
payment of money.
New law retains prior law and clarifies that the inclusion of a choice-of-law or
forum-selection clause does not negate the negotiability of an instrument. New law also
makes technical corrections.
Prior law (R.S. 10:3-105(a)) defined the term "issue".
New law expands prior law to include the electronic transmission of an image of and
information derived from the instrument if agreed by the payee.
Prior law (R.S. 10:3-401) provided that a signature is necessary for liability on an instrument
and specifies how a signature may be made.
New law retains prior law and deletes the description of how a signature may be made as
redundant.
Prior law (R.S. 10:3-604(a)) provided the manner by which a person entitled to enforce an
instrument may discharge the obligation of a party to pay the instrument.
New law retains prior law and clarifies that the destruction of a check in connection with a
process by which information is extracted from the check and an image is made and
transmitted for payment does not, of itself, discharge the obligation of a party to pay the
check.
Prior law (R.S. 10:4A-103(a)(1)) defined the term "payment order".
New law retains prior law and replaces reference to transmission electronically or in a
writing with reference to transmission in a record.
Prior law (R.S. 10:4A-201) provided relative to a "security procedure".
New law retains and clarifies prior law while expanding the list of examples of a "security
procedure" and specifying that the requirement that a payment order be sent from a known
source does not by itself suffice as a "security procedure".
Prior law (R.S. 10:4A-202(b) and (c)) provided relative to authorized and verified payment
orders.
New law retains and clarifies prior law while making grammatical corrections and replacing
reference to writings with reference to records.
Prior law (R.S. 10:4A-203(a)(1)) provided a rule applicable if an accepted payment order is
not an authorized order but is nevertheless effective as an order of the customer under R.S.
10:4A-202(b).
New law retains prior law and replaces reference to a writing with reference to a record.
Prior law (R.S. 10:4A-207) provided relative to the misdescription of a beneficiary.
New law retains prior law while making technical and grammatical corrections and replacing
reference to a writing with reference to a record.
Prior law (R.S. 10:4A-208(b)(2)) provided relative to the misdescription of an intermediary
bank or a beneficiary's bank.
New law retains prior law, but replaces reference to a writing with reference to a record and
makes technical corrections.
Prior law (R.S. 10:4A-210(a)) provided relative to the rejection of a payment order.
New law retains prior law, but replaces reference to electronic transmission or transmission
in a writing with reference to transmission in a record, and makes grammatical corrections.
Prior law (R.S. 10:4A-211(a) and (d)) provided relative to the cancellation and amendment
of payment orders.
New law (R.S. 10:4A-211(a)) retains prior law and replaces reference to electronic
transmission or transmission in a writing with reference to transmission in a record.
New law (R.S. 10:4A-211(d)) retains prior law and makes grammatical corrections.
Prior law (R.S. 10:4A-305(b) through (d)) provided relative to late or improper execution or
failure to execute payment orders.
New law retains prior law, but replaces reference to a writing with reference to a record and
makes technical corrections.
Prior law (R.S. 10:5-104) set out the formal requirements for a letter of credit, confirmation,
advice, transfer, amendment, or cancellation.
New law retains prior law but eliminates language that is now redundant as subsumed
by the expanded definition of "sign" contained in R.S. 10:1-201(b)(37).
Prior law (R.S. 10:5-116) provided relative to choice of law and forum.
New law (R.S. 10:5-116(a)) retains prior law but eliminates language that is now redundant
as subsumed by the expanded definition of "sign" provided in R.S. 10:1-201(b)(37).
New law (R.S. 10:5-116(b) and (c)) retains prior law and makes technical corrections.
New law (R.S. 10:5-116(d)) retains prior law and adds clarification regarding the location
of a bank branch.
New law (R.S. 10:5-116(e) through (g)) retains prior law and makes technical corrections.
Prior law(R.S. 10:7-106) provided relative to control of an electronic document of title.
New law (R.S. 10:7-106(b)) retains prior law and makes nonsubstantive stylistic evisions.
New law (R.S. 10:7-106(c)) adds to prior law an additional mechanism by which to affect
control of an electronic document of title.
New law (R.S. 10:7-106(d) and (e)) describes when power is considered exclusive.
New law (R.S. 10:7-106(f)) provides for a presumption of exclusivity of power.
New law (R.S. 10:7-106(g)) provides for control through another person.
New law (R.S. 10:7-106(h)) clarifies that a person with control is not required to
acknowledge that it has control on behalf of another person.
New law (R.S. 10:7-106(i)) clarifies that a person who has control on behalf of another
person owes no duties to that person unless agreed otherwise.
Prior law (R.S. 10:8-102(a)(6)) defined the term "communicate".
New law retains prior law and replaces reference to a writing with reference to a record.
Prior law (R.S. 10:8-102(b)) incorporated by reference defined terms appearing elsewhere
throughout Title 10.
New law retains prior law and adds to this list the defined terms "controllable account",
"controllable electronic record", and "controllable payment intangible".
New law (R.S. 10:8-103(h)) provides the circumstances under which a controllable account,
controllable electronic record, or controllable payment constitutes a financial asset.
Prior law (R.S. 10:8-106(d)(3)) provided one means by which a purchaser can obtain
"control" of a security entitlement.
New law conforms the structure of prior law to corresponding provisions for control of other
types of assets while clarifying that an acknowledgment is only effective to confer control
if made by a person other than the transferor of an interest in the security entitlement.
New law (R.S. 10:8-106(h)) clarifies that a person with control of a security entitlement is
not required to acknowledge that it has control on behalf of another person.
New law (R.S. 10:8-106(i)) clarifies that a person who has control of a security entitlement
on behalf of another person owes no duties to that person unless agreed otherwise.
Prior law (R.S. 10:8-110(a) and (b)) provided relative to the governing law of certain matters
and transactions.
New law (R.S. 10:8-110(g)) retains and clarifies that prior law applies even if the matter or
transaction at issue bears no relation to the jurisdiction identified by prior law.
Prior law (R.S. 10:8-303(b)) provided that a protected purchaser both acquires the rights of
a purchaser and acquires its interest in the security free of any adverse claim.
New law retains prior law and deletes reference to the former concept as redundant.
Prior law (R.S. 10:9-102(a)(2)) defined the term "account".
New law retains prior law and revises this definition to conform to the revised definition of
the term "chattel paper" as provided in R.S. 10:9-102(a)(11). New law also clarifies certain
exceptions that accommodate use of the term "account" in other provisions.
Prior law (R.S. 10:9-102(a)(3)) defined the term "account debtor".
New law retains prior law and clarifies that an obligor on a negotiable instrument is not an
account debtor.
Prior law (R.S. 10:9-102(a)) defined the term "accounting".
New law (R.S. 10:9-102(a)(4)(A)) retains prior law and replaces the term "authenticated"
with the term "signed" to account for the replacement of the defined term "sign" in R.S.
10:9-102(a)(7) with the substantially similar defined term "authenticate" in R.S.
10:1-102(b)(37).
Prior law (R.S. 10:9-102(a)(7)) defined the term "authenticate".
New law deletes prior law to account for the replacement of the defined term "sign" in R.S.
10:9-102(a)(7) with the substantially similar defined term "authenticate" in R.S.
10:1-102(b)(37).
New law (R.S. 10:9-102(a)(7.1)) provides a definition for the term "assignee".
New law (R.S. 10:9-102(a)(7.2)) provides a definition for the term "assignor".
Prior law (R.S. 10:9-102(a)(11)) defined the term "chattel paper".
New law revises the prior law definition of "chattel paper" for accuracy and to clarify the
distinction between the right to payment versus the record evidencing that right and regarding
the creation of chattel paper in mixed-purpose contracts. New law also eliminates the need
for separate definitions of "electronic chattel paper" and "tangible chattel paper".
New law (R.S. 10:9-102(a)(27.1)) provides a definition for the term "controllable account".
New law (R.S. 10:9-102(a)(27.2)) provides a definition for the term "controllable payment
intangible".
Prior law (R.S. 10:9-102(a)(42)) defined the term "general intangible".
New law retains prior law and adds controllable electronic records to the illustrative list of
general intangibles.
Prior law (R.S. 10:9-102(a)(47)) defined the term "instrument".
New law retains prior law but excludes from the definition of "instrument" writings that
evidence chattel paper.
New law (R.S. 10:9-102(a)(54.1)) adds a Chapter-specific definition of the term "money"
that excludes deposit accounts.
Prior law (R.S. 10:9-102(a)(61)) defined the term "payment intangible".
New law retains prior law and clarifies that the term "payment intangible" includes a
controllable payment intangible.
Prior law (R.S. 10:9-102(a)(66)) defined the term "proposal".
New law retains prior law and replaces the term "authenticated" with "signed".
Prior law (R.S. 10:9-102(b)) incorporated by reference defined terms appearing elsewhere
throughout Title 10.
New law retains prior law and adds to this list the defined terms "controllable electronic
record", "protected purchaser", and "qualifying purchaser".
Prior law (R.S. 10:9-104(a)) provided the requirements for control of a deposit account.
New law (R.S. 10:9-104(a)(2) and (3)) retains prior law and replaces the term "authenticated"
with "signed".
New law (R.S. 10:9-104(a)(4)) allows for a secured party to obtain control of a deposit
account by virtue of the acknowledgment by another person in control of the deposit account.
Prior law (R.S. 10:9-105) provided relative to control of electronic chattel paper.
New law revises prior law to conform to the new definition of the term "chattel paper"
provided in R.S. 10:9-102(a)(11) and the new concept of control.
Prior law (R.S. 10:9-107.1) provided relative to control over a life insurance policy.
New law retains prior law while adding the concept of control by acknowledgment and
replacing the term "authenticates" with "signs".
Prior law (R.S. 10:9-107.2) provided for the effect on control of an agreement that makes the
exercise of control conditional.
New law retains prior law and extends the applicability of prior law to control pursuant to
R.S. 10:9-107.3.
New law (R.S. 10:9-107.3) provides relative to control over a controllable electronic record,
controllable account, or controllable payment intangible.
New law (R.S. 10:9-107.4(a)) provides that a person with control is not required to
acknowledge that it has control on behalf of another person.
New law (R.S. 10:9-107.4(b)) provides that a person who has control on behalf of another
person owes no duties to that person unless agreed otherwise.
Prior law (R.S. 10:9-203(b)(3)(A)) provided for the enforceability of a security interest if the
debtor has authenticated a security agreement providing a description of the collateral and
has satisfied other conditions.
New law retains prior law and replaces the term "authenticates" with the term "signs".
Prior law (R.S. 10:9-203(b)(3)(D)) provided for the enforceability of a security interest if the
collateral is one of several listed types and the secured party has control over it.
New law (R.S. 10:9-203(b)(3)(D) and (E)) revises the list of types of collateral to include
new categories of assets and manners of gaining control and to conform to the new definition
of "chattel paper" provided in R.S. 10:9-102(a)(11) by requiring both control and possession
pursuant to the debtor's security agreement for the enforceability of a security interest in
chattel paper.
Prior law (R.S. 10:9-204(b)) set out when an after-acquired property clause is not effective.
New law (R.S. 10:9-204(b)(intro para) and (b.1)) retains prior law but sets a limitation on
prior law.
Prior law (R.S. 10:9-207(c)) provided for the rights and duties of a secured party with
possession or control of collateral.
New law retains prior law and updates the list of cross-references contained in prior law and
makes technical corrections.
Prior law (R.S. 10:9-208) provided for additional duties of a secured party with control of
collateral.
New law (R.S. 10:9-208(b)(intro para) and (1)) retains prior law and replaces the term
"authenticated" with "signed" and the term "authenticated statement" with "signed record".
Prior law (R.S. 10:9-208(b)(3)) provided the duties of a secured party with control of
electronic chattel paper.
New law revises prior law to conform to the new definition of the term "chattel paper"
provided in R.S. 10:9-102(a)(11).
Prior law (R.S. 10:9-208(b)(6)) provided the duties of a secured party with control of an
electronic document.
New law revises prior law to conform to changes to the definition of the term "chattel paper"
provided in R.S. 10:9-102(a)(11) and the concept of control of an authoritative electronic
copy of a record evidencing chattel paper provided in R.S. 10:9-105.
New law provides the duties of a secured party with control of a controllable electronic
record.
Prior law (R.S. 10:9-208(b)(7)) provided the duties of a secured party with control in a life
insurance policy.
New law (R.S. 10:9-208(b)(8)) retains and redesignates prior law and replaces the term
"authenticated" with "signed".
Prior law (R.S. 10:9-209(b)) provided for the duties of a secured party after receiving
demand from the debtor.
New law retains prior law while expanding the manner of sufficient notice to conform to
R.S. 10:12-106(b). New law also replaces the term "authenticated" with "signed" and makes
nonsubstantive stylistic changes.
Prior law (R.S. 10:9-210) provided relative to a request for accounting or list of collateral or
statement of account.
New law retains prior law, but replaces the term "authenticated" with "signed" and makes
technical corrections.
Prior law (R.S. 10:9-301) provided relative to the law governing perfection and priority of
security interests.
New law (R.S. 10:9-301(intro para)) retains prior law and updates the list of exceptions to
incorporate cross-reference to R.S. 10:9-306.2.
New law (R.S. 10:9-301(3)(intro para)) updates the list of assets to conform to changes under
New law.
Prior law (R.S. 10:9-304(a)) provided that the law that governs perfection and priority of a
security interest in a deposit account is the law of the bank's jurisdiction.
New law retains prior law and clarifies that this rule applies even if the transaction at issue
bears no relation to the bank's jurisdiction.
Prior law (R.S. 10:9-305(a)) provided general rules regarding the law governing perfection
and priority of security interests in investment property.
New law (R.S. 10:9-305(a)(intro para)) retains prior law and makes technical corrections.
New law (R.S. 10:9-305(a)(5)) retains prior law and clarifies that provisions of prior law
apply even if the transaction a