This bill proposes comprehensive amendments to the Minnesota Uniform Commercial Code (UCC) to modernize the legal framework governing commercial transactions, particularly in light of emerging technologies. Key insertions include new definitions such as "electronic," which pertains to technology with electrical or digital capabilities, and "hybrid transaction," which differentiates between the sale-of-goods aspects and other components of a transaction. The bill also updates terminology, replacing "writing" with "record" to broaden the scope of acceptable documentation for contracts. Additionally, it clarifies the conditions under which contracts can be enforced, particularly regarding specially manufactured goods and lease agreements, while also addressing the implications of contract cancellation and termination.

The bill also includes significant deletions aimed at streamlining the language and enhancing clarity within the UCC. Outdated references are removed, and the language surrounding the scope of transactions is simplified. Notably, the amendments introduce new provisions related to the control of electronic money and records, as well as the perfection and priority of security interests in collateral. The bill emphasizes the importance of clear notifications and documentation processes, ensuring that all parties involved in secured transactions are adequately informed of their rights and obligations. Overall, these changes aim to ensure that Minnesota's commercial laws remain relevant and effective in a rapidly evolving business environment.

Statutes affected:
Introduction: 336.1, 336.2, 336.2A, 336.3, 336.4A, 336.5, 336.7, 336.8, 336.9