Part I.
Adds new Article 12, pertaining to Controllable Electronic Records, to GS Chapter 25 (the Uniform Commercial Code). Sets forth eleven defined terms.  Specifies that GS Chapter 25, Article 9 (pertaining to secured transactions) prevails if there is a conflict between Article 12 and that article.  
Applies new Article 12 to the acquisition and purchase of rights in a controllable account (defined) or controllable payment intangible (defined) of a purchaser and qualifying purchaser in the same way that the section applies to a controllable electronic record (defined). Sets forth rules to determine whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser. Provides for a shelter principle and purchase of limited interest; the rights of a qualifying purchaser in a controllable electronic record; a limitation of rights of the qualifying purchaser in other property; rules for notice; limitation on filing of an action related to a qualifying purchaser’s purchaser of a controllable electronic record; a general rule for control of a controllable electronic record, including through control of another person; and discharge of an account debtor on a controllable account or controllable payment intangible by paying certain persons.
Provides for rules for governing law, jurisdiction, citation and construction, including consumer laws.
Part II.
Makes technical, clarifying and organizational changes to the definitions set forth in GS 25-9-102 and conforming changes to account for new GS Chapter 25, Article 12 and removal of defined term authenticate. Adds new terms assignee, assignor, beneficiary, control, controllable account, money, electronic money, tangible money, protected purchaser, qualified purchaser. Modifies terms account and chattel paper. Removes defined terms authenticate, electronic chattel paper, send in connection with a record or notification, tangible chattel paper. Adds fourth category of exceptions (writings that evidence chattel paper) to defined term instrument.
Amends GS 25-9-104 (pertaining to control of deposit accounts) to increase the instances that would show that a secured party has control of a deposit account from three to four. Makes technical and conforming changes to account for removal of defined term authenticated.
Amends title of GS 25-9-105 to now pertain to control of electronic copy of record evidencing chattel paper (currently control of electronic chattel paper). Establishes a general rule for purchaser control of that electronic copy, including system requirements for one administrative copy along with one or more administrative copies.  
Creates new GS 25-9-105.1, pertaining to control of electronic money, whether by one person, shared control, or control through another person.
Creates new GS 25-9-107.1 pertaining to control of controllable electronic records, controllable accounts, or controllable payment intangible by secured parties.
Creates new GS 25-9-107.2, establishing instances, including when a person has control under GS 25-9-104 (deposit accounts), GS 25-9-105 (electronic copies of records evidencing chattel paper), or GS 25-9-105.1 (electronic money) where no duty or requirement to acknowledge such control exists.
Amends GS 25-9-203, pertaining to attachment and enforceability of security interests, proceeds, including supporting obligations and formal requisites, as follows. Increases the conditions where a security interest is enforceable to include instances involving chattel paper where the secured party has possession and control pursuant to the debtor’s security agreement. Makes technical and conforming changes to account for changes to defined terms, discussed above and new statutes.
Amends GS 25-9-204 (pertaining to after acquired property) to set forth three instances when the statute does not prevent a security interest from attaching. Makes technical changes.
Amends GS 25-9-208 (additional duties of secured party having control of collateral) to set forth additional duties pertaining to control of: (1)  authoritative electronic copies of a record evidencing chattel paper and (2) authoritative electronic copies of an electronic document. Makes technical and conforming changes to account for new statutes and amended definitions. 
Makes technical changes, organizational changes, and conforming changes to GS 25-9-209 (pertaining to the duties of a secured party if the account debtor has been notified of assignment) to account for amended definitions and new statutes.  
Provides that the local law of a bank’s jurisdiction governs perfection and priority of security interests in deposit accounts under GS 25-9-304 (low governing perfection and priority of security interests) even if the transaction does not bear any relation to the bank’s jurisdiction.  Makes technical changes. 
Provides that when a local law governs perfection, the effect of perfection or nonperfection, and the priority of a security interest under GS 25-9-305 in uncertified securities, security entitlement or securities accounts, or a commodity contract/account even if the transaction does not bear any relation to the jurisdiction.  Makes technical changes.  
Adds new GS 25-9-306.1 (pertaining to the law governing perfection and priority of security interests in chattel paper) and GS 25-9-306.2 (pertaining to the law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles). 
Amends GS 25-9-312 (perfection of security interest in certain types of documents) to set forth a rule of perfection for a security interest in electronic money. Makes technical and conforming changes.
Adds new GS 25-9-314.1 (pertaining to perfection by possession and control of chattel paper).
Amends GS 25-9-316 (effect of change in governing law) to include chattel paper and controllable electronic records in rules governing changes of jurisdiction.  Makes technical and conforming changes. 
Amends GS 25-9-317 (interests that take priority over or take free of security interest or agricultural lien) as follows. Sets forth instances when buyers of electronic documents, controllable electronic records, and controllable accounts and controllable payment intangibles take free of a security interest, which trump the statute’s general rule pertaining to when buyers of certain collateral take free of a security interest. Makes technical and conforming changes.
Amends GS 25-9-323 (pertaining to future advances) to remove exceptions for buyers and lessees of goods in the ordinary course of business in instances where those persons takes the interest free of a security interest.  Makes technical and conforming changes. 
Adds new GS 25-9-326.1 (pertaining to priority of security interest in controllable account, controllable electronic record, and controllable payment intangible).
Amends rules pertaining to purchaser of chattel paper’s priority over (1) a security interest in the chattel paper claimed merely as proceeds of inventory subject to a security interest and (2) a security interest in the chattel paper claimed other than merely as proceeds of inventory subject to a security interest under GS 25-9-330.  Makes technical, clarifying, and conforming changes.
Amends rules pertaining to transfer of tangible money, electronic money, and transfers of funds from deposit accounts under GS 25-9-332. Makes technical and conforming changes.
Amends GS 25-9-406 (pertaining to discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective) to specify that its sections on (1) discharge of an account debtor, (2) the effect of notification, (3) rules governing when notifications are ineffective, (4) proof of assignment, and (5) provision stating that an account debtor may not waive or vary its option to certain forms of notice asking for less than the full amount of the installment or other periodic payment to assignee, do not apply to a controllable account or controllable payment intangible.  Makes technical and conforming changes. 
Specifies that promissory note includes a negotiable instrument that evidences chattel paper in GS 25-9-408 (pertaining to restrictions on assignments of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective).  Makes technical and conforming changes. 
Makes technical, clarifying, and conforming changes to GS 25-9-207 (pertaining to the rights and duties of a secured party having possession or control of collateral); GS 25-9-210 (pertaining to requests for accounting); GS 25-9-301 (law governing perfection and priority of security interests); GS 25-9-310 (pertaining to when filing is required to perfect security interest or agricultural lien); GS 25-9-313 (pertaining to when possession by or delivery to secured party perfects a security interest without filing);  GS 25-9-314 (perfection by control); GS 25-9-324 (priority of purchase-money security interests); GS 25-9-331 (priority rights and priority interests); GS 25-9-334 (priority of security interests in fixtures and crops); GS 25-9-341 (pertaining to a bank’s rights and duties with respect to a deposit account); GS 25-9-404 (pertaining to rights acquired by assignee and claims and defenses against an assignee); and GS 25-9-509 (persons entitled to file a record). 
Amends GS 25-9-513 as follows. Requires a demand from a debtor to be signed instead of authenticated.
Amends GS 25-9-601 by adding to the list of statutes under which a secured party in possession of collateral or control of collateral has rights and duties as provided under GS 25-9-207 (rights and duties of secured party having possession or control of collateral).
Amends GS 25-9-605 which sets out when a secured party does not owe a duty based on its status as a secured person, by adding an exception that sets out when a secured party owes a duty. 
Amends GS 25-9-608 to require a demand be signed instead of authenticated.
Amends GS 25-9-611 to require the notification of disposition be signed instead of authenticated.
Amends GS 25-9-613 by modifying the content of the statutory form for “Notification of Disposition of Collateral.” Sets out instructions for completing the form.
Amends GS 25-9-614 by modifying the content of the statutory form for “Notice of Our Plan to Sell Property.” Sets out instructions for completing the form.
Amends GS 25-9-615 to require that a demand for proceeds be signed instead of authenticated.
Amends GS 25-9-616 by amending the definition of “request” so that it applies to records that have been signed instead of authenticated. Amends the options available when a debtor is entitled to a surplus or a consumer obligor is liable for a deficiency, to include requiring the secured party send an explanation after the disposition and before or when the secured party accounts to the debtor and pays any surplus or first makes demand in a record (was, makes written demand) on the consumer obligor after the disposition for payment of the deficiency, or within 14 days after receipt of a request. Changes references to a writing to an explanation.
Requires that transfer statements under GS 25-9-619 be signed instead of authenticated. 
Requires that the following documents under GS 25-9-620 concerning (acceptance of collateral in full or partial satisfactions of obligations) be signed instead of authenticated: (1) notification of objection to the proposal; (2) consent of the secured party of the acceptance of collateral; (3) agreement of the debtor of the terms of the acceptance of collateral in partial satisfaction of the debt signed after default; (4)  agreement of the debtor of the terms of the acceptance of collateral in full satisfaction of the debt signed after default when the listed conditions apply.
Amends GS 25-9-621 to require that a notification of a claim of an interest in the collateral be signed instead of authenticated.
Amends GS 25-9-624 to require that a waiver of disposition notification, waiver of mandatory disposition, and waiver of redemption right be signed instead of authenticated.
Amends GS 25-6-628 by adding in an exception to the limitation of liability under the statute.
Part III.
Amends GS 25-1-201, which sets out definitions that apply to GS Chapter 25, by amending the definition of conspicuous, delivery, holder, person, send, and signed. Amends the definition of money so that it excludes from an electronic record that is a medium of exchange recorded and transferable in a system that existed and operated for the medium of exchange before the medium of exchange was authorized or adopted by the government. Adds and defines the term electronic.
Makes conforming changes to account for new Article 12.
Amends GS 25-1-306 to refer to a signed record instead of an authenticated record.
Requires that the Revisor of Statutes redesignate subunits and make any necessary conforming changes in sections of Article 2 and 2A of GS Chapter 25 that are not amended by this act.
Amends GS 25-2-102 by amending the scope of Article 2, Sales.
Adds to the defined terms in GS 25-2-103: contract for sale, and cover.
Amends GS 25-2-106 by adding a definition of the term hybrid transaction.
Amends GS 25-2-201 to refer to a record of a contact instead of a writing. Makes conforming changes to GS 25-2-203, GS 25-2-205, and GS 25-2-209.
Amends GS 25-2-202 to refer to a record, instead of a writing, of a final expression of an agreement between parties.
Amends GS 25-2A-102 by amending the Scope of Article 2A, Leases, to include a hybrid lease.
Amends the definitions for Article 2A under GS 25-2A-103 by adding and defining by cross-reference the terms chattel paper, hybrid lease, and purchase money lease.
Amends GS 25-2A-107 to allow discharge of a claim or right arising out of an alleged default or breach of warranty by a waiver or renunciation in a signed record (was, signed and written) delivered by the aggrieved party. 
Makes changes throughout statutes in Articles 2A and 4A by referring to records instead of writings.
Amends GS 25-3-104 by amending the conditions to be met in order for a promise or order to be considered a negotiable instrument.
Amends GS 25-3-105, concerning issue of instrument, by including as “issue,” if agreed by the payee, the first transmission by the drawer to the payee of an image of an item and information derived from the item that enables the depository bank to collect the item by transferring or presenting under federal law an electronic check.
Amends GS 25-3-401, concerning signatures necessary for liability on an instrument, by removing the ways in which the signature may be made.
Amends GS 25-3-604 by adding that the obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.
Amends the definitions that apply to Article 4A (Funds Transfers) under GS 25-4A-103 by removing from the definition of payment order, one that is submitted electronically.
Amends GS 25-4A-201 to provide that a security procedure may impose an obligation on the receiving bank or the customer and may require the use of algorithms or other codes, identifying words, numbers, symbols, sounds, biometrics, encryption, call-back procedures, or similar security devise. Also provides that requiring a payment order to be sent from a known email address, or telephone number is not by itself a security procedure.
Amends GS 25-4A-202 to require that payment orders be accepted and processed according to the bank’s obligations.
Amends GS 25-4A-210 to allow a payment order to be rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record (was, orally, electronically, or in writing).
Amends GS 25-4A-211 to allow a communication of the sender of a payment order cancelling or amending the order to be transmitted orally or in a record (was, orally, electronically, or in writing).
Changes the requirement under GS 25-4A-305(c)and (d) (liability for late or improper execution or failure to execute payment order) that recovery of additional damages must be provided for in an express written agreement of the receiving bank to an express agreement of the receiving bank, evidenced by a record.
Amends GS 25-5-104 to allow a letter of credit, confirmation, advice, transfer, amendment, or cancellation to be issued in any form that is a signed record (was, record that is authenticated by signature or in accordance with the agreement of the parties or the standard practice).
Amends GS 25-5-116, concerning choice of law and forum by adding that a branch of a bank is considered to be located at the address indicated in the branch’s undertaking and specifies how to determine the branch location when more than one address is indicated.
Amends GS 25-7-106, concerning the control of electronic document of title, as follows. Adds requirements to be met in order for a system to have satisfied the statute and a person to have control of an electronic document of title. Also sets out conditions under which a person has exclusive power. Provides that a power of a person is not shared with another person and the person’s power is no exclusive if the specified conditions apply. Gives a person control of an electronic document of title even if another person has control of the document, in specified circumstances.
Amends the definition of terms used in Article 8, Investment Securities, in GS 25-8-102 by adding and defining by cross-reference the terms controllable account, controllable electronic record, and controllable payment intangible.
Amends GS 25-8-103 by adding that a controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless the following applies: any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset.
Amends GS 25-8-106 by amending the conditions under which a purchaser is considered to have control of a security entitlement. Adds provisions related to a person’s acknowledgment that they have control.
Amends GS 25-8-110 by adding when the local law of the issuer’s jurisdiction or the securities intermediary’s jurisdiction governs a specified matter or transaction.
Makes additional technical and conforming changes .
Part IV.
Amends the definitions in GS 44A-40, applicable to Article 4 (Self-Service Storage Facilities) by amending the definition of independent bidder, and owner.
Part V.
Sets out transitional provisions for UCC Amendments, including definitions to be used in Part V.
Provides that unless specified elsewhere, amended GS Chapter 25 Articles 9 and 12 apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before this act’s effective date.
Provides for the continuing validity of transactions, liens, or interests in property that were entered into, created or transferred before the act’s effective date and that were not previously gover